Revenue grows 74% Y/Y, ARR increases 90% Y/Y,
Adjusted EBITDA Improves 52% Y/Y
CUPERTINO, Calif., Feb. 22,
2023 /CNW/ - (TSXV: BWLK) (OTCQB: BWLKF) –
Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a
leading digital ledger platform and enterprise software solutions
company, is pleased to report its financial results for the
three-month period ended December 31,
2022. All figures are reported in U.S. dollars, unless
otherwise indicated. Boardwalktech's financial statements are
prepared in accordance with International Financial Reporting
Standards ("IFRS").
Financial Highlights:
- Revenue for Q3-FY23 was $1.8
million, a 74% increase from $1.06
million in Q3-FY22, and a 24% sequential increase from
$1.48 million in Q2-FY23. Revenue
from recurring SaaS licenses in Q3-FY23 increased 129%
year-over-year from higher incremental licenses executed with both
new and existing customers.
- Annual recurring revenue ("ARR"), at December 31, 2022 was $5.8
million, a 90% year-over-year increase versus ARR of
$3.0 million at December 31, 2021. ARR is a non-IFRS measure, and
the Company defines ARR as the annualized recurring revenue
expected based on quarterly license subscriptions and recurring
services.
- Since the Company implemented its SaaS business model in 2018,
total revenue from new contracts signed since 2018 comprised 87% of
total revenue in Q3-FY23, compared to 74% in the prior year,
expanding at an 42% compound annual growth rate ("CAGR") the last
three years – 55% CAGR on recurring license revenue.
- Gross margin for Q3-FY23 was 91.5%, a 4.7%-point increase from
the previous year's level of 86.8%, and a 1.2% point increase from
Q2-FY23 gross margin of 90.3%.
- Adjusted EBITDA for Q3-F23 was a loss of $(0.24) million, a 52% improvement from the
$(0.50) million loss in Q3-FY22, and
64% sequential improvement from the $(0.68)
million loss in Q2-FY23. This is the best EBITDA level since
the Company went public, as it progresses towards and through
breakeven profitability.
- Non-IFRS loss for Q3-FY23 (as defined in the Non-IFRS Financial
Measures section) was a loss of $(0.25)
million, or $(0.01) per basic
and diluted share, a 51% improvement versus a $(0.52) million non-IFRS loss in Q3-FY22, or
$(0.01) per basic and diluted share,
and a 64% improvement versus $(0.70)
million non-IFRS loss in Q2-FY23, or $(0.02) per basic and diluted share; as revenue
growth outpaced selective opex spending.
- Net loss for Q3-FY23 was $(0.65)
million, or a loss of $(0.01)
per basic and diluted share, a 40% improvement versus the
$(1.08) million loss in Q3-FY22, or
$(0.03) per basic and diluted share,
and a $(1.22) million loss in
Q2-FY23, or $(0.03) per basic and
diluted share, a 47% sequential improvement.
Outlook Update
- The Company is tracking at the mid to high end of its
previously announced revenue guidance of $6.5 million to $7.0
million for FY 2023.
- The Company still projects it has sufficient funds and current
receivables that it does not need to raise capital to achieve its
guidance, though the Company believes it could grow faster with
additional growth equity.
Operational Highlights
- Subsequent to the quarter, the Company issued 301,260 common
shares on the exercise of 301,260 common share warrants
CAD 0.70 for gross cash proceeds of
approximately $156,073 (CAD 210,882).
- On December 23, 2022, the Company
announced it has extended and expanded its contract with a Fortune
50 California-based technology company, with additional revenue
from this extension starting at US$400,000 for a combination of license revenue
and services as the solutions are expanded across this Customer's
users.
- On October 12, 2022, the Company
announced that during the quarter, it has both extended and
expanded its license with HCL Technologies and executed a new
license with SiTime Corp, reflecting the ongoing success of
Boardwalktech's "land and expand" strategy through the combination
of growth with an existing customer while adding a new licensed
customer delivering a supply and demand solution on the Boardwalk
Platform.
