"We experienced modest revenue growth in the quarter as private capital deal activity slowed significantly from the previous period," said
The following provides a summary of the results for the third quarter of 2022. The full results and related management discussion and analysis are available on the Corporation's SEDAR profile (www.sedar.com).
Q3 and YTD 2022 Summary
Revenue
Revenue consists of subscription revenue which increased by 11.5% to
Gross Profit Percentage (1)
Gross Profit Percentage was 79.4% in the third quarter of 2022 compared to 79.6% in the prior year quarter of 2021.
Adjusted EBITDA (1)
Adjusted EBITDA losses decreased to (
Net loss and comprehensive loss
Net loss and comprehensive loss decreased to (
Financial Position
As at
About
Neither the
Cautionary Note Regarding Forward-Looking Statements
Certain disclosure in this release, including statements regarding the recovery of capital markets investment activity, constitute forward-looking statements. In making the forward- looking statements in this release, the Corporation has applied certain factors and assumptions that are based on the Corporation's current beliefs as well as assumptions made by and information currently available to the Corporation, including, but not limited to, the Corporation's anticipated cash needs, that the cash available to the Corporation is as expected, the Corporation's product will continue to operate as expected, the industry will continue to see value in the Corporation's product, the Corporation will be able to recruit talented and experienced sales, support and other individuals required to execute the Corporation's plans, and that the Corporation's employees, consultants, customers, suppliers and other stakeholders will be able to manage successfully throughout the Covid- 19 pandemic. Although the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that cash available to the Corporation is not as expected, failure to manage growth successfully, lengthier than anticipated sales and implementation cycle, cyber risks, risks related to cloud based solutions, failure to continue to adapt to technological change and new product development, dependence on key personnel, competition, intellectual property risks, economic conditions, the financial and economic fallout due to the Covid-19 pandemic, privacy concerns and legislation, regulatory environment, risk associated with a change in the Corporation's pricing model, risk of defects in the Corporation's solution, dependence on market growth, operational service risk, dependence on partners, delay or failure to realize anticipated benefits of key account installations and such other risks as are noted in the Corporation's MD&A for the period ended
1 Non-GAAP Financial Measures
This news release refers to certain Non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards ("IFRS"). "Gross Profit", "Gross Profit Percentage," "Working Capital", and "Adjusted EBITDA" are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of
"Gross Profit" is used by management to analyze overall and segmented operating performance. Gross Profit is not intended to represent an alternative to net earnings or other measures of financial performance calculated in accordance with IFRS. Gross Profit is calculated from the statements of operations and comprehensive income (loss) and from the segmented information contained in the notes to the financial statements. Gross Profit is defined as revenue less cost of revenue.
"Gross Profit Percentage" is used by management to analyze overall and segmented operating performance. Gross Profit Percentage is calculated from the statements of operations and comprehensive income (loss) and from the segmented information in the notes to the financial statements. Gross Profit Percentage is defined as gross profit divided by revenue.
"Adjusted EBITDA" is a measure of the Corporation's operating profitability. Adjusted EBITDA provides an indication of the results generated by the Corporation's principal business activities prior to how these activities are financed (including mark-to-market movements of the convertible debenture value), assets are depreciated and amortized or how the results are taxed in various jurisdictions, prior to the effect of foreign exchange, other income and expenses, and non-cash share-based payment expense. Adjusted EBITDA is not intended to represent net earnings as calculated in accordance with IFRS.
Adjusted EBITDA is calculated as follows:
For the three months ended | ||||
($ thousands) | 2022 | 2021 | ||
Net loss | (559) | (648) | ||
Plus: | ||||
Depreciation and amortization | 2 | 8 | ||
Finance costs | 194 | 140 | ||
Unrealized loss (gain) on convertible debentures | 159 | 59 | ||
Foreign exchange (gain) loss | (40) | (14) | ||
Share-based payments | 36 | 65 | ||
Other income | (75) | (25) | ||
Adjusted EBITDA | (283) | (415) |
"Working Capital" is used by management and the investment community to analyze the operating liquidity available to the Corporation. Working Capital is calculated based on current assets less current liabilities.
Working capital is derived from the statements of financial positions and is calculated as follows:
As at | Increase (decrease) | |||||
($ Cdn thousands) - unaudited | 2022 | 2021 | in working capital | |||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 1,667 | 2,503 | (836) | |||
Accounts receivable | 99 | 33 | 66 | |||
Prepaid expenses | 3 | 13 | (10) | |||
Total current assets | 1,769 | 2,549 | (780) | |||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 238 | 373 | (135) | |||
Deferred revenue | 529 | 359 | 170 | |||
Current portion of lease obligation | - | 21 | (21) | |||
Total current liabilities | 767 | 753 | 14 | |||
Working capital | 1,002 | 1,796 | (794) |
SOURCE
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