OTTAWA, Nov. 07, 2019 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its third quarter (Q3) financial results for the period ended September 30, 2019.
“We are pleased to report that our Annual Recurring Revenue (ARR) base grew 30% year-to-year to reach $15.03 million by September 30, 2019. Recurring revenue continued to grow reaching $3.5 million in Q3, representing a 6% increase over Q2 2019 and 26% over Q3 2018. Our accelerating growth continues to be driven by enterprise expansion; accounts with more than $100K of ARR now represent 35% of our base, up from 24% a year ago,” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms.
Mr. Pombo continued, “Enterprise demand for field automation is a powerful trend propelling our growth. In the opinion of leading IT analysts, enterprises can no longer rely on traditional software development practices to equip employees with the apps they require. ProntoForms low-code app development platform addresses this need. It works seamlessly with other leading systems and systems of record, and empowers enterprise field operations to develop and manage new apps—quickly and at scale—from an IT-approved platform.”
Financial Highlights – 2019 Third Quarter
- Recurring revenue in Q3 2019 increased by 26% to $3.50 million compared to $2.78 million in Q3 2018, and by 6% compared to $3.30 million in Q2 2019.
- Total revenue for Q3 2019 increased by 21% to $3.84 million compared to $3.18 million in Q3 2018, and by 4% compared to $3.68 million in Q2 2019.
- Gross margin for Q3 2019 was 84% of total revenue compared to 81% in Q3 2018 and 84% in Q2 2019. Gross margin on recurring revenue was 90% for Q3 2019 compared to 88% in Q3 2018 and 90% in Q2 2019.
- Operating loss for Q3 2019 was $0.46 million, down from $0.51 million in Q3 2018 and up from an operating loss of $0.42 million in Q2 2019.
- Net loss for Q2 2019 was $0.42 million, down from a net loss of $0.64 million in Q3 2018 and down from a net loss of $0.53 million in Q2 2019.
- As at September 30, 2019, ProntoForms’ cash and net working capital balances were $5.70 million and $3.96 million respectively, compared to $3.33 million and $2.28 million as at December 31, 2018.
Q3 2019 Operational Highlights
- Notable new customers and expansion progress from enterprise customers, including:
○ A Fortune Global 500 company added more than $390,000 in ARR to bring it to over $1,000,000.
○ A utility in the United States added more than $175,000 in ARR to bring it to $960,000 to expand technician inspections and compliance reporting.
○ A national leader in the electrical industry expanded its number of technicians utilizing the platform for equipment installation and maintenance.
○ A Fortune 500 snack and beverage corporation launched a new deployment for manufacturing process improvements with the ProntoForms platform.
○ A Fortune 500 personal care corporation launched a new deployment for inspections and quality control.
○ A leading gas utility launched a new deployment to empower its field technicians to handle asset maintenance and inspections.
- ProntoForms is one of 18 solutions to be featured in the August 2019 Gartner Magic Quadrant for Enterprise Low-Code Application Platforms.
- ProntoForms was the recipient of the Service Council™ Symposium’s 2019 Innovation Award. A panel of 25 judges—comprised of business and IT executives from primarily Fortune 500 companies—considered over a dozen participants for the honor.
Q3 Conference Call Date:
Date: Thursday, November 7th, 2019
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 63525349
Recording Playback Numbers:
Local Toronto – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 525349 #
Expiry Date: Thursday, November 14th, 2019, 11:59pm
About 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 Pombo Chief Executive Officer ProntoForms Corporation 613.599.8288 ext. 1111 apombo@prontoforms.com | Babak Pedram Investor Relations Virtus Advisory Group Inc. 416-644-5081 bpedram@virtusadvisory.com |
Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, the lead flow the Company may receive from its partnering strategy 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, its partnering strategy may not generate increasing lead flow or maintain current lead flow levels 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 April 10, 2019 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, 2018 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 | ||||||||||||
| Condensed Interim Consolidated Statements of Comprehensive Loss | ||||||||||||
| For the three and nine months ended September 30, 2019 and 2018 | ||||||||||||
| (Unaudited in US dollars) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| $ | $ | $ | $ | |||||||||
| Revenue | ||||||||||||
| Recurring revenue | 3,502,035 | 2,780,814 | 9,965,565 | 7,900,562 | ||||||||
| Professional and other services | 337,966 | 397,032 | 1,067,888 | 931,997 | ||||||||
| 3,840,001 | 3,177,846 | 11,033,453 | 8,832,559 | |||||||||
| Cost of Revenue | ||||||||||||
| Recurring revenue | 336,224 | 338,029 | 1,037,298 | 909,865 | ||||||||
| Professional and other services | 294,584 | 261,886 | 849,376 | 683,005 | ||||||||
