D2L Inc. Announces Financial Results for Third Quarter Fiscal 2022

Annual recurring revenue grows 20% year over year to US$149.6 million
Total subscription and support revenue increases by 20% for Q3 to US$34.9 million and by 19% fiscal year to date to US$98.5 million

TORONTO, Dec. 08, 2021 (GLOBE NEWSWIRE) -- D2L Inc. (TSX: DTOL) (“D2L” or the “Company”), a global learning technology leader, today announced financial results for its fiscal 2022 third quarter ended October 31, 2021.

“We’re having a strong year at D2L, and we experienced continued momentum across the business during the third quarter,” said John Baker, President and CEO of D2L. “Our results reflect an increase in new customers and expanded relationships with existing customers – early returns from our investments in sales – as well as sustained adoption of digital learning experiences across our core markets. Our year-to-date performance puts us on track to achieve approximately 20% revenue growth for the full year.”

Mr. Baker added: “In our more than 20-year history, the market backdrop and opportunity have never been stronger. D2L’s mission to transform the way the world learns is also more vital than ever, as we work with educators to tackle learning loss from the pandemic and support employers to meet the pressing need for upskilling in the workforce. With new growth capital from the recent IPO, we are executing on an expanded strategy to press our advantage and become the category leader in learning.”

Third Quarter Fiscal 2022 Financial Highlights
(All amounts are in U.S. dollars unless otherwise indicated)

  • Annual Recurring Revenue1 increased by $25.0 million or 20% year-over-year to $149.6 million as at October 31, 2021, compared with $124.6 million as at October 31, 2020.
  • Revenue of $39.1 million, up 18% from the comparative period in the prior year.
  • Subscription and support revenue of $34.9 million, an increase of 20% over the same period in the prior year.
  • Adjusted Gross Profit1 of $25.1 million (64.2% of revenue), an increase of 30% from Adjusted Gross Profit of $19.3 million (58.1% of revenue) in the prior year.
  • Gross Profit of $17.0 million, compared with $19.3 million in the prior year. Gross profit in the current period included one-time, non-cash stock-based compensation expenses of $8.1 million related to the unwinding of an Employee Stock Trust as part of the Company’s initial public offering (“IPO”).
  • Adjusted EBITDA1 loss of ($0.3) million, compared to Adjusted EBITDA of $2.1 million for the comparative period in the prior year.
  • Net loss of $41.5 million, compared with a net loss of $28.1 million in the same quarter of the prior year. The higher net loss mainly reflects one-time, non-cash stock-based compensation expenses of $65.8 million related to the unwinding of the Employee Stock Trust. These were partly offset by a one-time fair value gain of $25.9 million on the Company’s redeemable convertible preferred shares, also related to the IPO.
  • Cash flow from operating activities of $3.5 million, versus $10.1 million in the prior year, and Free Cash Flow1 of $3.2 million, compared with $9.5 million in the prior year.
  • Subsequent to quarter end, D2L completed its IPO for total gross proceeds of C$150.0 million (C$88 million to D2L after factoring the secondary offering and underwriter commissions).

1 Please refer to “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures” section of this press release.

Third Quarter Fiscal 2022 Business & Operating Highlights

  • Signed a new customer agreement with the State University of New York (SUNY), the largest comprehensive education system in the U.S., to deliver the D2L Brightspace learning environment to 400,000 learners across SUNY’s 64 colleges and universities.
  • Signed a new customer agreement with the University of Groningen, one of the oldest in the region and one of the most prestigious in the world, serving more than 34,000 students. D2L Brightspace was selected to replace a legacy learning platform. D2L now supports >40% of the top universities across the Netherlands.
  • Signed a new customer agreement with Lee Valley Tools, a Canadian business serving customers around the world, to help onboard, train and engage employees across the country using D2L Brightspace.
  • Expanded a customer agreement with Energy Safety Canada, the national safety association for Canada’s oil and gas industry. D2L Brightspace will be used to help develop and deliver health and safety training courses to ensure workers are ready to work safely.
  • Acquired exclusive course content, development tools, and talent from Bayfield Design, a provider of digital learning courseware, expanding cross-sell opportunities within the Company’s K-12 customer base.
  • Expanded a strategic partnership with Ellucian to better serve customers with an integrated platform that unites people, processes, data and technology to create highly personalized learning experiences.  
  • D2L Wave welcomed University of Manitoba, McMaster University, the University of Guelph and York University as academic partners. D2L Wave provides working professionals with opportunities to upskill and reskill through access to an online catalog of high-quality education options from leading educational institutions. 
  • Launched a new Parent and Guardian App to enhance learning collaboration post-pandemic – making it easier than ever for teachers and families to connect, stay informed, and receive notifications to support learning. 
  • Subsequent to quarter end, signed a new customer agreement with British Columbia’s Ministry of Education to help deliver Brightspace’s exceptional, flexible learning experiences for up to 670,000 learners in K-12 across the province. 

