Records 16% growth in recurring revenue over Q3 2019
OTTAWA, Nov. 05, 2020 (GLOBE NEWSWIRE) — ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its third quarter (Q3) financial results for the period ended September 30, 2020.
“We are experiencing rebounding momentum as evidenced by our third quarter recurring revenue increase of 16% over Q3 2019 and 4% over Q2 2020. We increased our Annualized Recurring Revenue (“ARR”) Base to $17 million at September 30, 2020 representing 5% growth over the June 30, 2020 balance. We continued strong enterprise expansion and customers with more than $100,000 of ARR each represented 39% of that base, up from 35% a year ago,” said Alvaro Pombo, Founder and Chief Executive Officer of ProntoForms. “We also solidified our financial position, finishing the quarter with $5.7 million in cash, and since quarter end we received an additional CAD $1,957,500 in proceeds from the exercise of warrants. We also recently replaced our legacy mezzanine debt with a senior credit facility to provide lower rates and more financial flexibility over the longer term.”
Mr. Pombo continued “These results provide further evidence that our strategic role as a platform for frontline workers is being acknowledged by the market. We are pleased to be featured in the 2020 Gartner Magic Quadrant for Low-Code Application Development Platforms. Additionally, we were named the leader in G2’s Mobile Forms Automation Software category, determined by verified customer reviews. This strong market position is the result of listening to our customers’ feedback and continuing to invest in our platform to offer the most advanced capabilities without sacrificing ease of use. That fundamental formula is working.”
Financial Highlights – 2020 Third Quarter
- Recurring revenue in Q3 2020 increased by 16% to $4.06 million compared to $3.50 million in Q3 2019 and increased by 4% compared to $3.89 million in Q2 2020.
- Total revenue for Q3 2020 increased by 19% to $4.55 million compared to $3.84 million in Q3 2019 and increased by 9% compared to $4.16 million in Q2 2020.
- Gross margin for Q3 2020 was 82% of total revenue compared to 84% in Q3 2019 and 88% in Q2 2020. Gross margin on recurring revenue was 91% for Q3 2020 compared to 90% in Q3 2019 and 93% in Q2 2020.
- Operating loss for Q3 2020 was $0.49 million, up from an operating loss of $0.46 million in Q3 2019 and down from operating income of $0.35 million in Q2 2020. Second quarter gross margins and operating income were positively impacted by COVID-19 government assistance of $0.6 million. No COVID-19 assistance was recognized during the third quarter of 2020.
- Net loss for Q3 2020 was $0.61 million, up from a net loss of $0.42 million in Q3 2019 and down from net income of $0.21 million in Q2 2020.
- As at September 30, 2020, ProntoForms’ cash and net working capital balances were $5.68 million and $0.70 million respectively, compared to $5.70 million and $3.37 million as at December 31, 2019.
- Subsequent to quarter end CAD $1,957,500 was received from the exercise of warrants. Also, a new CAD $6 million senior credit facility was entered and partially drawn to settle existing obligations to BDC Capital Inc.
Recent Operational Highlights
- Notable contract expansions from enterprise customers:
○ One of the United States’ largest utility companies expanded their ARR to $1.25M. The utility company uses the solution to improve heavy asset installation, maintenance, and service, as well as improve adherence to stringent work and environmental guidelines.
○ A global manufacturer of solar power products expanded their ARR commitment to $98K. The manufacturer uses the solution to improve asset installation and maintenance processes to increase product uptime and customer satisfaction.
○ A leading utility services provider expanded their commitment to $139K. ProntoForms enables over 200 of their technicians to reliably handle complex large asset installations and maintenance within compliance.
○ A leading cable services provider in the United States expanded their commitment to over $200K ARR. The ProntoForms platform is used to create custom apps supporting field technicians to reliably install and maintain assets deployed in customer locations.
○ An oil and gas exploration company, a division of a Fortune 20 company, expanded its ARR commitment to $96K. The company creates custom apps with ProntoForms to improve site operations as well as ensure technicians meet strict requirements for health, safety, and environmental compliance.
- ProntoForms hosted its annual user conference, EMPOWER’20, with over 640 registrants. It featured product experts and multiple customer speakers from Fortune 500 companies.
- ProntoForms was featured in Gartner’s Low-Code Application Platform Magic Quadrant for the second year in a row. It was one of 19 platforms chosen from a pool of 300 competitive platforms.
○ Link to the report: https://www.gartner.com/en/documents/3991199
- G2 named ProntoForms the leader in Mobile Forms Automation Software for Fall 2020, retaining this ranking for the 9th time. ProntoForms was rated a 92 through real-time user satisfaction ratings, 33 points above the nearest competitor in the Enterprise segment. G2 also awarded ProntoForms the High Performer badge for Low-Code Development Platforms and the highest relationship rating available for products included in the Mobile Forms Automation Software category.
○ Link to report: https://www.g2.com/categories/mobile-forms-automation#grid
- ProntoForms, with Service Council, hosted an invitation-only executive Zoom event on the topic of digital transformation in the heavy manufacturing industry. The event included a keynote from the CIO of one of the world’s largest elevator companies and a panel discussion moderated by the North American Innovation Director for Field Services of a global brand diesel engine manufacturer.
