ProntoForms Reports Q1 2022 Financial Results

OTTAWA, May 05, 2022 (GLOBE NEWSWIRE) — ProntoForms Corporation (TSXV: PFM), the global leader in no-code app development platforms for field teams, announced today its first quarter (Q1) financial results for the period ended March 31, 2022. All amounts are in US dollars unless otherwise stated.

“We achieved 14% growth in recurring revenue over the 2021 comparable quarter. Our Annual Recurring Revenue (ARR) base at the end of Q1 was $19.6 million with 41% from customers with greater than $100,000 of ARR. As we continue our transition to focus on enterprise sales, we saw a Q1 decrease in our ARR base by 0.7%. The decrease can be attributed partly to a 1.5% reduction in ARR from the completion of a one-year project and lower new bookings in the quarter as we transition through the longer sales cycles typical of the larger enterprise sales on which we are increasingly focused. We are pleased that we were able to follow up our first quarter with a recent enterprise expansion of over $180,000 ARR, bringing that customer to a total of approximately $870,000 ARR,” said Alvaro Pombo, Founder and Chief Executive Officer.

Mr. Pombo continued, “Our most recent customer expansion win demonstrates the success of our enhanced go-to-market. We’re scaling conversations with our customers on how our platform can help them address pressing business challenges, like inflation and the labor market. Our improved team is uncovering more enterprise expansion opportunities.”

Financial Highlights – 2022 First Quarter

  • Recurring revenue in Q1 2022 increased by 14% to $4.89 million compared to $4.31 million in Q1 2021, and increased by 2% compared to $4.80 million in Q4 2021.
  • Total revenue for Q1 2022 increased by 9% to $5.04 million compared to $4.61 million in Q1 2021, and increased by 1% compared to $5.01 million in Q4 2021.
  • Gross margin for Q1 2022 was 84% of total revenue compared to 85% in Q1 2021 and 84% in Q4 2021. Gross margin on recurring revenue was 89% for Q1 2022 compared to 91% in Q1 2021 and 90% in Q4 2021.
  • Operating loss for Q1 2022 was $1.49 million, up from an operating loss of $1.07 million in Q1 2021 and up from an operating loss of $1.03 million in Q4 2021.
  • Net loss for Q1 2022 was $1.54 million, up from a net loss of $1.10 million in Q1 2021 and up from a net loss of $1.12 million in Q4 2021.

Recent Operational Highlights

Notable new and expansion progress from enterprise customers, including:

  • Subsequent to Q1, a global heavy manufacturing organization increased their commitment to ProntoForms by over $180K ARR to approximately $870K ARR. This ARR is contractually committed through contracts expiring at various times from late 2022 through the end of 2023. This increase will support their full asset lifecycle business model.    
  • A Fortune 500 power and renewable energy global enterprise deployed ProntoForms’ technology starting with 450 subscriptions across two sub-divisions. ProntoForms supports health and safety reporting, inspection processes for wind and hydro turbines, and gathering performance metrics to enable their field engineers and salespeople.
  • A Fortune 500 oil & gas enterprise has expanded its multi-year deployment of ProntoForms by 200 subscriptions for a total of over 2000 subscriptions as part of a global Master Services Agreement (MSA) where ProntoForms is the sole mobile forms solution approved for use in field operations.
  • A Fortune 500 HVAC and refrigeration organization added over 510 ProntoForms subscriptions to support field technicians in reliably completing complex work.
  • ProntoForms announced the general availability of a new client app for the macOS® operating system software, now available on the macOS App Store® online store.

Q1 Conference Call Date:

Date: Thursday, May 5th, 2022
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local Toronto – (+1) 647-794-4605
Toll Free – (+1) 866-575-6539
Conference ID: 9536629

Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 9536629
Expiry Date: May 12th, 2022 at 11:59pm EDT

About ProntoForms Corporation
ProntoForms is the global leader in field-focused low-code application platforms for enterprise. The Company’s solution is used to create apps and forms to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to enterprise 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.

For additional information, please contact:

Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, potential benefits of using the Company’s products, customers’ commitment to use the Company’s products going forward, the recurring nature of the Company’s revenues, 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 10, 2022 found at www.sedar.com for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2021 for a description of how the Company determines and uses ARR. ARR is a key performance indicator used by the Company and is not meant as an indication such amounts will necessarily be included in revenues in any given fiscal year.

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.

