ProntoForms Reports Q1 2019 Financial Results
Achieves 27% growth in recurring revenue over Q1 2018
OTTAWA, Ont. – May 8, 2019 – ProntoForms Corporation (TSXV: PFM) the global leader in smart mobile forms for enterprise, announced today its first quarter (Q1) financial results for the period ended March 31, 2019.
“We are pleased to report that Q1 was another strong quarter with solid recurring revenue growth, continued reduction in losses and more enterprise expansion. Recurring revenue grew by 7% sequentially following 6% sequential growth in Q4 2018. This growth came through both direct sales engagements and partners.” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms. “Our Annual Recurring Revenue (ARR) Base grew 26% over the last year to reach $13.1 million at March 31, 2019. Customers with more than $100,000 of ARR each represented 28% of that base—up from 20% a year ago.”
Mr. Pombo continued, “Our ongoing investment into our low-code app development platform is proving to be a core accelerator in our enterprise expansion strategy. We’ve seen multiple customers rapidly deploy the solution into different divisions and geographies. Early success, with clear and quantifiable ROI in one group, drives adoption in other divisions looking to emulate that success.”
Financial Highlights – 2019 First Quarter
- Recurring revenue in Q1 2019 increased by 27% to $3.16 million compared to $2.50 million in Q1 2018, and by 7% compared to $2.95 million in Q4 2018.
- Total revenue for Q1 2019 increased by 28% to $3.52 million compared to $2.75 million in Q1 2018, and by 7% compared to $3.30 million in Q4 2018.
- Gross margin for Q1 2019 was 81% of total revenue compared to 82% in Q1 2018 and 83% in Q4 2018. Gross margin on recurring revenue was 89% for Q1 2019, equal to that of Q1 and Q4 2018.
- Operating loss for Q1 2019 was $0.40 million, down from a loss of $0.78 million in Q1 2018 and $0.47 million in Q4 2018.
- Net loss for Q1 2019 was $0.53 million, down from a net loss of $0.82 million in Q1 2018 and $0.41 million in Q4 2018.
- As at March 31, 2019, ProntoForms’ cash and net working capital balances were $4.05 million and $1.80 million respectively, compared to $3.33 million and $2.28 million as at December 31, 2018.
Q1 2019 Operational Highlights
- A global brand manufacturer of building infrastructure and transportation components expanded its low-code platform deployment with 100 subscribers in the Far East. The company surpassed 9,000 subscribers in North America, South America, and Japan.
- A Fortune 500 customer expanded its account base by 1,000 subscribers. The platform enables field technicians to complete installation of industrial equipment, fire and safety compliance, and preventative maintenance quickly and reliably. Today, the account has more than 6,000 subscribers.
- A large utility company in the United States utilized the ProntoForms low-code platform to deploy over 1,600 subscribers rapidly for an emergency response to a natural disaster. This brings the active number of subscribers to greater than 5,000.
- A Texas-based oil and gas development company launched a new ProntoForms deployment of over 100 subscribers to improve operations and safety at production sites.
Q1 Conference Call Date:
Date: May 9, 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: 56944439
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 944439 #
Expiry Date: Thursday, May 16th, 2019 11:59 PM
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.
Contact Information
Alvaro Pombo
co-Chief Executive Officer
TrueContext Corporation
613.599.8288 ext. 1111
[email protected]
Philip Deck
co-Chief Executive Officer
TrueContext Corporation
416.702.3974
[email protected]
Dave Croucher
Chief Financial Officer
TrueContext Corporation
613.286.9212
[email protected]
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.