○ Link to recorded event: https://www.prontoforms.com/solutions/mobile-apps-heavy-manufacturing
- ProntoForms launched the new Teamwork feature that increases collaboration between field technicians. Forms can now be submitted as incomplete and reassigned or continued by other technicians with all data aggregated into one data record. This feature is highly sought after by organizations with sophisticated asset processes that involve multiple technicians.
- ProntoForms released a new COVID-19 response solution blueprint that helps organizations accelerate custom app deployments to respond to new health and safety measures. The blueprint combines industry best practices and app building expertise that accelerates deployment from months to days.
Date: Thursday, November 5th, 2020
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 97448962
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 448962 #
Expiry Date: Thursday, November 12th, 2020 at 11:59pm EST
About ProntoForms Corporation
ProntoForms is the global leader in field-focused low-code application platforms for enterprise. The Company’s solution is used to create apps and forms to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to enterprise systems of record.
The Company’s 100,000+ subscribers harness the intuitive, secure, and scalable solution to increase productivity, improve quality of service, and mitigate risks. 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:
Chief Executive Officer
613.599.8288 ext. 1111
Virtus Advisory Group Inc.
Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, 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 April 10, 2019 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, 2019 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.
|Condensed interim consolidated statements of net and comprehensive loss|
|For the three and nine months ended September 30, 2020 and 2019|
|(in United States dollars)|
|Three months ended September 30,||Nine months ended September 30,|
|Professional and other services||494,364||337,966||1,066,547||1,067,888|
|Cost of Revenue|
|Professional and other services||450,433||294,584||964,533||849,376|
|Research and development||1,480,276||1,229,575||3,823,516||3,514,823|
|Selling and marketing||1,991,105||1,790,166||5,402,342||4,893,993|
|General and administrative||750,383||648,942||2,179,434||2,013,026|
|Loss from operations||(492,490||)||(459,490||)||(382,725||)||(1,275,063||)|
|Foreign exchange (loss) gain||(14,221||)||33,839||108,884||(19,306||)|
|Interest and accretion||(101,743||)||(97,163||)||(293,300||)||(281,014||)|
|Change in fair value of derivative liability||(1,257||)||101,703||(2,794||)||91,296|
|Net loss and comprehensive loss||(609,711||)||(421,111||)||(569,935||)||(1,484,087||)|
|Net comprehensive loss per common share|
|basic and diluted||(0.01||)||(0.00||)||(0.00||)||(0.01||)|
|Weighted average number of common shares|
|basic and diluted||117,666,390||115,545,497||118,536,260||111,404,404|
|Share-based compensation included in accounts:|
|Cost of revenue||11,823||10,548||41,520||32,890|
|Research and development||46,455||28,887||98,373||61,449|
|Selling and marketing||38,762||15,191||107,587||83,315|
|General and administrative||50,975||26,616||146,804||97,420|
|Condensed interim consolidated statements of financial position|
|as at September 30, 2020 and December 31, 2019|
|(in United States dollars)|
|September 30,||December 31,|
|Cash and cash equivalents||5,684,821||5,700,003|
|Investment tax credits receivable||13,686||185,213|
|Related party loan receivable||80,556||82,694|
|Prepaid expenses and other receivables||1,142,094||1,031,390|
|Property, plant and equipment||421,046||481,242|
|Accounts payable and accrued liabilities||2,195,623||2,493,913|
|Derivative liability – current portion||75,235||65,041|
|Long-term debt – current portion||2,789,484||–|
|Lease obligation – current portion||253,299||246,517|
|Share-based payment reserve||3,552,694||3,345,960|
|Accumulated other comprehensive income||184,435||184,435|
|Condensed interim consolidated statements of cash flows|
|For the nine months ended September 30, 2020 and 2019|
|(in United States dollars)|
|Nine months ended September 30,|
|Items not affecting cash|
|Accretion on long-term debt||141,527||122,877|
|Accretion on lease obligations||35,151||46,397|
|Change in fair value of derivative liability||2,794||(91,296||)|
|Amortization of property, plant and equipment||119,380||94,531|
|Amortization of right-of-use asset||190,971||202,203|
|Unrealized foreign exchange (gains) losses||(144,741||)||51,691|
|Lease interest paid||(35,151||)||(46,397||)|
|Changes in non-cash operating working capital items||(158,230||)||417,510|
|Payment of lease obligations||(176,926||)||(181,684||)|
|Partial settlement of derivative liability||(50,075||)||(49,542||)|
|Proceeds from the exercise of warrants||–||2,433,948|
|Proceeds from the exercise of options||249,240||631,199|
|Purchase of property, plant and equipment||(59,184||)||(158,911||)|
|Effect of exchange rate changes on cash||45,713||110,984|
|Net cash (outflow) inflow||(15,182||)||2,374,497|
|Cash and cash equivalents, beginning of year||5,700,003||3,325,241|
|Cash and cash equivalents, end of year||5,684,821||5,699,738|
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