ProntoForms Reports Q2 2023 Financial Results
26 July 2023 - 9:00PM
ProntoForms Corporation (TSXV: PFM), the global leader in field
intelligence, announced today its second quarter (Q2) financial
results for the period ended June 30, 2023. All amounts are in US
dollars unless otherwise stated.
“Our Trailing Twelve Months (“TTM”) revenue
growth accelerated to 14% from 11.5% in the last quarter, and TTM
annual recurring revenue (“ARR”) base growth to 19% from 13% last
quarter, with first half net bookings results exceeding all of
2022. The company reported strong subscription growth in the second
quarter of 2023 based on a large win, good growth in existing
accounts, and the highest level of revenue retention in two years.
We continue to focus on four key vertical markets where we can
deliver a considerable return on investment to customers through
reduced field service costs, richer data, and higher levels of
compliance as shown by our recent $3M win in the medical device
industry,” said Philip Deck, co-CEO of ProntoForms.
“Consistent with our disclosure last quarter,
our lower operating loss still included costs related to
organizational changes. These were necessary to support changes
made across our operations as we reconfigured our workforce for
higher growth and profitability. We anticipate that most of the
organizational changes are behind us and remain focused on reaching
non-GAAP operating profitability by Q4,” he added.
“In today’s economy, field technicians generate
substantial high-margin revenue for their organizations and play a
crucial role in delivering customer satisfaction. They also amass
valuable data through their job interactions, generating insights
that enable new levels of team and process efficiency. However,
with the new guard increasingly prizing job satisfaction as part of
a generational shift in the industry, they are favouring roles
built around their needs more and more. Therefore, it is critical
for organizations with significant field service operations to
prioritize the technician experience. Our product excels in
consolidating this wealth of information while enhancing technician
satisfaction and operational productivity. Our name change to
TrueContext slated for later this year reflects our wider
repositioning as a leader in enterprise field intelligence,”
ProntoForms co-CEO and Founder Alvaro Pombo explained.
Financial Highlights – 2023 Second
Quarter (All results in USD)
- Recurring revenue in Q2 2023
increased by 16% to $5.79 million compared to $4.97 million in Q2
2022 and increased by 7% compared to $5.43 million in Q1 2023.
- Total revenue for Q2 2023 increased
by 17% to $6.12 million compared to $5.21 million in Q2 2022 and
increased by 6% compared to $5.77 million in Q1 2023.
- Gross margin for Q2 2023 was 86% of
total revenue compared to 84% in Q2 2022 and 86% in Q1 2023. Gross
margin on recurring revenue was 91% for Q2 2023 compared to 89% in
Q2 2022 and 90% in Q1 2023.
- Operating loss for Q2 2023 was
$0.97 million, down from an operating loss of $1.32 million in Q2
2022 and down from an operating loss of $1.04 million in Q1
2023.
- Net loss for Q2 2023 was $1.15
million, down from a net loss of $1.34 million in Q2 2022 and up
from a net loss of $1.13 million in Q1 2023.
- As at June 30, 2022, the Company’s
cash and net working capital balances were $6.25 million and $1.06
million respectively.
Please refer to
https://www.prontoforms.com/company/investor-relations for full
financial statements, management discussion and analysis and a
downloadable spreadsheet version of our quarterly information.
Recent Operational HighlightsNotable
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 from April 2023 to manage workflows for new machine
installations worldwide.
- A Fortune 500 distributor of a large heavy equipment
manufacturer deployed ProntoForms for over $95K ARR to support job
safety analysis, work orders, and site safety reviews.
- A Fortune Global 500 leader in fire, HVAC, and security
equipment added 500 new subscriptions. This expansion will support
various initiatives including HVAC and building automation, energy
management, and emissions reporting and management.
Other Highlights
- ProntoForms shareholders approved the name change to
TrueContext Corporation as well as the appointment of directors,
auditors, and options plan at the annual meeting held June 21,
2023.
- ProntoForms launched a multi-language add-on that enables
multiple language options within a single workflow, creating a
universal approach to field work that supports global and diverse
field teams.
- ProntoForms attended the Canadian Elevator Contractors
Association (CECA) Convention for the first time after becoming a
member earlier this year. At the show, ProntoForms unveiled it’s
Elevate solution that is tailored to address challenges faced by
elevator field teams.