Third Quarter Fiscal 2022 Financial Results

Selected Financial Measures

 Three months ended October 31, Nine months ended October 31,
 2021 2020 Change Change 2021 2020 Change Change
$ $ $ % $ $ $ %
Subscription & Support Revenue34,930 29,219 5,711 19.5% 98,497 82,626 15,871 19.2%
Professional Services & Other Revenue4,214 3,953 261 6.6% 11,977 9,810 2,167 22.1%
Total Revenue39,144 33,172 5,972 18.0% 110,474 92,436 18,038 19.5%
Gross Profit17,016 19,261 (2,245) -11.7% 61,431 57,239 4,192 7.3%
Adjusted Gross Profit 125,125 19,278 5,847 30.3% 69,602 57,294 12,308 21.5%
Adjusted Gross Margin164.2% 58.1%     63.0% 62.0%    
Net Income (loss)(41,543) (28,081) (13,462) 47.9% (93,793) (30,329) (63,464) -209.3%
Adjusted EBITDA (loss)1(291) 2,102 (2,393) -113.8% 631 7,041 (6,410) -91.0%
Cash Flow from Operating Activities3,526 10,120 (6,594) -65.2% 4,077 18,151 (14,074) -77.5%
Free Cash Flow13,200 9,469 (6,269) -66.2% 3,377 16,736 (13,359) -79.8%

1 Please refer to “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures” section of this press release.

Conference Call & Webcast
D2L management will host a conference call on Thursday, December 9, 2021 at 8:30 am ET to discuss its third quarter fiscal 2022 financial results.

Date: Thursday, December 9, 2021
Time: 8:30 a.m. (ET)
Dial in number: Canada: 1 (226) 828-7575 or 1 (833) 950-0062
United States: 1 (844) 200-6205
Access code: 097764
Webcast: A live webcast will be available at ir.d2l.com/events-and-presentations/events/
Replay: Canada: 1 (226) 828-7578 or US: 1 (866) 813-9403
(replay code: 991447)
Available until December 27, 2021

Forward-Looking Information
This press release includes statements containing “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “outlook”, “target”, “forecasts”, “projection”, “potential”, “prospects”, “strategy”, “intends”, “anticipates”, “seek”, “believes”, “opportunity”, “guidance”, “aim”, “goal” or variations of such words and phrases or statements that certain future conditions, actions, events or results “may”, “could”, “would”, “should”, “might”, “will”, “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs.

This forward-looking information includes, but is not limited to, statements regarding industry trends; our growth rates and growth strategies; addressable markets for our products and solutions; expansion of our product offerings; expectations regarding the growth of our customer base; expectations regarding our revenue and revenue generation potential; our business plans and strategies; and our competitive position in our industry.

Forward-looking information is based on certain assumptions and analyses made by the Company in light of management’s experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, including the following: the Company’s ability to generate revenue while controlling costs and expenses; the Company’s ability to manage growth effectively; the ability to seek out, enter into and successfully integrate acquisitions, including the Bayfield Acquisition; business and industry trends, including the success of current and future product development initiatives; positive social development and attitudes toward the pursuit of higher education; the Company’s ability to maintain positive relationships with its customer base and strategic partners; the Company’s ability to adapt and develop solutions that keep pace with continuing changes in technology, education and customer needs; the ability to patent new technologies and protect intellectual property rights; the Company’s ability to comply with security, cybersecurity and accessibility laws, regulations and standards; and the Company’s ability to retain key personnel.

Although the Company believes that the assumptions underlying such forward-looking information were reasonable when made, they are inherently uncertain and are subject to significant risks and uncertainties and may prove to be incorrect. The Company cautions investors that forward-looking information is not a guarantee of the future and that actual results may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including but not limited to the factors described in the “Risk Factors” section of the Company’s final long form prospectus dated October 27, 2021. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.

Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking information. Any forward-looking information that is contained in this press release speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

About D2L Inc. (TSX: DTOL)
D2L is transforming the way the world learns—helping learners of all ages achieve more than they dreamed possible. Working closely with clients all over the world, D2L is supporting millions of people learning online and in person. Our growing global workforce is dedicated to making the best learning products to leave the world better than they found it. Learn more about D2L for K-12, higher education and businesses at www.D2L.com.

