OTTAWA, May 09, 2019 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in smart mobile forms for enterprise, announced today its first quarter (Q1) financial results for the period ended March 31, 2019.

“We are pleased to report that Q1 was another strong quarter with solid recurring revenue growth, continued reduction in losses and more enterprise expansion. Recurring revenue grew by 7% sequentially following 6% sequential growth in Q4 2018. This growth came through both direct sales engagements and partners.” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms. “Our Annual Recurring Revenue (ARR) Base grew 26% over the last year to reach $13.1 million at March 31, 2019. Customers with more than $100,000 of ARR each represented 28% of that base—up from 20% a year ago.”

Mr. Pombo continued, “Our ongoing investment into our low-code app development platform is proving to be a core accelerator in our enterprise expansion strategy. We’ve seen multiple customers rapidly deploy the solution into different divisions and geographies. Early success, with clear and quantifiable ROI in one group, drives adoption in other divisions looking to emulate that success.”

Financial Highlights – 2019 First Quarter

  • Recurring revenue in Q1 2019 increased by 27% to $3.16 million compared to $2.50 million in Q1 2018, and by 7% compared to $2.95 million in Q4 2018.
  • Total revenue for Q1 2019 increased by 28% to $3.52 million compared to $2.75 million in Q1 2018, and by 7% compared to $3.30 million in Q4 2018.
  • Gross margin for Q1 2019 was 81% of total revenue compared to 82% in Q1 2018 and 83% in Q4 2018. Gross margin on recurring revenue was 89% for Q1 2019, equal to that of Q1 and Q4 2018.
  • Operating loss for Q1 2019 was $0.40 million, down from a loss of $0.78 million in Q1 2018 and $0.47 million in Q4 2018.
  • Net loss for Q1 2019 was $0.53 million, down from a net loss of $0.82 million in Q1 2018 and $0.41 million in Q4 2018.
  • As at March 31, 2019, ProntoForms’ cash and net working capital balances were $4.05 million and $1.80 million respectively, compared to $3.33 million and $2.28 million as at December 31, 2018.

Q1 2019 Operational Highlights

  • A Fortune 500 customer expanded its account base by 1,000 subscribers. The platform enables field technicians to complete installation of industrial equipment, fire and safety compliance, and preventative maintenance quickly and reliably. Today, the account has more than 6,000 subscribers.
  • A large utility company in the United States utilized the ProntoForms low-code platform to deploy over 1,600 subscribers rapidly for an emergency response to a natural disaster. This brings the active number of subscribers to greater than 5,000.
  • A Texas-based oil and gas development company launched a new ProntoForms deployment of over 100 subscribers to improve operations and safety at production sites.
  • A global brand manufacturer of building infrastructure and transportation components expanded its low-code platform deployment with 100 subscribers in the Far East. The company surpassed 9,000 subscribers in North America, South America, and Japan.

Q1 Conference Call Date:
Date: May 9, 2019
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 56944439

Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 944439 #
Expiry Date: Thursday, May 16th, 2019 11:59 PM

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 April 10, 2019 found at www.sedar.com for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 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 months ended March 31, 2019 and 2018   
(Unaudited in US dollars)   
  Three Months Ended March 31, 
  2019  2018  
  $  $  
Revenue     
  Recurring revenue   3,158,951     2,495,068  
  Professional and other services   358,234     253,480  
    3,517,185     2,748,548  
      
Cost of Revenue     
  Recurring revenue   361,439     268,197  
  Professional and other services   290,754     217,301  
    652,193     485,498  
      
Gross Margin   2,864,992     2,263,050  
      
Expenses     
  Research and development   1,040,087     1,053,281  
  Selling and marketing   1,542,823     1,406,594  
  General and administrative   680,419     579,876  
    3,263,329     3,039,751  
      
Loss from operations   (398,337)   (776,701) 
      
