WeCommerce Reports Fourth Quarter and Full Year 2021 Results

VICTORIA, British Columbia - WeCommerce Holdings Ltd. ('WeCommerce' or the 'Company') (TSXV:WE), a leading provider of ecommerce enablement software and tools for merchants, announced its financial results for the three- and twelve-month periods ended December 31, 2021 ('Q4 2021' and 'Fiscal 2021' respectively). Currency amounts are expressed in Canadian dollars unless otherwise noted.

Q4 2021 Highlights

Revenue in Q4 2021 was $12,249,056, an increase of $6,103,788 or 99% (106% on a constant currency basis(1)) compared to Q4 2020.

Apps segment revenue in Q4 2021 was $7,346,415, an increase of $5,114,385 or 229% (240% on a constant currency basis) compared to Q4 2020. Apps segment revenue includes the results of Stamped, which contributed revenues of $5,010,982 in Q4 2021. Foursixty contributed revenues of $1,236,586, an increase of $181,378 or 17% (21% on a constant currency basis) compared to Q4 2020.

Themes segment revenue in Q4 2021 was $3,953,600, an increase of $1,649,154 or 72% (77% on a constant currency basis) compared to Q4 2020. Archetype contributed revenues of $2,328,653 in Q4 2021.

Agency segment revenue in Q4 2021 was $949,041, a decrease of $659,751 or 41% (40% on a constant currency basis) compared to Q4 2020.

Net income was $4,126,028 in Q4 2021 compared to net loss of $5,469,103 in Q4 2020. The net income for Q4 2021 includes fair value adjustments amounting to $5,302,617 which relate to the revaluation of contingent consideration payable as part of the acquisition of Stamped, Foursixty and Archetype. The net loss for Q4 2020 includes a listing expense of $1,634,081, relating to the reverse takeover completed during the quarter.

Unrestricted cash on hand at December 31, 2021 was $26,122,247 compared to $61,193,367 on December 31, 2020. Total debt outstanding at December 31, 2021 was $60,203,418 compared to $10,572,500 on December 31, 2020.

Adjusted EBITDA for Q4 2021 amounted to $3,490,740 or 28% of revenue, compared to $1,706,264 or 28% of revenue in Q4 2020.

Fiscal 2021 Highlights

Revenue in Fiscal 2021 was $38,581,377, an increase of $17,299,878 or 81% (92% on a constant currency basis(1)) compared to Fiscal 2020.

Apps segment revenue in Fiscal 2021 was $22,383,829, an increase of $15,496,583 or 225% (247% on a constant currency basis) compared to Fiscal 2020. Apps segment revenue includes the results of Stamped, which contributed revenues of $13,320,214 in Fiscal 2021. The remaining increase can be attributed to the attrition of the acquisition of Foursixty in 2020, with the inclusion of a full year's worth of revenue in 2021 compared to six months in 2020.

Themes segment revenue in Fiscal 2021 was $10,977,020 an increase of $2,003,274 or 22% (29% on a constant currency basis) compared to Q4 2020. The increase is attributable to the acquisition of Archetype Themes, which contributed $3,493,222 of revenue in Fiscal 2021. Excluding Archetype, revenue from the themes segment decreased by $1,489,948 or 17% (11% on a constant currency basis).

Agency segment revenue in Fiscal 2021 was $5,220,528, a decrease of $199,979 or 4% (1% on a constant currency basis) from $5,420,507 in Fiscal 2020.

Net loss in Fiscal 2021 was $842,922 compared to net loss of $4,416,476 in Fiscal 2020.

Adjusted EBITDA in Fiscal 2021 amounted to $11,586,037 or 30% of revenue, compared to $6,340,058 or 30% of revenue in Fiscal 2020.

