CALGARY,
AB, Aug. 24, 2023 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company), an industry leader in visualization and lead
generation technology for the home renovation and new construction
sector, announces its financial results for the second quarter
ended June 30, 2023 ("Q2 2023"). The
financial statements and related management's discussion and
analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca.
Unless otherwise stated, all dollar amounts are in Canadian
dollars.
Financial highlights for the second quarter of
fiscal 2023:
- Quarterly revenue of $1,719,087,
down 3% from the prior year's $1,770,960.
- Deferred Revenue of $1,375,094
for the quarter ended June 30, 2023,
versus $1,413,786 for the year ended
December 31, 2022.
- Recurring revenue of $557,491
versus $458,822 for the same period
in 2022, a 12% increase.
- Gross margin of 71% versus 67% in the second quarter of
2022.
- Net income of $30,442 compared to
a net loss of $57,529 in the second
quarter of 2022.
- At June 30, 2023, the Company had
40,664,635 common shares issued and outstanding.
Renoworks revenue in the second quarter totaled
$1,719,087. While this figure
represents a decrease of $51,873
compared to the corresponding period in 2022, the Company remains
focused on sustained growth and reported positive net income of
$30,442 compared to a loss of
$57,529 for the same period in
2022.
The Company's strategic focus on enriching its
offerings with AI-driven solutions reflects its enduring commitment
to enhancing its customer experience. The Company continues to make
steady progress in expanding the adoption of its Renoworks Pro
contractor solutions through direct sales and more importantly a
network of strategic partners. In the quarter further advancements
were made in broadening market reach and establishing strong
collaborations that can impact the industry.
Doug Vickerson,
CEO of Renoworks, commented on the Company's second-quarter
performance, stating: "Our continued focus on enhancing our
platform with AI technologies and fostering strong strategic
partnerships for technological innovation, value delivery and
Renoworks Pro adoption is yielding promising outcomes. As the
industry evolves, Renoworks remains committed to delivering
cutting-edge solutions that empower our customers and drive their
success while building upon our wins in 2023. While revenue
declined slightly year over year, our focus on maintaining strong
gross margins was a factor that led to positive net income this
quarter."
Renoworks' Adjusted EBITDA for the three-months
ended June 30, 2023, was $53,895, indicating a noteworthy increase of
$43,713 compared to Adjusted EBITDA
of $10,182 for the corresponding
period in 2022. This positive trajectory underscores the Company's
ongoing efforts to optimize platform and operational efficiency and
performance.
Financial results from operations year to date
with comparatives for 2022 are as follows:
|
Six Months Ended June
30
|
2023
|
2022
|
Revenue
|
$3,073,263
|
$3,086,877
|
Gross Profit
|
$2,220,762
|
$2,003,246
|
Expenses
|
$2,532,376
|
$2,412,596
|
Net Loss
|
$352,874
|
$390,075
|
Loss per
share
|
$0.01
|
$0.01
|
Adjusted
EBITDA
|
($306,924)
|
($253,205)
|
Weighted Average Shares
Outstanding
|
40,663,599
|
39,009,164
|
Cash decrease from
operations
|
$302,490
|
$778,083
|
Financial results from operations for the second
quarter 2023 with comparatives for 2022 are as follows:
|
Three Months Ended June
30
|
2023
|
2022
|
Revenue
|
$1,719,087
|
$1,770,960
|
Gross Profit
|
$1,226,840
|
$1,180,201
|
Expenses
|
$1,162,116
|
$1,267,183
|
Net Income
(Loss)
|
$30,442
|
($57,529)
|
Income (Loss) per
share
|
$0.00
|
($0.00)
|
Adjusted
EBITDA
|
$53,895
|
$10,182
|
Weighted Average Shares
Outstanding
|
40,664,635
|
40,265,318
|
The Company's financial position as of
June 30, 2023 and December 31, 2022 is as follows:
|
June 30,
2023
|
December 31,
2022
|
Cash Balance
|
$398,089
|
$704,080
|
Accounts
Receivable
|
$719,428
|
$734,706
|
Working
Capital
|
($112,113)
|
$207,163
|
Deferred
Revenue
|
$1,375,094
|
$1,413,786
|
Long- term
liabilities
|
$179,707
|
$161,875
|
Shareholder's Equity
(Deficiency)
|
($84,059)
|
$232,715
|
Deficit
|
($10,087,890)
|
($9,735,016)
|
Total Assets
|
$1,521,266
|
$1,788,806
|
About Renoworks
Renoworks Software Inc. develops and sells unique
digital visualization software and integration solutions for the
remodeling and new home construction industry. Renoworks delivers
its technology to manufacturers, contractors, builders, and
retailers offering solutions to one of the home improvement
industry's greatest challenges: enabling homeowners to review their
product selections in a hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform and generates revenues from five main business lines:
Renoworks Enterprise, Renoworks PRO, Renoworks Design Services,
Renoworks FastTrack, and Renoworks API (Application Programming
Interface). For more information, visit www.renoworks.com and
www.renoworkspro.com.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized
under IFRS. However, management of Renoworks believes that most
shareholders, creditors, other stakeholders and investment analysts
prefer to have these measures included as reported measures of
operating performance, a proxy for cash flow, and to facilitate
valuation analysis. Adjusted EBITDA is defined as earnings before
interest income, taxes, depreciation and amortization, stock-based
compensation, restructuring costs, impairment charges and other
non-recurring gains or losses. Management believes Adjusted EBITDA
is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized
meanings prescribed by IFRS and therefore may not be comparable to
similar measures presented by other issuers. Readers are cautioned
that Adjusted EBITDA is not an alternative to measures determined
in accordance with IFRS and should not, on its own, be construed as
indicators of performance, cash flow or profitability. References
to the Renoworks' Adjusted EBITDA should be read in conjunction
with the financial statements and management's discussion and
analysis of Renoworks posted on
SEDAR+ (www.sedarplus.ca).
Forward Looking Information
Certain statements in this news release, other
than statements of historical fact, are forward looking information
that involves various risks and uncertainties. Such statements
relating to, among other things, the prospects for the Company to
enhance operating results, are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from
information contained herein. There can be no assurance that such
statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral
forward-looking statements are based on the estimates and opinions
of the management on the dates they are made and expressly
qualified in their entirety by this notice. The Company assumes no
obligation to update forward-looking statements should
circumstances or management's estimates or opinions change.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this
release.
SOURCE RenoWorks Software Inc.