Conference call will be held on May 31, 2022
VANCOUVER, British Columbia,
May 31,
2022 /CNW/ -- Zoomd Technologies Ltd. (TSXV:
ZOMD) (OTC: ZMDTF) and its wholly-owned subsidiary Zoomd Ltd.
(collectively, "Zoomd" or the "Company"), the
marketing technology (MarTech) user-acquisition and engagement
platform, today reported its financial results for the three months
ended March 2022. The Company's
financial statements and management discussion and analysis
("MD&A") are available on SEDAR under the Company's
profile.
Fiscal 2022 Outlook Maintained
Zoomd expects business and revenues growth in fiscal 2022 to be
in a range of $74M to $80M, representing a year-over-year growth of up
to approximately 50%. The outlook is based on
assumptions, each of which management considers to be reasonable
and are set out in the MD&A.
Key Highlights
- 1Q22 revenues increased 140% YOY to $16.2M. Results were driven
primarily by the onboarding of new clients in recent months, growth
with existing clients and expansion into growth geographies such as
Latin America, Asia, and North
America
- Operating profit was $0.9M for
1Q22 compared to an
operating loss of $0.6M in
1Q21, primarily as a
result of increased revenue
- Achieved positive cash flow from operations of $1.7M in
1Q22, ended 1Q22 with
a cash balance of $5M and no
long-term debt
- Achieved positive Adjusted EBITDA of $1.9M during 1Q22
- Increasing "large customers" numbers by 200% YoY
- Completed the acquisition of albert.ai,
strengthening North America
activity with tier 1 customers and consolidate self-serve and SaaS
business model
- Apple's iOS14+ privacy changes helped drive new customers to
Zoomd's platform and products
Management Commentary
The strong momentum of 2021 has maintained through 1Q22, as we
achieved another robust quarter. Our partners are continuing to
increase their budgets with us, and we have a powerful pipeline of
new customers. Our user acquisition platform has been integral in
enabling to manage multiple campaigns from one place, allowing time
saving and efficiency with real-time control. Our platforms enable
our customers to grow their UA with limited additional resources,
giving the ability to scale immediately by demand. Our growth is
coming from burgeoning sectors such as Ecommerce, Education (new
targeted vertical), iGaming, Gaming and Fintech, and hypergrowth
geographies such as Latin America,
Asia, and North America, while we see increase within
North America clienteles via the
Albert.ai acquisition. In March 2022,
the Company announced the acquisition of Albert, a U.S.-based
artificial intelligence marketing platform for advertisers, driving
fully autonomous digital campaigns for some of the world's leading
brands, that will now be able to use the Company's products and
services. The acquisition is aligned with the Company strategy to
provide customers a variety of business models including self-serve
abilities. Considering small and mid-market businesses, the
self-serve abilities are an upper hand for scaling without the need
of massive HR growth.
Our visibility into revenues going forward is to maintain our
2022 revenue guidance range of $74M
to $80M, which represents
approximately 40% - 50% year over year growth, details of which are
set out in the MD&A.
"We are very pleased with the continued robust pace of our
business, as we see strong demand for our user-acquisition
activities from both new and existing clients" said Ofer Eitan, Zoomd's CEO, adding "Companies are
seeing the results and value of our unique activity and are further
allocating larger portion of their user acquisition budgets to
Zoomd. While we are happy with our current pace of growth, we
believe that our ability to execute in various verticals, geos,
plus different business models while we make our platforms
accessible for self-serve use, can bring us to the next level even
further than expected. Almost every UA challenge will find a
solution under our wings, hoping to become the last user
acquisition platform that our customer will ever use."
First Quarter 2022 Highlights (All Figures in Thousands
in USD)
- For the three months ended March 31,
2022, revenues were $16,250, as compared to $6,776 for the three months ended March 31, 2021, an increase of 140%
year-over-year. The increase in revenues is primarily the result of
customer acquisitions in the growth sectors such as e-commerce,
education (new targeted vertical), fintech, and gaming as well as
expansion in new geographies such as Latin America, Asia, and North
America, targeting specific growth potential countries. In
addition, our existing customers have allocated an increasing
portion of their user acquisition budgets to Zoomd, as they have
witnessed strong ROI on their spending.
- Gross profit margin was 30% for the three months ended
March 31, 2022, versus 35% for the
same period last year, reflecting more social media advertising
portion that is known to be with lower profit margins.
- Research and Development (R&D) expenses for the three
months ended March 31, 2022 were
$1,234, a 17% increase YOY,
primarily reflecting the amortization of capitalized software
development costs.
- Selling, General and Administrative (SG&A) expenses
for the three months ended March 31, 2022 were $2,633, 34% increase YOY, primarily
reflecting increases in sales department bonuses as the result of
increased revenues, and as a result of some new employees joining
the company.
- Adjusted EBITDA for the three months ended March 31, 2022 was $1,932 as compared with Adjusted EBITDA
of $63 for the three months
ended March 31, 2021, an increase of
$1,995. The improvement in the
Adjusted EBITDA is primarily attributed to the
significant increase revenue growth.