For further information, please contact:
Craig Armitage, Investor Relations
(416) 347-8954

D2L Inc.
Condensed Consolidated Interim Balance Sheets
(In U.S. dollars)

As at October 31, 2021 and January 31, 2021

  October 31, 2021 January 31, 2021 
Current assets:  
 Cash and cash equivalents$42,855,903 $45,219,561 
 Trade and other receivables 28,637,213  14,620,383 
 Uninvoiced revenue 1,690,331  3,090,154 
 Prepaid expenses 5,403,177  5,355,166 
 Deferred commissions 3,737,876  3,441,396 
 Shareholder loan receivable 16,361,988   
   98,686,488  71,726,660 
Non-current assets:  
 Restricted cash   84,383 
 Other receivables   207,018 
 Prepaid expenses 188,718  1,079,974 
 Deferred income taxes 162,539  237,809 
 Right-of-use assets 1,732,711  2,932,487 
 Property and equipment 2,728,885  2,917,308 
 Deferred commissions 6,706,555  6,174,607 
 Intangible assets 7,938,950  340,719 
 Goodwill 4,939,896   
Total assets$123,084,742 $85,700,965 
Liabilities and Shareholders' Deficiency
Current liabilities:  
 Accounts payable and accrued liabilities$22,792,245 $21,779,773 
 Deferred revenue 89,517,304  68,679,553 
 Lease liabilities 1,704,238  2,092,319 
 Consideration payable 9,041,810   
 Redeemable convertible preferred shares 200,211,647   
   323,267,244  92,551,645 
Non-current liabilities:  
 Deferred income taxes 416,037  232,915 
 Lease liabilities 784,709  2,021,425 
 Redeemable convertible preferred shares   178,183,535 
   1,200,746  180,437,875 
   324,467,990  272,989,520 
Shareholders' deficiency:  
 Share capital:  
 Class A common shares 1  1 
 Class O common shares 18,150,136  217,632 
 Additional paid-in capital 105,942,854  45,285,371 
 Accumulated other comprehensive loss (3,081,902) (4,190,459)
 Deficit (322,394,337) (228,601,100)
  (201,383,248) (187,288,555)
Borrowings on credit facility
Commitments and contingencies
Related party transactions  
Subsequent events  
Total liabilities and shareholders' deficiency$123,084,742 $85,700,965 

D2L Inc.
Condensed Consolidated Interim Statements of Comprehensive Loss
(In U.S. dollars)

For the three and nine months ended October 31, 2021 and 2020

  Three months ended October 31 Nine months ended October 31 
  2021 2020 2021 2020 
 Subscription and support34,929,904 29,219,116 98,496,847 82,626,402 
 Professional services and other4,213,973 3,953,043 11,977,090 9,809,505 
  39,143,877 33,172,159 110,473,937 92,435,907 
Cost of revenue:    
 Subscription and support11,471,144 10,901,699 32,813,759 28,306,474 
 Professional services and other10,656,842 3,009,078 16,229,651 6,890,992 
  22,127,986 13,910,777 49,043,410 35,197,466 
Gross profit17,015,891 19,261,382 61,430,527 57,238,441 
 Sales and marketing31,285,484 7,537,595 52,479,274 22,380,325 
 Research and development17,826,481 7,534,606 35,720,869 22,220,285 
 General and administrative35,141,364 3,054,930 44,075,555 8,312,041 
  84,253,329 18,127,131 132,275,698 52,912,651 
Income (loss) from operations(67,237,438)1,134,251 (70,845,171)4,325,790 
Interest and other income (expense):    
 Interest expense(58,729)(55,652)(234,572)(175,167)
 Interest income120,860 14,947 142,966 74,349 
 Gain (loss) on redeemable convertible preferred shares25,896,597 (28,661,178)(22,028,112)(35,061,178)
 Foreign exchange gain (loss)(207,129)(650,184)(447,901)633,755 
  25,751,599 (29,352,067)(22,567,619)(34,528,241)
Loss before income taxes(41,485,839)(28,217,816)(93,412,790)(30,202,451)
Income taxes (recovery):    
 Current7,112 182,378 123,434 256,480 
 Deferred50,950 (319,488)257,013 (129,942)
  58,062 (137,110)380,447 126,538 
Loss for the period(41,543,901)(28,080,706)(93,793,237)(30,328,989)
Other comprehensive income (loss):    
 Foreign currency translation income (loss)(68,413)1,036,369 1,108,557 (148,900)
Comprehensive loss(41,612,314)(27,044,337)(92,684,680)(30,477,889)
Loss per share – basic(1.48)(1.06)(3.37)(1.15)
Loss per share – diluted(1.48)(1.06)(3.37)(1.15)
Weighted average number of common
 shares – basic
27,997,960 26,467,265 27,794,246 26,467,217 
Weighted average number of common
 shares – diluted
27,997,960 26,467,265 27,794,246 26,467,217 

