ProntoForms Corporation Announces Q2 2014 Results
OTTAWA, Canada - August 21, 2014 - ProntoForms® Corporation (TSXV:PFM) (“ProntoForms” or “the Company”), a mobile data solutions company, today announced results for its second quarter ended June 30, 2014. All amounts are stated in Canadian dollars unless otherwise noted.
- Q2 2014 total revenue of $1,596,236, an increase of 67% over Q2 2013
- Q2 2014 recurring revenue of $1,185,674, an increase of 55% over Q2 2013
“Our total revenue grew by 17% over the previous quarter and 67% over the second quarter of 2013. The focus of our business is building a global recurring revenue base and we are pleased that our recurring revenue grew 9% and 55% against those same comparative periods. We also had good growth with our professional and other services revenue with delivery on some larger partner and customer contracts,” said Alvaro Pombo, Chief Executive Officer, ProntoForms.
Mr. Pombo added, “Enterprise Mobility is reaching a new stage and organizations are positioning to capitalize on the opportunity. Working closely with us, AT&T has recently introduced to the market AT&T Mobile Forms, a new set of private-labelled products based on our proven ProntoForms platform. We are adding to our offering plus increasing our investment in customer revenue acquisition and support of new growth opportunities.”
Operating Results for the Three and Six Months Ended June 30, 2014
Total revenue for the second quarter of 2014 of $1,596,236 represented an increase of 67% over the comparable 2013 second quarter and an increase of 17% from the first quarter of 2014.
Revenue details are as follows:
Recurring revenue of $1,185,674 grew by 9% from the first quarter of 2014 and by 55% from the comparable second quarter of 2013. Within recurring revenue, subscription revenue grew 9% from the first quarter of 2014 and by 56% from the comparable second quarter of 2013. Subscription revenue from operator channels increased 3% over the 2014 first quarter and by 53% over the comparable 2013 second quarter.
Professional and other services revenue of $410,562 grew by 51% from the first quarter of 2014 and by 119% from the comparable second quarter of 2013. The 2014 second quarter professional and other services revenue included approximately $376,000 from large contracts with major operators and mobile device vendors while the Q12014 professional and other services revenue included $235,000 and the Q22013 professional and other services revenue included approximately $141,000 from this same group. Revenue from these larger contracts is recognized as the services are performed and is subject to variability due to the availability of contracts from customers and resources to perform the work.
Loss from operations was reduced to $52,510 and $176,566 respectively for the three and six months ended June 30, 2014 from $318,596 and $652,823 for the comparable three and six months ended June 30, 2013 representing an improvement of $266,086 (84%) and 476,257 (73%) respectively. The decreased operating loss in the first half of 2014 compared to 2013 relates primarily to the achievement of a 60% increase in revenue with only a 25% increase in operating expenses.
The Company had a net loss of $176,677 and $353,322 respectively for the three and six months ended June 30, 2014 compared to net income of $535,485 and $179,032 for the three and six months ended June 30, 2013. For the three and six months ended June 30, 2013, the Company had other income of $875,070 related to the sale of certain patents and a reduction in deferred revenue due to the reversal of the underlying obligation. Excluding the one-time other income items totaling $875,070, the Company would have presented a pro forma net loss of $339,585 and $696,038 for the three and six months ended June 30, 2013, reflecting a pro forma improvement of $162,908 (48%) and $342,716 (49%) respectively over the comparable three and six months ended June 30, 2013.
As at June 30, 2014, the Company had cash and cash equivalents of $3,396,086 and net working capital of $3,617,401.
About ProntoForms and ProntoForms Corporation (https://www.prontoforms.com)
ProntoForms is a mobile workflow solution used by over 2,500 business customers to collect, receive and submit data in the field. Available for smartphones and tablets, the ProntoForms solution incorporates a mobile device App, a Web portal to manage teams and data flow, and provides the ability to export or connect data to the back office, popular cloud services or other data destinations. ProntoForms is the Frost & Sullivan winner of the North American Customer Value Leadership Award for Mobile Forms.
ProntoForms Corporation, has a powerful and proprietary patent portfolio, from which the ProntoForms mobile App and Web reporting portal have been developed. The company trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly-owned subsidiary of ProntoForms Corporation.
Certain information in this press release may constitute forward-looking information. For example, statements about the Company's future growth or value 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 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. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. There are a number of risk factors that could cause future results to differ materially from those described herein, including but not limited to the following: (i) there can be no assurance that the Company will earn any profits in the future or that profitability, if achieved, will be sustained; (ii) if the Company is not able to achieve profitability, it will require additional equity or debt financing, and there can be no assurances that the Company will be able to obtain additional financial resources on favourable commercial terms or at all; (iii) the Company's quarterly revenues and operating results may fluctuate, which may harm its results of operations; (iv) the loss of business from a major customer, operator or other reseller could reduce the Company's sales and harm its business and prospects; (v) a portion of the Company's sales are through operators and other resellers, and an adverse change in the Company's relationship with any of such operators or other resellers may result in decreased sales; (vi) the market for software as a service is at a relatively early stage of development, and if it does not develop or develops more slowly than expected, the Company's business will be harmed; (vii) the Company faces competition from other software solution providers, which may reduce its market share or limit the prices it can charge for its software solutions; (viii) a global economic downturn or market volatility may adversely affect our business and/or our ability to complete new financings; (ix) the business of the Company may be harmed if it does not continue to penetrate markets; (x) the success of the business depends on the Company's ability to develop new products and enhance its existing products; (xi) the Company's growth depends in part on the success of its strategic relationships with third parties; (xii) the financial condition of third parties may adversely affect the Company; (xiii) the US dollar may fluctuate significantly compared to the Canadian dollar, causing reduced revenue and cash flow as most of our revenues are received in US dollars while most of our expenses are payable in Canadian dollars; (xiv) subscription services which produce the majority of the Company's revenue are hosted by a third party service for the Company and any interruption in service could harm its results of operations; (xv) the Company may be liable to its customers or third parties if it is unable to collect data or it otherwise loses data; (xvi) the Company may be liable for the handling of personal information; (xvii) intellectual property claims against the Company may be time consuming, costly to defend, and disruptive to the business; (xviii) the Company uses open source software in connection with its products which exposes it to uncertainty and potential liability; (xix) economic uncertainty and downturns in the software market may lead to decreases in the Company's revenue and margins; (xx) any significant changes in the technological paradigm utilized for building or delivering applications in Smartphone devices could harm the Company's business and prospects; and (xxi) if the Company loses any of its key personnel, its operations and business may suffer. Please see "Risk Factors Affecting Future Results" in the Company's annual management discussion and analysis dated March 12, 2014 found at www.sedar.com for a more complete discussion of these and other risks. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The references to pro forma revenue adjustments and related pro-forma revenue information contained in this press release represent a non-GAAP presentation of financial information. Please refer to the section entitled "Non-GAAP and Additional GAAP Measures" in ProntoForms' Summary Financial Information and Management's Discussion and Analysis of Results of Operations and Financial Condition for the second quarter of 2014 for more information about the purpose of using this non-GAAP financial measure and its limitations.