Continues Momentum with 6% Sequential Growth in Recurring Revenue
OTTAWA, Nov. 08, 2018 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in smart mobile forms for enterprise, today announced its third quarter (Q3) financial results for the three and nine months ended September 30, 2018.
NOTE THE COMPANY COMMENCED REPORTING IN US DOLLARS JANUARY 1, 2018.
“In the 3rd quarter, we recorded 24% year over year growth in recurring revenue and 6% over Q2. Our rebounding growth in recurring revenue is a result of strong sales results combined with reduced overall churn and allowed us to make continued progress in reducing our operating loss,” said Alvaro Pombo, CEO of ProntoForms. “We also had higher revenue and margins in our professional services practice, as we worked on new enterprise deployments of ProntoForms.”
“The need for our platform continues to grow in large enterprises. IT and the business process owners want low-code solutions that gives them the agility to mobilize field processes with true enterprise grade management, scalability, security, and cloud integrations. Our strategy continues to be focused at engaging larger enterprise accounts, which typically provide longer committed contracts and future expansion opportunities. Our Annual Recurring Revenue (“ARR”) base now includes 14 customers that contribute more than $100,000 of ARR each, representing 24% of the base, up significantly from last year. In addition, we are driving new business with key channel partners that are bringing enterprise opportunities.”
Financial Highlights – 2018 Third Quarter – Presented in US dollars
- Recurring revenue in Q3 2018 increased by 24% to $2,780,814, compared to $2,246,331 in Q3 2017, and increased by 6% compared to $2,624,680 in Q2 2018
- Recurring revenue consisted of non-operator channel recurring revenue of $2,085,501 (40% growth vs. Q3 2017 and 10% growth vs. Q2 2018) and operator channel recurring revenue of $695,313 (9% decrease vs. Q3 2017 and a 5% decrease vs Q2 2018)
- Total revenue for Q3 2018 increased by 30% to $3,177,846 compared to $2,437,727 in Q3 2017, and increased by 9% compared to $2,906,166, in Q2 2018
- Gross margin for Q3 2018 was 81% of total revenue compared to 81% in Q3 2017 and 83% in Q2 2018. Gross margin on recurring revenue was 88% for Q3 2018 compared to 90% for Q3 2017 and 88% in Q2 2018
- Operating loss for Q3 2018 was $510,975, down from a loss of $820,856 in Q3 2017, and down from a loss of $627,069 in Q2 2018
- Net loss for Q3 2018 was $642,066, down from a net loss of $1,038,421 in Q3 2017, and down from a net loss of $673,814 in Q2 2018
- Comprehensive loss for Q3 2018 was $620,996, down from a comprehensive loss of $903,340 in Q3 2017, and $707,809 in Q2 2018
- As at September 30, 2018, the Company’s cash and net working capital balances were $3,854,543 and $2,666,192 respectively
Recent Operational Highlights
- Q3 key enterprise customer progress includes:
- Global airline committed to deploy ProntoForms to improve operations
- Global 500 manufacturer expands ProntoForms deployment into Europe
- Multi-national medical device company surpasses $400k of purchased professional services in 2018
- $1B+ oil & gas exploration company adds ProntoForms to improve operations and safety
- ProntoForms named Market Leader in Field Service Management Software by Featured Customers:
https://www.featuredcustomers.com/customer_success_report/fall-2018-field-service
About ProntoForms Corporation
ProntoForms is a leading provider of smart mobile forms for enterprise. The Company's solution is used to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to corporate 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, the lead flow the Company may receive from its partnering strategy 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, its partnering strategy may not generate increasing lead flow or maintain current lead flow levels 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 16, 2018 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 September 30, 2018 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 Comprehensive Loss | |||||||
| For the three and nine months ended September 30, 2018 and 2017 | |||||||
| (Unaudited in US dollars) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2018 | 2017 | 2018 | 2017 | ||||
| $ | $ | $ | $ | ||||
| Revenue | |||||||
| Recurring revenue | 2,780,814 | 2,246,331 | 7,900,562 | 6,614,954 | |||
| Professional and other services | 397,032 | 191,396 | 931,997 | 583,887 | |||
| 3,177,846 | 2,437,727 | 8,832,559 | 7,198,841 | ||||
| Cost of Revenue | |||||||
| Recurring revenue | 338,029 | 232,881 | 909,865 | 635,283 | |||
| Professional and other services | 261,886 | 225,835 | 683,005 | 652,540 | |||
| 599,915 | 458,716 | 1,592,870 | 1,287,823 | ||||
| Gross Margin | 2,577,931 | 1,979,011 | 7,239,689 | 5,911,018 | |||
| Expenses | |||||||
| Research and development | 1,046,828 | 967,915 | 3,130,861 | 2,788,619 | |||
