PFM:CC - ProntoForms Reports Q1 2023 Financial Results
OTTAWA, May 10, 2023 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field intelligence, announced today its first quarter (Q1) financial results for the period ended March 31, 2023. All amounts are in US dollars unless otherwise stated.
Our growth rate of annualized recurring revenue (“ARR”) over prior year comparable quarters accelerated for the third quarter in a row to reach 13%, and 14% for total revenue, despite bookings that were relatively light for Q1 with no significant new enterprise wins,” said Philip Deck, co-CEO. “During the first quarter we made meaningful changes to our entire go-to-market strategy and organization, emphasising our positioning as an enterprise field intelligence platform and focusing our rapidly maturing sales force on the most compelling customer opportunities. The changes came with significant one-time expenses from legal and severance costs that affected first quarter profitability. Additional one-time costs will continue at a lower level into Q2 of this year. We are carefully managing our go-to-market investments within our commitment to make steady improvements in profitability.”
Mr. Deck continued, “After the end of Q1, we announced the largest initial subscription transaction in our company history with average ARR of $880,000 annually over the next 3.5 years. The transaction was for the automation of highly-sophisticated field installation processes in the medical equipment industry—one of our key verticals. In addition to its impacts on ARR growth, it further demonstrates the size of the market that we are pursuing and our ability to prove value even in a challenging environment for enterprise sales. We are pursuing numerous additional opportunities in our key vertical markets to continue to accelerate our ARR growth in the quarters to come.”
“The recent release of the Multi-Language Add-On exemplifies the company's ongoing commitment to addressing the needs of diverse and globally distributed field organizations,” said Alvaro Pombo, co-CEO and Founder. “Our pipeline of targeted innovation accelerates revenue growth within our base, while improving our effectiveness of generating new customers.”
Financial Highlights – 2023 First Quarter ( All results in USD)
- Recurring revenue in Q1 2023 increased by 11% to $5.43 million compared to $4.89 million in Q1 2022 and increased by 3% compared to $5.29 million in Q4 2022.
- Total revenue for Q1 2023 increased by 14% to $5.77 million compared to $5.04 million in Q1 2022 and increased by 3% compared to $5.61 million in Q4 2022.
- Gross margin for Q1 2023 was 86% of total revenue compared to 84% in Q1 2022 and 87% in Q4 2022. Gross margin on recurring revenue was 90% for Q1 2023 compared to 89% in Q1 2022 and 91% in Q4 2022.
- Operating loss for Q1 2023 was $1.04 million, down from an operating loss of $1.49 million in Q1 2022 and up from an operating loss of $0.45 million in Q4 2022.
- Net loss for Q1 2023 was $1.13 million, down from a net loss of $1.54 million in Q1 2022 and up from a net loss of $0.55 million in Q4 2022.
Recent Operational Highlights
Notable new and expansion progress from enterprise customers, including:
- A subsidiary of a Global Fortune 500 medical manufacturing company committed to just over $3M in subscription services over 3.5 years commencing April 2023. Their deployment manages workflows for the installation of new machines globally.
- A Fortune 500 industrial manufacturing enterprise renewed their subscription of 12,000 users to support service across their North American operations.
- A European global manufacturing enterprise invested in the Multi-Language Add-On Package and renewed a 470 user deployment of ProntoForms to support preventative maintenance.
- A utilities enterprise, and division of one of the largest global construction organizations, signed on for an initial deployment of 150 users with further expansions continuing post-initial deployment.
Other Highlights
- Co-CEO Alvaro Pombo was the chairperson speaker at Field Service Medical in San Diego where he discussed leveraging technology to commercialize and scale service.
- Co-CEO Alvaro Pombo was also the chairperson speaker at Field Service Palm Springs, one of the industry’s largest events, where he discussed contextual field intelligence and its central role to thriving within today’s challenging field service landscape.
- ProntoForms has announced its 5 th annual EMPOWER event, EMPOWER’23, in Ottawa, Ontario on May 16 th and 17 th . An inaugural European expansion of the event, EMPOWER’23 Europe, was also announced to bring service executives across all major verticals together in London on June 6 th .
