ProntoForms Reports Annual and Q4 2022 Financial Results
Achieves 11% Annual Growth in Recurring Revenue
OTTAWA, March 09, 2023 (GLOBE NEWSWIRE) — ProntoForms Corporation (TSXV: PFM), the global leader in field intelligence, announced today its annual and fourth quarter (Q4) financial results for the period ended December 31, 2022. All amounts are in US dollars unless otherwise stated.
“In 2022, we grew our recurring revenue by 11% as we continued to develop our enterprise go-to-market teams and by the 4th quarter made solid progress in closing the gap to EBITDA breakeven,” said Alvaro Pombo, Founder and co-CEO of ProntoForms. “We have achieved notable successes in expanding our footprint in major enterprise customers based on the strong return on investment that our platform continues to deliver. In the last quarter, we announced a major expansion at a global oil company valued at $2.5 million over 5 years.”
“We are rapidly moving to capitalize on the strong satisfaction and ROI that our customers generate through the deployment of our platform. Our sales and marketing efforts are focused on market segments where we have established strong referenceable customer success and are working to create a mature enterprise sales organization to deliver consistently higher growth,” said Philip Deck, ProntoForms’ newly appointed co-CEO. “ProntoForms has made significant progress in establishing ourselves as a mature enterprise competitor and I am excited to lead the completion of the transition.”
Financial Highlights – 2022 Year (All results in USD)
- Recurring revenue for the year-ended December 31, 2022 increased by 11% to $20.37 million compared to $18.32 million for 2021.
- Total revenue for the year-ended December 31, 2022 increased by 10% to $21.33 million compared to $19.35 million for 2021.
- Gross margin for 2022 was $18.18 million or 85% of total revenue compared to $16.39 million or 85% in 2021. Gross margin on recurring revenue was 90% for 2022 compared to 90% for 2021.
- Loss from operations was $4.33 million, for the year-ended December 31, 2022 up from $4.16 million for 2021.
- Net loss for the year-ended December 31, 2022 was $4.45 million compared to a net loss of $4.46 million in 2021.
- As at December 31, 2022, the Company’s cash and net working capital balances were $6.11 million and $2.68 million respectively.
Financial Highlights – 2022 Fourth Quarter
- Recurring revenue in Q4 2022 increased by 10% to $5.29 million compared to $4.80 million in Q4 2021 and increased by 1% compared to $5.23 million in Q3 2022.
- Total revenue for Q4 2022 increased by 12% to $5.61 million compared to $5.01 million in Q4 2021 and increased by 3% compared to $5.46 million in Q3 2022.
- Gross margin for Q4 2022 was 87% of total revenue compared to 84% in Q4 2021 and 85% in Q3 2022. Gross margin on recurring revenue was 91% for Q4 2022 compared to 90% in Q4 2021 and 90% in Q3 2022.
- Operating loss for Q4 2022 was $0.45 million, down from an operating loss of $1.03 million in Q4 2021 and down from an operating loss of $1.07 million in Q3 2022.
- Net loss for Q4 2022 was $0.55 million, down from a net loss of $1.12 million in Q4 2021 and down from a net loss of $1.11 million in Q3 2022.
Recent Operational Highlights
Notable new and expansion progress from enterprise customers, including:
- Energy Sector
- A global top 20 oil & gas enterprise expanded their deployment of ProntoForms with a five-year $2.5M agreement to support their asset compliance, EHS, work standardization, and leak inspection workflows.
- A Global 500 oil & gas company expanded their deployment of ProntoForms to support inspections.
- An energy company expanded their ProntoForms deployment for existing solutions in both the sales and service business groups.
- Utilities
- A utility enterprise expanded their deployment of ProntoForms for digital pre-work briefings for risk identification, safety audits, incident reporting, and equipment tracking. The solution is additionally being used for daily jobsite reporting and timesheets.
- Medical Device Manufacturing
- A Fortune 500 global medial manufacturer deployed ProntoForms to support their end customer workflows.
Other Highlights
- Co-CEO Alvaro Pombo was the keynote speaker at Field Service Europe. This was the first time ProntoForms attended the European event to support a continued and growing presence in the European market.
- ProntoForms launched a new partnership with ServiceNow to provide customers with the best possible field service experience. The new partnership encompasses updates to the product, including data sources, data destinations, and an app-to-app ServiceNow integration.
- ProntoForms was named the Enterprise Grid Leader for mobile forms automation in G2’s Winter 2022 Grid for the fourth year in a row.