| Selling and marketing | 1,415,250 | 1,269,579 | 4,228,203 | 3,717,076 | |||
| General and administrative | 626,828 | 562,373 | 1,795,370 | 1,698,950 | |||
| 3,088,906 | 2,799,867 | 9,154,434 | 8,204,645 | ||||
| Loss from operations | (510,975) | (820,856) | (1,914,745) | (2,293,627) | |||
| Foreign exchange gain (loss) | (57,427) | (75,901) | 78,889 | (148,488) | |||
| Interest and accretion | (87,558) | (119,499) | (253,973) | (288,441) | |||
| Change in fair value of derivative liability | 13,894 | (22,165) | (1,214) | (73,830) | |||
| Net loss | (642,066) | (1,038,421) | (2,091,043) | (2,804,386) | |||
| Other Comprehensive loss | |||||||
| Foreign currency translation adjustment | 21,070 | 135,081 | (60,585) | 215,464 | |||
| Total comprehensive loss | (620,996) | (903,340) | (2,151,628) | (2,588,922) | |||
| Net loss per common share | |||||||
| basic and diluted | (0.01) | (0.01) | (0.02) | (0.03) | |||
| Weighted average number of common shares | |||||||
| basic and diluted | 107,766,859 | 107,418,744 | 107,766,859 | 97,009,666 | |||
| Share-based compensation included in accounts: | |||||||
| Cost of revenue | 8,894 | 7,728 | 27,345 | 23,065 | |||
| Research and development | 15,699 | 16,053 | 50,458 | 54,182 | |||
| Selling and marketing | 23,644 | 38,334 | 81,177 | 124,242 | |||
| General and administrative | 39,505 | 69,898 | 118,201 | 209,978 | |||
| 87,742 | 132,013 | 277,181 | 411,467 | ||||
| ProntoForms Corporation | |||
| Condensed Interim Consolidated Statements of Financial Position | |||
| as at September 30, 2018, December 31, 2017, and January 1, 2017 | |||
| (Unaudited in US dollars) | |||
| September 30, | December 31, | January 1, | |
| 2018 | 2017 | 2017 | |
| $ | $ | $ | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 3,854,543 | 5,074,489 | 2,875,715 |
| Accounts receivable | 1,144,060 | 1,030,803 | 787,394 |
| Investment tax credits receivable | 167,027 | 239,130 | 96,952 |
| Unbilled receivables | 202,856 | 111,017 | 63,911 |
| Related party loan receivable | 83,006 | 85,649 | 80,030 |
| Prepaid expenses and other receivables | 507,106 | 491,584 | 347,631 |
| 5,958,598 | 7,032,672 | 4,251,633 | |
| Property, plant and equipment | 310,147 | 314,920 | 333,664 |
| Intangible assets | - | 7,419 | 43,689 |
| 6,268,745 | 7,355,011 | 4,628,986 | |
| Liabilities | |||
| Current liabilities | |||
| Accounts payable and accrued liabilities | 1,704,283 | 1,596,036 | 1,136,314 |
| Deferred revenue | 1,588,123 | 998,117 | 480,866 |
| Long-term debt - current portion | — | — | 651,409 |
| Derivative liability - current portion | — | — | 614,948 |
| 3,292,406 | 2,594,153 | 2,883,537 | |
| Long-term debt | 2,515,615 | 2,484,574 | 1,228,338 |
| Derivative liability | 249,800 | 275,361 | 114,863 |
| 6,057,821 | 5,354,088 | 4,226,738 | |
| Shareholders' equity | |||
| Share capital | 20,864,593 | 20,721,783 | 16,972,146 |
| Contributed Surplus | 976,957 | 738,395 | — |
| Share-based payment reserve | 3,315,487 | 3,096,669 | 2,562,362 |
| Warrant reserve | 1,088,268 | 1,326,830 | 1,081,667 |
| Deficit | (26,246,066) | (24,155,023) | (20,293,094) |
| Accumulated other comprehensive income (loss) | 211,685 | 272,270 | 79,167 |
| 210,924 | 2,000,923 | 402,248 | |
| 6,268,745 | 7,355,011 | 4,628,986 | |
| ProntoForms Corporation | ||
| Condensed Interim Consolidated Statements of Cash Flows | ||
| For the nine months ended September 30, 2018 and 2017 | ||
| (Unaudited in US dollars) | ||
| 2018 | 2017 | |
| $ | $ | |
| Net inflow (outflow) of cash related to the following activities: | ||
| Cash flow from operating activities | ||
| Net loss | (2,091,043) | (2,804,386) |
| Items not affecting cash | ||
| Share-based compensation | 277,181 | 411,467 |
| Accretion on long-term debt | 107,238 | 120,787 |
| Change in fair value of derivative liability | 1,214 | 73,830 |
| Amortization of property, plant and equipment | 95,948 | 86,571 |
| Amortization of intangible asset | 7,416 | 32,367 |
| Changes in non-cash operating working capital items | 542,762 | 151,935 |
| (1,059,284) | (1,927,429) | |
| Cash flow from financing activities | ||
| Proceeds from long-term debt | - | 751,300 |
| Issuance costs related to long-term debt | - | (549) |
| Proceeds from private placement units | - | 4,343,406 |
| Payment of costs related to issuing of units | - | (318,038) |
| Scheduled payments of 2012 derivative liability | - | (486,967) |
| Proceeds from the exercise of warrants | - | 86,609 |
| Proceeds from the exercise of options | 84,447 | 183,689 |
| 84,447 | 4,559,451 | |
| Cash flow from investing activities | ||
| Purchase of property, plant and equipment | (100,093) | (62,287) |
| (100,093) | (62,287) | |
| Effect of Exchange Rate Changes on Cash | (145,016) | 433,863 |
| Net cash inflow (outflow) | (1,219,946) | 3,003,598 |
| Cash and cash equivalents, beginning of year | 5,074,489 | 2,875,715 |
| Cash and cash equivalents, end of period | 3,854,543 | 5,879,313 |