CALGARY,
AB, May 29, 2023 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company), an industry leader in visualization and lead
generation technology for the home renovation and new construction
sector, announces its financial results for the first quarter of
fiscal 2023 ended March 31, 2023 ("Q1
2023"). The financial statements and related management's
discussion and analysis ("MD&A") can be viewed on SEDAR at
www.sedar.com. Unless otherwise stated, all dollar amounts are
Canadian dollars.
Financial highlights for the first quarter of 2023:
- Revenues of $1,354,175, up 3%
over the prior year's $1,315,917.
- Deferred Revenue of $1,594,697
for the quarter ended March 31, 2023
versus $1,413,786 for the year ended
December 31, 2022.
- Recurring revenue of $515,333 versus $460,784 for the same period in 2022, a 12%
increase;
- Gross margin of 73% versus 63% in the first quarter of
2022.
- Net loss of $384,653 compared to
a net loss of $332,546 in the first
quarter of 2022.
- At March 31, 2023, the Company
had 40,664,635 common shares issued and outstanding.
Renoworks experienced a 3% increase in revenue in Q1 2023
compared to the same period in 2022. Growth was primarily driven by
a 44% increase in libraries revenue and a 12% increase in hosting
and licensing revenues.
"We see significant opportunities to transform the industry with
our innovative solutions, which includes our extensive product
library catalogue," explained Doug
Vickerson, CEO of Renoworks. "This database of product
information is the largest collection of building product
information and enables Renoworks and its partners, like our recent
partnership with CostCertified, to capture immense customer design
intent data to inform business decisions and create user
experiences."
The Company recognizes the importance of technological
advancements and aims to accelerate customer acceptance and
adoption of its digital visualization products through ongoing
investment in R&D, AI, contractor solutions, data science, and
platform functionality.
Mr. Vickerson emphasized the growth opportunities that its
contractor solutions, Renoworks Pro, brings to the Company. He
stated, "Renoworks Pro is a powerful tool that enables contractors
and remodelers to enhance their sales process and generate higher
project revenue. This quarter, we secured additional strategic
sales and marketing partnerships with industry leaders such as Angi
Leads, marketing agencies, channel partners, and technology
integrations, to build upon our initial positive results last
quarter and further the growth of our contractor solution for
2023."
Financial results from operations for the first quarter 2023
with comparatives for 2022 are as follows:
|
Three Months Ended
March 31
|
2023
|
2022
|
Revenue
|
$1,354,175
|
$1,315,917
|
Gross Profit
|
$993,922
|
$823,044
|
Expenses
|
$1,370,260
|
$1,145,410
|
Net Loss
|
$384,653
|
$332,546
|
Loss per
share
|
$0.01
|
$0.01
|
Adjusted
EBITDA
|
($362,156)
|
($263,387)
|
Weighted Average Shares
Outstanding
|
40,663,101
|
38,976,288
|
The Company's financial position as of March 31, 2023 with comparatives from
December 31, 2022 is as follows:
|
March 31, 2023
|
December 31, 2022
|
Cash Balance
|
$344,392
|
$704,080
|
Accounts
Receivable
|
$824,641
|
$734,706
|
Working
Capital
|
($117,781)
|
$207,163
|
Deferred
Revenue
|
$1,594,697
|
$1,413,786
|
Long- term
liabilities
|
$215,648
|
$161,875
|
Shareholder's Equity
(Deficiency)
|
($133,588)
|
$232,715
|
Deficit
|
($10,119,669)
|
($9,735,016)
|
Total Assets
|
$1,601,734
|
$1,788,806
|
Within the MD & A reference is made to "working capital",
which is a non-IFRS measure. Working capital is traditionally
defined as current assets less current liabilities. Included in the
working capital calculation is significant non-cash deferred
revenue, which when removed from the traditional working capital
calculation, management believes is a better indicator of the
Company's liquidity and its ability to meet current
obligations. Excluding deferred revenue, a significant
non-cash item included in working capital, the Company's working
capital at March 31, 2023 is positive
$1,261,268 ($1,459,074 – Dec 31,
2022).
About Renoworks
Renoworks Software Inc. develops and sells unique digital
visualization software and integration solutions for the remodeling
and new home construction industry. Renoworks delivers its
technology to manufacturers, contractors, builders, and retailers
offering solutions to one of the home improvement industry's
greatest challenges: enabling homeowners to review their product
selections in a hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform and generates revenues from five main business lines:
Renoworks Enterprise, Renoworks PRO, Renoworks Design Services,
Renoworks FastTrack, and Renoworks API (Application Programming
Interface). For more information, visit www.renoworks.com and
www.renoworkspro.com.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS.
However, management of Renoworks believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. Adjusted EBITDA is defined as earnings before interest
income, taxes, depreciation and amortization, stock based
compensation, restructuring costs, impairment charges and other
non-recurring gains or losses. Management believes Adjusted EBITDA
is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized meanings
prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Readers are cautioned that
Adjusted EBITDA is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as
indicators of performance, cash flow or profitability. References
to the Renoworks' Adjusted EBITDA should be read in conjunction
with the financial statements and management's discussion and
analysis of Renoworks posted on SEDAR (www.sedar.com).
Forward Looking Information
Certain statements in this news release, other than
statements of historical fact, are forward looking information that
involves various risks and uncertainties. Such statements relating
to, among other things, the prospects for the Company to enhance
operating results, are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from
information contained herein. There can be no assurance that such
statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral forward
looking statements are based on the estimates and opinions of the
management on the dates they are made and expressly qualified in
their entirety by this notice. The Company assumes no obligation to
update forward-looking statements should circumstances or
management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.