TORONTO, Jan. 31,
2023 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM)
("EMERGE" or the "Company"), a diversified acquirer
and operator of niche e-commerce brands, is providing selected
preliminary unaudited results for its fourth quarter and full year
ended December 31, 2022.
Preliminary Q4 and Full Year 2022 Financial
Highlights
- Record Gross Merchandise Sales ("GMS")1 in Q4 2022
expected to be between $32M and
$33M, compared to $26.2M in Q4 2021
- Q4 2022 revenue expected to be between $15.0M and $15.5M,
compared to revenue of $14.9M in Q4
2021
- For full year 2022, revenue is expected be between $57.9M and $58.4M,
compared to $34.8M in 2021,
representing YoY growth of over 66%, and an increase of
approximately 60% compared to 2019 pre-pandemic pro forma
revenue
- Year-end cash balance of approximately $5.7 million
Ghassan Halazon, EMERGE founder and CEO, commented,
"Despite the persisting macro challenges, EMERGE has driven more
gross merchandise sales1 in Q4 than in any prior
quarter, with more than 22% growth year-over-year expected, a
testament to our largely resilient portfolio of mostly
discount-driven brands that we expect will lend themselves well in
the anticipated recessionary environment ahead. On an
apples-to-apples basis, our expected revenue for 2022 is
approximately 60% higher than our 2019 (pre-pandemic) pro forma
revenue. We look forward to reporting our Q4 and full year 2022
financial results in the coming months."
Preliminary Unaudited Financial Information
The financial and operating results included in this news
release are based on preliminary unaudited estimated results which
have not yet been finalized or, in the case of annual results,
audited. These estimated results are subject to change upon
completion of the financial statements for the year
ended December 31, 2022, and the audit of such financial
statements and such changes could be material due to, among other
things, the completion of EMERGE's financial closing procedures,
final adjustments, review by EMERGE's auditors and other
developments that may arise between now and the time the financial
results are finalized. Accordingly, such estimated results are
forward-looking statements (as defined below) within the meaning of
applicable securities legislation and are subject to the
limitations and risks described under "Forward-Looking Statements"
below.
EMERGE anticipates filing its audited annual financial
statements for the year ended December 31, 2022, and
related management's discussion and analysis on SEDAR in late
April 2023.
Unless otherwise noted, all amounts are in Canadian dollars.
About EMERGE
EMERGE is a diversified acquirer and
operator of profitable niche e-commerce brands. Our subscription
and marketplace e-commerce properties provide our members with
access to pet products, premium meat, outdoor gear, golf, and other
curated experiences. Our portfolio houses various online
destinations including WholesalePet.com, trulocal.ca, BattlBox.com,
UnderPar.com, JustGolfStuff.ca, CarnivoreClub.co, WagJag.com,
BeRightBack.ca, and Wanlow.com. EMERGE was named one
of Canada's Top Growing Companies by Globe and Mail in
2022 (and 2020), and one of the fastest growing companies
in Canada by the Startup 50 in 2020.
To learn more visit https://www.emerge-commerce.com/
Follow
EMERGE:
LinkedIn | Twitter | Instagram | Facebook
Cautionary notice
Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Non-GAAP Financial Measures
This press release makes reference to certain non-GAAP
measures. These non-GAAP measures are not recognized measures under
IFRS, do not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement those IFRS measures by
providing a further understanding of results of operations from
management's perspective. Accordingly, they should not be
considered in isolation nor as a substitute for analysis of the
financial information of the Company reported under IFRS. Gross
Merchandise Sales ("GMS") should not be construed as alternatives
to revenue determined in accordance with IFRS. GMS does not have
any standardized meaning under IFRS and therefore may not be
comparable to similar measures presented by other issuers.
GMS as defined by management is the total dollar value of
customer purchases of goods and services, excluding applicable
taxes and net of discounts and refunds. Management believes GMS
provides a useful measure for the dollar volume of e-commerce
transactions made through our platforms and an indicator for our
business performance.
The following table reconciles preliminary GMS to
revenue:
Preliminary
Unaudited
|
|
|
|
Q4
2022*
$
(millions)
|
Q4
2021
$ (millions)
|
Revenue
|
15.2
|
14.9
|
Adjusted
for:
|
|
|
Merchant costs deducted
from net revenue
|
17.2
|
11.1
|
Sales added to deferred
revenue and value of orders fulfilled
not included in revenue
|
2.2
|
2.5
|
Deferred and other
adjustments to revenue
|
(1.9)
|
(1.9)
|
Advertising
revenue
|
(0.2)
|
(0.3)
|
GMS
|
32.5
|
26.2
|
|
|
|
|
*Amounts for Q4 2022
in the table are preliminary and represent the mid-point of our
expected range.
|
A description and reconciliation of the adjusted measures
will be included in the Company's management discussion &
analysis for the three and twelve months ended December 31, 2022.
Notice regarding forward-looking statements
This press release may contain certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable Canadian securities legislation, that are
not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. Readers are cautioned to
not place undue reliance on forward-looking information. Actual
results and developments may differ materially from those
contemplated by these statements. The Company undertakes no
obligation to comment on analyses, expectations or statements made
by third-parties in respect of the Company, its securities, or
financial or operating results (as applicable). Although the
Company believes that the expectations reflected in forward-looking
information in this press release are reasonable, such
forward-looking information has been based on expectations, factors
and assumptions concerning future events which may prove to be
inaccurate and are subject to numerous risks and uncertainties,
certain of which are beyond the Company's control, including the
risk factors discussed in the Company's annual information form,
which are available through SEDAR at www.sedar.com.
The forward-looking information contained in this press release are
expressly qualified by this cautionary statement and are made as of
the date hereof. The Company disclaims any intention and has no
obligation or responsibility, except as required by law, to update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise.
On Behalf of the Board
Ghassan Halazon
Director and CEO
(1)
|
Non-GAAP Financial
Measure. Refer to section "Non-GAAP Financial Measures" below for
additional information.
|
SOURCE EMERGE Commerce Ltd.