Yahoo Finance ProntoForms Reports Q2 2022 Financial Results
Reached a milestone of USD $20 million of base ARR at June 30, 2022
OTTAWA, Aug. 18, 2022 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in no-code app development platforms for field teams, announced today its second quarter (Q2) financial results for the period ended June 30, 2022. All amounts are in US dollars unless otherwise stated.
“We started 2022 with a disappointing Q1. In the second half of 2021, we added new leadership followed by large changes to the sales organization. Q2 2022 showed improvement but didn’t reflect the volume that we expected. We finished Q2 with 9% annual growth in recurring revenue and 2% over Q1,” said Alvaro Pombo, Founder and Chief Executive Officer. “After the lag in bookings in the first half, we are seeing value building up. We had an important enterprise expansion in Q2 that added over $250,000 of ARR to bring that customer to over $940,000 in that quarter, and growth is expected to continue. We are seeing more new and expansion activity and are confident that we have a capable enterprise go-to-market structure that is scaling as our enterprise salespeople ramp.”
Mr. Pombo continued, “We recently passed the $20 million ARR milestone. 51% of the base now comes from enterprise-size customers (> 2,500 employees) and 41% of the base comes from customers with greater than $100,000 of ARR each. The challenge of technician enablement for enterprises is not going away any time soon.”
“I’m pleased with ProntoForms,” said Chairman Terence Matthews. “The company is experiencing unprecedented levels of business activity with partners, clients, evaluations, and contracts. Our technology comes at the right time to help our clients significantly improve agility and cost of their field automation while enabling them to continuously improve their workflows. This results in better customer and technician experience yielding higher service reliability and uptime.”
Financial Highlights - 2022 Second Quarter
Recurring revenue in Q2 2022 increased by 9% to $4.97 million compared to $4.55 million in Q2 2021 and increased by 2% compared to $4.89 million in Q1 2022.
Total revenue for Q2 2022 increased by 8% to $5.21 million compared to $4.84 million in Q2 2021 and increased by 3% compared to $5.04 million in Q1 2022.
Gross margin for Q2 2022 was 84% of total revenue compared to 85% in Q2 2021 and 84% in Q1 2022. Gross margin on recurring revenue was 89% for Q2 2022 compared to 90% in Q2 2021 and 99% in Q1 2022.
Operating loss for Q2 2022 was $1.32 million, up from an operating loss of $1.07 million in Q2 2021 and down from an operating loss of $1.49 million in Q1 2022.
Net loss for Q2 2022 was $1.34 million, up from a net loss of $1.12 million in Q2 2021 and down from a net loss of $1.54 million in Q1 2022.
As at June 30, 2022, the Company’s cash and net working capital balances were $7.52 million and $3.59 million respectively with CAD $1.84 million remaining unused on its CAD $10 million debt facility.
Recent Operational Highlights
A Fortune 500 oil & gas enterprise has expanded its multi-year deployment of ProntoForms to reach over 2,000 subscriptions as part of a global Master Services Agreement (MSA) where ProntoForms is the prime mobile forms solution approved for use in field operations.
A global heavy manufacturing enterprise increased its commitment to ProntoForms by over $250,000 ARR to reach over $940,000 ARR as a key technology driver for their full asset lifecycle business model.
ProntoForms launched new automation capabilities for SharePoint. In addition, the ProntoForms platform is now available on Microsoft AppSource.
Nucleus Research published a third-party ROI evaluation of PrimeLine Utility Services’ use of ProntoForms. They concluded that PrimeLine experienced in excess of 1,000% ROI by increasing service visibility and improving data collection. Read the report here.
ProntoForms CEO and Founder was the keynote speaker at Copperberg’s Field Service Forum. Mr. Pombo discussed the importance of rapidly automating processes to overcome macroeconomic challenges in the service landscape.
ProntoForms announced its EMPOWER’22 user conference that will take place in Austin, Texas from September 26-27.
ProntoForms was highlighted in the “Mobility” segment of Gartner’s Hype Cycle for Oil & Gas 2022 Report. The report identifies the solutions that technology leaders deploy in the oil & gas industry.
Q2 Conference Call Date:
Date: Thursday, August 18th, 2022
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 647-484-0475
Toll Free – (+1) 888-394-8218
Conference ID: 9129028
Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 9129028
Expiry Date: August 25th, 2022, at 11:59pm EST
About ProntoForms Corporation
ProntoForms is the global leader in no-code app development platforms for field teams. The Company's platform enables organizations to rapidly develop custom mobile apps with context and intelligence, empowering field teams to reliably complete complex work more effectively and safely.
