ProntoForms Reports Q3 2023 Financial Results

OTTAWA, ON – November 1, 2023, ProntoForms Corporation (TSXV: PFM), the global leader in field intelligence, announced today its third quarter (Q3) financial results for the period ended September 30, 2023. All amounts are in US dollars unless otherwise stated.

“Our trailing twelve months (“TTM”) revenue growth accelerated to 14.2% in the last quarter and helped eliminate our quarterly non-GAAP operating loss,” said Philip Deck, co-CEO of ProntoForms. “Our tight focus on cost control while funding essential investments for growth resulted in an 11% reduction in operating expenses compared to Q2 2023 and offset unusually low professional services deliveries. TTM annual recurring revenue (“ARR”) base growth continued to be strong at approximately 18%. Net bookings improved with an ARR base increase for the first nine months of 2023 of over 250% compared to the increase for the first nine months of 2022. Revenue retention continues to be strong, particularly with our enterprise customers.”

“We are maintaining our focus on key vertical markets where we deliver a significant return on investment to customers through reduced field service costs, richer data, and higher levels of compliance. We continue to build and focus our marketing and account targeting strategy, and are steadily building customer relationships that will drive additional growth in 2024. Our imminent name change to TrueContext is an important part of our refocused positioning in the market,” continued Mr. Deck. 

“In today’s economy, field technicians are pivotal, not only generating significant high-margin revenue but also ensuring customer satisfaction. Their roles have evolved from straightforward tasks to interconnected workflows that must be tailored to specific jobs, assets, and individuals, all while delivering elevated customer service. As we delve deeper into the AI era, technicians themselves become invaluable sensors in the field, facilitating the collection and processing of asset information. Field work is often a collaborative effort, requiring coordination among teams beyond just work orders or asset updates. Our product stands out in its ability to easily and iteratively build these complex workflows with a broader enterprise perspective, and we continue to invest and innovate in this vision,” ProntoForms co-CEO and Founder Alvaro Pombo explained.

Financial Highlights – 2023 Third Quarter (All results in USD)

• Recurring revenue in Q3 2023 increased by 14% to $5.96 million compared to $5.23 million in Q3 2022 and increased by 3% compared to $5.79 million in Q2 2023.
• Total revenue for Q3 2023 increased by 13% to $6.16 million compared to $5.46 million in Q3 2022 and increased by 1% compared to $6.12 million in Q2 2023.
• Gross margin for Q3 2023 was 87% of total revenue compared to 85% in Q3 2022 and 86% in Q2 2023. Gross margin on recurring revenue was 91% for Q3 2023 compared to 90% in Q3 2022 and 91% in Q2 2023.
• Operating loss for Q3 2023 was $0.22 million, down from an operating loss of $1.07 million in Q3 2022 and down from an operating loss of $0.97 million in Q2 2023. Non-GAAP operating income for Q3 2023 was $0.01 million, compared to a loss of $0.85 million in Q3 2022 and a loss of $0.68 million in Q2 2023. (See non-GAAP measures below)
• Net loss for Q3 2023 was $0.27 million, down from a net loss of $1.01 million in Q3 2022 and down from a net loss of $1.15 million in Q2 2023. Non-GAAP net loss for Q3 2023 was $0.03 million, down from a loss of $0.78 million in Q3 2022 and down from a loss of $0.86 million in Q2 2023. (See non-GAAP measures below)
• As at September 30, 2023, the Company’s cash and net working capital balances were $5.44 million and $0.71 million respectively.

Please refer to www.prontoforms.com/company/investor-relations for full financial statements, management discussion and analysis and a downloadable spreadsheet version of our quarterly information.

Recent Operational Highlights

Notable new and expansion progress from enterprise customers, including:

• A global heavy equipment manufacturer added multi-language capability to its existing ProntoForms deployment, covering roughly 2,500 technicians speaking over 10 languages to improve process standardization and compliance.
• A global medical equipment manufacturer added multi-language capability to its ProntoForms deployment in a deal worth $150K ARR. The feature was rolled out in dozens of countries across six continents.

Other Highlights:

• ProntoForms was awarded Most Viable Technology at the Service Council Symposium in September 2023 after presenting a solution showcase that addressed prevailing challenges in global field service.
• ProntoForms was hailed leader of 11 categories in the G2 Fall 2023 Grid Report, indicating top performance in user satisfaction, support quality, and market presence. The product led the Enterprise Mobile Forms Automation, Enterprise Relationship Index, and Enterprise Usability Index for Field Service categories.
• ProntoForms Founder and co-CEO Alvaro Pombo presented a keynote at Field Service Hilton Head in August 2023, discussing the emerging role of intelligent apps in the evolving field service landscape.

Q3 Conference Call Date:

Date: Wednesday, November 1, 2023
Time: 9:00 AM Eastern Time   

Participant Login Options

To join the conference call without operator assistance, you may register and enter your phone number at: https://emportal.ink/3FmZBBR to receive an instant automated callback.

You can also dial direct to be enter the call through an operator with the details below:

Participant Dial-in Numbers:
Local Toronto – (+1) 416-764-8650
Toll Free – (+1) 888-664-6383

Recording Playback Numbers:
Local Toronto– (+1) 416-764-8677
Toll Free – (+1) 888-390-0541
Passcode: 721425#
Expiry Date: November 8th, 2023, at 11:59pm EST

A live audio webcast and archive of the conference call will be available by visiting the Company’s website at www.prontoforms.com/company/investor-relations. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

About ProntoForms Corporation

ProntoForms, soon to be TrueContext, is the global leader in field intelligence. The platform’s field workflows and data collection capabilities enable enterprise field teams to optimize decision-making, decrease organizational risk, maximize the uptime of valuable assets, and deliver exceptional service experiences. Over 100,000 subscribers use ProntoForms across multiple use cases, including asset inspection, compliance, installation, repair, maintenance, and environmental, health & safety with quantifiable business impacts. 

The Company is based in Ottawa, Canada, and trades on the TSXV under the symbol PFM. ProntoForms and TrueContext are registered trademarks of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.