Wishpond Achieves 73% Revenue Growth and Record Revenue in Second Quarter 2021

Revenue growth driven by organic growth from the expansion of Wishpond’s sales team and inorganic growth from the Invigo and PersistIQ acquisitions. 

Vancouver, BC – August 26, 2021 – Wishpond Technologies Ltd. (TSXV: WISH, OTCQX: WPNDF) (the “Company” or “Wishpond”), a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements and management’s discussion and analysis (“MD&A”) for Q2-2021, representing the three and six months ended June 30, 2021.  Copies of the Interim Financial Statements and MD&A are available on the Company’s profile on SEDAR at www.sedar.com. 

Ali Tajskandar, Wishpond’s Chairman and CEO commented: “Second quarter 2021 was another tremendous quarter for Wishpond as we once again achieved record quarterly revenue with 73% year-over-year growth.  In fact, our US revenue grew by over 100% despite the negative currency headwinds in the quarter.  We are very pleased with the progress we have made with our first two acquisitions, Invigo and PersistIQ, which continue to perform well.  During the second quarter we launched our Appointments product, which came from the Invigo acquisition, and the Outbound Sales Solution, which came from the PersistIQ acquisition.  We are beginning to witness the synergistic benefits of our acquisitions through cross selling the Company’s products and services across the different parts of the growing organization.  Our positive Q2 results and momentum position us for strong year-over-year growth in the back half of 2021.”

Second Quarter 2021 Financial Highlights:

• Wishpond achieved record quarterly revenue of $3,226,877 during Q2-2021, an increase of 73% compared to revenue of $1,868,341 generated in Q2-2020.  The increase in revenue was primarily driven by higher organic growth from the Company’s incremental investment in its sales team and inorganic growth from the positive contribution of its Invigo and PersistIQ acquisitions.
• Wishpond’s revenue was negatively impacted in the second quarter by the weakening of the US dollar.  Had this decrease in exchange rate not occurred, the Company estimates consolidated revenues would have been higher by approximately $272,709 as compared to the exchange rate in Q2-2020.  Revenues were also negatively impacted by an initial acquisition accounting adjustment related to PersistIQ’s deferred revenue balance resulting in a negative impact of approximately $133,389 in the second quarter.  
• Wishpond achieved Gross profit(1) of $2,238,143, representing an 86% increase from Q2-2020, driven by an increase in overall revenue. Wishpond achieved a Gross margin(1) percentage of 69% during Q2-2021, compared to Q2-2020 at 64%. 
• During Q2-2021, Wishpond had negative Adjusted EBITDA(1) of $320,027 compared to positive Adjusted EBITDA(1) of $201,708 in Q2-2020.  The decline in Adjusted EBITDA is attributable to a higher level of operating spend primarily as a result of increased headcount in the Company’s sales and product development teams in preparation for future growth.  
• As at June 30, 2021, Wishpond had $10,065,393 in cash and no long-term debt.. 

Second Quarter 2021 Business Highlights:

• On April 14, 2021, Wishpond launched its Marketing Funnels product, a new feature that allows for progressive lead profiling and upselling opportunities. Such features represent a powerful addition to the landing page editor, increasing its effectiveness at profiling and converting new leads.
• On April 22, 2021, Wishpond launched its new fully managed Outbound Sales Solution by its subsidiary, PersistIQ. This new solution features an enhanced sales automation platform and a service package that gives B2B small business owners access to PersistIQ’s award-winning technology, outbound sales strategies and a team of experts to help accelerate growth.
• On May 12, 2021, the Company’s common shares began trading under on the OTCQB Venture Market (“OTCQB”) under the ticker “WPNDF”. On June 24, 2021, Company’s listing on the OTCQB was upgraded to the OTCQX® Best Market (“OTCQX”), and its common shares began trading on the OTCQX as of June 24, 2021. 
• On June 16, 2021, Wishpond launched its new Appointments product, a new feature that enables businesses to offer automated scheduling to their clients. The new product represents the first feature integration of EverGenius software into Wishpond’s platform which comes from the Company’s acquisition of Invigo Media. 
• On June 30, 2021, the Company announced a partnership with Stukent, Inc. (“Stukent”), a digital courseware provider, to introduce new real-world digital marketing and social media assignments with Wishpond’s technology on Stukent’s platform.

Events Subsequent to June 30, 2021:

• On July 14, 2021, the Company announced that the Depository Trust Company (“DTC”) has made Wishpond common shares eligible for electronic deposit at DTC. The Company believes that the opportunity to clear and settle trades in its common shares on the OTCQX should provide a more seamless experience for its U.S. shareholders.