PRONTOFORMS CORPORATION        
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss    
           
For the three months ended March 31, 2022 and 2021        
(in US dollars)        
           
           
      Three months ended March 31,
      2022   2021
           
Revenue:        
  Recurring revenue $ 4,890,716     4,306,308  
  Professional and other services   150,394     307,155  
      5,041,110     4,613,463  
           
Cost of revenue:(1)        
  Recurring revenue   552,072     393,829  
  Professional and other services   255,377     281,935  
      807,449     675,764  
           
Gross margin   4,233,661     3,937,699  
           
Expenses:        
  Research and development(1)   1,771,752     1,811,424  
  Selling and marketing(1)   2,934,240     2,299,800  
  General and administrative(1)   1,017,374     893,451  
      5,723,366     5,004,675  
           
Loss from operations   (1,489,705 )   (1,066,976 )
           
Foreign exchange loss   (27,843 )   (9,672 )
Finance costs   (26,060 )   (28,164 )
           
Net loss and comprehensive loss $ (1,543,608 )   (1,104,812 )
           
Net loss and comprehensive loss        
  per common share basic and diluted $ (0.01 )   (0.01 )
           
Weighted average number of common shares        
  basic and diluted   127,819,003     124,499,218  
           
           
(1) Amounts include share-based compensation expense as follows:    
           
Cost of revenue $ 5,360     865  
Research and development   101,667     50,077  
Selling and marketing   170,088     26,246  
General and administrative   151,088     85,349  
Total share-based compensation expense $ 428,203     162,537  
PRONTOFORMS CORPORATION      
Condensed Interim Consolidated Statements of Financial Position      
             
March 31, 2022 and December 31, 2021          
(in US dollars)          
             
      March 31,     December 31,
      2022     2021
             
Assets          
             
Current assets:          
  Cash and cash equivalents $ 7,431,964     $ 6,082,289  
  Accounts receivable   3,266,731       3,199,216  
  Investment tax credits receivable   139,565       117,599  
  Unbilled receivables   50,187       36,406  
  Related party loan receivable   85,993       84,757  
  Prepaid expenses and other receivables   1,414,916       907,228  
  Contract acquisition costs   276,257       273,062  
      12,665,613       10,700,557  
             
Property, plant and equipment   306,726       331,717  
Contract acquisition costs   137,862       157,693  
Right-of-use asset   339,486       403,143  
             
    $ 13,449,687     $ 11,593,110  
             
Liabilities and Shareholders’ Equity          
             
Current liabilities:          
  Accounts payable and accrued liabilities $ 2,389,419     $ 2,533,743  
  Deferred revenue – current portion   6,068,352       5,411,380  
  Lease obligation – current portion   312,229       303,650  
      8,770,000       8,248,773  
             
Long-term debt   5,710,904       3,261,825  
Deferred revenue   23,864       33,068  
Lease obligation   107,830       184,766  
      14,612,598       11,728,432  
             
Shareholders’ equity:          
  Share capital   31,293,115       31,141,138  
  Contributed surplus   864,907       864,907  
  Share-based payment reserve   2,908,710       2,544,668  
  Deficit   (36,414,078 )     (34,870,470 )
  Accumulated other comprehensive income   184,435       184,435  
      (1,162,911 )     (135,322 )
             
    $ 13,449,687     $ 11,593,110  
PRONTOFORMS CORPORATION          
Condensed Interim Consolidated Statements of Cash Flows      
               
For the three months ended March 31, 2022 and 2021      
(in US dollars)          
               
        Three months ended March 31,
        2022     2021
               
Cash (used in) provided by:          
               
Operating activities:          
  Net loss $ (1,543,608 )   $ (1,104,812 )
  Items not involving cash:          
    Share-based compensation   428,203       162,537  
    Accretion on lease obligations   6,256       9,953  
    Accretion of transaction costs   282       7,045  
    Amortization of property, plant and equipment   38,666       40,761  
    Amortization of right-of-use asset   63,657       63,657  
    Unrealized foreign exchange losses   21,949       12,403  
  Other finance costs   25,778       21,119  
  Interest paid   (29,097 )     (23,999 )
  Interest received   3,319       2,880  
  Lease interest paid   (6,256 )     (9,953 )
  Changes in non-cash operating working capital items   (90,870 )     1,066,816  
        (1,081,721 )     248,407  
               
Financing activities          
  Payment of lease obligations   (74,610 )     (64,923 )
  Procceds from drawdown of credit facility   2,402,124        
  Proceeds from the exercise of options   87,816       239,455  
        2,415,330       174,532  
               
Investing activities          
  Purchase of property, plant and equipment   (13,675 )     (19,753 )
        (13,675 )     (19,753 )
               
Effect of exchange rate changes on cash   29,741       35,963  
               
Increase in cash and cash equivalents   1,349,675       439,149  
               
Cash and cash equivalents, beginning of period   6,082,289       7,747,542  
               
Cash and cash equivalents, end of period $ 7,431,964     $ 8,186,691  
               


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