WPNDF - Wishpond Reports Continued Revenue and Adjusted EBITDA Growth in Q2-2023

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WishpondTechnologies Ltd. (TSXV: WISH, OTCQX: WPNDF) (the“ Company ” or “ Wishpond ”), a provider ofmarketing-focused online business solutions, announces it has filedits interim consolidated financial statements (the “ InterimFinancial Statements'' ) and management’s discussion andanalysis (the “ MD&A ”) for Q2-2023, representing thethree and six months ended June 30, 2023. Copies of the InterimFinancial Statements and MD&A are available on the Company’sprofile on SEDAR at www.sedar.com.

Ali Tajskandar, Wishpond’s Founder and CEOcommented, “ We are very pleased with our second quarter resultsin which Wishpond achieved positive Adjusted EBITDA for the fourthquarter in a row, demonstrating our commitment to profitable growth.During the first six months of 2023 we generated $0.4 million ofpositive Adjusted EBITDA compared to an Adjusted EBITDA loss of $0.6million in the first six months of last year; an outstandingimprovement of over $1 million, which we are extremely proud ofachieving. Wishpond’s cost optimization efforts over the past yearhave contributed to the Company’s positive Adjusted EBITDA profile.Based on the Company’s performance and growth momentum in the firsthalf of the year, we expect to deliver strong results for theremainder of 2023. We maintain a positive outlook for thesecond half of 2023, with continued sales growth and improving cashflows.”

AliTajskandar further adds, “During the second quarter we alsocompleted the acquisition of Essential Studio Manager (ESM), which isthe sixth acquisition in the Company’s history. ESM further expandsthe breadth of our product offering into invoicing, CRM and businessmanagement functionality. In addition, we are actively working ondeveloping additional AI-powered marketing tools which we intend tolaunch in the coming quarters. Finally, our new Propel IQ platform isgaining traction in the market and early signs are showing highermargins and increased customer retention. We are now accelerating thehiring of new sales resources to drive additional growth in the secondhalf of the year.”

SecondQuarter 2023 Financial Highlights :

• Wishpond achievedquarterly revenue of $5,639,417 during Q2-2023, compared to $5,007,343generated in the same period of 2022 (Q2-2022), an increase of 13%.Revenue growth was primarily driven by organic growth resulting fromstronger product demand, an increase in sales and marketingactivities, and new product introductions.

• Wishpond achieved Gross Profit of $3,680,391in Q2-2023 (Q2-2022: $3,360,715), representing a 10% increase fromQ2-2022, driven by an increase in overall revenue.

• Wishpond achieved a Gross Margin percentageof 65% during Q2-2023 (Q2-2022: 67%).

• During Q2-2023, Wishpond achieved positiveAdjusted EBITDA(1) of $215,926 (Q2-2022: negative $192,196), anincrease of 212%.

• As at June30, 2023, Wishpond had $1,098,285 in cash and no debt (December 31,2022: cash of $2,692,644 and no debt). The reduction in cash balanceswas caused in part by earnout payments for businesses acquired in2022, investment in the business and changes in workingcapital.

Second Quarter 2023 Business Highlights :

• On May 3, 2023, the Company announced that it completed theacquisition of certain assets of Essential Studio Manager LLC(“ESM”). ESM is a provider of business management software,including invoicing and customer relationship management solutions forsmall businesses in the services industry. ESM is expected to beintegrated with Wishpond’s Propel IQ platform this year. Wishpondcustomers using Propel IQ’s sales and marketing platform will thenbe able to provide contract signing, invoicing and access other CRMfunctionality from one single platform.

• On June 27, 2023, the Company announced thatits Notice of Intention to make a Normal Course Issuer Bid(“NCIB”) was accepted by the Exchange. Under the NCIB, the Companymay, during the 12-month period commencing June 30, 2023 and endingJune 29, 2024, purchase up to 2,688,431 Shares in total, being 5% ofthe total number of 53,768,620 Shares outstanding as at June 12, 2023.During the three and six months ended June 30, 2023, the Companypurchased 32,000 common shares under the NCIB, for aggregateconsideration of $18,528.

Events Subsequent to June 30, 2023:

• On July 27, 2023, the Company announced the launch of a newpartnership program introducing a transformative approach tocollaboration for affiliates, marketing agencies, and other technologycompanies to collaborate closely with Wishpond’s marketingplatform.

• On August 16, 2023,the Company announced the upcoming launch of SalesCloser AI, anAI-powered sales rep that can deliver personalized, round-the-clocksales calls and product demos without the need for human intervention.The AI-powered platform is poised to transform industries across theboard, particularly benefiting virtual sales professionals, SaaScompanies, consultants, and various B2B enterprises that rely ononline sales interactions.

