Adjusted EBITDA Improves 26% Y/Y and 21%
Q/Q
CUPERTINO, Calif., Feb. 25,
2025 /CNW/ - (TSXV: BWLK) (OTCQB: BWLKF) –
Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a
leading digital ledger platform and enterprise software solutions
company, is pleased to report its financial results for the
three-month period ended December 31,
2024 ("Q3-FY25"). All figures are reported in
U.S. dollars, unless otherwise indicated. Boardwalktech's financial
statements are prepared in accordance with International Financial
Reporting Standards ("IFRS"). Please refer to the Unaudited
Condensed Consolidated Financial Statements and Management's
Discussion and Analysis ("MD&A") for the three- and
nine-month period ended December 31,
2024, filed on SEDAR+ at www.sedarplus.ca for more
information.
Management will host a conference call today at 4:30 PM Eastern Time / 1:30 PM Pacific Time to discuss the details of
the results and answer questions from the financial and investing
communities. Please see details below for how to access the
call.
Financial Highlights
- Revenue for Q3-FY25 was $1.29
million, a 1% increase from $1.28
million for the three-month period ended September 30, 2024 ("Q2-FY25") and a 12%
decrease from $1.47 million for the
three-month period ended December 31,
2023 ("Q3-FY24"). Including two previously disclosed
non renewals, arising from customers' internal reorganization
actions, revenue would have been near $1.5
million.
- Annual recurring revenue ("ARR") is a non-IFRS measure,
which the Company calculates as the recurring revenue expected
based on annual license subscriptions and recurring services on a
trailing three-month basis. ARR at December
31, 2024 was $4.2
million.
- Gross margin for Q3-FY25 was 88.4%, down slightly from 88.6% in
Q2-FY25 due to slightly higher hosting expenses sequentially, and
down from 89.1% in Q3-FY24 due to lower revenue levels.
- Adjusted EBITDA for Q3-FY25 was a loss of $(0.29) million, a 21% improvement from the
$(0.37) million loss in Q2-FY25 and a
26% improvement $(0.39) million loss
in Q3-FY24.
- Non-IFRS net loss for Q3-FY25 was $(0.4)
million ($(0.01) per basic and
diluted share) versus a $(0.5)
million non-IFRS loss ($(0.01)
per basic and diluted share) in Q2-FY25 and the $(0.4) million non-IFRS loss ($(0.01) per basic and diluted share) in
Q3-FY24.
- Net reported loss for Q3-FY25 was $(0.59) million ($(0.01) per basic and diluted share) versus a
$(0.72) million loss ($(0.01) per basic and diluted share) in Q2-FY25
and a $(0.78) million loss
($(0.02) per basic and diluted share)
in Q3-FY24.
- As of December 31, 2024,
Boardwalktech had $0.2 million of
cash plus $0.5 million of collectible
receivables, $2.35 million of debt
and $0.2 million of working capital
deficit (excluding deferred revenue). As of the most recent month's
certification, the Company has $0.6
million of a credit facility available.
Subsequent to Q3-FY25
- February 6, 2025: Boardwalktech
expands momentum within a top 5 U.S. bank and with partners which
will deliver over $300,000 of
incremental revenue.
- January 22, 2025: Boardwalktech
and LTIMindtree expand relationship with global banking clients,
including current work at a top 5 U.S. joint banking client.
- January 16, 2025: Fortune 500
food company signs five-year renewal for Boardwalktech supply chain
solution, generating over US$300,000
of license revenue over the extension term.
Management Commentary
"Calendar 2024 was a pivotal year for Boardwalktech as we
repositioned our go-to-market strategy, signed early adopters of
Unity Central, expanded our Velocity implementation at a top 5 U.S.
bank with our partners, launched our first major business
processing outsourcing (BPO) client, and closed a $4 million line of credit," said Andrew T. Duncan, Chief Executive Officer of
Boardwalktech. "Our 'land and expand' strategy continues to be a
key growth driver as evidenced by our 39% compounded annual growth
rate over the past 3 years from SaaS license recurring revenues;
our pipeline continues to scale with several engagements in the
latter stages; major global enterprises have validated our
solutions and the value they deliver; and our partners have
introduced us to new prospects and markets. We have also already
recognized over $0.9 million of
savings year-to-date in Fiscal 2025, at the higher end of the
$600,000 to $800,000 range we previously disclosed. All of
these achievements give us reason to be optimistic about
Boardwalktech's prospects in the upcoming year and beyond."
Earnings Conference Call Details
What: Boardwalktech's Q3-FY25 Quarterly Conference Call
When: Tuesday, February 25,
2025
Time: 4:30 PM Eastern Time /
1:30 PM Pacific Time
North American Participants: Please dial 1-888-510-2154
(Toll Free) or 437-900-0527 (Local – Toronto)
Audience URL: https://app.webinar.net/09k7wDeml1n (copy &
paste to your browser)
Replay: A replay of the call will be available until
March 4, 2025, and can be accessed by
dialing 1-888-660-6345 and entering the access code
23621#
About Boardwalktech Software Corp.
Boardwalktech has developed a patented Digital Ledger Technology
Platform currently used by Fortune 500 companies running
mission-critical applications worldwide. Boardwalktech's digital
ledger technology and its unique method of managing vast amounts of
structured and unstructured data is the only platform on the market
today where multiple parties can effectively work on the same data
simultaneously while preserving the fidelity and provenance of the
data. Boardwalktech can deliver collaborative, purpose-built
enterprise information management applications on any device or
user interface with full integration with enterprise systems of
record in a fraction of the time it takes other non-digital ledger
technology-based platforms. Boardwalktech is headquartered in
Cupertino, California with offices
in India and operations in
North America.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and statements are not
representative of historical facts or information or current
condition, but instead represent only the Company's beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of the Company's
control. Generally, such forward-looking information or statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or may contain statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance, or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks including, without limitation, the risks
discussed under the heading "Risk Factors" in the Company's filing
statement dated February 25, 2025.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward-looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
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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SOURCE Boardwalktech Software Corp.
