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Wishpond Reports Record Annual Revenue and Positive Adjusted EBITDA for Fiscal 2020
Thursday, May 13, 2021Company Profile | Follow Company
Wishpond Reports Record Annual Revenue and Positive Adjusted EBITDA for Fiscal 2020
Positive outlook for 2021 with strong balance sheet and MRR (monthly recurring revenue) exceeding $1.0M in Q1-2021.
Vancouver, BC, May 13, 2021--(T-Net)--Wishpond Technologies Ltd. (TSXV: WISH), a provider of marketing-focused online business solutions, announces it has filed its audited annual consolidated financial statements and management's discussion and analysis ("MD&A") for fiscal 2020, representing the three and twelve months ended December 31, 2020.
Ali Tajskander, Wishpond's Chairman and CEO commented: "2020 was a monumental year for Wishpond, as we accomplished record financial results and commenced trading on the TSX Venture Exchange (the "TSXV"). This represents the beginning of our journey as a publicly traded company with very ambitious plans to grow both organically and inorganically through strategic acquisitions, with the goal of expanding our product offerings and opening new markets and verticals. I am also very pleased with our fourth quarter 2020 financial results, in which we achieved record revenue with 38% organic revenue growth compared to the same period last year, and we reported positive Adjusted EBITDA(1) and cash flow for the quarter. Since our year end, we completed our first two acquisitions of Invigo Media and PersistIQ. I am extremely satisfied with the progress we have made with integrating these two acquisitions and the positive contributions they will have this year to our revenue growth and profitability profile. I am also very pleased to report that we exceeded a historic milestone of $1.0 million in MRR (monthly recurring revenue)(1) in Q1-2021."
Fiscal 2020 Annual Financial Highlights:
Fourth Quarter 2020 Financial Highlights:
Fourth Quarter 2020 Business Highlights:
Events Subsequent to December 31, 2020:
Outlook:
Management says it expects continued organic growth driven by reinvestments in salesforce and internal capacity expansion, in addition to further strategic acquisitions contemplated for the balance of the year. The Company expects healthy year-over-year revenue growth in Q1-2021 with MRR (monthly recurring revenue)(1) exceeding $1.0 million. The Company also expects increased operating spend in Q1-2021 as compared to Q4-2020, primarily as a result of increased headcount in Wishpond's sales and research and development teams in Q1-2020, which are necessary investments for the long-term growth of the Company. Management expects both revenue and profitability to accelerate in the second half of 2021 due to growth from new product launches, a larger sales team and significant revenue contribution from new acquisitions.
"We are very optimistic of our outlook for the remainder of 2021," said Juan Leal, Wishpond's Chief Financial Officer. "We have a very strong balance sheet with cash balance currently exceeding $10 million to execute on our disciplined acquisition strategy. We are expecting to achieve record revenue growth in 2021."
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond's annual consolidated financial statements, including the notes thereto, and MD&A for the twelve months ended December 31, 2020 and December 31, 2019, copies of which can be found under Wishpond's profile on SEDAR at www.sedar.com.
Three months ended |
Twelve months ended |
|||
December 31, 2020 |
December 31, 2019 |
December 31, 2020 |
December 31, 2019 |
|
Revenue |
$2,254,771 |
$1,634,652 |
$7,882,018 |
$6,050,303 |
Gross profit(1) |
$1,455,475 |
$908,794 |
$5,229,099 |
$3,901,297 |
Gross margin(1) |
65% |
56% |
66% |
64% |
Adjusted EBITDA(1) |
$121,151 |
$(18,747) |
$494,902 |
$103,477 |
Net increase in cash during the period |
$6,041,190 |
$226,318 |
$7,036,610 |
$121,266 |
Cash - end of the period |
$7,305,546 |
$269,536 |
$7,305,546 |
$269,536 |
Reconciliation to Adjusted EBITDA
Three months ended |
Twelve months ended |
|||
December 31, 2020 |
December 31, 2019 |
December 31, 2020 |
December 31, 2019 |
|
Loss before income taxes |
$(2,160,195) |
$(124,420) |
$(2,215,493) |
$(428,298) |
Depreciation and amortization |
$107,227 |
$102,249 |
$395,898 |
$387,603 |
Interest expense |
$5,665 |
$8,064 |
$26,781 |
$43,097 |
EBITDA(1) |
$(2,047,303) |
$(14,107) |
$(1,792,814) |
$2,402 |
Reverse takeover listing expense |
$2,114,085 |
- |
$2,114,085 |
- |
Acquisition related expenses |
$72,594 |
- |
$72,594 |
- |
Foreign currency gains |
$(16,049) |
$(25,459) |
$(27,507) |
$(18,814) |
Other Income/Expenditures |
$(20,122) |
$11,970 |
$27,895 |
$26,345 |
Stock based compensation expense |
$17,946 |
$8,849 |
$100,649 |
$93,544 |
Adjusted EBITDA(1) |
$121,151 |
$(18,747) |
$494,902 |
$103,477 |
Footnotes:
About Wishpond Technologies Ltd.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing-focused online business solutions. Wishpond's vision is to become the leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation, and sales conversion capabilities from one integrated platform. Wishpond replaces entire marketing functions in an easy-to-use product, for a fraction of the cost. Wishpond serves over 2,900 customers who are primarily small-to-medium size businesses (SMBs) in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions and continues to add new features and applications with great velocity. The Company employs a Software-as-a-Service (SaaS) business model where substantially all the Company's revenue is subscription-based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX Venture Exchange under the ticker "WISH". For further information, visit: www.wishpond.com.
Cautionary Statements
Non-GAAP Financial Measures
In this press release, Wishpond has used the following terms ("Non-GAAP Financial Measures") that are not defined by International Financial Reporting Standards ("IFRS"), but are used by management to evaluate the performance of Wishpond and its business: earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation and amortization ("AdjustedEBITDA"), gross profit and gross margin. These measures may also be used by investors, financial institutions and credit rating agencies to assess Wishpond's performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable GAAP financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. [See the disclosure under the heading "Non-GAAP Financial Measures" in Wishpond's most recent Management's Discussion and Analysis ("MD&A") for a discussion of Non-GAAP Financial Measures and certain reconciliations to GAAP financial measures.] The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:
Forward-Looking Statements
Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, expectations, beliefs, plans, future operations, origination of additional targets in which the Company may hold an interest and acquisition opportunities for the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as "anticipate", "plan", "continue", "estimate", "intend", "expect", "may", "will", "project", "predict", "potential", "targets", "projects", "is designed to", "strategy", "should", "believe", "contemplate" and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements.
Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statements has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including, but not limited to, the risk factors discussed in the continuous disclosure materials of the Company which are available under the Company's profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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