ProntoForms Reports Q1 2021 Financial Results

Achieves 9% annual growth in recurring revenue over Q1 2020


OTTAWA, May 06, 2021 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its first quarter (Q1) financial results for the period ended March 31, 2021.

“We are pleased to report that our Annual Recurring Revenue Base (ARR) increased by 4.7% to $17.9 million. In spite of COVID-19’s continued impact on some of our customers’ industries, our overall customer usage continues to be resilient—customers with more than $100,000 of ARR each represented 40% of that base, up from 37% a year ago—demonstrating that our platform is utilized for essential business processes,” said Alvaro Pombo, Founder and Chief Executive Officer.

Mr. Pombo continued, “In Q1 we saw steady growth in bookings, continued enterprise expansion, increased customer term commitment, and further investment in both our key verticals and sales team. Our strengthened balance sheet and revenue base give us leverage to increase adoption and usage of our powerful mobile solution by frontline workers in our key verticals.”

Terence Matthews, Chairman of ProntoForms said, “The addition of Scott Berg, former CEO of ServiceMax and current Managing Director at 10X CEO, strengthens our board and adds more enterprise field automation go-to-market knowledge.”

Financial Highlights – 2021 First Quarter

  • Recurring revenue in Q1 2021 increased by 9% to $4.31 million compared to $3.94 million in Q1 2020, and remained flat compared to $4.31 million in Q4 2020.
  • Total revenue for Q1 2021 increased by 9% to $4.61 million compared to $4.24 million in Q1 2020, and decreased by 2% compared to $4.71 million in Q4 2020.
  • Gross margin for Q1 2021 was 85% of total revenue compared to 85% in Q1 2020 and 85% in Q4 2020. Gross margin on recurring revenue was 91% for Q1 2021 compared to 92% in Q1 2020 and 91% in Q4 2020.
  • Operating loss for Q1 2021 was $1.07 million, up from an operating loss of $0.24 million in Q1 2020 and up from an operating loss of $0.57 million in Q4 2020.
  • Net loss for Q1 2021 was $1.10 million, up from a net loss of $0.17 million in Q1 2020 and up from a net loss of $0.92 million in Q4 2020.
  • As at March 31, 2021, ProntoForms’ cash and net working capital balances were $8.19 million and $4.43 million respectively, compared to $7.75 million and $5.10 million as at December 31, 2020.

Recent Operational Highlights

  • Notable new and expansion progress from enterprise customers, including:
    • A global oil and gas enterprise expanded their ProntoForms deployment for a three-year agreement with 400 subscriptions. The deployment of ProntoForms improves their safety compliance workflows.
    • A global medical manufacturing organization expanded their deployment of ProntoForms to over 1,300 additional subscriptions on a three-year agreement. They integrate ProntoForms with a leading field service management system.
    • A global energy enterprise customer deployed ProntoForms to over 100 technicians to remove paper from the field and to reduce risks in data collection during propane inspections. Their technicians can now perform more efficient inspections and make informed decisions on-site.
    • A global medical brand that manufactures sophisticated healthcare equipment deployed ProntoForms in a staged roll-out to over 800 field technicians. The organization uses ProntoForms for multiple use cases, including administering preventative maintenance, mandating FDA compliance, and completing inspections.
  • ProntoForms was featured in both the Magic Quadrant for LCAP and Gartner’s Voice of the Customer report for LCAP.
  • ProntoForms’ Salesforce partnership was further strengthened by a new Salesforce AppExchange test drive functionality as well as the upcoming release of the AppExchange trial.

Q1 Conference Call Date:
Date: Thursday, May 6th, 2021
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 53560936

Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 560936 #
Expiry Date: Thursday, May 13th, 2021 at 11:59pm EST

About ProntoForms Corporation
ProntoForms is the global leader in field-focused low-code application platforms for enterprise. The Company's solution is used to create apps and forms to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to enterprise systems of record. 

The Company’s 100,000+ subscribers harness the intuitive, secure, and scalable solution to increase productivity, improve quality of service, and mitigate risks. The Company is based in Ottawa, Canada, and trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.

For additional information, please contact:

Alvaro Pombo
Chief Executive Officer
ProntoForms Corporation
613.599.8288 ext. 1111
apombo@prontoforms.com
Babak Pedram
Investor Relations
Virtus Advisory Group Inc.
416-644-5081
bpedram@virtusadvisory.com

Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, expected increase in adoption and usage of the Company’s products, the revenues anticipated to be received by the Company from recent contracts referred to above and anticipated market trends are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company’s business and value may not grow as anticipated or at all, product adoption and usage may not increase as expected or could decrease, revenue anticipated from contracts may not be received due to many risks, including factors specific to the customer, and anticipated market trends may not occur or continue. Historical growth levels and results may not be indicative of future growth levels or results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. There are a number of risk factors that could cause future results to differ materially from those described herein. Please see “Risk Factors Affecting Future Results” in the Company’s annual management discussion and analysis dated March 10, 2021 found at www.sedar.com for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the quarter ended March 31, 2021 for a description of how the Company determines and uses ARR. ARR is a key performance indicator used by the Company and is not meant as an indication such amounts will necessarily be included in revenues in any given fiscal year.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