Q2 Conference Call Date:
Date: Tuesday, July 26th, 2023Time: 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/44NZOZE 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) 416-764-8650Toll Free – (+1) 888-664-6383
Recording Playback Numbers:Local Toronto– (+1) 416-764-8677Toll
Free – (+1) 888-390-0541Passcode: 885407Expiry Date: August 2nd,
2023, at 11:59pm EST
About ProntoForms Corporation ProntoForms, soon
to be TrueContext, 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:
Alvaro Pomboco-Chief Executive Officer ProntoForms Corporation
613.599.8288 ext. 1111 apombo@prontoforms.com |
Philip Deckco-Chief Executive Officer ProntoForms Corporation
416.702.3974pdeck@prontoforms.com |
Dave CroucherChief Financial OfficerProntoForms Corporation
613-286-9212dcroucher@prontoforms.com |
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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.
ARR is calculated as the annual equivalent of
the recurring elements of our contracts with customers that are in
effect at the end of the period. It excludes one-time professional
service fees and assumes that customers will renew the contractual
commitments on a periodic basis as those commitments come up for
renewal, unless such renewal is known to be unlikely at period end.
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.
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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PRONTOFORMS CORPORATION |
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Condensed Interim
Consolidated Statements of Loss and Comprehensive Loss |
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For the three and
six months ended June 30, 2023 and 2022 |
(in US
dollars) |
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Three Months Ended June 30, |
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2023 |
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2022 |
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Revenue: |
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Recurring
revenue |
$ |
5,788,346 |
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|
$ |
4,968,802 |
|
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Professional and
other services |
|
335,246 |
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|
242,814 |
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|
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|
6,123,592 |
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5,211,616 |
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Cost of revenue
(1): |
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Recurring
revenue |
|
529,535 |
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|
555,304 |
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Professional and
other services |
|
312,520 |
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|
262,132 |
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|
842,055 |
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|
817,436 |
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Gross
margin |
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5,281,537 |
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4,394,180 |
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Expenses: |
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Research and
development (1) |
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1,796,044 |
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|
1,814,774 |
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Selling and
marketing (1) |
|
3,219,246 |
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|
2,922,742 |
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General and
administrative (1) |
|
1,235,504 |
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973,382 |
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6,250,794 |
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5,710,898 |
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Loss from
operations |
|
(969,257 |
) |
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|
(1,316,718 |
) |
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Foreign exchange
loss |
|
(93,217 |
) |
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|
29,212 |
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Finance
Income |
|
38,585 |
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|
5,451 |
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Finance costs |
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(127,693 |
) |
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(60,578 |
) |
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Net loss
and comprehensive loss |
$ |
(1,151,582 |
) |
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$ |
(1,342,633 |
) |
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Net loss and
comprehensive loss |
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per common share
basic and diluted |
$ |
(0.01 |
) |
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$ |
(0.01 |
) |
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Weighted average
number of common shares |
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basic and
diluted |
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130,291,419 |
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128,278,739 |
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(1) Amounts
include share-based compensation expense as follows: |
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Cost of
revenue |
$ |
3,267 |
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$ |
6,199 |
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Research and
development |
|
38,462 |
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|
50,964 |
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Selling and
marketing |
|
53,499 |
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|
35,429 |
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General and
administrative |
|
189,635 |
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|
152,684 |
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Total share-based compensation expense |
$ |
284,863 |
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$ |
245,277 |
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PRONTOFORMS CORPORATION |
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Condensed Interim
Consolidated Statements of Financial Position |
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as at June 30,
2023 and December 31, 2022 |
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(in US
dollars) |
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June 30, |
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December 31, |
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2023 |
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2022 |
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Assets |
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Current
assets: |
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Cash and cash
equivalents |
$ |
6,251,277 |
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$ |
6,112,071 |
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Accounts
receivable |
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2,248,579 |
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|
4,179,088 |
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Investment tax