Outlook:

Wishpond expects to achieve record revenue and cash flows in2023, driven by organic growth from increasing sales of theCompany’s new Propel IQ bundled product, in addition to ramping upthe size of its sales team and launching new AI-powered products. TheCompany continues to have an active pipeline of sales opportunitiesand robust demand for its products. Management is pleased tore-iterate the Company’s key goals for 2023:

• Increase Monthly Recurring Revenue through both organic andinorganic means.

• Scale thesize of the sales team to help achieve the Company’s organic growthprofile.

• Remain AdjustedEBITDA positive by balancing growth with increased positive cash flowfrom operations.

• Invest inResearch and Development so that the Company can continue to launchnew AI powered products and services to increase long-term value forits clients.

• Leverage thePropel IQ platform to further accelerate the Company’s growth,improve margins, and increase customer retention and long-termcustomer value.

Wishpond has demonstrated a disciplined capital allocationstrategy, having successfully completed and integrated sixacquisitions since the Company’s public listing in December of 2020.Given management’s successful acquisition track record, the Companymay choose to accelerate its growth in the form of futureacquisitions. Management may also choose to reinvest cash flowsgenerated by the Company to accelerate organic growth or in the formof share repurchases.

David Pais, Wishpond’s Chief Financial Officer commented,“ I am pleased to report that the Company has not felt anymaterial negative impacts due to increasing interest rates, risinginflation or other macroeconomic effects. We have a clean balancesheet and an undrawn line of credit of $6 million, and our costreduction strategies will allow us to fund the Company’s growththrough cash from operations. We look forward to reporting higherrevenue growth and profitability for the rest of theyear. ”

Webinar Conference Call Details:

As previously announced,Wishpond will be hosting a webinar conference call to discuss itsQ2-2023 financial results today at 10:00 AM (PT) / 1:00 PM (ET).

To register for thewebinar, please visit the following URL: https://bit.ly/Results_Q2_2023

Date: August 17,2023

Time: 10:00AM PT (1:00 PM ET)

Dial-in: +1 778 907 2071 (Vancouver local)

+1 647 374 4685 (Toronto local)

Meeting ID #: 835 0694 7063

Please connect 5 minutesprior to the conference call to ensure time for any software downloadthat may be required.

Selected Financial Highlights:

The tables below set out selected financial informationrelating to Wishpond and should be read in conjunction withWishpond’s Interim Financial Statements and MD&A.

Reconciliation to AdjustedEBITDA

Footnotes:

1. EBITDAand Adjusted EBITDA are not financial measures recognized byInternational Financial Reporting Standards (“ IFRS ”), donot have any standardized meaning prescribed by IFRS and therefore maynot be comparable to similar measures presented by other entities. See“ Cautionary Statements – Non-GAAP FinancialMeasures ".

On Behalf of the Board of Wishpond

“ Ali Tajskandar ”

Chairman and Chief Executive Officer

About Wishpond Technologies Ltd.

Based out of Vancouver, BritishColumbia, Wishpond is a provider of marketing-focused online businesssolutions. Wishpond is a leading provider of digital marketingsolutions that empower entrepreneurs to achieve success online. TheCompany’s Propel IQ platform offers an "all-in-one"marketing suite that provides companies with marketing, promotion,lead generation, ad management, referral marketing, sales conversionand outbound sales automation capabilities on one integrated platform.Wishpond replaces disparate marketing solutions with an easy-to-useproduct, for a fraction of the cost. Wishpond serves over 4,000customers who are primarily small and medium-sized businesses (SMBs)in a wide variety of industries. The Company has developedcutting-edge marketing technology solutions including an artificialintelligence (AI) powered website builder and continues to add newfeatures and applications. The Company employs a Software-as-a-Service(SaaS) business model where most of the Company's revenue issubscription-based recurring revenue which provides excellent revenuepredictability and cash flow visibility. Wishpond is listed on the TSXVenture Exchange under the ticker "WISH", and on the OTCQXBest Market under the ticker "WPNDF". For further information,visit: www.wishpond.com .

Cautionary Statements, SummaryInformation

Informationpresented in this press release may be only a summary of all availableinformation and does not purport to be a full representation of allfigures, notes and discussions provided for in the Interim FinancialStatements and MD&A. Readers are cautioned to read the entirety ofthe Interim Financial Statements and MD&A, and to not rely only onthe information presented in this press release. In the event ofconflict between the provisions of this press release on the one hand,and the Interim Financial Statements and MD&A on the other hand,the information in the Interim Financial Statements and MD&A shallgovern.

