TORONTO, April 29, 2022 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced its financial results for the three months and year ended December 31, 2021.
"Prodigy continues to actively build its pipeline for its tunlTM open banking and IDVerifactTM digital identity platforms. While tight conditions in the technology talent market weighed on financial performance, indicators of a turnaround in that space are emerging," said Tom Beckerman, Prodigy's Chairman and CEO. "Prodigy continues to focus its resources on its drive to build recurring revenue with our leading-edge platforms and related services."
Fourth Quarter 2021 Financial Results
Revenue for the three months ended December 31, 2021 totalled $3,484,532 as compared to $3,603,183 for the three months ended December 31, 2020, a decrease of 3%.
Gross profit for the three months ended December 31, 2021 of $1,134,560 as compared to $1,048,504 for the three months ended December 31, 2020, an increase of 8%.
Operating expenses for the three months ended December 31, 2021 of $1,539,772 as compared to $629,120 for the three months ended December 31, 2020, an increase of 145%.
Net loss for the three months ended December 31, 2021 totalled $416,296 as compared to net income of $309,540 for the three months ended December 31, 2020.
Adjusted EBITDA for the three months ended December 31, 2021 totalled negative $144,623 as compared to positive $532,789 for the three months ended December 31, 2020.
The Company had working capital of $3,143,145 as of December 31, 2021 compared to $2,715,694 as of December 31, 2020.
Full Year 2021 Financial Results
Revenue for the year ended December 31, 2021 totalled $13,461,991 as compared to $15,968,507 for the year ended December 31, 2020, a decrease of 16%.
Gross profit for the year ended December 31, 2021 of $3,982,664 as compared to $4,523,923 for the year ended December 31, 2020, a decrease of 12%.
Operating expenses for the year ended December 31, 2021 of $4,843,810 as compared to $3,772,589 for the year ended December 31, 2020, an increase of 28%.
Net loss for the year ended December 31, 2021 totalled $871,668 as compared to net income of $524,774 for the year ended December 31, 2020.
Adjusted EBITDA for the year ended December 31, 2021 totalled negative $189,145 as compared to positive $1,094,553 for the year ended December 31, 2020.
Three months ended
Net and comprehensive income (loss) for the period
Net income (loss) per share – basic and diluted
Adjusted EBITDA is a non-IFRS financial measure, which is defined as earnings before income tax expense, finance costs, depreciation and amortization and share-based compensation. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in our business performance. Adjusted EBITDA is used by management to assess our operating performance. The presentation of Adjusted EBITDA is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted EBITDA should therefore not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA differently.
For further information regarding non-IFRS financial measures including a quantitative reconciliation of Adjusted EBITDA, please see the Company's Management's Discussion and Analysis for the year ended December 31, 2021 under the heading "Non-IFRS Financial Measures".
The complete audited financial statements and associated Management's Discussion and Analysis are available under the Company's profile at www.sedar.com or the Company's website at www.prodigy.ventures.
About Prodigy Ventures Inc.
Prodigy delivers Fintech innovation. The Company provides leading edge platforms, including IDVerifact™ for digital identity, and tunl.™ for open banking and customer chat support, coupled with seamless integration of our partners best-of-breed Fintech platforms. Our services business, Prodigy Labs™, integrates and customizes our platforms for unique enterprise customer requirements, and provides technology services for digital identity, open banking, payments and digital transformation. Digital transformation services include strategy, architecture, design, project management, agile development, quality engineering and staff augmentation. Prodigy has been recognized as one of Canada's fastest growing companies with multiple awards.
Forward-Looking and Cautionary Statements
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the year ended December 31, 2021, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
Non-IFRS Financial Measures
Our financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Certain financial measures in this press release are not prescribed by IFRS. These non-IFRS financial measures are included because management uses the information to analyze operating performance. These non-IFRS financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. Except as otherwise indicated, these non-IFRS measures are calculated and disclosed on a consistent basis from period to period.
Neither 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.
SOURCE Prodigy Ventures Inc.
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