Wishpond Reports 38% Revenue Growth in Q1-2023
- Wishpond achieved revenue of $5.6 million in Q1-2023, representing a 38% year over year revenue growth driven primarily by the Company’s expanded sales team and new product introductions.
- The Company expects continued growth, greater profitability, and increased cash flows in the remaining three quarters of 2023.
Vancouver, BC – May 25, 2023 – 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 (the “Interim Financial Statements”) and management’s discussion and analysis (the “MD&A”) for Q1-2023, representing the three months ended March 31, 2023. 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, “We are very pleased with our first quarter results in which Wishpond achieved 38% annual revenue growth, primarily driven by the Company’s organic growth. In the first quarter we also launched our new Website Builder, which is powered by generative Artificial Intelligence (AI) technologies. The use of AI technologies is rapidly changing the digital marketing landscape and Wishpond is at the forefront of utilizing these new innovations to provide SMBs with new advantages against larger competitors. We are actively working on developing additional AI-powered marketing tools which we intend to launch in the coming quarters.”
Ali Tajskandar adds, “Given Wishpond’s clean balance sheet and the management team’s successful acquisition track record, we are once again looking at new opportunities and building our acquisition pipeline, leading to the recent acquisition of Essential Studio Manager (“ESM”). ESM marks the Company’s sixth acquisition; it brings more than 150 customers into the Wishpond family and it expands Wishpond’s award-winning ‘all-in-one’ sales and marketing technology platform with additional new business management and CRM functionality. Our outlook remains positive for 2023, with the launch of new AI-powered products, continued organic growth and potential for new acquisitions. We expect to see continued sales growth, positive Adjusted EBITDA(1), and positive cash flows for this year. ”
First Quarter 2023 Financial Highlights:
- Wishpond achieved quarterly revenue of $5,623,817 during Q1-2023, compared to $4,078,317 generated in the same period of 2022 (Q1-2022), an increase of 38%. Revenue growth was primarily driven by organic growth resulting from stronger product demand, an increase in sales and marketing activities, and new product introductions.
- Wishpond achieved Gross Profit(1) of $3,689,338 in Q1-2023 (Q1-2022: $2,536,195), representing a 45% increase from Q1-2022, driven by an increase in overall revenue.
- Wishpond achieved a Gross Margin(1) percentage of 66% during Q1-2023 (Q1-2022: 62%).
- During Q1-2023, Wishpond achieved positive Adjusted EBITDA(1) of $209,073 (Q1-2022: negative $440,519), an increase of 147%.
- As at March 31, 2023, Wishpond had $1,934,347 in cash and no debt (December 31, 2022: cash of $2,692,644 and no debt). The reduction in cash balances was caused in part by earnout payments for businesses acquired in 2022, investment in the business and changes in working capital.
First Quarter 2023 Business Highlights:
- On February 28, 2023, the Company announced that Gartner Digital Markets, one of the world’s leading platforms for business software reviews and research, had presented Wishpond with five industry awards recognizing Wishpond’s popularity and performance in the marketing technology space. Wishpond received awards and recognitions for 2022 from GetApp, Capterra and Software Advice, which are operated by Gartner Digital Markets.
- On March 9, 2023, the Company announced the launch of Propel IQ, the Company’s next generation marketing technology platform. Propel IQ is the most extensive solution offered by Wishpond to date, combining Wishpond’s award-winning software with its recent acquisitions to create one connected platform. In addition to Wishpond’s lead generation, email marketing, automation, and marketing technology solutions, Propel IQ includes SMS marketing from Winback, referral marketing from Viral Loops, and sales engagement software from PersistIQ, all integrated together into one platform. With Propel IQ, businesses can manage the complete customer life cycle, on one platform, eliminating the need to invest in additional marketing and sales tools.
- On March 30, 2023, the Company announced the launch of its new Website Builder, powered by generative AI technologies. With the Website Builder, small-to-medium sized businesses can launch a website within minutes using AI technologies; positioning Wishpond to disrupt the website building process. Wishpond’s AI-powered Website Builder is now available to customers using Wishpond’s next generation Propel IQ platform.
Events Subsequent to March 31, 2023:
- On May 3, 2023, the Company announced that it completed the acquisition of certain assets of Essential Studio Manager LLC (“ESM”). ESM is a provider of business management software, including invoicing and customer relationship management solutions for small businesses in the services industry. ESM is expected to be integrated with Wishpond’s Propel IQ platform this year. Wishpond customers using Propel IQ’s sales and marketing platform will then be able to provide contract signing, invoicing and access other CRM functionality from one single platform.
Management continues to have a positive outlook for Wishpond in 2023. The Company has not felt material negative impacts due to interest rate and inflationary trends, supply chain, or other macroeconomic effects. Wishpond’s performance is highly positive across all its businesses, with robust demand for its products. Management is optimistic about the Company’s growth prospects, and is pleased to share Wishpond’s key goals for 2023:
- Increase Monthly Recurring Revenue through both organic and inorganic means.
- Scale the size of the sales team to help achieve the Company’s organic growth profile.
- Remain Adjusted EBITDA positive by balancing aggressive growth with increased positive cash flow from operations.
- Invest in Research and Development so that the Company can continue to launch new AI powered products and services to increase long-term value for its clients.
- Leverage the Propel IQ platform to further accelerate the Company’s growth, improve margins, and increase customer retention and long-term customer value.