- Operating profit was $932 for Q1
2022 compared to an operating loss of $638 in Q1 2021, primarily as a result of
increased revenue.
- As of March 31, 2022, the
Company's cash and cash equivalents amounted to $5 million, and no debt.
- On March 28, 2022, the Company
announced that it has acquired substantially all of the assets of
Albert Technologies Ltd. and Albert Technologies' Inc ("Albert") in
a cash and share deal (the "Transaction"). The Company would like
to provide additional disclosure in connection with the
Transaction. The consideration payable by the Company pursuant to
the Transaction consists of $125,000
in cash and share issuance by the Company of $375,000 worth of common shares of the Company at
closing (being up to 375,000 common shares) and a second payment of
$125,000 in cash and $375,000 worth of common shares of the Company
(being up to 375,000 common shares) upon the satisfaction of
certain performance-based metrics. The price per share used for the
purposes of the aforementioned share issuances will be the greater
of $1.00 and the closing price of the
shares of the Company on the TSX-V prior to their
issuance.
In addition, as partial consideration for certain of Albert's
employees hired by the Company, the Company has entered into
certain shares for services arrangements with such employees
totaling up to $0.2M worth of company
shares, to be issued upon the completion of the services to the
Company and using the price per share at the time of issuance. None
of the employees are non-arm's length to the Company or any of its
affiliates.
CONFERENCE CALL
Amit Bohensky, Founder and
Chairman, will hold a conference call to discuss the quarter's
financial results at May 31, 2022.
Interested parties can listen via a live webcast, from the link
available in the Investors section of the Company's website at
https://zoomd.com/investors/ or
at https://app.webinar.net/JWmgNewpM63.
A replay will be available after the call, in the Investors
section of the Company's website at
https://zoomd.com/investors/ or via
https://app.webinar.net/JWmgNewpM63.
ABOUT ZOOMD:
Zoomd (TSXV: ZOMD) (OTC: ZMDTF), founded in 2012 and began
trading on the TSX Venture Exchange in September 2019, offers
a site search engine to publishers, and a mobile app
user-acquisition platform, integrated with a majority of
global digital media, to advertisers. The platform unifies more
than 600 media sources into one unified dashboard. Offering
advertisers, a user acquisition control center for managing all new
customer acquisition campaigns using a single platform. By unifying
all these media sources onto a single platform, Zoomd saves
advertisers significant resources that would otherwise be spent
consolidating data sources, thereby maximizing data collection and
data insights while minimizing the resources spent on the exercise.
Further, Zoomd is a performance-based platform that allows
advertisers to advertise to the relevant target audiences using a
key performance indicator-algorithm that is focused on achieving
the advertisers' goals and targets.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to "Adjusted EBITDA" which is a
non-IFRS financial measure that does not have a standardized
meaning prescribed by IFRS. The Company's presentation of this
preliminary financial measure may not be comparable to similarly
titled measures used by other companies. This preliminary financial
measure is intended to provide additional information to investors
concerning the Company's estimated results. Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortization, as adjusted for share-based payments and
non-recurring operating expenses, and is a measure of a company's
operating performance. Essentially, it's a way to evaluate a
company's performance without having to factor in financing
decisions, accounting decisions or tax environments.
Management uses this non-IFRS measure as a key metric in the
evaluation of the Company's performance and the consolidated
financial results. The Company believes Adjusted EBITDA is useful
to investors in their assessment of the operating performance and
the valuation of the Company. However, non-IFRS financial measures
are not prepared in accordance with IFRS, and the information is
not necessarily comparable to other companies and should be
considered as a supplement to, not a substitute for, or superior
to, the corresponding measures calculated in accordance with IFRS.
A reconciliation of Adjusted EBITDA and operating profit is
available in Zoomd's MD&A located on the Company's profile at
www.sedar.com which is incorporated by reference into this press
release.
DISCLAIMER IN REGARD TO FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to Zoomd's 2022 revenue
outlook, its future ability to successfully continue its growth,
its ability to continue to deliver products and services largely
unimpacted by the privacy updates undertaken (or will be undertaken
in the future) by Google and Apple as well as its ability to
continue expanding into new geographies and industries.
Forward-looking statements are based on our current assumptions,
estimates, expectations and projections that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors that may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: general business, economic, competitive, technological,
legal, privacy matters, political and social uncertainties
(including the impacts of the COVID-19 pandemic and the current war
in Ukraine), the extent and
duration of which are uncertain at this time on Zoomd's business
and general economic and business conditions and markets. There can
be no assurance that any of the forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether because of new information, future events or otherwise,
except as required by law.
The reader should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. All forward-looking information contained in this press
release is expressly qualified in its entirety by this cautionary
statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Company Media Contacts:
Amit Bohensky
Chairman
Zoomd
ir@zoomd.com
Website: www.zoomd.com
Investor relations:
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com
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SOURCE Zoomd Technologies Ltd.