Normal Course Issuer Bid:

• On June 7, 2021, the Company announced that the Notice of an Intention it filed to make a Normal Course Issuer Bid (“NCIB”) was approved by the Exchange. Under the NCIB, the Company may acquire up to an aggregate of 2,590,389 common shares, representing 5% of the issued and outstanding shares of the Company as at June 3, 2021, for a one-year period from June 11, 2021 to June 10, 2022 or earlier should the Company complete its repurchases prior to such date. 
• The board of directors of the Company (the “Board”) believes that the recent market prices of the Company’s common shares (the “Shares”) do not properly reflect the underlying value of such Shares. As a result, depending upon future price movements and other factors, the Board believes that the purchase of the Shares would be a desirable use of corporate funds in the best interests of the Company and its shareholders.  No shares were purchased in conjunction with the NCIB during the six months ended June 30, 2021.  After June 30, 2021, the Company has purchased 15,500 common shares at an average trade price of $1.327 per share in conjunction with the NCIB approved by the Exchange on June 7, 2021. The 15,500 common shares purchased under the NCIB have been subsequently cancelled. 

Outlook: 

Wishpond is on track to achieve strong revenue growth in Q3-2021 driven by increased capacity in the Company’s sales team, positive contribution from its acquisitions and new product related revenues. The investments made in the first half of the year in expanding Wishpond’s sales and product development teams are already beginning to have a beneficial effect on the Company’s financial performance.  As such the Company expects to return to positive EBITDA in the second half of the year.  In addition, Wishpond has developed a robust pipeline of potential acquisition opportunities that could add revenue and EBITDA growth as well as expand the Company’s product and market capabilities.  

“We have a strong balance sheet to execute on the desirable acquisition opportunities in front of us,” said Juan Leal, Wishpond’s Chief Financial Officer.  “The Invigo and PersistIQ acquisitions have proven to be accretive to Wishpond’s financial profile and we are committed to following a similar disciplined acquisition and capital allocation plan to maximize shareholder value when making new acquisitions.” 

Selected Financial Highlights: 

The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond’s annual consolidated financial statements, including the notes thereto, and MD&A for the three and six months ended June 30, 2021 and June 30, 2020, copies of which can be found under Wishpond’s profile on SEDAR at www.sedar.com.

Reconciliation to Adjusted EBITDA

Footnotes:

• EBITDA, EBITDA margin, adjusted EBITDA, monthly recurring revenue, annualized run rate, gross profit and gross margin are not financial measures recognized by generally accepted accounting principles (“GAAP“), do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other entities. See “Cautionary Statements – Non-GAAP Financial Measures“.

On Behalf of the Board of Wishpond 

“Ali Tajskandar”

Chairman and Chief Executive Officer

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 3,000 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.

Cautionary Statements – Non-GAAP Financial Measures

In this press release, Wishpond has used the following terms (“Non-GAAP Financial Measures”) that are not defined by International Financial Reporting Standards (“IFRS”), but are used by management to evaluate the performance of Wishpond and its business: earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), gross profit and gross margin. These measures may also be used by investors, financial institutions and credit rating agencies to assess Wishpond’s performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable GAAP financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. [See the disclosure under the heading “Non-GAAP Financial Measures” in Wishpond’s most recent Management’s Discussion and Analysis (“MD&A”) for a discussion of Non-GAAP Financial Measures and certain reconciliations to GAAP financial measures.] The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:

• Gross profit and Gross margin: 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.

• EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA should not be construed as alternatives to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of Wishpond’s performance. 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.

• EBITDA margins: EBITDA margin is a profitability ratio that measures earnings before interest, taxes, depreciation, and amortization, as a percentage of total revenue. 

• Monthly recurring revenue: Normalized measure of predictable monthly revenue. 

Forward-Looking Statements

Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements“). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, expectations, beliefs, plans, future operations, origination of additional targets in which the Company may hold an interest and acquisition opportunities for the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as “anticipate”, “plan”, “continue”, “estimate”, “intend”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targets”, “projects”, “is designed to”, “strategy”, “should”, “believe”, “contemplate” and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statements have 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 continuous disclosure materials of the Company which are available under the Company’s profile on SEDAR at www.sedar.com. The forward-looking statements 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 statements, 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.

For further information: 

Pardeep S. Sangha, 

Investor Relations, Wishpond Technologies Ltd. Email: investor@wishpond.com Phone: 604-572-6392