ProntoForms Reports Q2 2023 Financial Results

Growth in TTM ARR Accelerates to 19% and Operating Loss Declines

OTTAWA, July 26, 2023 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field intelligence, announced today its second quarter (Q2) financial results for the period ended June 30, 2023. All amounts are in US dollars unless otherwise stated.

“Our Trailing Twelve Months (“TTM”) revenue growth accelerated to 14% from 11.5% in the last quarter, and TTM annual recurring revenue (“ARR”) base growth to 19% from 13% last quarter, with first half net bookings results exceeding all of 2022. The company reported strong subscription growth in the second quarter of 2023 based on a large win, good growth in existing accounts, and the highest level of revenue retention in two years. We continue to focus on four key vertical markets where we can deliver a considerable return on investment to customers through reduced field service costs, richer data, and higher levels of compliance as shown by our recent $3M win in the medical device industry,” said Philip Deck, co-CEO of ProntoForms.

“Consistent with our disclosure last quarter, our lower operating loss still included costs related to organizational changes. These were necessary to support changes made across our operations as we reconfigured our workforce for higher growth and profitability. We anticipate that most of the organizational changes are behind us and remain focused on reaching non-GAAP operating profitability by Q4,” he added.

“In today’s economy, field technicians generate substantial high-margin revenue for their organizations and play a crucial role in delivering customer satisfaction. They also amass valuable data through their job interactions, generating insights that enable new levels of team and process efficiency. However, with the new guard increasingly prizing job satisfaction as part of a generational shift in the industry, they are favouring roles built around their needs more and more. Therefore, it is critical for organizations with significant field service operations to prioritize the technician experience. Our product excels in consolidating this wealth of information while enhancing technician satisfaction and operational productivity. Our name change to TrueContext slated for later this year reflects our wider repositioning as a leader in enterprise field intelligence,” ProntoForms co-CEO and Founder Alvaro Pombo explained.

Financial Highlights – 2023 Second Quarter (All results in USD)

  • Recurring revenue in Q2 2023 increased by 16% to $5.79 million compared to $4.97 million in Q2 2022 and increased by 7% compared to $5.43 million in Q1 2023.
  • Total revenue for Q2 2023 increased by 17% to $6.12 million compared to $5.21 million in Q2 2022 and increased by 6% compared to $5.77 million in Q1 2023.
  • Gross margin for Q2 2023 was 86% of total revenue compared to 84% in Q2 2022 and 86% in Q1 2023. Gross margin on recurring revenue was 91% for Q2 2023 compared to 89% in Q2 2022 and 90% in Q1 2023.
  • Operating loss for Q2 2023 was $0.97 million, down from an operating loss of $1.32 million in Q2 2022 and down from an operating loss of $1.04 million in Q1 2023.
  • Net loss for Q2 2023 was $1.15 million, down from a net loss of $1.34 million in Q2 2022 and up from a net loss of $1.13 million in Q1 2023.
  • As at June 30, 2022, the Company’s cash and net working capital balances were $6.25 million and $1.06 million respectively.

Please refer to for full financial statements, management discussion and analysis and a downloadable spreadsheet version of our quarterly information.

Recent Operational Highlights

Notable new and expansion progress from enterprise customers, including:

  • A subsidiary of a global Fortune 500 medical manufacturing company committed to just over $3M in subscription services over 3.5 years from April 2023 to manage workflows for new machine installations worldwide.
  • A Fortune 500 distributor of a large heavy equipment manufacturer deployed ProntoForms for over $95K ARR to support job safety analysis, work orders, and site safety reviews.
  • A Fortune Global 500 leader in fire, HVAC, and security equipment added 500 new subscriptions. This expansion will support various initiatives including HVAC and building automation, energy management, and emissions reporting and management.

Other Highlights

  • ProntoForms shareholders approved the name change to TrueContext Corporation as well as the appointment of directors, auditors, and options plan at the annual meeting held June 21, 2023.
  • ProntoForms launched a multi-language add-on that enables multiple language options within a single workflow, creating a universal approach to field work that supports global and diverse field teams.
  • ProntoForms attended the Canadian Elevator Contractors Association (CECA) Convention for the first time after becoming a member earlier this year. At the show, ProntoForms unveiled it’s Elevate solution that is tailored to address challenges faced by elevator field teams.

Q2 Conference Call Date:

Date: Tuesday, July 26th, 2023
Time: 9:00 AM Eastern Time        

Participant Login Options

To join the conference call without operator assistance, you may register and enter your phone number at: to receive an instant automated callback.

You can also dial direct to be enter the call through an operator with the details below:
Participant Dial-in Numbers:
Local Toronto – (+1) 416-764-8650
Toll Free – (+1) 888-664-6383

Recording Playback Numbers:
Local Toronto– (+1) 416-764-8677
Toll Free – (+1) 888-390-0541
Passcode: 885407
Expiry Date: August 2nd, 2023, at 11:59pm EST

About ProntoForms Corporation
ProntoForms, soon to be TrueContext, is the global leader in field intelligence. The platform’s field workflows and data collection capabilities enable enterprise field teams to optimize decision-making, decrease organizational risk, maximize the uptime of valuable assets, and deliver exceptional service experiences. Over 100,000 subscribers use ProntoForms across multiple use cases, including asset inspection, compliance, installation, repair, maintenance, and environmental, health & safety with quantifiable business impacts. 