Management Commentary

'2021 was a transformational year for our business. Beginning with a successful entry to the public markets at the end of 2020, this year was highlighted by several major acquisitions, key leadership appointments, and strong financial results that collectively have us well positioned for the future,' said WeCommerce CEO Alex Persson. 'Through our performance in the fourth quarter, we are entering 2022 with significant operating momentum. Our Apps business, recently expanded through our acquisition of leading zero-party data provider KnoCommerce, continues to generate robust double-digit organic revenue growth. In Themes, we are also seeing sustained growth and durable cash generation. Additionally, while we continue to invest in our portfolio companies, we are also actively canvassing the Shopify partner ecosystem for attractive opportunities in an improved acquirer's market categorized by reasonable valuations. We have the team, capital and resources necessary to build the leading acquirer and operator of ecommerce enablement technology companies.'

Conference Call

Management will host a conference call and webcast today, March 29, 2022, at 5:00 pm ET (2:00 pm PT) to discuss its financial results. Company CEO Alex Persson and CFO David Charron will host the call, followed by a question-and-answer period.

Live Call: https://conferencingportals.com/event/DWkvUNLo

Live Webcast: https://event.on24.com/wcc/r/3577892/17D1BEB805F5DFECE6A725E40099BC5D

An archived webcast of the conference call will be accessible on WeCommerce's Investor Relations page at http://investors.wecommerce.co.

Financial Statements

WeCommerce's consolidated financial statements and Management's Discussion and Analysis ('MD&A') for Q4 and Fiscal 2021 are available on the Company's website at https://www.wecommerce.co or on SEDAR at www.sedar.com.

About WeCommerce Holdings Ltd

WeCommerce provides merchants with a suite of ecommerce software tools to start and grow their online stores. Our family of companies and brands includes Pixel Union, Out of the Sandbox, KnoCommerce, Archetype, Yopify, SuppleApps, Rehash, Foursixty and Stamped. As one of Shopify's first partners since 2010, WeCommerce is focused on building, acquiring, and investing in leading technology businesses operating in the Shopify partner ecosystem.

For more about WeCommerce, please visit www.wecommerce.co or refer to the public disclosure documents available under WeCommerce's SEDAR profile on SEDAR at www.sedar.com.

Forward-Looking Information

This news release contains certain forward-looking statements and forward-looking information within the meaning of applicable securities law. Such forward-looking statements and information include, but are not limited to, statements or information with respect to: the Company's future business and strategies; requirements for additional capital and future financing; estimated future working capital, funds available, uses of funds, future capital expenditures and other expenses for specific operations and intellectual property protection; industry demand; ability to attract and retain employees, consultants or advisors with specialized skills and knowledge; anticipated joint development programs; incurrence of costs; competitive conditions; general economic conditions; and scalability of developed technology.

Forward-looking statements and information are frequently characterized by words such as 'plan', 'project', 'intend', 'believe', 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur. Although the Company's management believes that the assumptions made and the expectations represented by such statement or information are reasonable, there can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include risks relating to reliance on the Shopify platform; the Company's limited operating history; reliance on management and key employees; conflicts of interest in relation to the Company's officers, directors, and consultants; additional financing requirements; resale of Common Shares in the publicly-traded market; market price fluctuations for the Common Shares; global financial conditions; management of growth; risks associated with the Company's strategy of growth through acquisitions; tax risks; currency fluctuations; competitive markets; uncertainty and adverse changes in the economy; unsustainability of the Company's rapid growth and inability to attract new customers, retain revenue from existing merchants, and increase sales to both new and existing customers; adverse effects on the Company's revenue growth and profitability due to the inability to attract new customers or sell additional products to existing customers; future results of operations being harmed due to declines in recurring revenue or contracts not being renewed; security and privacy breaches; changes in client demand; challenges to the protection of intellectual property; infringement of intellectual property; ineffective operations through mobile devices, which are increasingly being used to conduct commerce; and risks associated with internal controls over financial reporting. The Company undertakes no obligation to update forward-looking statements and information if circumstances or management's estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements and information. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Company.

Contact:

David Charron

Chief Financial Officer

Phone: [phone]

Email: [e-mail]

Investor

Tom Colton

Gateway Investor Relations

Phone: [phone]

Email: [e-mail]

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