- ProntoForms was announced as the #1 choice in G2’s Mobile Forms Automation Grid Report for Spring 2023.
- ProntoForms released a Nucleus Research report for a floating liquid natural gas facility (FLNG) belonging to a global 500 company that uses ProntoForms to automate its natural gas safety inspection forms for an ROI of 332%.
Q1 Conference Call Date:
Date: Wednesday, May 10th, 2023
Time: 9:00 AM Eastern Time
Participant Login Options
To join the conference call without operator assistance, you may register and enter your phone number at: https://emportal.ink/43MgjWp to receive an instant automated callback.
You can also dial direct to be enter the call through an operator with the details below:
Participant Dial-in Numbers:
Local Toronto – (+1) 416-764-8650
Toll Free – (+1) 888-664-6383
Recording Playback Numbers:
Local Toronto– (+1) 416-764-8677
Toll Free – (+1) 888-390-0541
Passcode: 049901
Expiry Date: May 17th, 2023, at 11:59pm EST
About ProntoForms Corporation
ProntoForms is the global leader in field intelligence. The platform’s field workflows and data collection capabilities enable enterprise field teams to optimize decision-making, decrease organizational risk, maximize the uptime of valuable assets, and deliver exceptional service experiences. Over 100,000 subscribers use ProntoForms across multiple use cases, including asset inspection, compliance, installation, repair, maintenance, and environmental, health & safety with quantifiable business impacts.
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:
| Philip Deck co-Chief Executive Officer ProntoForms Corporation 416.702.3974 pdeck@prontoforms.com |
| Dave Croucher Chief Financial Officer ProntoForms Corporation 613-286-9212 dcroucher@prontoforms.com |
Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, 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, 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 9, 2022 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, 2022 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, 2023 and 2022 |
| (in US dollars) |
| Three Months Ended March 31, |
| 2023 |
| 2022 |
Revenue: |
| Recurring revenue |
| $ |
| 5,428,736 |
| $ |
| 4,890,716 |
| Professional and other services |
| 343,117 |
| 150,394 |
| 5,771,853 |
| 5,041,110 |
Cost of revenue (1) : |
| Recurring revenue |
| 520,103 |
| 552,072 |
| Professional and other services |
| 265,593 |
| 255,377 |
| 785,696 |
| 807,449 |
| Gross margin |
| 4,986,157 |
| 4,233,661 |
Expenses: |
| Research and development (1) |
| 1,735,545 |
| 1,771,752 |
| Selling and marketing (1) |
| 2,864,681 |
| 2,934,240 |
| General and administrative (1) |
| 1,421,649 |
| 1,017,374 |
| 6,021,875 |
| 5,723,366 |
| Loss from operations |
| (1,035,718 |
| ) |
| (1,489,705 |
| ) |
| Foreign exchange loss |
| (9,793 |
| ) |
| (27,843 |
| ) |
| Finance Income |
| 33,325 |
| 3,319 |
| Finance costs |
| (116,080 |
| ) |
| (29,379 |
| ) |
| Net loss and comprehensive loss |
| $ |
| (1,128,266 |
| ) |
| (1,543,608 |
| ) |
| Net loss and comprehensive loss |
| per common share basic and diluted |
| $ |
| (0.01 |
| ) |
| $ |
| (0.01 |
| ) |
| Weighted average number of common shares |
| basic and diluted |
| 130,081,341 |
| 127,819,003 |
| (1) Amounts include share-based compensation expense as follows: |
| Cost of revenue |
| $ |
| 6,199 |
| $ |
| 5,359 |
| Research and development |
| 50,964 |
| 101,667 |
| Selling and marketing |
| 35,429 |
| 170,088 |
| General and administrative |
