ProntoForms Reports Annual and Q4 2018 Financial Results
Achieves 21% Annual Growth in Recurring Revenue and Fourth Quarter Growth of 6% over Q3 2018
OTTAWA, Ont. – April 11, 2019 – ProntoForms Corporation (TSXV: PFM), the global leader in smart mobile forms for enterprise, today announced its annual and fourth quarter (Q4) financial results for the periods ended December 31, 2018.
THE COMPANY COMMENCED REPORTING IN US DOLLARS JANUARY 1, 2018.
“We saw consistent results throughout 2018, and we are pleased to report 21% annual recurring revenue growth including another strong quarter of 6% sequential growth in Q4. The growth profile is exactly what we set out to do with revenue growth coming from three main sales initiatives; addition of new direct customers, production from our channels and expansion of enterprise customers.” said Alvaro Pombo, CEO of ProntoForms. “Adding to our growth story, we saw higher professional services revenue and margins from enterprise deployments and steady progress in reducing our operating loss.”
“Our Annual Recurring Revenue (“ARR”) Base accelerated to 27% in the year to reach $12.4 million at December 31, 2018 compared to growth of 12% in 2017. Customers with more than $100,000 of ARR each represented 26% of that base, up from 18% at the end of last year. We continue to demonstrate quantifiable progress on our journey of acquiring and expanding enterprise customers. The ProntoForms no-code platform is a powerful solution that enables our enterprise customers to rapidly deploy field-focused Apps for new use cases, while meeting the strict security and governance requirements of IT. Our ongoing investment to enhance and expand our workflow and out-of-the-box integration capabilities is helping us reach into new use cases throughout the enterprise.”
Financial Highlights – 2018 Year
- Recurring revenue for the year ended December 31, 2018 increased by 21% to $10,850,591 compared to $8,991,412 for 2017.
- Recurring revenue consisted of non-operator channel recurring revenue of $7,997,070 (36% growth over 2017) and operator channel recurring revenue of $2,853,521 (8% decrease from 2017).
- Total revenue for year ended December 31, 2018 increased by 23% to $12,132,506 compared to $9,847,528 for 2017.
- Gross margin for 2018 was $9,980,949 or 82% of total revenue compared to $8,031,359 (82%) in 2017. Gross margin on recurring revenue was 89% for 2018 compared to 90% for 2017.
- Loss from operations was $2,381,981 for the year ended December 31, 2018, down from $3,246,397 for 2017.
- Net loss for the year ended December 31, 2018 was $2,500,614, down from a net loss of $3,861,928 in 2017.
- As at December 31, 2018, the Company’s cash and net working capital balances were $3,325,241 and $2,282,076 respectively.
Financial Highlights – 2018 Fourth Quarter
- Recurring revenue in Q4 2018 increased by 24% to $2,950,029 compared to $2,376,458 in Q4 2017, and increased by 6% compared to $2,780,814 in Q3 2018
- Recurring revenue consisted of non-operator channel recurring revenue of $2,251,999 (37% growth vs. Q4 2017 and 8% growth vs. Q3 2018) and operator channel recurring revenue of $698,030 (4% decrease vs. Q4 2017 and effectively flat from Q3 2018)
- Total revenue for Q4 2018 increased by 25% to $3,299,947 compared to $2,648,687 in Q4 2017, and increased by 4% compared to $3,177,846, in Q3 2018
- Gross margin for Q4 2018 was 83% of total revenue compared to 80% in Q4 2017 and 81% in Q3 2018. Gross margin on recurring revenue was 89% for Q4 2018 compared to 89% for Q4 2017 and 88% in Q2 2018
- Operating loss for Q4 2018 was $467,236, down from a loss of $952,770 in Q4 2017, and down from a loss of $510,975 in Q3 2018
- Net loss for Q4 2018 was $409,571, down from a net loss of $1,057,542 in Q4 2017, and down from a net loss of $642,066 in Q3 2018.
2018 Operational Highlights
Examples of progress with enterprise customers:
- Continued enterprise momentum through a $900K contract with a leading global medical device company including $400K of professional services delivered in 2018.
- Commitment by a global airline to deploy ProntoForms to improve operations.
- Launch of ProntoForms by Forbes Global 150 oil & gas exploration company to improve operations and safety.
- Improvement of operations and safety for $1B+ oil & gas exploration company by adding ProntoForms.
- Regulatory compliance program established by a top ten utility company in the United States using ProntoForms for safety inspections and expanded use to a different division in response to a natural disaster.
- Savings of over $2.1M annually by Cooke Aquaculture using ProntoForms on iPhone and iPad.
- Expanded geographic use by a global division of a Fortune 100 company that manufactures and installs heavy assets in industrial, commercial, and residential buildings.
- Expansion by Fortune Global 500 customer with $1.2M 3-year contract to improve field operations, service delivery, and compliance.
- Expanded geographic use by two global vertical transportation companies; one adding over 700 subscribers in Japan and another adding over 150 subscribers for their operations in the EU.
Key product progress included:
- Added deep integrations and business partnerships with ServiceMax Marketplace, Salesforce AppExchange, and the Geotab Marketplace.
- Delivered significant new low-code capabilities for citizen and professional developers to build enterprise applications for frontline workers, including:new form builder for rapid application development
- New form builder for rapid application development
- Advanced conditional logic and exceptions for complex business rules and workflow
- Repeatable sections for variable data and modelling one to many relationships, and
- Custom documents for precise output required by branding and regulatory requirements.
Click here to download the 2018 Consolidated Financial Statements.
Q4 Conference Call Information
Date: April 11, 2019
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 01983302
Q1 Conference Call Date:
Date: May 9, 2019
Time: 9:00 AM Eastern Time
Call Details: to be announced at later date
About ProntoForms Corporation
ProntoForms is a leading provider of smart mobile forms for enterprise. The Company’s solution is used to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to corporate 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.
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 March 9, 2022 found at www.sedar.com for a discussion of such factors. ARR is calculated as the annual equivalent of the recurring elements of our contracts with customers that are in effect at the end of the period. It excludes one-time professional service fees and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely at period end. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2022 for a description of how the Company determines and uses ARR. 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.