The Company’s subscribers harness the intuitive, secure, and scalable solution to improve asset uptime and CSAT, while also reducing compliance incidents and work stoppages. The Company is based in Ottawa, Canada, and trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.
For additional information, please contact:
Alvaro Pombo | Babak Pedram |
Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, potential benefits of using the Company’s products, customers’ commitment to use the Company’s products going forward, the recurring nature of the Company’s revenues, the revenues anticipated to be received by the Company from recent contracts referred to above and anticipated market trends are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company’s business and value may not grow as anticipated or at all, revenue anticipated from contracts may not be received due to many risks, including factors specific to the customer, and anticipated market trends may not occur or continue. Historical growth levels and results may not be indicative of future growth levels or results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. There are a number of risk factors that could cause future results to differ materially from those described herein. Please see “Risk Factors Affecting Future Results” in the Company’s annual management discussion and analysis dated March 10, 2022 found at www.sedar.com for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2021 for a description of how the Company determines and uses ARR. ARR is a key performance indicator used by the Company and is not meant as an indication such amounts will necessarily be included in revenues in any given fiscal year.
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.
PRONTOFORMS CORPORATION |
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Condensed Interim Consolidated Statements of Loss and Comprehensive Loss |
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For the three months ended March 31, 2022 and 2021 |
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(in US dollars) |
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| Three months ended June 30, | Six months ended June 30, | ||||||||||
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| 2022 |
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| 2021 |
| 2022 |
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| 2021 |
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Revenue: |
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| Recurring revenue | $ | 4,968,802 |
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| 4,550,398 |
| 9,859,517 |
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| 8,856,706 |
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| Professional and other services |
| 242,814 |
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| 290,649 |
| 393,207 |
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| 597,804 |
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| 5,211,616 |
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| 4,841,047 |
| 10,252,725 |
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| 9,454,510 |
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Cost of revenue: (1) |
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| Recurring revenue |
| 555,304 |
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| 451,556 |
| 1,107,376 |
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| 845,385 |
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| Professional and other services |
| 262,132 |
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| 292,818 |
| 517,509 |
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| 574,753 |
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| 817,436 |
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| 744,374 |
| 1,624,885 |
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| 1,420,138 |
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Gross margin |
| 4,394,180 |
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| 4,096,673 |
| 8,627,840 |
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| 8,034,372 |
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Expenses: |
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| Research and development (1) |
| 1,814,774 |
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| 1,880,988 |
| 3,586,525 |
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| 3,692,412 |
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| Selling and marketing (1) |
| 2,922,742 |
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| 2,369,151 |
| 5,856,982 |
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| 4,668,951 |
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| General and administrative (1) |
| 973,382 |
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| 911,802 |
| 1,990,756 |
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| 1,805,253 |
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| 5,710,898 |
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| 5,161,941 |
| 11,434,263 |
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| 10,166,616 |
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Loss from operations |
| (1,316,718 | ) |
| (1,065,268 | ) | (2,806,423 | ) |
| (2,132,244 | ) | |||
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Foreign exchange loss |
| 29,212 |
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| (29,276 | ) | 1,374 |
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| (38,950 | ) | |||
Finance costs |
| (55,127 | ) |
| (30,072 | ) | (81,187 | ) |
| (58,236 | ) | |||
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Net loss and comprehensive loss | $ | (1,342,633 | ) |
| (1,124,616 | ) | (2,886,236 | ) |
| (2,229,429 | ) | |||
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Net loss and comprehensive loss |
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| per common share basic and diluted | $ | (0.01 | ) |
| (0.01 | ) | (0.02 | ) |
| (0.02 | ) | ||
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Weighted average number of common shares |
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| basic and diluted |
| 128,278,739 |
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| 125,277,003 |
| 128,048,879 |
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| 124,886,200 |
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(1) Amounts include share-based compensation expense as follows: |
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Cost of revenue | $ | 5,040 |
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| 2,348 |
| 5,359 |
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| 3,214 |
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Research and development |
| 72,550 |
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| 32,790 |
| 101,667 |
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| 82,866 |
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Selling and marketing |
| 116,892 |
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| 14,080 |
| 170,089 |
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| 40,326 |
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General and administrative |
| 121,355 |
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| 64,019 |
| 151,088 |
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| 149,368 |
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Total share-based compensation expense | $ | 315,837 |
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| 113,237 |
| 428,203 |
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| 275,774 |
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PRONTOFORMS CORPORATION |
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Condensed Interim Consolidated Statements of Financial Position |
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June 30, 2022 and December 31, 2021 |
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(in US dollars) |
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| June 30, |
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| December 31, |
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| 2022 |
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| 2021 |
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Assets |
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Current assets: |
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| Cash and cash equivalents | $ | 7,518,063 |
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| $ | 6,082,289 |
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| Accounts receivable |
| 1,961,279 |
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| 3,199,216 |
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| Investment tax credits receivable |
