ProntoForms Reports Q1 2022 Financial Results
May 05 2022 - 6:00AM
ProntoForms Corporation (TSXV: PFM), the global leader in no-code
app development platforms for field teams, announced today its
first quarter (Q1) financial results for the period ended March 31,
2022. All amounts are in US dollars unless otherwise stated.
“We achieved 14% growth in recurring revenue
over the 2021 comparable quarter. Our Annual Recurring Revenue
(ARR) base at the end of Q1 was $19.6 million with 41% from
customers with greater than $100,000 of ARR. As we continue our
transition to focus on enterprise sales, we saw a Q1 decrease in
our ARR base by 0.7%. The decrease can be attributed partly to a
1.5% reduction in ARR from the completion of a one-year project and
lower new bookings in the quarter as we transition through the
longer sales cycles typical of the larger enterprise sales on which
we are increasingly focused. We are pleased that we were able to
follow up our first quarter with a recent enterprise expansion of
over $180,000 ARR, bringing that customer to a total of
approximately $870,000 ARR,” said Alvaro Pombo, Founder and Chief
Executive Officer.
Mr. Pombo continued, “Our most recent customer
expansion win demonstrates the success of our enhanced
go-to-market. We’re scaling conversations with our customers on how
our platform can help them address pressing business challenges,
like inflation and the labor market. Our improved team is
uncovering more enterprise expansion opportunities.”
Financial Highlights - 2022 First
Quarter
- Recurring revenue in Q1 2022
increased by 14% to $4.89 million compared to $4.31 million in Q1
2021, and increased by 2% compared to $4.80 million in Q4
2021.
- Total revenue for Q1 2022 increased
by 9% to $5.04 million compared to $4.61 million in Q1 2021, and
increased by 1% compared to $5.01 million in Q4 2021.
- Gross margin for Q1 2022 was 84% of
total revenue compared to 85% in Q1 2021 and 84% in Q4 2021. Gross
margin on recurring revenue was 89% for Q1 2022 compared to 91% in
Q1 2021 and 90% in Q4 2021.
- Operating loss for Q1 2022 was
$1.49 million, up from an operating loss of $1.07 million in Q1
2021 and up from an operating loss of $1.03 million in Q4
2021.
- Net loss for Q1 2022 was $1.54
million, up from a net loss of $1.10 million in Q1 2021 and up from
a net loss of $1.12 million in Q4 2021.
Recent Operational HighlightsNotable new and
expansion progress from enterprise customers, including:
- Subsequent to Q1, a global heavy
manufacturing organization increased their commitment to
ProntoForms by over $180K ARR to approximately $870K ARR. This ARR
is contractually committed through contracts expiring at various
times from late 2022 through the end of 2023. This increase will
support their full asset lifecycle business
model.
- A Fortune 500 power and renewable
energy global enterprise deployed ProntoForms’ technology starting
with 450 subscriptions across two sub-divisions. ProntoForms
supports health and safety reporting, inspection processes for wind
and hydro turbines, and gathering performance metrics to enable
their field engineers and salespeople.
- A Fortune 500 oil & gas
enterprise has expanded its multi-year deployment of ProntoForms by
200 subscriptions for a total of over 2000 subscriptions as part of
a global Master Services Agreement (MSA) where ProntoForms is the
sole mobile forms solution approved for use in field
operations.
- A Fortune 500 HVAC and
refrigeration organization added over 510 ProntoForms subscriptions
to support field technicians in reliably completing complex
work.
- ProntoForms announced the general
availability of a new client app for the macOS® operating system
software, now available on the macOS App Store® online store.
Q1 Conference Call Date:
Date: Thursday, May 5th, 2022Time: 9:00 AM
Eastern Time
Participant Dial-in Numbers:Local Toronto – (+1)
647-794-4605Toll Free – (+1) 866-575-6539Conference ID: 9536629
Recording Playback Numbers:Local Toronto– (+1)
647-436-0148Toll Free – (+1) 888-203-1112Passcode: 9536629Expiry
Date: May 12th, 2022 at 11:59pm EDTAbout ProntoForms
Corporation ProntoForms is the global leader in
field-focused low-code application platforms for enterprise. The
Company's solution is used to create apps and forms to collect and
analyze field data with smartphones and tablets – either as a
standalone solution or as a mobile front-end to enterprise systems
of record.
