Strong Balance Sheet and Lower Fiscal 2023
Cash Burn Supports Future Growth
VANCOUVER, BC, Aug. 11,
2022 /CNW/ - Jasper Commerce Inc. (TSXV: JPIM)
("Jasper" or the "Company"), a leading provider of
Product Information Management ("PIM") solutions
preannounces its unaudited Fiscal 2022 (ending July 31, 2022) financial results. Unless
otherwise indicated, all dollar amounts are expressed in Canadian
dollars.
For Fiscal 2022 the Company expects to announce revenue
of at least $1.68 million, which
is a minimum increase of 23% versus Fiscal 2021. For Fiscal 2022,
the Company expects to report Subscription Revenue of around
$1.2 million, which is a minimum
increase of 33% over Fiscal 2021. Total customer count ending
Fiscal 2022 was up 43% from Fiscal 2021.
Net loss for Fiscal 2022 is expected to be at least $8.45 million. Expenses for the period include
one-time costs of $2.29 million
related to the RTO listing, the fair value of additional shares
issued on conversion of debentures to equity. Excluding these
costs, the Company expects a $6.16 million adjusted net
loss.
Working capital at the end of Fiscal 2022 was approximately
$2.5 million. While cash burn
was elevated in the second half of Fiscal 2022, largely due to
enhancing sales, marketing and business development functions, the
Company expects to reduce cash burn to $240-$260 thousand
per month exiting Q1 2023 (ending October
31, 2022). The Company expects cash burn will continue to
decline as revenues increase further in Fiscal 2023.
"Jasper's PIM value proposition of streamlining product data
management operations to save merchants significant time and money
is reflected in our Fiscal 2022 growth," said Jon Marsella, CEO of Jasper. "Our goal at
the beginning of the year was to raise the capital necessary to
continue to drive growth, increase and leverage new partnerships,
and build Jasper's awareness across all eCommerce platforms.
While overall eCommerce adoption trends have reverted to their
long-term secular growth trend, merchants are more focused on
managing their eCommerce stores and operations more efficiently,
which bodes well for market demand for solutions such as ours."
"Looking forward, Jasper is well positioned to benefit from
increased merchant focus and has the cash to continue to grow
throughout Fiscal 2023," said Mr. Marsella. "Our pipeline remains
robust; our balance sheet is strong; and our decreasing cash burn
is expected to afford us sufficient runway to achieve our goal of
positive EBITDA in Calendar Q3 2023."
About Jasper Commerce Inc.
Jasper offers a Product Information Management
(" PIM ") solution that has the objective of
empowering eCommerce merchants to manage and merchandise their
products from a single source of truth, facilitating them to sell
more, sell faster and work smarter. Jasper's PIM is accessible from
anywhere via a web-browser and is intended to simplify the process
by which online merchants import product data into the PIM. Once
uploaded, merchants can add various product data including product
attributes, images, videos, marketing information, inventory
quantities and price books and efficiently merchandise their
products using various features that include, among other things,
the ability to adjust product categorization, pricing data and
other key metrics. Jasper's PIM also allows for automatic syncing
to popular eCommerce storefronts, marketplaces, or other connected
channels, whenever new products are added to the PIM.
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.
Investors are cautioned that, except as disclosed in the
Filing Statement prepared in connection with the Transaction, any
information released or received with respect to the Transaction
may not be accurate or complete and should not be relied upon.
Trading in the securities of a capital pool company should be
considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the Transaction and has neither approved nor disapproved
the contents of this press release.
Forward Looking Statements
The information in this news release includes certain
information and statements about management's view of future
events, expectations, plans and prospects that constitute forward
looking statements, including statements relating to the final
acceptance by the Exchange, the issuance of a final bulletin by the
Exchange, the use of proceeds of the Offering and the business
plans of the Company. These statements are based upon assumptions
that are subject to significant risks and uncertainties. Because of
these risks and uncertainties and as a result of a variety of
factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and
indicated by these forward looking statements. Any number of
factors could cause actual results to differ materially from these
forward‐looking statements as well as future results. Although the
Company believes that the expectations reflected in forward looking
statements are reasonable, it can give no assurances that the
expectations of any forward looking statements will prove to be
correct. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any forward
looking statements to reflect actual results, whether as a result
of new information, future events, changes in assumptions, changes
in factors affecting such forward looking statements or
otherwise.
SOURCE Jasper Commerce, Inc.