D2L Inc.
Condensed Consolidated Interim Statements of Shareholders' Deficiency
(In U.S. dollars)

For the nine months ended October 31, 2021 and 2020

 Class A
Common Shares
Class O
Common Shares
 Deficit Total 
 Shares Amount Shares Amount     
Balance, January 31, 202126,447,059 $1 21,709 $217,632 $45,285,371 $(4,190,459)$(228,601,100)$(187,288,555)
Issuance of Class O common
shares on exercise of options
  1,543,462 17,932,504 (6,502,427)  11,430,077 
Stock-based compensation    67,159,910   67,159,910 
Other comprehensive loss     1,108,557  1,108,557 
Loss for the period      (93,793,237)(93,793,237)
Balance, October 31, 202126,447,059 $1 1,565,171 $18,150,136 $105,942,854 $(3,081,902)$(322,394,337)$(201,383,248)
Balance, January 31, 202026,447,059 $1 20,134 $204,586 $44,534,317 $(3,976,580)$(187,105,218)$(146,342,894)
Stock-based compensation    425,156   425,156 
Other comprehensive income     (148,900) (148,900)
Loss for the period      (30,328,989)(30,328,989)
Balance, October 31, 202026,447,059 $1 20,134 $204,586 $44,959,473 $(4,125,480)$(217,434,207)$(176,395,627)

D2L Inc.
Condensed Consolidated Interim Statements of Cash Flows
(In U.S. dollars)

For the nine months ended October 31, 2021 and 2020

   2021 2020 
Operating activities:  
 Loss for the period(93,793,237)(30,328,989)
 Items not involving cash:  
  Depreciation of property and equipment1,074,877 918,230 
  Depreciation of right-of-use assets1,168,675 1,358,322 
  Amortization of intangible assets218,269 13,122 
  Interest on lease liabilities160,163 174,562 
  Interest on Shareholder Loan(105,851) 
  Fair value loss on redeemable convertible preferred shares22,028,112 35,061,178 
  Deferred income tax expense (recovery)257,013 (129,942)
  Stock-based compensation67,159,910 425,156 
 Changes in operating assets and liabilities:  
  Trade and other receivables(13,521,310)(4,703,001)
  Uninvoiced revenue1,447,632 (549,864)
  Prepaid expenses(2,118,343)(1,428,727)
  Deferred commissions(699,259)(2,186,137)
  Accounts payable and accrued liabilities491,557 4,127,719 
  Deferred revenue20,316,131 15,442,844 
  Lease assets and liabilities(6,880)(43,484)
 Cash flows from operating activities4,077,459 18,150,989 
Financing activities:  
 Payment of lease liabilities(1,781,057)(1,756,980)
 Proceeds from issuance of common shares11,430,077  
 Borrowings on credit facility7,000,003  
 Repayments to credit facility(7,000,003) 
 Cash flows from (used in) financing activities9,649,020 (1,756,980)
Investing activities:  
 Purchase of property and equipment(699,897)(1,414,811)
 Issuance of shareholder loan(16,498,329) 
 Repayment of shareholder loan242,191  
 Acquisition of business from related party(645,844) 
 Cash flows used in investing activities(17,601,879)(1,414,811)
Effect of exchange rate changes on cash, cash equivalents and restricted cash1,427,359 203,177 
Increase (decrease) in cash, cash equivalents and restricted cash(2,448,041)15,182,375 
Cash, cash equivalents and restricted cash, beginning of period45,303,944 31,468,089 
Cash, cash equivalents and restricted cash, end of period42,855,903 46,650,464 
Supplemental disclosure of cash flows:  
 Interest paid16,303  
 Income taxes paid393,484 339,761 


Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures

The information presented in this press release refers to certain non-IFRS financial measures including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, and Free Cash Flow, as well as key performance indicators used by management, such as Annual Recurring Revenue and Net Revenue Retention Rate. These measures are not recognized measures under International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations, financial performance and liquidity from management’s perspective and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and key performance indicators in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures and key performance indicators in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and assess our ability to meet our capital expenditures and working capital requirements.

Key Performance Indicators
Management uses a number of metrics, including the key performance indicators identified below, to help us evaluate the business, measure performance, identify trends affecting the business, formulate business plans and make strategic decisions. D2L’s key performance indicators are not measures calculated in accordance with IFRS and may be calculated in a manner different than similar key performance indicators used by other companies. Since some of these metrics do not have comparable IFRS measures, the Company is unable to provide quantitative reconciliations of these measures to IFRS measures. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance.

