Wishpond Reports Record Quarterly Revenue for Third Quarter 2020
VANCOUVER, BC, Dec. 16, 2020 /CNW/ – Wishpond Technologies Ltd. (TSXV: WISH) (the “Company” or “Wishpond“), a provider of marketing focused online business solutions, announces that today it is filing the condensed interim consolidated financial statements and management’s discussion and analysis (“MD&A“) for Fiscal Third Quarter 2020, representing the three and nine months ended September 30, 2020 of Wishpond Technologies Ltd. (“Wishpond PrivCo“), as it existed prior to its qualifying transaction (the “Qualifying Transaction“) with Antera Ventures I Corp. (“Antera“), all as further described in the filing statement of Antera dated November 26, 2020, a copy of which is on the Company’s SEDAR profile at www.sedar.com.
“Third Quarter 2020 was another outstanding record quarter as the Company experienced significant revenue growth compared to the third quarter last year and we exceeded $8.3 million on an annualized revenue run-rate basis,” said Ali Tajskander, Wishpond’s Chairman and CEO. “In addition, we reported strong Gross margins(1), positive operating income, operating cash flows, and Adjusted EBITDA(2) demonstrating our relentless focus on profitable growth. We are also very pleased to have announced the closing of the private financing round for gross proceeds of $4.6 million, most of which will be devoted to accelerating the Company’s growth through organic and inorganic initiatives. This capital raise, in combination with the conversion of the shareholder loan to common shares, gives Wishpond a very robust balance sheet with a solid cash balance and virtually no long-term debt. As a result, Wishpond is extremely well positioned to execute on a pipeline of highly accretive acquisition opportunities in the coming months.”
Third Quarter 2020 Financial Highlights:
- Wishpond PrivCo achieved record quarterly revenue of $2,095,933 during Q3-2020, compared to revenue of $1,520,813 generated during Q3-2019, an increase of 38% driven primarily by Wishpond PrivCo’s outbound sales team which is known to deliver highly predictable sales results.
- Wishpond PrivCo achieved record Gross profit(1) of $1,519,047, representing a 41% increase from Q3-2019, driven by an increase in overall revenue. Wishpond PrivCo achieved a Gross margin(1) percentage of 72% during Q3-2020, comparable to Q3-2019 at 71%.
- During Q3-2020, Wishpond PrivCo achieved positive operating income of $54,785 compared to an operating loss of $11,674 in Q3-2019.
- During Q3-2020, Wishpond PrivCo achieved positive cash from operations of $286,152 compared to negative $28,530 in Q3-2019.
- During Q3-2020, Wishpond PrivCo achieved Adjusted EBITDA(2) of $175,653 compared to $116,495 in Q3-2019.
Third Quarter 2020 Business Highlights:
- In September 2020, Wishpond PrivCo, Antera and 1264881 B.C. Ltd., a wholly owned subisidary of Antera (“Antera SubCo“) entered into a binding merger agreement in respect of the Qualifying Transaction.
- In September 2020, Dennis Zelada joined Wishpond PrivCo’s executive team as Chief Technology Officer to lead the product development efforts and expand the Wishpond product team’s capabilities. Dennis is an experienced technology executive, bringing over 12 years of technical experience, serving as CTO of several successful global companies.
- During the quarter, Wishpond PrivCo experienced strong headcount growth from approximately 90 employees and contractors to over 100 to support the Company’s expansion initiatives.
- On October 15, 2020, Wishpond PrivCo closed its previously announced brokered private placement financing of 6,133,000 subscription receipts at a price of $0.75, for gross proceeds of approximately $4.6 million, which included an upsize from the original minimum offering amount of $3.0 million and the full exercise of the over-allotment option.
- On November 24, 2020, Wishpond PrivCo converted debts in the aggregate amount of approximately $4.65M into Wishpond PrivCo common shares in connection with the Qualifying Transaction giving Wishpond greater flexibility in its operations and resulting in the Company having no debt or debt instruments on its balance sheet.
- On December 8, 2020, Wishpond PrivCo and Antera Subco amalgamated pursuant to the provisions of the Business Corporations Act (British Columbia), to form Wishpond Holdings Ltd. which constituted the completion of the previously announced Qualifying Transaction, and Antera changed its name to “Wishpond Technologies Ltd.”.
- The common shares of the Company commenced trading on the TSX Venture Exchange on December 11, 2020 under the symbol “WISH” as a Tier 1 technology issuer.
The Company’s outlook for Q4-2020 remains positive, having completed the private financing round and becoming a publicly listed company. Thus far in Q4-2020, Wishpond has experienced steady revenue growth and expects to end the fiscal year on a strong note.
Wishpond’s priorities for the foreseeable future are: (i) achieve organic growth from operations; (ii) accelerate the Company’s product development efforts; and (iii) growth through acquisition of highly promising technology and marketing agency partners through a disciplined capital allocation strategy.
Selected Unaudited Interim Financial Highlights:
Please refer to the Company’s profile on SEDAR at www.sedar.com for complete copies of the Wishpond PrivCo’s condensed interim consolidated financial statements and MD&A for the three and nine months ended September 30, 2020.
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Non-GAAP measure. Gross profit and Gross margin do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines gross profit as revenue less cost of sales and gross margin as gross profit as a percentage of revenue. Gross profit and gross margin should not be construed as an alternative for revenue or net loss determined in accordance with IFRS. The Company believes that gross profit and gross margin are meaningful metrics in assessing the Company’s financial performance and operational efficiency.
Non-GAAP measure. Earnings before interest, taxes, depreciation and amortization (“EBITDA“) and Adjusted EBITDA should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines Adjusted EBITDA as EBITDA less foreign currency losses (gains), net other expenditures (income), and stock-based compensation. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.
About Wishpond Technologies Ltd.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing focused online business solutions. Wishpond’s vision is to become the leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company offers an “all-in-one” marketing suite that provides companies with marketing, promotion, lead generation and sales conversion capabilities from one integrated platform. Wishpond replaces entire marketing functions in an easy-to-use product, for a fraction of the cost. Wishpond serves over 2,000 customers who are primarily small-to-medium size businesses (SMBs) in a wide variety of industries. The Company has developed cutting edge marketing technology solutions and continues to add new features and applications with great velocity. The Company employs a Software-as-a-Service (SaaS) business model where substantially all the Company’s revenue is subscription based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX-Venture Exchange under the ticker “WISH”. For further information, visit: www.wishpond.com.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. Any securities referred to herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. Person absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
Investors are cautioned that, except as disclosed in the Filing Statement of the Company dated November 26, 2020, a copy of which is available under the Company’s profile on SEDAR at www.sedar.com (the “Filing Statement”), any information released or received with respect to the Company may not be accurate or complete and should not be relied upon. Trading in securities of the Company should be considered highly speculative. The statements made herein are qualified in their entirety by reference to the interim consolidated financial statements and accompanying management’s discussion and analysis for the interim period ended September 30, 2020 of Wishpond PrivCo, copies of which are available under the Company’s profile at www.sedar.com.
This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including, but not limited to, the risk factors discussed in the filing statement of the Company which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Wishpond Technologies Ltd.
For further information: Juan Leal, CFO, Wishpond Technologies Ltd., (800) 921 0167 ext. 727, email@example.com