| 154,727 |
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| 117,599 |
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| Unbilled receivables |
| 59,506 |
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| 36,406 |
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| Related party loan receivable |
| 83,382 |
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| 84,757 |
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| Prepaid expenses and other receivables |
| 1,468,311 |
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| 907,228 |
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| Contract acquisition costs |
| 250,811 |
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| 273,062 |
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| 11,496,079 |
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| 10,700,557 |
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Property, plant and equipment |
| 296,264 |
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| 331,717 |
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Contract acquisition costs |
| 123,725 |
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| 157,693 |
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Right-of-use asset |
| 275,829 |
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| 403,143 |
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| $ | 12,191,897 |
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| $ | 11,593,110 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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| Accounts payable and accrued liabilities | $ | 2,206,842 |
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| $ | 2,533,743 |
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| Deferred revenue - current portion |
| 5,394,756 |
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| 5,411,380 |
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| Lease obligation - current portion |
| 306,829 |
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| 303,650 |
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| 7,908,427 |
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| 8,248,773 |
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Long-term debt |
| 6,316,459 |
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| 3,261,825 |
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Deferred revenue |
| 4,835 |
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| 33,068 |
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Lease obligation |
| 26,304 |
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| 184,766 |
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| 14,256,025 |
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| 11,728,432 |
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Shareholders' equity: |
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| Share capital |
| 31,457,611 |
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| 31,141,138 |
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| Contributed surplus |
| 864,907 |
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| 864,907 |
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| Share-based payment reserve |
| 3,185,625 |
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| 2,544,668 |
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| Deficit |
| (37,756,706 | ) |
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| (34,870,470 | ) |
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| Accumulated other comprehensive income |
| 184,435 |
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| 184,435 |
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| (2,064,128 | ) |
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| (135,322 | ) |
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| $ | 12,191,897 |
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| $ | 11,593,110 |
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PRONTOFORMS CORPORATION |
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Condensed Interim Consolidated Statements of Cash Flows |
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For the six months ended June 30, 2022 and 2021 |
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(in US dollars) |
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| Six months ended June 30, |
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| 2022 |
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| 2021 |
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Cash (used in) provided by: |
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Operating activities: |
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| Net loss | $ | (2,886,236 | ) |
| $ | (2,229,429 | ) |
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| Items not involving cash: |
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| Share-based compensation |
| 744,039 |
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| 275,774 |
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| Accretion on long-term debt |
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| Accretion on lease obligations |
| 11,435 |
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| 19,349 |
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| Accretion of transaction costs |
| 3,945 |
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| 14,090 |
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| Amortization of property, plant and equipment |
| 75,727 |
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| 81,461 |
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| Amortization of right-of-use asset |
| 127,314 |
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| 127,314 |
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| Unrealized foreign exchange losses |
| (76,033 | ) |
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| 31,136 |
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| Other finance costs |
| 77,242 |
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| 44,146 |
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| Interest paid |
| (86,012 | ) |
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| (49,840 | ) |
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| Interest received |
| 8,770 |
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| 5,694 |
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| Lease interest paid |
| (11,435 | ) |
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| (19,349 | ) |
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| Changes in non-cash operating working capital items |
| 301,087 |
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| 847,631 |
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| (1,710,157 | ) |
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| (852,023 | ) |
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Financing activities |
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| Payment of lease obligations |
| (149,789 | ) |
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| (133,114 | ) |
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| Proceeds from drawdown of credit facility |
| 3,178,124 |
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| - |
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| Proceeds from the exercise of options |
| 213,391 |
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| 326,992 |
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| 3,241,726 |
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| 193,878 |
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Investing activities |
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| Purchase of property, plant and equipment |
| (40,274 | ) |
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| (36,311 | ) |
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| (40,274 | ) |
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| (36,311 | ) |
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Effect of exchange rate changes on cash |
| (55,521 | ) |
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| 75,091 |
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Increase in cash and cash equivalents |
| 1,435,774 |
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| (619,365 | ) |
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Cash and cash equivalents, beginning of period |
| 6,082,289 |
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| 7,747,542 |
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Cash and cash equivalents, end of period | $ | 7,518,063 |
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| $ | 7,128,177 |
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