  • Annual Recurring Revenue: D2L defines Annual Recurring Revenue as the annualized equivalent value of subscription revenue from all existing customer contracts as at the date being measured, exclusive of the implementation period. D2L’s calculation of Annual Recurring Revenue assumes that customers will renew their contractual commitments as those commitments come up for renewal. The Company believes Annual Recurring Revenue provides a reasonable, real-time measure of performance in a subscription-based environment and provides visibility for potential growth to cash flows. The Company believes that an increasing Annual Recurring Revenue indicates the continued strength in the expansion of the business, and will continue to be a focus on a go-forward basis. Annual recurring revenue as at October 31, 2021 was $149.6 million ($129.5 million as at January 31, 2021).
  • Net Revenue Retention Rate: D2L defines Net Revenue Retention Rate for a fiscal year by considering all customers at the beginning of a fiscal year, and dividing its annual subscription revenue attributable to this group of customers at the end of the fiscal year, by the annual subscription revenue attributable to this group of customers in the prior fiscal year. By implication, this ratio, expressed as a percentage, excludes any sales from new customers acquired during the fiscal year, but does include incremental sales added to the existing base of customers during the fiscal year being measured. The Company believes that measuring the ability to retain and expand revenue generated from the existing customer base is a key indicator of the long-term value D2L provides to its customers. Net Revenue Retention Rate for the fiscal year ended January 31, 2021 was 107% (103% for the fiscal year ended January 31, 2020).

Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss), excluding interest, taxes, depreciation and amortization (or EBITDA), as adjusted for changes in the fair value of redeemable preferred shares, stock-based compensation, foreign exchange gains and losses, and transaction-related expenses.

The following table reconciles Adjusted EBITDA to net income (loss), and discloses Adjusted EBITDA Margin, for the periods indicated:

(in thousands of U.S. dollars, except for percentages)Three months ended
October 31
 Nine months ended
October 31

 2021 2020  2021 2020 
Loss for the period(41,543 )(28,081 )  (93,793) (30,329)
Loss (gain) on redeemable convertible preferred shares(25,897)28,661  22,028 35,061 
Stock-based compensation(1)66,364 204  67,160 425 
Foreign exchange loss (gain)207 650  448 (634)
Transaction-related costs(2)(449)-  1,854 - 
Interest income net of interest expense(62)41  92 101 
Income tax expense58 (137) 380 127 
Depreciation and amortization1,031 764  2,462 2,290 
Adjusted EBITDA (291 ) 2,102    631   7,041  
Adjusted EBITDA Margin-0.7%6.3% 0.6%7.6%

(1)   In the three and nine month periods ended October 31, 2021, these expenses were impacted by non-cash stock-based compensation (as discussed in Note 9 of the condensed consolidated interim financial statements) which affects the year-over-year comparisons.
(2)   These expenses include professional, legal, consulting and accounting fees incurred in connection with the Company’s Offering, which closed on November 3, 2021 and related other activities, and are considered non-recurring and not indicative of continuing operations.

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit is defined as gross profit excluding related stock-based compensation expenses. Adjusted Gross Margin is calculated as Adjusted Gross Profit expressed as a percentage of total revenue.

The following table reconciles Adjusted Gross Margin to gross profit expressed as a percentage of revenue, for the periods indicated:

 Three months ended
October 31
 Nine months ended
October 31
(in thousands of U.S. dollars, except for percentages)2021 2020  2021 2020 
Gross profit for the period17,016 19,261  61,431 57,239 
Stock based compensation8,109 17  8,171 55 
Adjusted Gross Profit 25,125   19,278    69,602   57,294  
Adjusted Gross Margin64.2%58.1% 63.0%62.0%

Free Cash Flow and Free Cash Flow Margins

Free Cash Flow is defined as cash provided by (used in) operating activities less net additions to property and equipment. Free Cash Flow Margin is calculated as Free Cash Flow expressed as a percentage of total revenue.

The following table reconciles cash flow from operating activities to Free Cash Flow, and discloses Free Cash Flow Margin, for the periods indicated:

 Three months ended
October 31
 Nine months ended
October 31
(in thousands of U.S. dollars, except for percentages)2021 2020  2021 2020 
Cash flow from operating activities3,526 10,120  4,077 18,151 
Purchase of property and equipment, net of proceeds on disposal(326)(651) (700)(1,415)
Free Cash Flow 3,200   9,469    3,377   16,736  
Free Cash Flow Margin8.2%28.5% 3.1%18.1%