- On February 2, 2023 , the Company
announced it has added Jeff Evans,
former EVP at Walmart to its corporate Advisory Board, joining
other members of Boardwalktech's Advisory Board including:
Ryan Tweedie, Strategic Advisor to
the Global CIO at Accenture; Drue
Freeman, former President of ACG Silicon Valley and longtime
semiconductor company executive; Marc
LaCarrubba, former senior leader at EY and current CTO at
Humantelligence, Inc.; and, Don
Haderle, former IBM Fellow (known as "the father of
DB2").
"As we are about to enter our new fiscal year, we are very
excited about the growth prospects ahead of us. Even though we
doubled our recurring license revenue during our third quarter, and
have had continued success from our 'land and expand' strategy, we
are just getting started. Our ARR and revenue are at record
levels, while our EBITDA is at its best level since going public in
2018. Our business is in the early innings of a material inflection
point." Chief Executive Officer Andrew T.
Duncan commented. "We are fortunate that our hard work has
presented us with not one, but two significant revenue
opportunities. Not only have we added new teaming partners to close
new banking customers, which we plan to announce in the near
future, but have built a formidable Advisory Board to leverage
their expertise, contacts, and business development acumen to gain
and expand our customer base adding new revenue opportunities.
The Boardwalktech low code digital ledger platform continues
to gain traction with these enterprises as it seamlessly solves the
many problems associated with structured and unstructured data,
delivering improved visibility and decision making along with
outstanding results and ROI. The focus now is to leverage this
momentum and continue to execute and deliver great results to
the benefit of our customers and investors."
Earnings Conference Call
Details
Boardwalktech management will be hosting its earnings conference
call today (February 22, 2023)
Time:
|
at 4:30PM Eastern Time
/ 1:30PM Pacific Time.
|
To join the call, please use the following dial-in
information:
US/Canada:
|
1-888-664-6383 (toll
free)
|
International:
|
UK:
08006522435
Germany: 0800 7240293
Switzerland: 0800312635
|
Confirmation
number:
|
45504084
|
Webcast:
|
https://bit.ly/3x8at2A (Rapid Connect
URL; copy & paste to your browser)
|
Replay: A replay
of the call will be available until March 1, 2023 and can be
accessed by dialing 1-888-390-0541 and entering
access code 504084#
|
RSU Grants
As part of the Company's annual ongoing retention program and as
allowed under the 2019 Equity Incentive Plan, as amended and
approved by shareholders on June 2,
2022, the Company has granted an aggregate of 220,000
Restricted Stock Units ("RSU's") to new employees, advisors, and
independent contractors of the Company. These grants will be
deemed effective as of February 28,
2023.
About Boardwalktech Software
Corp.
Boardwalktech has developed a patented Digital Ledger Technology
Platform currently used by Fortune 500 companies running
mission-critical applications worldwide. Boardwalktech's digital
ledger technology and its unique method of managing vast amounts of
structured and unstructured data is the only platform on the market
today where multiple parties can effectively work on the same data
simultaneously while preserving the fidelity and provenance of the
data. Boardwalktech can deliver collaborative, purpose-built
enterprise information management applications on any device or
user interface with full integration with enterprise systems of
record in a fraction of the time it takes other non-digital ledger
technology-based platforms. Boardwalktech is headquartered in
Cupertino, California with offices
in India and operations in
North America. For more
information on Boardwalktech, visit our website at
www.boardwalktech.com.
Forward-Looking Information and
Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and statements are not
representative of historical facts or information or current
condition, but instead represent only the Company's beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of the Company's
control. Generally, such forward-looking information or statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or may contain statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance, or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks including, without limitation, the risks
discussed under the heading "Risk Factors" in the Company's filing
statement dated May 30, 2018.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
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.
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SOURCE BoardwalkTech