TrueContext Reports Annual and Q4 2023 Financial Results

Achieves 15% Recurring Revenue Growth and Profitability in Q4

OTTAWA, March 19, 2024 (GLOBE NEWSWIRE) — TrueContext Corporation (TSXV: TCXT), (“TrueContext” or the “Company”) the global leader in field intelligence, announced today its annual and fourth quarter (Q4) financial results for the period ended December 31, 2023. All amounts are in US dollars unless otherwise stated.

Achievements in the 2023 financial year include strong overall growth in recurring revenue combined with attainment of profitability in Q3 and $570,000 of operating income in Q4.

TrueContext recently announced the signing of a definitive agreement relating to an all-cash acquisition by Battery Ventures. In light of this announcement, the Company will forego its quarterly earnings call-in connection with these results.

Financial Highlights – 2023 Year (All results in USD)

• Recurring revenue for the year-ended December 31, 2023 increased by 15% to $23.33 million compared to $20.37 million for 2022.
• Total revenue for the year-ended December 31, 2023 increased by 14% to $24.37 million compared to $21.33 million for 2022.
• Gross margin for 2023 was $21.23 million or 87% of total revenue compared to $18.18 million or 85% in 2022. Gross margin on recurring revenue was 91% for 2023 compared to 90% for 2022.
• Operating loss was $1.66 million, for the year-ended December 31, 2023 down from $4.33 million for 2022.
• Net loss for the year-ended December 31, 2023 was $2.15 million compared to a net loss of $4.45 million in 2022.
• As at December 31, 2023, the Company’s cash and net working capital balances were $7.13 million and $1.13 million respectively.

Financial Highlights – 2023 Fourth Quarter

• Recurring revenue in Q4 2023 increased by 16% to $6.15 million compared to $5.29 million in Q4 2022 and increased by 3% compared to $5.96 million in Q3 2023.

• Total revenue for Q4 2023 increased by 13% to $6.31 million compared to $5.61 million in Q4 2022 and increased by 2% compared to $6.16 million in Q3 2023.

• Gross margin for Q4 2023 was 89% of total revenue compared to 87% in Q4 2022 and 87% in Q3 2023. Gross margin on recurring revenue was 92% for Q4 2023 compared to 91% in Q4 2022 and 91% in Q3 2023.

• Operating income for Q4 2023 was $0.57 million, compared to an operating loss of $0.45 million in Q4 2022 and an operating loss of $0.22 million in Q3 2023.

• Net income for Q4 2023 was $0.39 million, compared to a net loss of $0.55 million in Q4 2022 and a net loss of $0.27 million in Q3 2023.

Please refer to https://truecontext.com/about/investor-relations/ for full financial statements, management discussion and analysis and a downloadable spreadsheet version of our quarterly information.

About TrueContext

TrueContext is a global leader in field intelligence. The Company’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 the Company’s product 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 currently trades on the TSXV under the symbol TCXT. “ProntoForms” and “TrueContext” are registered trademarks of TrueContext Inc., a wholly owned subsidiary of the Company.

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Certain information in this press release may constitute 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. Historical growth levels and results may not be indicative of future growth levels or results. The proposed all-cash acquisition of the Company referred to above is subject to satisfaction of certain customary conditions including court approval and shareholder approval. The press release relating so such acquisition linked above contains further details on the conditions to closing of that transaction. 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 on or about the date of this release which can be found at www.sedarplus.ca for a discussion of such factors.

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.