CALGARY, AB , Nov. 28,
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 third quarter ended
September 30, 2023 ("Q3 2023"). The
financial statements and related management's discussion and
analysis ("MD&A") can be viewed on SEDAR+
at www.sedarplus.ca. Unless otherwise stated, all dollar
amounts are Canadian dollars.
Financial highlights year to date 2023 with comparatives for
2022 are as follows:
- Year to date revenues of $4,789,569, a slight increase from the prior
year's $4,740,321.
- Deferred Revenue of $1,489,509
for the nine months ended September 30,
2023 compared to $1,413,786 at
December 31, 2022.
- Gross margin of 72% versus 64% in 2022.
- Net loss of $284,664 compared to
a net loss of $615,185 in 2022, as
key investments were made into growth areas such as AI Gen 2,
Renoworks Pro solution for contractors and the integration of new
features sets, which all should lead to growth in 2024.
- Cash at September 30, 2023 was
$316,850, down $387,230 from $704,080 at the end of fiscal 2022. Subsequent to
the quarter end, a significant amount of accounts receivable were
collected and cash as at October 31,
2023 increased to $896,625.
- Recurring revenue of $1,632,485
versus $1,396,519 for the same period
in 2022, a 17% increase.
- As at September 30, 2023, the
Company had 40,664,635 common shares issued and outstanding.
Financial highlights for the third quarter of fiscal 2023
with comparatives for 2022 are as follows:
- Quarterly revenue of $1,716,307
for the three months ended September 30,
2023 versus $1,653,445 in
2022.
- Gross margins continue to be strong at 71% and 63%,
respectively for the third quarters of 2023 and 2022.
- Net income of $68,174 for the
quarter ended September 30, 2023
compared to a net loss of $225,110 in
2022.
- Recurring revenue of $559,660
versus $476,915 for the same period
in 2022, a 17% increase.
Renoworks revenue in the third quarter totaled $1,716,307 an increase of $62,862 compared to the corresponding period in
2022. The Company remains resolute in its pursuit of sustained
growth as evident in its net profit of $68,174 compared to a net loss of $225,110 for the same period in 2022.
The Company's continues to focus on expanding the adoption of
the Renoworks Pro contractor solution. For the remaining part
of 2023 and into 2024 the Company's two primary go-to market
strategies for Renoworks Pro will focus on adding additional
strategic partners to resell or co-market the solution and bundling
the pro solution with our existing enterprise offering to Building
Product Manufacturers.
Doug Vickerson, CEO of Renoworks,
commented on the Company's third-quarter performance, stating: "Our
continued focus on enhancing our platform with AI technologies and
fostering strong strategic partnerships for technological
innovation, value delivery and Renoworks Pro adoption is yielding
promising outcomes. As the industry evolves, Renoworks remains
committed to delivering cutting-edge solutions that empower our
customers, driving their success while building upon our wins in
2023."
Renoworks' Adjusted EBITDA for the three-months ended
September 30, 2023, reached a
positive $92,382, indicating a
noteworthy increase of $245,595
compared to a negative Adjusted EBITDA of $$153,213for the
corresponding period in 2022. This positive trajectory underscores
the Company's ongoing efforts to optimize platform and operational
efficiency and performance.
Financial results from operations year to date with comparatives
for 2022 are as follows:
|
Nine Months Ended
September 30
|
2023
|
2022
|
Revenue
|
$4,789,569
|
$4,740,321
|
Gross Profit
|
$3,436,906
|
$3,047,639
|
Expenses
|
$3,703,268
|
$3,707,876
|
Net Loss
|
$284,664
|
$615,185
|
Loss per
share
|
$0.01
|
$0.02
|
Adjusted
EBITDA
|
($214,506)
|
($415,858)
|
Weighted Average Shares
Outstanding
|
40,664,103
|
39,744,955
|
Cash decrease from
operations
|
$394,814
|
$897,267
|
Financial results from operations for the third quarter 2023
with comparatives for 2022 are as follows:
|
Three Months Ended
September 30
|
2023
|
2022
|
Revenue
|
$1,716,307
|
$1,653,445
|
Gross Profit
|
$1,170,893
|
$1,295,281
|
Expenses
|
$1,162,116
|
$1,267,183
|
Net Income
(Loss)
|
$68,174
|
($225,110)
|
Income (Loss) per
share
|
$0.01
|
($0.01)
|
Adjusted
EBITDA
|
$92,382
|
($153,213)
|
Weighted Average Shares
Outstanding
|
40,664,635
|
40,662,635
|
The Company's financial position as of September 30, 2023 and December 31, 2022 is as follows:
|
September 30, 2023
|
December 31, 2022
|
Cash Balance
|
$316,850
|
$704,080
|
Accounts
Receivable
|
$942,980
|
$734,706
|
Working
Capital
|
($16,270)
|
$207,163
|
Deferred
Revenue
|
$1,489,509
|
$1,413,786
|
Long- term
liabilities
|
$165,290
|
$161,875
|
Shareholder's Equity
(Deficiency)
|
$1,901
|
$232,715
|
Deficit
|
($10,019,680)
|
($9,735,016)
|
Total Assets
|
$1,658,150
|
$1,788,806
|
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.