Q4 Conference Call Date:
Date: Thursday, March 9th, 2023
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 647-484-0478
Toll Free – (+1) 888-256-1007
Conference ID: 5738218
Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 5738218
Expiry Date: March 16th, 2023, at 11:59pm EST
About ProntoForms Corporation
ProntoForms 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 Pombo Chief Executive Officer ProntoForms Corporation 613.599.8288 ext. 1111 apombo@prontoforms.com | Dave Croucher Chief Financial Officer ProntoForms Corporation 613-286-9212 dcroucher@prontoforms.com |
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 10, 2021 found at www.sedar.com for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2020 for a description of how the Company determines and uses ARR. ARR is a key performance indicator used by the Company and is not meant as an indication such amounts will necessarily be included in revenues in any given fiscal year.
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.
| PRONTOFORMS CORPORATION | ||||||||||||||||||
| Consolidated Statements of Loss and Comprehensive Loss | ||||||||||||||||||
| For the three months and years ended December 31, 2022 and 2021 | ||||||||||||||||||
| (in US dollars) | ||||||||||||||||||
| Three months ended Dec 31, | Year ended December 31, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Revenue: | ||||||||||||||||||
| Recurring revenue | $ | 5,289,635 | $ | 4,795,940 | $ | 20,374,733 | $ | 18,316,046 | ||||||||||
| Professional and other services | 321,122 | 210,783 | 952,055 | 1,037,701 | ||||||||||||||
| 5,610,757 | 5,006,723 | 21,326,788 | 19,353,747 | |||||||||||||||
| Cost of revenue (1): | ||||||||||||||||||
| Recurring revenue | 472,269 | 495,294 | 2,109,645 | 1,831,614 | ||||||||||||||
| Professional and other services | 246,937 | 282,913 | 1,038,120 | 1,136,130 | ||||||||||||||
| 719,206 | 778,207 | 3,147,765 | 2,967,744 | |||||||||||||||
| Gross margin | 4,891,551 | 4,228,516 | 18,179,023 | 16,386,003 | ||||||||||||||
| Expenses: | ||||||||||||||||||
| Research and development (1) | 1,599,196 | 1,709,265 | 6,916,115 | 7,063,717 | ||||||||||||||
| Selling and marketing (1) | 2,734,628 | 2,580,664 | 11,637,968 | 9,897,139 | ||||||||||||||
| General and administrative (1) | 1,002,856 | 970,370 | 3,950,529 | 3,586,404 | ||||||||||||||
| 5,336,680 | 5,260,299 | 22,504,612 | 20,547,260 | |||||||||||||||
| Loss from operations | (445,129 | ) | (1,031,783 | ) | (4,325,589 | ) | (4,161,257 | ) | ||||||||||
| Foreign exchange (loss) gain | (22,289 | ) | (58,859 | ) | 122,741 | (187,301 | ) | |||||||||||
| Finance costs | (83,435 | ) | (29,229 | ) | (245,918 | ) | (115,630 | ) | ||||||||||
| Net loss and comprehensive loss | $ | (550,853 | ) | $ | (1,119,871 | ) | $ | (4,448,766 | ) | $ | (4,464,188 | ) | ||||||
| Net loss and comprehensive loss | ||||||||||||||||||
| per common share basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.04 | ) | ||||||
| Weighted average number of common shares | ||||||||||||||||||
| basic and diluted | 128,763,361 | 125,869,247 | 128,289,657 | 125,869,247 | ||||||||||||||
| (1) Amounts include share-based compensation expense as follows: | ||||||||||||||||||
| Cost of revenue | $ | 12,759 | $ | 17,680 | $ | 21,607 | $ | 40,249 | ||||||||||
| Research and development | 69,787 | 79,175 | 298,744 | 182,214 | ||||||||||||||
| Selling and marketing | 118,983 | 151,730 | 485,720 | 252,769 | ||||||||||||||
| General and administrative | 64,457 | 164,835 | 427,583 | 390,836 | ||||||||||||||
| Total share-based compensation expense | $ | 265,986 | $ | 413,420 | $ | 1,233,654 | $ | 866,068 | ||||||||||
| PRONTOFORMS CORPORATION | ||||||||||
| Consolidated Statements of Financial Position | ||||||||||
| as at December 31, 2022 and 2021 | ||||||||||
| (in US dollars) | ||||||||||
| December 31, | December 31, | |||||||||
| 2022 | 2021 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 6,112,071 | $ | 6,082,289 | ||||||
| Accounts receivable | 4,179,088 | 3,199,216 | ||||||||
| Investment tax credits receivable | 197,553 | 117,599 | ||||||||