The Company’s 100,000+ subscribers harness the intuitive,
secure, and scalable solution to increase productivity, improve
quality of service, and mitigate risks. The Company is based in
Ottawa, Canada, and trades on the TSXV under the symbol PFM.
ProntoForms is the registered trademark of ProntoForms Inc., a
wholly owned subsidiary of ProntoForms Corporation.
For additional information, please contact:
Alvaro PomboChief Executive Officer ProntoForms Corporation
613.599.8288 ext. 1111 apombo@prontoforms.com |
Babak PedramInvestor RelationsVirtus Advisory Group
Inc.416-644-5081bpedram@virtusadvisory.com |
Certain information in this press release may
constitute forward-looking information. For example, statements
about the Company’s future growth or value, potential benefits of
using the Company’s products, customers’ commitment to use the
Company’s products going forward, the recurring nature of the
Company’s revenues, the revenues anticipated to be received by the
Company from recent contracts referred to above and anticipated
market trends are 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. The Company’s business and value may
not grow as anticipated or at all, revenue anticipated from
contracts may not be received due to many risks, including factors
specific to the customer, and anticipated market trends may not
occur or continue. Historical growth levels and results may not be
indicative of future growth levels or results. 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 March 10, 2022 found at
www.sedar.com for a discussion of such factors. Please also refer
to the Company’s management discussion and analysis for the year
ended December 31, 2021 for a description of how the Company
determines and uses ARR. ARR is a key performance indicator used by
the Company and is not meant as an indication such amounts will
necessarily be included in revenues in any given fiscal year.
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.
PRONTOFORMS CORPORATION |
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Condensed Interim Consolidated Statements of Loss and Comprehensive
Loss |
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For the three months ended March 31, 2022 and 2021 |
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(in US dollars) |
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Three months ended March 31, |
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2022 |
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2021 |
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Revenue: |
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Recurring revenue |
$ |
4,890,716 |
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|
4,306,308 |
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Professional and other services |
|
150,394 |
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|
307,155 |
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|
5,041,110 |
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4,613,463 |
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Cost of revenue:(1) |
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Recurring revenue |
|
552,072 |
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|
393,829 |
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Professional and other services |
|
255,377 |
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|
281,935 |
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|
807,449 |
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|
675,764 |
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Gross margin |
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4,233,661 |
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|
3,937,699 |
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Expenses: |
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Research and development(1) |
|
1,771,752 |
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|
1,811,424 |
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Selling and marketing(1) |
|
2,934,240 |
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|
2,299,800 |
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General and administrative(1) |
|
1,017,374 |
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|
893,451 |
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5,723,366 |
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|
5,004,675 |
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Loss from operations |
|
(1,489,705 |
) |
|
(1,066,976 |
) |
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Foreign exchange loss |
|
(27,843 |
) |
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(9,672 |
) |
Finance costs |
|
(26,060 |
) |
|
(28,164 |
) |
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Net loss and comprehensive loss |
$ |
(1,543,608 |
) |
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(1,104,812 |
) |
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Net loss and comprehensive loss |
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per common share basic and diluted |
$ |
(0.01 |
) |
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(0.01 |
) |
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Weighted average number of common shares |
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basic and diluted |
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127,819,003 |
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124,499,218 |
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(1) Amounts include share-based compensation expense as
follows: |
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Cost of revenue |
$ |
5,360 |
|
|
865 |
|
Research and development |
|
101,667 |
|
|
50,077 |
|
Selling and marketing |
|
170,088 |
|
|
26,246 |
|
General and administrative |
|
151,088 |
|
|
85,349 |
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Total share-based compensation expense |
$ |
428,203 |
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|
162,537 |
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PRONTOFORMS CORPORATION |
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Condensed Interim Consolidated Statements of Financial
Position |
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March 31, 2022 and December 31, 2021 |
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(in US dollars) |
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March 31, |
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December 31, |
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2022 |
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2021 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
7,431,964 |
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$ |
6,082,289 |
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Accounts
receivable |
|
3,266,731 |
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3,199,216 |
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Investment
tax credits receivable |
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139,565 |
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|
117,599 |
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Unbilled
receivables |
|
50,187 |
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|
36,406 |
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Related
party loan receivable |
|
85,993 |
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|
