OTTAWA, Aug. 22, 2019 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its second quarter (Q2) financial results for the period ended June 30, 2019.
“We are pleased to report that our TTM recurring revenue continues to accelerate; growing to over 25% this quarter. Quarterly recurring revenue continued to grow well in Q2 with a 5% increase over Q1 2019. Our Annual Recurring Revenue (ARR) base grew 26% year-to-year reaching $13.71 million at June 30, 2019. Our strongest area of growth is enterprise expansion; accounts with more than $100K of ARR now represent 30% of our base, up from 23% a year ago,” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms.
Mr. Pombo continued, “We entered 2019 with a focused plan to expand our enterprise presence. As part of this strategy, we continue building our enterprise go-to-market capabilities with additional investment in product and sales expertise. Recently, a leading global IT analyst firm profiled us as a field-focused leader in the growing LCAP (low-code application platform) market segment. This multi-billion dollar market is comprised of platforms that allow IT and line of business owners to scale digital transformation by empowering non-developers to easily build apps. Recognition in this report further validates our approach of enabling enterprises to scale their field-centric automation with the use of our powerful and intuitive solution.”
Financial Highlights – 2019 Second Quarter
- Recurring revenue in Q2 2019 increased by 26% to $3.30 million compared to $2.62 million in Q2 2018, and by 5% compared to $3.16 million in Q1 2019.
- Total revenue for Q2 2019 increased by 26% to $3.68 million compared to $2.91 million in Q2 2018, and by 5% compared to $3.52 million in Q1 2019.
- Gross margin for Q2 2019 was 84% of total revenue compared to 83% in Q2 2018 and 81% in Q1 2019. Gross margin on recurring revenue was 90% for Q2 2019 compared to 88% in Q2 2018 and 89% in Q1 2019.
- Operating loss for Q2 2019 was $0.42 million, down from a loss of $0.63 million in Q2 2018 and up from a loss of $0.40 million in Q1 2019.
- Net loss for Q2 2019 was $0.53 million, down from a net loss of $0.67 million in Q2 2018 and flat compared to a net loss of $0.53 million in Q1 2019.
- As of June 30, 2019, ProntoForms’ cash and net working capital balances were $5.75 million and $3.79 million respectively, compared to $3.33 million and $2.28 million as at December 31, 2018.
Q2 2019 Operational Highlights
- We were recently recognized in an August 2019 LCAP Solution report produced by a prominent global IT analyst firm. We were one of eighteen leading solutions featured from a group of 200 considered companies and were the only field-focused LCAP solution in the report. The report also highlighted that by 2024 the majority of enterprises will use at least four low code platforms to support custom application needs.
- The company hosted its first annual user conference: “EMPOWER’19”. The two-day event provided enterprise customers the opportunity to learn and exchange with peers, gain a deeper understanding of new solution capabilities, and view the platform roadmap.
- As part of the company’s enterprise product development plan, it achieved Service Organization Control (SOC) 2 Type 2 Certification.
- Notable new customers and expansion progress from enterprise customers, including:
- A global medical device manufacturer continued its contractual expansion with 2,700 additional subscribers.
- One of America’s top five utility companies added over 600 new subscribers to improve its field operations and regulatory compliance reporting.
- A global manufacturer of electronics and HVAC systems continued expanding its deployment, adding 500 new subscribers.
- A European-based health sciences medical device manufacturer launched a new deployment of over 175 subscribers to manage the delivery, set-up, and maintenance of sophisticated medical devices.
- A leading global video streaming service company launched a new account to inspect facilities across the globe.
Q2 Conference Call Date:
Date: August 22nd, 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: 32792964
Recording Playback Numbers:
Local Toronto – (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 051268 #
Expiry Date: Thursday, August 29th, 2019 11:59 PM
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.