| 630,808 | 599,915 | 1,886,674 | 1,592,870 | |||||||||
| Gross Margin | 3,209,193 | 2,577,931 | 9,146,779 | 7,239,689 | ||||||||
| Expenses | ||||||||||||
| Research and development | 1,229,575 | 1,046,828 | 3,514,823 | 3,130,861 | ||||||||
| Selling and marketing | 1,790,166 | 1,415,250 | 4,893,993 | 4,228,203 | ||||||||
| General and administrative | 648,941 | 626,828 | 2,013,026 | 1,795,370 | ||||||||
| 3,668,683 | 3,088,906 | 10,421,842 | 9,154,434 | |||||||||
| Loss from operations | (459,490 | ) | (510,975 | ) | (1,275,063 | ) | (1,914,745 | ) | ||||
| Foreign exchange gain (loss) | 33,839 | (57,427 | ) | (19,306 | ) | 78,889 | ||||||
| Interest and accretion | (97,163 | ) | (87,558 | ) | (281,014 | ) | (253,973 | ) | ||||
| Change in fair value of derivative liability | 101,703 | 13,894 | 91,296 | (1,214 | ) | |||||||
| Net loss | (421,111 | ) | (642,066 | ) | (1,484,087 | ) | (2,091,043 | ) | ||||
| Other Comprehensive loss | ||||||||||||
| Foreign currency translation adjustment | - | 21,070 | - | (60,585 | ) | |||||||
| Total comprehensive loss | (421,111 | ) | (620,996 | ) | (1,484,087 | ) | (2,151,628 | ) | ||||
| Net loss per common share | ||||||||||||
| basic and diluted | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||
| Weighted average number of common shares | ||||||||||||
| basic and diluted | 115,545,497 | 107,766,859 | 111,404,404 | 107,766,859 | ||||||||
| Share-based compensation included in accounts: | ||||||||||||
| Cost of revenue | 10,548 | 8,894 | 32,890 | 27,345 | ||||||||
| Research and development | 28,887 | 15,699 | 61,449 | 50,458 | ||||||||
| Selling and marketing | 15,191 | 23,644 | 83,315 | 81,177 | ||||||||
| General and administrative | 26,616 | 39,505 | 97,420 | 118,201 | ||||||||
| 81,242 | 87,742 | 275,074 | 277,181 | |||||||||
| ProntoForms Corporation | ||||||
| Condensed Interim Consolidated Statements of Financial Position | ||||||
| as at September 30, 2019 and December 31, 2018 | ||||||
| (Unaudited in US dollars) | ||||||
| September 30, | December 31, | |||||
| 2019 | 2018 | |||||
| $ | $ | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 5,699,738 | 3,325,241 | ||||
| Accounts receivable | 2,071,870 | 2,178,420 | ||||
| Investment tax credits receivable | 135,918 | 158,966 | ||||
| Unbilled receivables | 161,054 | 156,865 | ||||
| Related party loan receivable | 81,136 | 78,761 | ||||
| Prepaid expenses and other receivables | 1,005,833 | 523,573 | ||||
| 9,155,549 | 6,421,826 | |||||
| Property, plant and equipment | 380,009 | 315,629 | ||||
| Right-of-use assets | 994,786 | - | ||||
| 10,530,344 | 6,737,455 | |||||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 2,116,589 | 1,885,351 | ||||
| Deferred revenue | 2,826,290 | 2,254,400 | ||||
| Lease obligation - current portion | 254,198 | - | ||||
| 5,197,077 | 4,139,751 | |||||
| Long-term debt | 2,620,306 | 2,424,136 | ||||
| Lease obligations | 796,970 | - | ||||
| Derivative liability | 122,279 | 235,990 | ||||
| 8,736,632 | 6,799,877 | |||||
| Shareholders' equity | ||||||
| Share capital | 24,517,205 | 20,912,276 | ||||
| Contributed surplus | 864,907 | 801,888 | ||||
| Share-based payment reserve | 3,673,930 | 3,431,280 | ||||
| Warrant reserve | 692,959 | 1,263,336 | ||||
| Deficit | (28,139,724 | ) | (26,655,637 | ) | ||
| Accumulated other comprehensive income | 184,435 | 184,435 | ||||
| 1,793,712 | (62,422 | ) | ||||
| 10,530,344 | 6,737,455 | |||||
| ProntoForms Corporation | ||||||
| Condensed Interim Consolidated Statements of Cash Flows | ||||||
| For the nine months ended September 30, 2019 and 2018 | ||||||
| (Unaudited in US dollars) | ||||||
| 2019 | 2018 | |||||
| $ | $ | |||||
| Net inflow (outflow) of cash related to the following activities: | ||||||
| Cash flow from operating activities | ||||||
| Net loss | (1,484,087 | ) | (2,091,043 | ) | ||
| Items not affecting cash | ||||||
| Share-based compensation | 275,074 | 277,181 | ||||
| Accretion on long-term debt | 122,877 | 107,238 | ||||
| Accretion on lease obligations | 46,397 | - | ||||
| Change in fair value of derivative liability | (91,296 | ) | 1,214 | |||
| Amortization of property, plant and equipment | 94,531 | 95,948 | ||||
| Amortization of intangible asset | - | 7,416 | ||||
| Amortization of right-of-use assets | 202,203 | - | ||||
| Unrealized foreign exchange losses | 2,149 | - | ||||
| Lease interest paid | (46,397 | ) | - | |||
| Changes in non-cash operating working capital items | 417,510 | 542,762 | ||||
| (461,039 | ) | (1,059,284 | ) | |||
| Cash flow from financing activities | ||||||
| Payment of lease obligations | (181,684 | ) | - | |||
| Proceeds from the exercise of warrants | 2,433,948 | - | ||||
| Proceeds from the exercise of options | 631,199 | 84,447 | ||||
| 2,883,463 | 84,447 | |||||
| Cash flow from investing activities | ||||||
| Purchase of property, plant and equipment | (158,911 | ) | (100,093 | ) | ||
| (158,911 | ) | (100,093 | ) | |||
| Effect of exchange rate changes on cash | 110,984 | (145,016 | ) | |||
| Net cash inflow (outflow) | 2,374,497 | (1,219,946 | ) | |||
| Cash and cash equivalents, beginning of period | 3,325,241 | 5,074,489 | ||||
| Cash and cash equivalents, end of period | 5,699,738 | 3,854,543 | ||||