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
co-Chief Executive Officer
ProntoForms Corporation
613.599.8288 ext. 1111
Philip Deck
co-Chief Executive Officer
ProntoForms Corporation
Dave Croucher
Chief Financial Officer
ProntoForms Corporation

Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, 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 9, 2022 found at for a discussion of such factors.

ARR is calculated as the annual equivalent of the recurring elements of our contracts with customers that are in effect at the end of the period. It excludes one-time professional service fees and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely at period end. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2022 for a description of how the Company determines and uses ARR.

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.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the three and six months ended June 30, 2023 and 2022
(in US dollars)     
     Three Months Ended June 30,
     2023   2022 
 Recurring revenue$5,788,346  $4,968,802 
 Professional and other services 335,246   242,814 
     6,123,592   5,211,616 
Cost of revenue (1):     
 Recurring revenue 529,535   555,304 
 Professional and other services 312,520   262,132 
     842,055   817,436 
Gross margin 5,281,537   4,394,180 
 Research and development (1) 1,796,044   1,814,774 
 Selling and marketing (1) 3,219,246   2,922,742 
 General and administrative (1) 1,235,504   973,382 
     6,250,794   5,710,898 
Loss from operations (969,257)  (1,316,718)
Foreign exchange loss (93,217)  29,212 
Finance Income 38,585   5,451 
Finance costs (127,693)  (60,578)
Net loss and comprehensive loss$(1,151,582) $(1,342,633)
Net loss and comprehensive loss     
 per common share basic and diluted$(0.01) $(0.01)
Weighted average number of common shares   
 basic and diluted 130,291,419   128,278,739 
(1) Amounts include share-based compensation expense as follows:
Cost of revenue$3,267  $6,199 
Research and development 38,462   50,964 
Selling and marketing 53,499   35,429 
General and administrative 189,635   152,684 
Total share-based compensation expense$284,863  $245,277 

Condensed Interim Consolidated Statements of Financial Position 
as at June 30, 2023 and December 31, 2022     
(in US dollars)     
     June 30,   December 31, 
     2023   2022 
Current assets:     
 Cash and cash equivalents$6,251,277  $6,112,071 
 Accounts receivable 2,248,579   4,179,088 
 Investment tax credits receivable 151,060   197,553 
 Unbilled receivables 185,529   88,453 
 Related party loan receivable 81,158   79,331 
 Prepaid expenses and other receivables 1,878,757   1,077,015 
 Contract acquisition costs 484,856   311,494 
     11,281,216   12,045,005 
Property, plant and equipment 387,323   286,834 
Contract acquisition costs 460,616   190,585 
Right-of-use asset 1,033,645   148,515 
    $13,162,800  $12,670,939 
Liabilities and Shareholders' Equity     
Current liabilities:     
 Accounts payable and accrued liabilities$2,704,132  $2,686,288 
 Deferred revenue 7,254,692   6,508,986 
 Lease obligation 261,264   172,947 
     10,220,088   9,368,221 
Long-term debt 6,152,006   6,007,585 
Deferred revenue 260,342   - 
Lease obligation 900,214   - 
     7,312,562   6,007,585 
Shareholders' deficit:     
 Share capital 32,290,967   32,166,781 
 Contributed surplus 864,907   864,907 
 Share-based payment reserve 3,888,925   3,398,246 
 Deficit  (41,599,084)  (39,319,236)
 Accumulated other comprehensive income 184,435   184,435 
     (4,369,850)  (2,704,867)
    $13,162,800  $12,670,939 

Condensed Interim Consolidated Statements of Cash Flows     
For the three and six months ended June 30, 2023 and 2022     
(in US dollars)     
     Three months ended June 30,
     2023   2022 
Cash used in:     
Operating activities:     
 Net loss$(1,151,582) $(1,342,628)
 Items not involving cash:     
  Share-based compensation 284,863   315,836 
  Accretion on lease obligations 10,209   5,179 
  Accretion of transaction costs 2,809   3,663 
  Amortization of property, plant and equipment 36,608   37,061 
  Amortization of right-of-use asset 58,026   63,657 
  Unrealized foreign exchange loss 92,402   (97,982)
 Other finance costs 76,085   51,464 
 Interest paid (114,670)  (56,915)
 Interest received 38,585   5,451 
 Changes in non-cash operating working capital items (44,230)  391,957 
     (710,895)  (623,257)
Financing activities     
 Payment of lease obligations (65,184)  (75,179)
 Lease interest paid (10,209)  (5,179)
 Procceds from drawdown of credit facility -   776,000 
 Proceeds from the exercise of options 69,836   125,575 
     (5,557)  821,217 
Investing activities     
 Purchase of property, plant and equipment (141,432)  (26,599)
     (141,432)  (26,599)
Effect of exchange rate changes on cash 67,231   (85,262)
Increase in cash and cash equivalents (790,653)  86,099 
Cash and cash equivalents, beginning of period 7,041,930   7,431,964 
Cash and cash equivalents, end of period$6,251,277  $7,518,063