|
84,757 |
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Prepaid
expenses and other receivables |
|
1,414,916 |
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|
|
907,228 |
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Contract
acquisition costs |
|
276,257 |
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|
273,062 |
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12,665,613 |
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10,700,557 |
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Property, plant and equipment |
|
306,726 |
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331,717 |
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Contract acquisition costs |
|
137,862 |
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157,693 |
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Right-of-use asset |
|
339,486 |
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|
403,143 |
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$ |
13,449,687 |
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$ |
11,593,110 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Accounts
payable and accrued liabilities |
$ |
2,389,419 |
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$ |
2,533,743 |
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Deferred
revenue - current portion |
|
6,068,352 |
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|
5,411,380 |
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Lease
obligation - current portion |
|
312,229 |
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|
|
303,650 |
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8,770,000 |
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8,248,773 |
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Long-term debt |
|
5,710,904 |
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3,261,825 |
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Deferred revenue |
|
23,864 |
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|
33,068 |
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Lease obligation |
|
107,830 |
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|
184,766 |
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|
14,612,598 |
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11,728,432 |
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Shareholders' equity: |
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Share
capital |
|
31,293,115 |
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|
31,141,138 |
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Contributed
surplus |
|
864,907 |
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|
864,907 |
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Share-based
payment reserve |
|
2,908,710 |
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|
2,544,668 |
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Deficit |
|
(36,414,078 |
) |
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|
(34,870,470 |
) |
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Accumulated
other comprehensive income |
|
184,435 |
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|
184,435 |
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(1,162,911 |
) |
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|
(135,322 |
) |
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|
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|
$ |
13,449,687 |
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$ |
11,593,110 |
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PRONTOFORMS CORPORATION |
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Condensed Interim Consolidated Statements of Cash Flows |
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For the three months ended March 31, 2022 and 2021 |
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(in US dollars) |
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Three months ended March 31, |
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2022 |
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2021 |
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Cash (used in) provided by: |
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Operating activities: |
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Net loss |
$ |
(1,543,608 |
) |
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$ |
(1,104,812 |
) |
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Items not involving cash: |
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Share-based compensation |
|
428,203 |
|
|
|
162,537 |
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Accretion on
lease obligations |
|
6,256 |
|
|
|
9,953 |
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Accretion of
transaction costs |
|
282 |
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|
|
7,045 |
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Amortization
of property, plant and equipment |
|
38,666 |
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|
40,761 |
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Amortization
of right-of-use asset |
|
63,657 |
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|
63,657 |
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Unrealized
foreign exchange losses |
|
21,949 |
|
|
|
12,403 |
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Other finance costs |
|
25,778 |
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|
|
21,119 |
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Interest paid |
|
(29,097 |
) |
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|
(23,999 |
) |
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Interest received |
|
3,319 |
|
|
|
2,880 |
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Lease interest paid |
|
(6,256 |
) |
|
|
(9,953 |
) |
|
Changes in non-cash operating working capital items |
|
(90,870 |
) |
|
|
1,066,816 |
|
|
|
|
|
(1,081,721 |
) |
|
|
248,407 |
|
|
|
|
|
|
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Financing activities |
|
|
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Payment of lease obligations |
|
(74,610 |
) |
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|
(64,923 |
) |
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Procceds from drawdown of credit facility |
|
2,402,124 |
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|
|
- |
|
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Proceeds from the exercise of options |
|
87,816 |
|
|
|
239,455 |
|
|
|
|
|
2,415,330 |
|
|
|
174,532 |
|
|
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Investing activities |
|
|
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|
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Purchase of property, plant and equipment |
|
(13,675 |
) |
|
|
(19,753 |
) |
|
|
|
|
(13,675 |
) |
|
|
(19,753 |
) |
|
|
|
|
|
|
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|
Effect of exchange rate changes on cash |
|
29,741 |
|
|
|
35,963 |
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents |
|
1,349,675 |
|
|
|
439,149 |
|
|
|
|
|
|
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|
|
Cash and cash equivalents, beginning of period |
|
6,082,289 |
|
|
|
7,747,542 |
|
|
|
|
|
|
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|
Cash and cash equivalents, end of period |
$ |
7,431,964 |
|
|
$ |
8,186,691 |
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