| Unbilled receivables | 88,453 | 36,406 | ||||||||
| Related party loan receivable | 79,331 | 84,757 | ||||||||
| Prepaid expenses and other receivables | 1,077,015 | 907,228 | ||||||||
| Contract acquisition costs | 311,494 | 273,062 | ||||||||
| 12,045,005 | 10,700,557 | |||||||||
| Property, plant and equipment | 286,834 | 331,717 | ||||||||
| Contract acquisition costs | 190,585 | 157,693 | ||||||||
| Right-of-use asset | 148,515 | 403,143 | ||||||||
| $ | 12,670,939 | $ | 11,593,110 | |||||||
| Liabilities and Shareholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | $ | 2,686,288 | $ | 2,533,743 | ||||||
| Deferred revenue – current portion | 6,508,986 | 5,411,380 | ||||||||
| Lease obligation – current portion | 172,947 | 303,650 | ||||||||
| 9,368,221 | 8,248,773 | |||||||||
| Long-term debt | 6,007,585 | 3,261,825 | ||||||||
| Deferred revenue | – | 33,068 | ||||||||
| Lease obligation | – | 184,766 | ||||||||
| 15,375,806 | 11,728,432 | |||||||||
| Shareholders’ equity: | ||||||||||
| Share capital | 32,166,781 | 31,141,138 | ||||||||
| Contributed surplus | 864,907 | 864,907 | ||||||||
| Share-based payment reserve | 3,398,246 | 2,544,668 | ||||||||
| Deficit | (39,319,236 | ) | (34,870,470 | ) | ||||||
| Accumulated other comprehensive income | 184,435 | 184,435 | ||||||||
| (2,704,867 | ) | (135,322 | ) | |||||||
| $ | 12,670,939 | $ | 11,593,110 | |||||||
| PRONTOFORMS CORPORATION | ||||||||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||||
| For the three months and years ended December 31, 2022 and 2021 | ||||||||||||||||||
| (in US dollars) | ||||||||||||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Cash used in: | ||||||||||||||||||
| Operating activities: | ||||||||||||||||||
| Net loss | $ | (550,852 | ) | $ | (1,119,871 | ) | $ | (4,448,766 | ) | $ | (4,464,188 | ) | ||||||
| Items not involving cash: | ||||||||||||||||||
| Share-based compensation | 265,986 | 413,420 | 1,233,654 | 866,068 | ||||||||||||||
| Accretion on lease obligations | 2,964 | 7,248 | 18,442 | 34,823 | ||||||||||||||
| Accretion of transaction costs | 2,808 | 7,045 | 10,417 | 28,181 | ||||||||||||||
| Amortization of property, plant and equipment | 35,536 | 39,980 | 146,596 | 161,608 | ||||||||||||||
| Amortization of right-of-use asset | 63,657 | 63,657 | 254,628 | 254,628 | ||||||||||||||
| Unrealized foreign exchange losses (gains) | 125,793 | 117,422 | (212,496 | ) | 193,829 | |||||||||||||
| Other finance costs | 80,333 | 22,184 | 235,207 | 87,449 | ||||||||||||||
| Interest paid | (104,143 | ) | (25,371 | ) | (279,903 | ) | (99,809 | ) | ||||||||||
| Interest received | 23,810 | 3,187 | 44,696 | 12,360 | ||||||||||||||
| Lease interest paid | (2,964 | ) | (7,248 | ) | (18,442 | ) | (34,823 | ) | ||||||||||
| Changes in non-cash operating working capital items | 286,911 | 218,337 | (135,900 | ) | 862,727 | |||||||||||||
| 229,839 | (260,010 | ) | (3,151,867 | ) | (2,097,147 | ) | ||||||||||||
| Financing activities | ||||||||||||||||||
| Payment of lease obligations | (72,183 | ) | (73,748 | ) | (296,834 | ) | (278,666 | ) | ||||||||||
| Payment of loan renewal fee | – | – | (7,528 | ) | – | |||||||||||||
| Proceeds from drawdown of credit facility | – | – | 3,178,124 | – | ||||||||||||||
| Proceeds from the exercise of options | – | 22,550 | 645,567 | 969,929 | ||||||||||||||
| (72,183 | ) | (51,198 | ) | 3,519,329 | 691,263 | |||||||||||||
| Investing activities | ||||||||||||||||||
| Purchase of property, plant and equipment | (37,739 | ) | (20,096 | ) | (101,324 | ) | (85,803 | ) | ||||||||||
| (37,739 | ) | (20,096 | ) | (101,324 | ) | (85,803 | ) | |||||||||||
| Effect of exchange rate changes on cash | (53,493 | ) | (98,476 | ) | (236,356 | ) | (173,566 | ) | ||||||||||
| Increase (decrease) in cash and cash equivalents | 66,425 | (429,780 | ) | 29,782 | (1,665,253 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 6,045,647 | 6,512,069 | 6,082,289 | 7,747,542 | ||||||||||||||
| Cash and cash equivalents, end of period | $ | 6,112,071 | $ | 6,082,289 | $ | 6,112,071 | $ | 6,082,289 | ||||||||||
