Subscription revenues increased to
- For the year months ended
December 31, 2022 , total revenues are up 6% over FY21, at$6.03 million , compared to$5.68 million . - Subscription revenues showed strong growth through FY22, up 14% to
$4.47 million , compared to$3.91 million , with subscription revenue from the company's largest contract to date (announcedSeptember 7, 2022 ) only coming online late in November. A full year's subscription from that contract will be recognized in FY23. - Professional services revenue in FY22 was
$1.56 million , compared with$1.77 million for FY21. FY23 is expected to include a significant amount of professional services delivery already contracted, including the entirety of the largest contract mentioned above. - Annual Recurring Revenue ("ARR") under contract increased to
$6.01 million atDecember 31, 2022 , compared to$4.16 million atDecember 31, 2021 . - Adjusted EBITDA was a loss of
$4.26 million in FY22, compared to a loss of$3.00 million in FY21, as expected following the scaling of capacity over the past two years.
Chief Executive Officer,
"I continue to be proud of what we have built at HS GovTech. Over the past two years, we have scaled the company to handle the pace of growth that we enjoy now and expect to see for the next several years. We have also addressed some of the growing pains that came with that growth; our product development team has been reorganized to focus on new functionality, and our implementation team is operating more efficiently than ever before. Our sales team continues to cultivate and grow our market penetration while expanding our footprint into new territories. This constant cultivation and expansion is resulting in a continual close of new business while replenishing the sales pipeline with new opportunities as fast as contracts close.
HS is a strong company, delivering crucial services across a broad base of government agencies. The platform we deliver is making a real difference in the operations of the agencies who make up our customer base. There is a deep gratification that comes with serving the public sector and working alongside a team that works tirelessly to innovate in ways these agencies only dreamt was possible. In FY22, we built an immense amount of momentum and energy in the customer markets we serve and I am thrilled to carry it forward into FY23."
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, with the calculation based on the annual average of subscription revenues over the life of the agreement.
EBITDA is a non-IFRS measure that is used as a 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 such as financing costs. EBITDA is defined and calculated as net loss adjusted to remove interest, taxes, depreciation and amortization.
HS GovTechTM is an industry leading software as a service company serving the state, provincial and local government market across
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
© Canada Newswire, source