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VANCOUVER, BC, May 31, 2022 /CNW/ - HS GovTech Solutions Inc. (the "Company" or "HS GovTech") (CSE: HS) (OTC: HDSLF) (Frankfurt: 38H) a leading provider of SaaS applications for government, announced its financial results for the three months ended March 31, 2022. All financial figures contained herein are expressed in U.S. dollars ("USD") unless otherwise noted.
Fiscal Q1 2022 Financial Highlights
Total revenues increased during Q1-22 to $1.50 million, compared with $1.16 million during Q1-21
Annual Recurring Revenue ("ARR") under contract increased to $4.45 million at March 31, 2022, compared to $4.16 million at December 31, 2021 and $4.26 million at March 31, 2021. During Q1-22 and Q4-21, the Company was able to more than replace the decrease in recurring revenue due to the cancellation notice received from one major customer in October of 2021.
Chief Executive Officer, Silas Garrison, discussed the financial results.
"Our Q1-22 financial statements continue to indicate significant growth, largely due to the continuous investment we have made in improving the breadth and depth of our product offerings. Additional offerings coupled with increased delivery capacity continues to set the stage for even more aggressive growth in the future. FY21 revenue was the highest on record for the company and Q1-22 carries that momentum forward. The quarter was strong for our sales team, with contract awards totaling $3.26 million in total lifetime revenue. We expect the sales team's strong performance to continue through FY22, with a return to a full slate of in-person industry conferences. Industry conferences and in-person meetings allow for enhanced exposure of our products to potential customers across a myriad of use-cases.
The increased capacity that we put in place during FY21 (growing from 46 to 88 employees) continues to allow for a greater pace of implementations, with professional services revenue up 109% from Q1-21, while implementation expenses were up only 32% for the same periods. It also continues to allow an increased pace of development to our products, with total R&D spend in Q1-22 of $0.62 million, compared to $0.14 million in Q1-21. We expect enhancements coming from our R&D efforts to improve the implementation experience for customers as well as offer a growing range of capabilities, including in use cases beyond standard environmental health such as Fire Departments and Code Enforcement.
I am proud of the team at HS GovTech and am pleased that we are well positioned for significant revenue growth through 2022 and beyond."
ARR is a non-IFRS measure that provides an indication of the subscription revenue from customers that is expected from continued usage per the term of contract signed, and as such management believes ARR to be a meaningful measure for assessment of Company performance. Key assumptions related to ARR figures are from continued usage of the services over the life of the agreement.
HS GovTech Solutions Inc.
HS GovTechTM is an industry leading software as a service company serving the state, provincial and local government market across the United States and Canada. HS GovTech'sTM cutting edge platforms currently provide inspection, information, communication and data management systems that enable government agencies to operate more efficiently. HS GovTech'sTM cloud and mobile based platforms are currently deployed in over 800 state and local government organizations across North America. HS GovTechTM currently offers the only fully integrated inspection, administration and analytics product suite across all platforms in North America. HS GovTechTM also delivers its government grade technologies to private businesses through its My Health DepartmentTM platform, enabling citizens and private businesses to gain visibility and predictability into their own organizations and move from a reactive to a proactive operational status. As HS GovTechTM continues to deliver focused service and innovative solutions to government organizations, the Company entered the FinTech space through its HSPayTM offering which serves as a payment platform that streamlines the intake of government revenue. Further, HS GovTech's GovCallTM platform offers one of the only teleconferencing and video collaboration platforms tailored exclusively for government agencies.
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although HS GovTechTM believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. HS GovTechTM expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE HS GovTech Solutions Inc.
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