| PRONTOFORMS CORPORATION | ||||||||||||
| Condensed Interim Consolidated Statements of Comprehensive Loss | ||||||||||||
| For the three and six months ended June 30, 2019 and 2018 | ||||||||||||
| (Unaudited in US dollars) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
| $ | $ | $ | $ | |||||||||
| Revenue | ||||||||||||
| Recurring revenue | 3,304,579 | 2,624,680 | 6,463,530 | 5,119,748 | ||||||||
| Professional and other services | 371,688 | 281,485 | 729,922 | 534,965 | ||||||||
| 3,676,267 | 2,906,165 | 7,193,452 | 5,654,713 | |||||||||
| Cost of Revenue | ||||||||||||
| Recurring revenue | 339,635 | 303,639 | 701,074 | 571,836 | ||||||||
| Professional and other services | 264,038 | 203,818 | 554,792 | 421,119 | ||||||||
| 603,673 | 507,457 | 1,255,866 | 992,955 | |||||||||
| Gross Margin | 3,072,594 | 2,398,708 | 5,937,586 | 4,661,758 | ||||||||
| Expenses | ||||||||||||
| Research and development | 1,245,161 | 1,030,752 | 2,285,248 | 2,084,033 | ||||||||
| Selling and marketing | 1,561,004 | 1,406,359 | 3,103,827 | 2,812,953 | ||||||||
| General and administrative | 683,665 | 588,666 | 1,364,084 | 1,168,542 | ||||||||
| 3,489,830 | 3,025,777 | 6,753,159 | 6,065,528 | |||||||||
| Loss from operations | (417,236 | ) | (627,069 | ) | (815,573 | ) | (1,403,770 | ) | ||||
| Foreign exchange (loss) gain | (17,118 | ) | 46,245 | (53,145 | ) | 136,316 | ||||||
| Interest and accretion | (94,808 | ) | (85,489 | ) | (183,851 | ) | (166,415 | ) | ||||
| Change in fair value of derivative liability | (880 | ) | (7,501 | ) | (10,407 | ) | (15,108 | ) | ||||
| Net loss | (530,042 | ) | (673,814 | ) | (1,062,976 | ) | (1,448,977 | ) | ||||
| Other Comprehensive loss | ||||||||||||
| Foreign currency translation adjustment | - | (33,995 | ) | - | (81,655 | ) | ||||||
| Total comprehensive loss | (530,042 | ) | (707,809 | ) | (1,062,976 | ) | (1,530,632 | ) | ||||
| Net loss per common share | ||||||||||||
| basic and diluted | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||
| Weighted average number of common shares | ||||||||||||
| basic and diluted | 109,926,030 | 107,524,142 | 109,165,685 | 107,524,142 | ||||||||
| Share-based compensation included in accounts: | ||||||||||||
| Cost of revenue | 9,616 | 4,396 | 22,341 | 18,451 | ||||||||
| Research and development | 13,956 | 8,741 | 32,562 | 34,759 | ||||||||
| Selling and marketing | 28,674 | 13,599 | 68,124 | 57,533 | ||||||||
| General and administrative | 30,074 | 18,831 | 70,804 | 78,696 | ||||||||
| 82,320 | 45,567 | 193,831 | 189,439 | |||||||||
| ProntoForms Corporation | |||||
| Condensed Interim Consolidated Statements of Financial Position | |||||
| as at June 30, 2019 and 2018 | |||||
| (Unaudited in US dollars) | |||||
| June 30, | December 31, | ||||
| 2019 | 2018 | ||||
| $ | $ | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | 5,745,437 | 3,325,241 | |||
| Accounts receivable | 1,874,709 | 2,178,420 | |||
| Investment tax credits receivable | 122,256 | 158,966 | |||
| Unbilled receivables | 243,138 | 156,865 | |||
| Related party loan receivable | 82,103 | 78,761 | |||
| Prepaid expenses and other receivables | 1,026,513 | 523,573 | |||
| 9,094,156 | 6,421,826 | ||||
| Property, plant and equipment | 384,727 | 315,629 | |||
| Right-of-use assets | 1,062,187 | - | |||
| 10,541,070 | 6,737,455 | ||||
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | 2,264,162 | 1,885,351 | |||
| Deferred revenue | 2,781,384 | 2,254,400 | |||
| Lease obligation - current portion | 253,807 | - | |||
| 5,299,353 | 4,139,751 | ||||
| Long-term debt | 2,607,523 | 2,424,136 | |||
| Lease obligations | 872,072 | - | |||
| Derivative liability | 218,406 | 235,990 | |||
| 8,997,354 | 6,799,877 | ||||
| Shareholders' equity | |||||
| Share capital | 23,927,340 | 20,912,276 | |||
| Contributed surplus | 864,909 | 801,888 | |||
| Share-based payment reserve | 3,592,687 | 3,431,280 | |||
| Warrant reserve | 692,958 | 1,263,336 | |||
| Deficit | (27,718,613 | ) | (26,655,637 | ) | |
| Accumulated other comprehensive income | 184,435 | 184,435 | |||
| 1,543,716 | (62,422 | ) | |||
| 10,541,070 | 6,737,455 | ||||
| ProntoForms Corporation | |||||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||||
| For the six months ended June 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 | (1,062,976 | ) | (1,448,977 | ) | |||
| Items not affecting cash | |||||||
| Share-based compensation | 193,831 | 189,439 | |||||
| Accretion on long-term debt | 79,332 | 69,096 | |||||
| Accretion on lease obligations | 31,573 | - | |||||
| Change in fair value of derivative liability | 10,407 | 15,108 | |||||
| Amortization of property, plant and equipment | 56,959 | 64,282 | |||||
| Amortization of intangible asset | - | 7,390 | |||||
| Amortization of right-of-use assets | 134,802 | - | |||||
| Unrealized foreign exchange losses | 57,485 | - | |||||
| Lease interest paid | (31,573 | ) | - | ||||
| Changes in non-cash operating working capital items | 627,614 | 58,267 | |||||
| 97,454 | (1,045,395 | ) | |||||
| Cash flow from financing activities | |||||||
| Payment of lease obligations | (119,880 | ) | - | ||||
| Proceeds from the exercise of warrants | 2,433,948 | - | |||||
| Proceeds from the exercise of options | 41,335 | - | |||||
| 2,355,403 | - | ||||||
| Cash flow from investing activities | |||||||
| Purchase of property, plant and equipment | (126,057 | ) | (72,013 | ) | |||
| (126,057 | ) | (72,013 | ) | ||||
| Effect of exchange rate changes on cash | 93,396 | (197,944 | ) | ||||
| Net cash inflow (outflow) | 2,420,196 | (1,315,352 | ) | ||||
| Cash and cash equivalents, beginning of period | 3,325,241 | 5,074,489 | |||||
| Cash and cash equivalents, end of period | 5,745,437 | 3,759,137 | |||||