156% increase in Q4 2018 Subscription Revenue compared to Q4
2017 and a 43% Year over Year Increase in Subscription Revenue
VANCOUVER, April 25, 2019 /CNW/ - Katipult Technology Corp.
(TSXV:FUND and FRA:K10) ("Katipult" or the "Corporation"), provider
of an industry leading and award-winning cloud-based software
infrastructure for digitizing and automating private placements, is
pleased to announce its fourth quarter (Q4) and its full year 2018
financial results.
Subscription revenue increased 43% in 2018 to $702 thousand compared to the prior year
(2017: $491 thousand). The
Corporation continues to attract interest from potential clients
including small and medium sized private equity, private lending
and commercial real estate organizations and recently has attracted
the interest of larger, more established organizations. In the
fourth quarter of 2018 the Corporation recorded subscription
revenue of $251 thousand compared to
$98 thousand in the fourth quarter of
2017. This resulted in Q4 2018 being the Corporation's highest
reported subscription revenue in a quarter to date.
"This marks our fourth consecutive quarter of increasing
subscription revenues. Over the last year, we have seen a maturing
of our product, the development of more robust sales and support
processes and our ability to attract the interest of large industry
players. We are excited to be entering 2019 with significant
recurring revenues in hand and interesting opportunities that help
move us up-market." said Brock
Murray, CEO of Katipult
Financial Highlights – 2018
- Total revenue for the year ended December 31, 2018 increased by 8% to $1.225 million, compared to $1.136 million in 2017. The substantial increase
in subscription revenue was partially offset by lower integration
revenues as the Corporation is strategically moving up-market by
targeting fewer, but larger more established clients.
- Gross profit as a percentage of sales increased from 71.1% in
2017 to 73.7% in 2018.
- Total comprehensive loss for 2018 was $2.073 million compared to $1.124 million in 2017. The larger loss is due to
higher selling, general and administrative costs and higher
research and development costs partially offset by higher revenues
and higher gross profit.
- As at December 31, 2018, the
Corporation's cash balance was $2.539
million compared to $0.345
million at December 31,
2017.
- Katipult was awarded $120
thousand from the National Research
Council of Canada Industrial Research Assistance Program
(NRC IRAP) to support the development of an "Investor License"
application on a decentralized network. The Investor License is
intended to address all mechanisms of investor onboarding and
auditability necessary for regulatory compliance.
- In November 2018, the Corporation
won an award and secured a cash prize of $100 thousand SGD (c $95
thousand) at the 2018 Singapore FinTech Festival, the
world's largest platform for the global FinTech community. 40
finalists were shortlisted from more than 280 global submissions,
with entries evaluated based on four criteria: impact,
practicality, interoperability, and uniqueness and creativity. The
winners were selected by a panel of 17 judges who represented a
cross-section of international and local experts from the private
and public sectors, including representatives of HSBC, Deloitte,
DBS Bank. Accenture and Boston Consulting among others. This award
was strong validation of Katipult's technology and the market need
it addresses.
Neither the 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.
Forward-Looking Statement:
Cautionary Note Regarding Forward Looking Statements: Certain
disclosure in this release, including, but not limited to,
statements regarding the increased or continued industry interest
in the Corporation's product, converting existing sales interest
and pipeline growth into revenue, expanding the sales force,
generating new sales opportunities, effectively and efficiently
utilizing resources and available cash, constitute forward-looking
statements. In making the forward- looking statements in this
release, the Corporation has applied certain factors and
assumptions that are based on the Corporation's current beliefs as
well as assumptions made by and information currently available to
the Corporation, including, but not limited to, the Corporation's
anticipated cash needs, that the cash available to the Corporation
is as expected, the Corporation's product will continue to operate
as expected, the industry will continue to see value in the
Corporation's product, the Corporation will be able to recruit
talented and experienced sales, support and other individuals
required to execute the Corporation's plans. Although the
Corporation considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect, and the forward-looking statements in this release are
subject to numerous risks, uncertainties and other factors that may
cause future results to differ materially from those expressed or
implied in such forward-looking statements. Such risk factors may
include, among others, the risk that cash available to the
Corporation is not as expected, the Corporation's pricing and
product offering is no longer relevant, the Corporation isn't able
to recruit the personnel it requires on terms acceptable to the
Corporation, regulatory changes that may require significant rework
of the Corporation's product. Readers are cautioned not to place
undue reliance on forward-looking statements. The Corporation does
not intend, and expressly disclaims any intention or obligation to,
update or revise any forward- looking statements whether as a
result of new information, future events or otherwise, except as
required by law.
SOURCE Katipult Technology Corp.