credits receivable |
|
151,060 |
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|
197,553 |
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Unbilled
receivables |
|
185,529 |
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|
88,453 |
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Related party loan
receivable |
|
81,158 |
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|
79,331 |
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Prepaid expenses
and other receivables |
|
1,878,757 |
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|
1,077,015 |
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Contract
acquisition costs |
|
484,856 |
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|
311,494 |
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|
11,281,216 |
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|
12,045,005 |
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Property, plant
and equipment |
|
387,323 |
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|
286,834 |
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Contract
acquisition costs |
|
460,616 |
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|
190,585 |
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Right-of-use
asset |
|
1,033,645 |
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|
148,515 |
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$ |
13,162,800 |
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$ |
12,670,939 |
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Liabilities and
Shareholders' Equity |
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Current
liabilities: |
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Accounts payable
and accrued liabilities |
$ |
2,704,132 |
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$ |
2,686,288 |
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Deferred
revenue |
|
7,254,692 |
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|
6,508,986 |
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Lease
obligation |
|
261,264 |
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|
172,947 |
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10,220,088 |
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9,368,221 |
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Long-term
debt |
|
6,152,006 |
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|
6,007,585 |
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Deferred
revenue |
|
260,342 |
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- |
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Lease
obligation |
|
900,214 |
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- |
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|
7,312,562 |
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6,007,585 |
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Shareholders'
deficit: |
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Share capital |
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32,290,967 |
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32,166,781 |
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Contributed
surplus |
|
864,907 |
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|
864,907 |
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Share-based
payment reserve |
|
3,888,925 |
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|
3,398,246 |
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Deficit |
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|
(41,599,084 |
) |
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|
(39,319,236 |
) |
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Accumulated other comprehensive income |
|
184,435 |
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|
184,435 |
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|
(4,369,850 |
) |
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|
(2,704,867 |
) |
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|
|
|
|
|
|
|
|
|
|
|
$ |
13,162,800 |
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|
$ |
12,670,939 |
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PRONTOFORMS CORPORATION |
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Condensed Interim
Consolidated Statements of Cash
Flows |
|
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For the three and
six months ended June 30, 2023 and
2022 |
(in US
dollars) |
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Three months ended June 30, |
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2023 |
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2022 |
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Cash used in: |
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Operating
activities: |
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Net loss |
$ |
(1,151,582 |
) |
|
$ |
(1,342,628 |
) |
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Items not
involving cash: |
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|
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Share-based
compensation |
|
284,863 |
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|
315,836 |
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Accretion on lease
obligations |
|
10,209 |
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|
5,179 |
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Accretion of
transaction costs |
|
2,809 |
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|
|
3,663 |
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Amortization of
property, plant and equipment |
|
36,608 |
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|
|
37,061 |
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Amortization of
right-of-use asset |
|
58,026 |
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|
63,657 |
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Unrealized foreign
exchange loss |
|
92,402 |
|
|
|
(97,982 |
) |
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Other finance
costs |
|
76,085 |
|
|
|
51,464 |
|
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Interest paid |
|
(114,670 |
) |
|
|
(56,915 |
) |
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Interest
received |
|
38,585 |
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|
|
5,451 |
|
|
Changes in
non-cash operating working capital items |
|
(44,230 |
) |
|
|
391,957 |
|
|
|
|
|
|
(710,895 |
) |
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|
(623,257 |
) |
|
|
|
|
|
|
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Financing
activities |
|
|
|
|
|
|
Payment of lease
obligations |
|
(65,184 |
) |
|
|
(75,179 |
) |
|
Lease interest
paid |
|
(10,209 |
) |
|
|
(5,179 |
) |
|
Procceds from
drawdown of credit facility |
|
- |
|
|
|
776,000 |
|
|
Proceeds from the
exercise of options |
|
69,836 |
|
|
|
125,575 |
|
|
|
|
|
|
(5,557 |
) |
|
|
821,217 |
|
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
Purchase of
property, plant and equipment |
|
(141,432 |
) |
|
|
(26,599 |
) |
|
|
|
|
|
(141,432 |
) |
|
|
(26,599 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
67,231 |
|
|
|
(85,262 |
) |
|
|
|
|
|
|
|
|
|
Increase
in cash and cash equivalents |
|
(790,653 |
) |
|
|
86,099 |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period |
|
7,041,930 |
|
|
|
7,431,964 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
$ |
6,251,277 |
|
|
$ |
7,518,063 |
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