Wishpond currently expects to achieve record revenue and cash flows in 2023, driven by organic growth from ramping up sales of the Company’s new Propel IQ bundled product offerings, increasing the size of its sales team and new AI-powered product introductions. Wishpond has a clean balance sheet and expects to continue to fund the growth of its sales team and new product launches from cash flows generated from operations, without having to raise any additional equity or debt capital.
Given the Company’s strong balance sheet and management’s successful acquisition track record, the Company may choose to accelerate its growth in the form of future acquisitions. Wishpond has demonstrated a disciplined capital allocation strategy, having successfully completed and integrated six acquisitions since the Company’s public listing in December of 2020. Management may also choose to reinvest cash flows generated by the Company to accelerate organic growth or in the form of share repurchases.
David Pais, Wishpond’s Chief Financial Officer commented, “Our cost optimization efforts over the past year continue to contribute to the Company’s positive Adjusted EBITDA profile. Wishpond remains in an extremely strong financial position with a clean balance sheet, and growing profitability. Based on the Company’s performance in Q1 and growth momentum, we expect to continue delivering strong results in 2023.”
Webinar Conference Call Details:
As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q1-2023 financial results today at 12:00 PM (PST) / 1:00 PM (EST).
To register for the webinar, please visit the following URL: https://bit.ly/WISH_Q1_2023
Date: May 25, 2023
Time: 12:00 pm PT (3:00 pm ET)
Dial-in: +1 778 907 2071 (Vancouver local)
+1 647 374 4685 (Toronto local)
Meeting ID #: 898 1895 0563
Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond’s Interim Financial Statements and MD&A.
Three months ended
March 31, 2023 $
Three months ended
March 31, 2022 $
Cash – end of the period
Reconciliation to Adjusted EBITDA
Three months ended
March 31, 2023 $
Three months ended
March 31, 2022 $
Loss before income taxes
Depreciation and amortization
Remeasurement of contingent consideration liability
Stock based compensation expense
- EBITDA, Adjusted EBITDA, gross profit and gross margin are not financial measures recognized by International Financial Reporting Standards (“IFRS”), do not have any standardized meaning prescribed by IFRS 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
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 is a leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company’s Propel IQ platform offers an “all-in-one” marketing suite that provides companies with marketing, promotion, lead generation, ad management, referral marketing, sales conversion and outbound sales automation capabilities on one integrated platform. Wishpond replaces disparate marketing solutions with an easy-to-use product, for a fraction of the cost. Wishpond serves over 4,000 customers who are primarily small and medium-sized businesses (SMBs) in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions including an artificial intelligence (AI) powered website builder and continues to add new features and applications. The Company employs a Software-as-a-Service (SaaS) business model where most of 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”, and on the OTCQX Best Market under the ticker “WPNDF”. For further information, visit: www.wishpond.com.
Cautionary Statements, Summary Information
Information presented in this press release may be only a summary of all available information and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and MD&A, and to not rely only on the information presented in this press release. In the event of conflict between the provisions of this press release on the one hand, and the Interim Financial Statements and MD&A on the other hand, the information in the Interim Financial Statements and MD&A shall govern.
Non-GAAP Financial Measures
In this press release, Wishpond has used the following terms (“Non-GAAP Financial Measures”) that are not defined by IFRS, but are used by management to evaluate the performance of Wishpond and its business: adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), monthly recurring revenue, 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 IFRS 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 IFRS 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 “Additional GAAP and Non-GAAP Measures” in Wishpond’s 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 as a 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.
- Adjusted EBITDA: Adjusted EBITDA should not be construed as an alternative to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Company’s performance. The Company defines “Adjusted EBITDA” as Loss before income taxes less interest, depreciation and amortization, remeasurement of contingent consideration liability, filing fees, credit facility setup fees, earn-out remuneration, foreign currency losses (gains), acquisition related expenses, net other expenditures (income), reverse takeover listing expense, 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.
- Monthly recurring revenue: The Company uses monthly recurring revenue, or MRR, as a directional indicator of subscription revenue going forward assuming customers maintain their subscription plan the following month. MRR is the total of all monthly subscription plan fees paid by customers in effect on the last day of that period. If customers pay for more than one month upfront, the amount is divided by the number of months in the subscription period. Discounts are deducted prior to the calculation and one-time payments and metered based charges are excluded.
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, all information contained under the heading “Outlook” herein, references to expected results from future operations, references to the growth of the Company’s product portfolio, including whether additional AI powered products or features may be developed in the future, and the functionality and timing of such products, financial results or operational activities that may be undertaken by the Company, the results of the Company’s cost-savings, research and development and other initiatives, any future acquisitions, share purchases or other activities done to grow the Company both organically or inorganically, expectations, beliefs, plans, future operations, origination of additional targets in which the Company may hold an interest and acquisition opportunities for the Company, the impact of broader economic factors including inflation and other general economic risks on 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 “expect”, “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 and are based on, among other things, the expectations and analysis of current market trends and opportunities of management of the Company, such forward-looking statements 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, economic uncertainty and instability as a result of the ongoing inflation and supply chain issues, higher interest rate climate, tightening of credit availability and recessionary risks, pandemic related risks, Russia-Ukraine war, instability in global commodity and securities markets, shifts in consumer and institutional spending and marketing strategies, risks related to data breaches and privacy, the changing global market and competition for the products and services supplied by the Company, and the additional 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: email@example.com Phone: 604-572-6392