All references to dollar values in this press release are in Canadian dollars, unless otherwise indicated.
'During the fourth quarter we continued to strengthen and diversify our business by cross-selling products to existing clients, signing a number of high-quality new customers (including multi-product contracts), building a large brand presence in the
'Subsequent to quarter end, along with continued efforts to execute on our overall integration and growth strategy, we ensured that
Consolidated Business Highlights for the Three Months Ended
(All capitalized terms not defined herein shall have the meaning ascribed to them in the Management's Discussion and Analysis for the three months and fiscal year ended
Fourth quarter 2022 revenue reached
Gross Margin for the fourth quarter 2022 was 92%, an increase compared to Gross Margin of 87% in the comparable period in 2021.
ARR of
ARR is reported on a constant currency basis using a 1.30 USD:CAD exchange rate. Given exposure to the US dollar and movement in exchange rates over the quarter, when adjusting for the strength of the US Dollar ARR would have been approximately
Fourth quarter 2022 Adjusted EBITDA3 of
Fourth quarter 2022 Adjusted EBITDA3 margin of 35%, an increase when compared to an Adjusted EBITDA3 margin of 24% in the third quarter of 2022, and 14% in the comparable period of 2021.
Fourth quarter 2022 net loss of
Total Number of Clients of 1,002 as at
Notable enterprise client additions for the fourth quarter included
Subsequent to quarter end,
Embedded solution client additions continued through the fourth quarter with the launch of new embedded partnerships with
Cross-selling initiatives progressed significantly through the fourth quarter of 2022, with the successful closing of several cross-sale / multi-product opportunities including BC Hydro, and NYU Langone. The Company anticipates continued cross-sale growth in 2023, as net new clients are added with multi-product solutions, and as the current portfolio of client cross-sell opportunities are realized.
Subsequent to quarter end, on
ARR, Consolidated Net Dollar Retention Rate and Logo Retention Rate Breakdown
ARR was approximately
Consolidated Net Dollar Retention Rate5 for the quarter was 76%, a 1% decrease from the previous period, primarily lower due to the continued impact of the loss of the large, embedded solutions client referenced in previous disclosure. Despite the negative impact of the large, embedded solutions client to consolidated Net Dollar Retention, the Net Dollar Retention Rate for enterprise clients remained compelling at approximately 94% as at
Logo Retention Rate6 was 85% as at
In addition to the continued focus on revenue growth, the Company has also made significant progress in acquisition integration, which has led to the ability to generate significant cost savings. While there has been a reduction in headcount, largely through identified redundancies, the Company has been focused on optimizing the cost base in all areas. This focus on integration has created significant momentum and efficiencies in sales and the sales process, and has also allowed the Company to generate significant annualized cost savings. In the fourth quarter of 2022, the Company generated annualized cost savings of approximately
About
Forward-Looking Information
This press release may contain 'forward-looking information' within the meaning of applicable Canadian securities laws. Forward-looking information may relate to the Company's future business, financial outlook and anticipated events or results and may include information regarding the Company's financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, and the Company's plans and objectives. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'targets', 'expects' or 'does not expect', 'is expected', 'an opportunity exists', 'budget', 'scheduled', 'estimates', 'outlook', 'forecasts', 'projection', 'prospects', 'strategy', 'intends', 'anticipates', 'does not anticipate', 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might', 'will', 'will be taken', 'occur' or 'be achieved'. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Particularly, information regarding the Company's expectations of future results, revenue growth, ARR, EBIDTA, EBITDA margin, adjusted EBITDA, adjusted Net Income (Loss), Number of Clients, Net Dollar Retention Rate, Logo Retention Rate, performance, synergies, achievements, prospects, industry trends, advancement of its strategy and acceleration of its growth, the amortization of the senior lender debt, or opportunities, including for cross-selling, or the markets in which the Company operates is forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding possible future events or circumstances.
This forward-looking information and other forward-looking information are based on opinions, estimates and assumptions in light of the Company's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company currently believes are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. These opinions, estimates and assumptions include, but are not limited to, the following: the Company's ability to build its market share and enter new geographies; the total available market for its products; the Company's ability to retain key personnel; the Company's ability to maintain and expand geographic scope; the Company's ability to execute on its expansion plans; the Company's ability to continue investing in infrastructure to support its growth and brand recognition; the Company's ability to continue maintaining and enhancing its technological infrastructure and functionality of its platform; the Company's ability to obtain financing on acceptable terms; the ability of the Company to satisfy its obligations in the form anticipated when due; the Company's ability to effectively integrate its recent acquisitions; the Company's ability to generate sufficient cash to deleverage, the impact of competition; the changes and trends in the Company's industry or the global economy and changes in laws, rules, regulations, and global standards.
The risks and uncertainties that may affect forward-looking statements include, among others: performance of the market sectors that the Company serves; general market performance including capital market conditions and availability and cost of credit; foreign currency and exchange risk; impact of factors such as increased pricing pressure and possible margin compression; the regulatory and tax environment; that expected cost and revenue synergies are not realized within the expected timeframe or at all; that revenue, ARR, EBITDA margin and cash flow expectations are not met for any number of reasons; political, labour or supplier disruptions; that our clients face recessionary pressures, and other risks detailed from time to time in the Company's filings with Canadian provincial securities regulators, including the risk factors which are described in greater detail under 'Risk Factors' in the Company's annual information form for the fiscal year ended
Accordingly, prospective investors should not place undue reliance on forward-looking information. The forward-looking information contained in this press release represents the Company's expectations as of the date of this press release (or as the date it is otherwise stated to be made) and is subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable Canadian securities laws.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements. Prospective investors should read this entire press release and consult their own professional advisors to ascertain and assess the income tax, legal, risk factors and other aspects of an investment in the Company.
Contact:
Email: investors@lifespeak.com
(C) 2023 Electronic News Publishing, source