PRONTOFORMS CORPORATION      
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss  
       
For the three months ended March 31, 2021 and 2020     
(in US dollars)      
       
   March 31,   March 31, 
   2021   2020 
       
Revenue:     
 Recurring revenue$4,306,308  $3,941,955 
 Professional and other services 307,155   300,759 
   4,613,463   4,242,714 
       
Cost of revenue (1):     
 Recurring revenue 393,829   321,800 
 Professional and other services 281,935   297,971 
   675,764   619,771 
       
Gross margin 3,937,699   3,622,943 
       
Expenses:     
 Research and development (1) 1,811,424   1,181,367 
 Selling and marketing (1) 2,299,800   1,866,069 
 General and administrative (1) 893,451   813,461 
   5,004,675   3,860,897 
       
Loss from operations (1,066,976)  (237,954)
       
Foreign exchange (loss) gain (9,672)  166,917 
Finance costs (28,164)  (96,908)
       
Net loss and comprehensive loss$(1,104,812) $(167,945)
       
Net loss and comprehensive loss per common share     
 basic and diluted$(0.01) $(0.00)
       
Weighted average number of common shares     
 basic and diluted 124,499,218   117,427,901 
       
(1) Amounts include share-based compensation expense as follows:   
       
Cost of revenue$865  $21,454 
Research and development 50,077   27,591 
Selling and marketing 26,246   40,888 
General and administrative 85,349   58,266 
Total share-based compensation expense$162,537  $148,199 



PRONTOFORMS CORPORATION   
Condensed Interim Consolidated Statements of Financial Position   
       
March 31, 2021 and December 31, 2020     
(in US dollars)     
       
   March 31,   December 31, 
   2021   2020 
       
Assets     
       
Current assets:     
 Cash and cash equivalents$8,186,691  $7,747,542 
 Accounts receivable 2,544,870   3,333,139 
 Investment tax credits receivable 138,312   117,092 
 Unbilled receivables 278,687   235,518 
 Related party loan receivable 85,445   84,392 
 Prepaid expenses and other receivables 1,149,843   738,415 
 Contract acquisition costs 192,864   214,583 
   12,576,712   12,470,681 
       
Property, plant and equipment 386,514   407,522 
Contract acquisition costs 62,120   28,950 
Right-of-use asset 594,114   657,771 
       
  $13,619,460  $13,564,924 
       
Liabilities and Shareholders' Equity   
       
Current liabilities:     
 Accounts payable and accrued liabilities$2,399,485  $2,434,376 
 Deferred revenue 5,458,287   4,657,581 
 Lease obligation - current portion 286,920   274,312 
   8,144,692   7,366,269 
       
Long-term debt 3,267,345   3,219,484 
Lease obligations 417,374   486,302 
   11,829,411   11,072,055 
       
Shareholders' equity:     
 Share capital 29,049,030   28,342,861 
 Contributed surplus 864,907   864,907 
 Share-based payment reserve 3,202,771   3,506,948 
 Warrant reserve -   - 
 Deficit (31,511,094)  (30,406,282)
 Accumulated other comprehensive income 184,435   184,435 
   1,790,049   2,492,869 
       
  $13,619,460  $13,564,924 



PRONTOFORMS CORPORATION        
Condensed Interim Consolidated Statements of Cash Flows     
        
For the three months ended March 31, 2021 and 2020   
(in US dollars)        
        
    March 31,   March 31, 
    2021   2020 
        
Cash provided by (used in):     
        
Operating activities:     
 Net loss$(1,104,812) $(167,945)
 Items not involving cash:     
  Share-based compensation 162,537   148,199 
  Accretion on long-term debt -   44,620 
  Accretion on lease obligations 9,953   12,456 
  Accretion of transaction costs 7,045   - 
  Change in fair value of derivative liability -   583 
  Amortization of property, plant and equipment 40,761   40,300 
  Amortization of right-of-use asset 63,657   63,657 
  Unrealized foreign exchange (gains) losses 12,403   (211,682)
 Other finance costs 21,119   51,705 
 Interest paid (23,999)  (52,206)
 Interest received 2,880   501 
 Lease interest paid (9,953)  (12,456)
 Changes in non-cash operating working capital items 1,066,816   744,919 
    248,407   662,651 
        
Financing activities     
 Payment of lease obligations (64,923)  (59,750)
 Settlement of derivative liability -   (16,617)
 Proceeds from the exercise of options 239,455   6,200 
    174,532   (70,167)
        
Investing activities     
 Purchase of property, plant and equipment (19,753)  (12,904)
    (19,753)  (12,904)
        
Effect of exchange rate changes on cash 35,963   (108,988)
        
Increase in cash 439,149   470,592 
        
Cash and cash equivalents, beginning of period 7,747,542   5,700,003 
        
Cash, end of period$8,186,691  $6,170,595