| 152,684 |
| 151,088 |
| Total share-based compensation expense |
| $ |
| 245,277 |
| $ |
| 428,203 |
| PRONTOFORMS CORPORATION |
| Condensed Interim Consolidated Statements of Financial Position |
| as at March 31, 2023 and December 31, 2022 |
| (in US dollars) |
| March 31, |
| December 31, |
| 2023 |
| 2022 |
| Assets |
| Current assets: |
| Cash and cash equivalents |
| $ |
| 7,041,930 |
| $ |
| 6,112,071 |
| Accounts receivable |
| 2,176,952 |
| 4,179,088 |
| Investment tax credits receivable |
| 129,307 |
| 197,553 |
| Unbilled receivables |
| 72,419 |
| 88,453 |
| Related party loan receivable |
| 79,395 |
| 79,331 |
| Prepaid expenses and other receivables |
| 1,621,582 |
| 1,077,015 |
| Contract acquisition costs |
| 309,265 |
| 311,494 |
| 11,430,850 |
| 12,045,005 |
| Property, plant and equipment |
| 282,499 |
| 286,834 |
| Contract acquisition costs |
| 167,484 |
| 190,585 |
| Right-of-use asset |
| 84,858 |
| 148,515 |
| $ |
| 11,965,691 |
| $ |
| 12,670,939 |
| Liabilities and Shareholders' Equity |
| Current liabilities: |
| Accounts payable and accrued liabilities |
| $ |
| 2,100,692 |
| $ |
| 2,686,288 |
| Deferred revenue |
| 7,323,106 |
| 6,508,986 |
| Lease obligation |
| 99,568 |
| 172,947 |
| 9,523,366 |
| 9,368,221 |
| Long-term debt |
| 6,015,292 |
| 6,007,585 |
| 15,538,658 |
| 15,375,806 |
| Shareholders' deficit: |
| Share capital |
| 32,188,618 |
| 32,166,781 |
| Contributed surplus |
| 864,907 |
| 864,907 |
| Share-based payment reserve |
| 3,636,575 |
| 3,398,246 |
| Deficit |
| (40,447,502 |
| ) |
| (39,319,236 |
| ) |
| Accumulated other comprehensive income |
| 184,435 |
| 184,435 |
| (3,572,967 |
| ) |
| (2,704,867 |
| ) |
| $ |
| 11,965,691 |
| $ |
| 12,670,939 |
| PRONTOFORMS CORPORATION |
| Condensed Interim Consolidated Statements of Cash Flows |
| For the three months ended March 31, 2023 and 2022 |
| (in US dollars) |
| Three months ended March 31, |
| 2023 |
| 2022 |
| Cash used in: |
| Operating activities: |
| Net loss |
| $ |
| (1,128,266 |
| ) |
| $ |
| (1,543,608 |
| ) |
| Items not involving cash: |
| Share-based compensation |
| 245,277 |
| 428,203 |
| Accretion on lease obligations |
| 2,004 |
| 6,256 |
| Accretion of transaction costs |
| 2,809 |
| 282 |
| Amortization of property, plant and equipment |
| 34,567 |
| 38,666 |
| Amortization of right-of-use asset |
| 63,657 |
| 63,657 |
| Unrealized foreign exchange loss |
| 9,533 |
| 21,949 |
| Other finance costs |
| 77,946 |
| 25,778 |
| Interest paid |
| (111,271 |
| ) |
| (29,097 |
| ) |
| Interest received |
| 33,325 |
| 3,319 |
| Changes in non-cash operating working capital items |
| 1,795,703 |
| (90,870 |
| ) |
| 1,025,284 |
| (1,075,465 |
| ) |
| Financing activities |
| Payment of lease obligations |
| (73,796 |
| ) |
| (74,610 |
| ) |
| Lease interest paid |
| (2,004 |
| ) |
| (6,256 |
| ) |
| Procceds from drawdown of credit facility |
| - |
| 2,402,124 |
| Proceeds from the exercise of options |
| 14,889 |
| 87,816 |
| (60,911 |
| ) |
| 2,409,074 |
| Investing activities |
| Purchase of property, plant and equipment |
| (30,232 |
| ) |
| (13,675 |
| ) |
| (30,232 |
| ) |
| (13,675 |
| ) |
| Effect of exchange rate changes on cash |
| (4,282 |
| ) |
| 29,741 |
| Increase in cash and cash equivalents |
| 929,859 |
| 1,349,675 |
| Cash and cash equivalents, beginning of period |
| 6,112,071 |
| 6,082,289 |
| Cash and cash equivalents, end of period |
| $ |
| 7,041,930 |
| $ |
| 7,431,964 |