Foreign exchange (loss) gain   (36,027)   90,071  
Interest and accretion   (89,043)   (80,926) 
Change in fair value of derivative liability   (9,527)   (7,607) 
Net loss    (532,934)   (775,163) 
      
Other Comprehensive loss     
Foreign currency translation adjustment   -      (47,660) 
Total comprehensive loss   (532,934)   (822,823) 
      
Net loss per common share      
  basic and diluted   (0.00)   (0.01) 
      
Weighted average number of common shares      
  basic and diluted   107,961,594     107,524,142  
      
Share-based compensation included in accounts:     
Cost of revenue   12,725     14,055  
Research and development   18,606     26,018  
Selling and marketing   39,450     43,934  
General and administrative   40,730     59,866  
    111,511     143,873  
      

 

     
ProntoForms Corporation    
Condensed Interim Consolidated Statements of Financial Position 
as at March 31, 2019 and December 31, 2018    
(Unaudited in US dollars)     
      
  March 31,  December 31,  
  2019  2018  
  $  $  
      
Assets     
Current assets     
  Cash and cash equivalents  4,051,291     3,325,241  
  Accounts receivable   2,004,656     2,178,420  
  Investment tax credits receivable  129,844     158,966  
  Unbilled receivables   164,368     156,865  
  Related party loan receivable  80,405     78,761  
  Prepaid expenses and other receivables  702,093     523,573  
    7,132,657     6,421,826  
      
Property, plant and equipment  314,841     315,629  
Intangible assets   -      -   
Right-of-use assets   1,129,588     -   
    8,577,086     6,737,455  
      
Liabilities     
Current liabilities     
  Accounts payable and accrued liabilities  2,310,352     1,885,351  
  Deferred revenue   2,780,024     2,254,400  
  Lease obligation - current portion  245,250     -   
    5,335,626     4,139,751  
      
Long-term debt   2,512,651     2,424,136  
Lease obligations   917,436     -   
Derivative liability   231,735     235,990  
    8,997,448     6,799,877  
      
Shareholders' equity     
  Share capital   21,005,967     20,912,276  
  Contributed Surplus   801,888     801,888  
  Share-based payment reserve  3,520,848     3,431,280  
  Warrant reserve   1,255,071     1,263,336  
  Deficit   (27,188,571)   (26,655,637) 
  Accumulated other comprehensive income  184,435     184,435  
    (420,362)   (62,422) 
    8,577,086     6,737,455  
      

 

      
ProntoForms Corporation     
Condensed Interim Consolidated Statements of Cash Flows   
For the three months ended March 31, 2019 and 2018   
(Unaudited in US dollars)     
  2019  2018  
  $  $  
      
Net inflow (outflow) of cash related to the following activities:    
      
  Cash flow from operating activities     
  Net loss   (532,934)   (775,163) 
  Items not affecting cash      
  Share-based compensation   111,511     143,872  
  Accretion on long-term debt   38,315     33,521  
  Accretion on lease obligations   16,218     -   
  Change in fair value of derivative liability   9,527     7,607  
  Amortization of property, plant and equipment   24,215     36,868  
  Amortization of intangible asset   -      5,038  
  Amortization of right-of-use assets   67,401     -   
  Unrealized foreign exchange losses   62,837     -   
  Lease interest paid   (16,218)   -   
    Changes in non-cash operating working capital items   958,084     158,970  
    738,956     (389,287) 
      
  Cash flow from financing activities     
     Payment of lease obligations   (59,657)   -   
     Proceeds from the exercise of warrants   35,795     -   
     Proceeds from the exercise of options   27,688     -   
    3,826     -   
      
  Cash flow from investing activities     
     Purchase of property, plant and equipment   (23,427)   (40,853) 
    (23,427)   (40,853) 
      
Effect of Exchange Rate Changes on Cash   6,695     (113,405) 
      
Net cash inflow (outflow)   726,050     (543,545) 
Cash and cash equivalents, beginning of period   3,325,241     5,074,489  
Cash and cash equivalents, end of period   4,051,291     4,530,944