Today's News

Vancouver, BC, December 8, 2022--(T-Net)--MediaValet Inc. (TSX:MVP), a provider of cloud-native enterprise digital asset management ("DAM"), video content management and creative operations software, reported its results for the three and nine months ended September 30, 2022.

All figures in Canadian dollars unless otherwise stated for figures in U.S. dollars ("USD", "U$").

Summary of Quarterly and Annual Results

David Maclaren, Founder and CEO, MediaValet

"We continue to deliver record levels of ARR growth despite the uncertain economic environment and lengthening enterprise sales cycles," commented David MacLaren, Founder and CEO of MediaValet.

"We believe our consistent growth is the result of four main factors: (1) our innovative vision for DAM; (2) our unique go-to-market strategy; (3) consistent and precise, quarter-over-quarter execution of our strategic plan; and (4) the resilience of the DAM market due to long-term and accelerating digital transformation and content trends across all industries and geographies."

Dave Miller, CFO, also commented, "At the same time as delivering continued high growth rates in ARR and billings, we have held our operating costs in check. This reflects our continued effort to invest strategically in our growth while maintaining an intense focus on operational excellence and discipline. This gives us confidence that our available cash resources, including our working capital and our unused operating facility, are sufficient to fund our strategic and operational growth plan."

Key Financial Metrics:

• Grew ARR to $13.65 million, a year-on-year increase of 36% (35% in U.S. dollars), and a 7% sequential increase (6% in U.S. dollars). Net new ARR ("NNARR") of $0.89 million increased 53% from Q3 2021 and increased 16% sequentially. For the year-to-date ("YTD") period, NNARR of $2.81 million is up 106% from last YTD. The increases reflect the Company's operational expansion completed in 2021, net dollar retention of 100%, and continuing market demand for enterprise DAM solutions despite the current macroeconomic environment. As organizations continue to implement their necessary digital strategies, an effective DAM becomes critical to reducing costs, requiring less people to manage media workflows and ensuring continuity in difficult times.
  
  
• Revenue grew to $3.28 million, up 39% from Q3'21, and up 5% sequentially. Revenue YTD grew to $9.23 million, up 36% from last YTD.
  
  
• Gross margins remained strong at 81% compared to 83% in Q3'21 and 82% in Q2' YTD Gross Margins were 82% compared to 82% last YTD.
  
  
• Incurred Operating Costs of $4.94 million, a 21% increase from Q3'21, and a sequential decrease of 2%. YTD Operating costs were $14.94 million, a 33% increase from last YTD. The Company has not expanded its operational infrastructure in Fiscal 2022. As such, the increases in reported Operating Costs reflect the normalized impact of the operational expansion completed in fiscal 2021, variable cost increases with revenue growth and inflationary adjustments to payroll.
  
  
• Reported a Q3 2022 EBITDA loss of $2.28 million, a 7% increase from Q3'21, and an improvement of 8% sequentially. YTD EBITDA loss was $7.39 million an increase of 29% from last YTD. The increased annual loss was planned and is primarily due to the step-increase in Operating Costs completed in 2021 in line with the Company's long-term growth strategy. Management believes this growth investment is aligned with the Company's growth strategy and available capital resources.
  
  
• Ended the period with modified working capital (excluding deferred revenue, lease liabilities and debt) of $2.89 million, total lease liabilities of $0.63 million and no debt. YTD 2022, the Company repaid $1.00 million of long-term debt, collected proceeds of $2.06 million from warrant exercises and secured a $7.00 million revolving credit facility which remains undrawn.

Technology and Product:

MediaValet's continued commitment to product innovation and advancement has led to an increase in new customer win-rates, as well as customer retention and expansion rates. The Company recently announced several examples of the impact of its ongoing innovation and development:

• New customer win announcements, including: a global leader in industrial software with first-year Billings of $93,000, commencing in September 2022 the auto-renewing subscription includes MediaValet's enterprise DAM platform; Audio/Visual Intelligence ("AVI") engine; CDN Linking; Active Directory Single Sign-On (SSO); CreativeSPACES and professional services covering implementation and ongoing training and support. In addition, one of MediaValet's integration partners will be building custom SharePoint and Adobe Experience Manager integrations to increase DAM connectivity across the Customer's technology stack.
  
  
• New feature and services announcements, including: the launch of its enhanced, two-way integration between Wrike's workflow platform and MediaValet's DAM asset library, and the formal launches of its new Professional Services team and Advanced Reporting and Analytics module. The Wrike launch builds on the success of the initial 2018 release and enables optimized workflows and rapid execution of marketing campaigns by eliminating time-consuming admin tasks and ensuring all campaigns are using the most up-to-date, approved assets at all times. The Professional Services team provides advanced guidance in the areas of metadata models, taxonomies, keyword optimization, workflows, governance and compliance, accessibility and many more; helping MediaValet's customers expand the adoption and usage of MediaValet across their organizations. The Reporting and Analytics module helps customers maximize the ROI of their assets by enabling them to drill into their usage data to gain powerful library, asset and user insights.

Operations and Corporate :

• During the quarter, 1,315,735 warrants were exercised for proceeds of $1.18 million, and all outstanding warrants to acquire common shares of the Company have been exercised resulting in aggregate proceeds of $2,058,447 received during the year.
  
  
• During the quarter, issued new hire stock option grants to certain employees of 32,000 options, exercisable at $1.30 per share. The options have a term of five years, and a vesting term of four equal instalments on the first four annual anniversary dates from grant date.

About MediaValet, Inc.

MediaValet stands at the forefront of the enterprise, cloud-native, software-as-a-service digital asset management and creative operations industries. Built exclusively on Microsoft Azure and available across 61 Microsoft data center regions in 140 countries around the world, MediaValet delivers unparalleled enterprise-class security, reliability, redundancy, compliance, and scalability; while offering the largest global footprint of any DAM solution.

In addition to providing enterprise cloud-native DAM capabilities at a global scale, desktop-to-server-to-cloud support for creative teams, and overall cloud redundancy and management for all source, WIP and final assets, MediaValet offers industry-leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Workfront, Wrike, monday.com, Drupal, WordPress and many other best-in-class 3rd party applications.

1 Annual Recurring Revenue (ARR) is a non-IFRS measure that provides an indication of future revenue and billings from customers as of the reporting date. ARR represents the sum of the annual recurring revenue from existing customer contracts or commitments as of the reporting period end date, and as such management believes ARR to be a meaningful measure for assessment of Company performance. ARR is recorded as deferred revenue when it is invoiced and is recognized in revenue evenly on a monthly basis over the contract term at the US dollar exchange rate in effect at the time of invoicing. Substantially all of the Company's ARR is denominated in USD, therefore we have presented our USD ARR growth rate as management believes it represents a more meaningful measure of the underlying growth rate. The average US dollar exchange rate of ARR was C$1.2827 at September 30, 2022, C$1.2656 at December 31, 2021 and C$1.2717 at September 30, 2021.

2 The Company defines Operating Costs to include Sales & Marketing, Research & Development and General & Administrative expenses, which aligns with the expenses included in EBITDA. This is a non-IFRS measure and represents operating expenses less share-based compensation and depreciation.

3 EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs. Refer to the Results of Operations section 3 EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs. Refer to the Results of Operations section