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MediaValet Reports Third Quarter Fiscal 2018 Results
Thursday, November 29, 2018Company Profile | Follow Company
Achieves a 29% Increase in Revenue and 25% Increase in ARR
Vancouver, BC, November 29, 2018--(T-Net)--MediaValet Inc. (TSX-V:MVP), a provider of enterprise cloud-based digital asset management ("DAM") software, reported its results for the three and nine month periods ended September 30, 2018.
Summary of Quarterly Results
3 months |
3 months |
9 months |
9 months |
|||||
Revenue |
$ |
769,739 |
$ |
598,538 |
$ |
2,081,202 |
$ |
1,597,771 |
% Increase from prior year period |
29% |
30% |
||||||
Gross Margin |
593,742 |
502,366 |
1,614,369 |
1,329,459 |
||||
Gross Margin % |
77% |
84% |
78% |
83% |
||||
Operating Expenses(2) |
1,454,283 |
1,367,463 |
4,397,152 |
4,426,721 |
||||
% Increase from prior year period |
6% |
(1%) |
||||||
EBITDA Loss(3) |
(860,541) |
(865,097) |
(2,782,783) |
(3,097,262) |
||||
% Decrease from prior year period |
(1%) |
(10%) |
||||||
Net loss |
(993,707) |
(1,154,358) |
(3,284,884) |
(3,955,269) |
||||
% Decrease from prior year period |
(14%) |
(17%) |
||||||
Loss per share |
(0.004) |
(0.013) |
(0.016) |
(0.045) |
||||
As at 30, 2018 |
As at |
|||||||
Annual Recurring Revenue ("ARR")(4) |
$ |
3,150,232 |
$ |
2,488,494 |
||||
% Increase from prior year period |
25% |
|||||||
Working Capital (Net of debt and deferred revenue) |
192,514 |
( 1,703,442) |
||||||
Deferred Revenue |
1,839,061 |
1,478,285 |
||||||
Total assets |
1,710,401 |
591,990 |
||||||
Total Debt |
3,000,000 |
6,180,250 |
||||||
Shareholder (Deficiency) |
$ |
(4,184,544) |
$ |
( 9,321,028) |
"We're extremely pleased with our year-to-date and 3rd quarter performance," commented David MacLaren, founder and CEO of MediaValet. "We've achieved a lot over the past three quarters: we released V4, the industry's fastest 100% cloud-based DAM platform; we launched the first hybrid (desktop-to-sever-to-cloud) file-management solution for creative teams, Creative Spaces; and, we raised $8.6M in February, enabling us to significantly increase our go-to-market partner and direct sales and marketing programs. In our second quarter, we saw these efforts generate increased sales pipeline activity, and in Q3 we are now beginning to see the impact of these efforts in our top-line ARR and revenue numbers. In particular, our ARR is up 25% from last year to $3.15 million on third quarter net additions of $282,602, increasing 32% over Q3 last year and 20% sequentially. This represents nearly half of our net new business for the year, signalling the growth momentum we've been building toward."
Mr. MacLaren continued, "I'm also pleased to announce that we reached a major milestone in Q3; our Billings(5) topped $1 million for the first time at a record $1.11 million - up 100% over Q3 last year and up 61% sequentially. This is an important achievement for us, as it results in a significant reduction in our operating cash requirements and indicates a notable advance toward self-funding operations. The increased Billings are a result of strong existing customer retention, particularly following the release of V4, and accelerated new customer acquisition with total new customer Billings increasing 23% over last year and 38% sequentially. As a result, we believe that our technology and operational milestones delivered this year are on the mark and have us well positioned to continue building a solid and sustained growth momentum in the quarters ahead."
Results of Operations
Key Financial Metrics:
Technology and Product:
Operations and Corporate:
About MediaValet, Inc.
MediaValet stands at the forefront of the enterprise cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available in 140 countries, 54 Microsoft data center regions, around the world, MediaValet delivers unparalleled enterprise class security, reliability, redundancy and scalability while offering the largest global footprint of any DAM solution. In addition to providing all core DAM capabilities and local desktop-to-cloud support for creative teams, MediaValet offers industry leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Oracle Marketing Cloud (Eloqua), Drupal 8, WordPress, Hootsuite and many other best-in-class 3rd party applications. www.mediavalet.com
For further information: Corporate Office: David MacLaren, CEO | david.maclaren@mediavalet.com | (604) 688-2321; Rob Chase, Executive Chairman and CFO | rob.chase@mediavalet.com | (604) 688-2321; Press Relations: Babak Pedram | babak.pedram@mediavalet.com | (416) 644-5081
"Neither the 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."
1 Fiscal 2017 figures have not been restated for adoption of IFRS 9 and IFRS 15 as the changes were applied starting in Q1 2018 on a cumulative effect basis. The YTD percent change to September 30, 2018 compared to restated 2017 amounts, is a 1% increase for YTD Operating Expenses, and a 7% decline for YTD EBITDA Loss. See the "Adoption of New Account Standards" section below. |
2 Operating Expenses include Sales & Marketing, Research & Development and General & Administrative expenses. |
3 EBITDA is a non-IFRS 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. |
4 Annual Recurring Revenue (ARR) is a non-IFRS measure 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. 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 over the contract term. |
5 Billings are a non-IFRS measure representing the sum of invoiced sales in the period, including both existing customer renewal invoices and new customer invoices with standard payment terms (generally net-30). Billings are calculated by subtracting closing deferred revenue from opening deferred revenue and adding recognized revenue for the period. Management believes Billings are an important measure for understanding the business, as given that the related revenue is deferred and amortized, Billings provides a measure of the amount of cash generated from customers in the period. |
MediaValet's full financial statements and related MD&A are now available on SEDAR.
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