Non-GAAP Financial Measures

In this press release,Wishpond has used the following terms (“ Non-GAAP FinancialMeasures ”) that are not defined by IFRS, but are used bymanagement to evaluate the performance of Wishpond and its business:adjusted earnings before interest, taxes, depreciation andamortization (“ Adjusted EBITDA ”), monthly recurringrevenue. These measures may also be used by investors, financialinstitutions and credit rating agencies to assess Wishpond’sperformance and ability to service debt. Non-GAAP Financial Measuresdo not have standardized meanings prescribed by IFRS and are thereforeunlikely to be comparable to similar measures presented by othercompanies. Securities regulations require that Non-GAAP FinancialMeasures are clearly defined, qualified and reconciled to their mostcomparable IFRS financial measures. Except as otherwise indicated,these Non-GAAP Financial Measures are calculated and disclosed on aconsistent basis from period to period. Specific items may only berelevant in certain periods. See the disclosure under the heading“ Additional GAAP and Non-GAAP Measures ” in Wishpond’sMD&A for a discussion of Non-GAAP Financial Measures and certainreconciliations to GAAP financial measures. The intent of Non-GAAPFinancial Measures is to provide additional useful information toinvestors and analysts, and the measures do not have any standardizedmeaning under IFRS. The measures should not, therefore, be consideredin isolation or used as a substitute for measures of performanceprepared in accordance with IFRS. Other issuers may calculate Non-GAAPFinancial Measures differently. Non-GAAP Financial Measures areidentified and defined as follows:

• Adjusted EBITDA: Adjusted EBITDA should not be construedas an alternative to net earnings, cash flow from operating activitiesor other measures of financial results determined in accordance withGAAP as an indicator of the Company’s performance. The Companydefines " Adjusted EBITDA " as Loss before income taxesless interest, depreciation and amortization, remeasurement ofcontingent consideration liability, filing fees, credit facility setupfees, earn-out remuneration, foreign currency losses (gains),acquisition related expenses, net other expenditures (income), reversetakeover listing expense, and stock-based compensation. The Companybelieves that Adjusted EBITDA is a meaningful financial metric as itmeasures cash generated from operations which the Company can use tofund working capital requirements, service future interest andprincipal debt repayments and fund future growthinitiatives.

• Monthly recurring revenue: The Company uses monthlyrecurring revenue, or MRR, as a directional indicator of subscriptionrevenue going forward assuming customers maintain their subscriptionplan the following month. MRR is the total of all monthly subscriptionplan fees paid by customers in effect on the last day of that period.If customers pay for more than one month upfront, the amount isdivided by the number of months in the subscription period. Discountsare deducted prior to the calculation and one-time payments andmetered based charges are excluded.

Forward-LookingStatements

Statements that arenot reported financial results or other historical information areforward-looking statements or forward-looking information within themeaning of applicable securities laws (collectively," forward-looking statements "). This press releaseincludes forward-looking statements regarding the Company, itssubsidiaries and the industries in which they operate, includingstatements about, among other things, all information contained underthe heading “Outlook” herein, references to expected results fromfuture operations, references to the growth of the Company’s productportfolio, including whether additional AI powered products orfeatures may be developed in the future, and the functionality andtiming of such products, financial results or operational activitiesthat may be undertaken by the Company, the results of the Company’scost-savings, research and development and other initiatives, anyfuture acquisitions, share purchases or other activities done to growthe Company both organically or inorganically, expectations, beliefs,plans, future operations, origination of additional targets in whichthe Company may hold an interest and acquisition opportunities for theCompany, the impact of broader economic factors including inflationand other general economic risks on the Company, business andacquisition strategies, opportunities, objectives, prospects,assumptions, including those related to trends and prospects, andfuture events and performance. Sentences and phrases containing ormodified by words such as “expect”, "anticipate","plan", "continue", "estimate","intend", "expect", "may", "will","project", "predict", "potential","targets", "projects", "is designed to","strategy", "should", "believe","contemplate" and similar expressions, and the negative ofsuch expressions, are not historical facts and are intended toidentify forward-looking statements. Readers are cautioned to notplace undue reliance on forward-looking statements. Actual results anddevelopments may differ materially from those contemplated byforward-looking statements. Although the Company believes that theexpectations reflected in forward-looking statements in this pressrelease are reasonable and are based on, among other things, theexpectations and analysis of current market trends and opportunitiesof management of the Company, such forward-looking statements has beenbased on expectations, factors and assumptions concerning futureevents which may prove to be inaccurate and are subject to numerousrisks and uncertainties, certain of which are beyond the Company’scontrol, including, but not limited to, economic uncertainty andinstability as a result of the ongoing inflation and supply chainissues, higher interest rate climate, tightening of creditavailability and recessionary risks, pandemic related risks, wars,instability in global commodity and securities markets, shifts inconsumer and institutional spending and marketing strategies, risksrelated to data breaches and privacy, the changing global market andcompetition for the products and services supplied by the Company, andthe additional risk factors discussed in the continuous disclosurematerials of the Company which are available under the Company'sprofile on SEDAR at www.sedar.com. The forward-looking statementscontained in this press release are expressly qualified by thiscautionary statement and are made as of the date hereof. The Companydisclaims any intention and has no obligation or responsibility,except as required by law, to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise.

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

ContactDetails

Investor Relations, Wishpond TechnologiesLtd.

Pardeep S. Sangha

+1 604-572-6392

investor@wishpond.com

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