ProntoForms Corporation Announces Annual and Q4 2014 Results

OTTAWA, ON - (March 27, 2015)

Highlights:

• FY14 total revenue of $6,277,250, an increase of 44% over 2013
• FY14 recurring revenue of $4,953,633, an increase of 45% over 2013
• Q414 recurring revenue of $1,407,834, representing 11% sequential growth over Q3 2014
• AT&T Mobile Forms, based on ProntoForms platform, launched through AT&T

ProntoForms^® Corporation (TSX VENTURE : PFM) ("ProntoForms" or "the Company"), a mobile data solutions company today announced results for its fourth quarter and its fiscal year ended December 31, 2014. All amounts are stated in Canadian dollars unless otherwise noted.

Alvaro Pombo, Chief Executive Officer, ProntoForms, said, "The focus of our business continues to be the building of a recurring revenue base and I am pleased with our ongoing growth in this area. 2014 total and recurring revenue increased by approximately 45% over 2013 and the Company recorded an 11% sequential increase for the 2014 fourth quarter over previous 2014 third quarter. While recurring revenue does not provide the immediate revenue and profitability impact of perpetual licenses, we believe it provides more value through significant and predictable revenue and cash flows for future periods. We have made a decision to increase investment in sales to have a positive impact on recurring revenue growth in future periods."

Mr. Pombo added, "In 2014 AT&T introduced AT&T Mobile Forms, a new private labelled product based on our ProntoForms platform. In Q4 we started to see the results from adding a 'standard' offering through our largest partner in addition to our strong 'professional' offering. We have a solid framework for business growth and we are encouraged by the continuing flow of opportunities we see. We recently added Chip Salyards, VP of Global Sales, to enable the scaling of sales operations and we are continuing to invest to take advantage of the growing business opportunities."

Revenue for the year ended December 31, 2014 was $6,277,250 compared to $4,363,027 for the year ended December 31, 2013 representing an increase of 44%. Revenue details are as follows:

Recurring revenue for the year ended December 31, 2014 was $4,953,633 compared to $3,418,819 in 2013 representing an increase of 45%.

In 2014, the Company launched a "standard" version of its product which sells for approximately half the price of the "professional" version. Revenue of $80,020 was realized on this new product in 2014 and was included in recurring revenue above.

Professional and other services revenue was $1,323,617 in 2014 compared to $944,208 in 2013 representing an increase of 40%.

The Company had a loss from operations of $1,188,120 in 2014 compared to a loss from operations in 2013 of $859,882. The Company had a non-GAAP loss from operations (see Non-GAAP Measures below) of $774,569 in 2014 compared to a non-GAP loss from operations in 2013 of $799,345.

The Company had a 2014 net loss of $1,349,961 compared to a net loss in 2013 of $361,288. In 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 net loss of $1,236,358 for the year ended December 31, 2013 compared to a net loss of $1,349,961 for the year ended December 31, 2014.

The Non-GAAP loss (see Non-GAAP Measures below) for the year ended December 31, 2014 was $696,858 compared to Non-GAAP Net Income of $71,365 for 2013. The Non-GAAP loss excluding one-time items in 2013 identified above would have been $803,705.

Operating Results for the Three Months Ended December 31, 2014

Total revenue for the fourth quarter of 2014 of $1,621,826 represented a decrease of approximately 5% from the 2014 third quarter and 19% growth over the comparable fourth quarter of 2013. Professional and other services revenue can fluctuate from quarter to quarter and this caused a small decrease in total revenue in the 2014 fourth quarter. Revenue details are as follows:

Recurring revenue of $1,407,834 grew by 11% from the third quarter of 2014 and by 40% from the comparable fourth quarter of 2013.

Revenue of $71,524 was realized for the new "standard" product included in the 2014 fourth quarter recurring revenue above.

Other services revenue was $213,992 for the fourth quarter of 2014 compared to $427,668 in the third quarter of 2014 and $360,097 for the comparable fourth quarter in 2013. The 2014 fourth quarter other fees revenue included approximately $178,000 from large contracts with large customers including major operators and smartphone vendors while the Q32014 other fees revenue included $380,000 and the Q42013 other fees revenue included approximately $280,000 from this same group. Revenue from these larger contracts is subject to variability from quarter to quarter based on the availability of contracts from customers and availability of resources to perform the work due to competing internal product development and/or marketing objectives.

Loss from operations was $672,185 for the quarter ended December 31, 2014 up from $64,392 for the quarter ended December 31, 2013 representing an increase in operating loss of $607,392. Non-GAAP operating loss (see Non-GAAP Measures below) was $482,433 for the quarter ended December 31, 2014 compared to $48,429 for the same quarter in 2013.

The Company had a net loss of $683,379 for the quarter ended December 31, 2014 compared to a net loss of $303,112 for the quarter ended December 31, 2013. Non-GAAP loss (see Non-GAAP Measures below) for the quarter ended December 31, 2014 was $372,111 compared to $37,321 for the same quarter in 2013.

The increase in operating loss can be attributed to 1) a conscious approach to increase expenses to add more operational and sales productivity and 2) an increase in share-based compensation to $189,752 in the fourth quarter of 2014 compared to only $15,963 in the fourth quarter 2013.

As at December 31, 2014, the Company had cash and cash equivalents of $2,305,625 and net working capital of $2,894,872.

Non-GAAP Financial Measures

The Company uses "Non-GAAP Loss from Operations" as a non-GAAP financial measure but it is not a defined term under IFRS to assess performance. Non-GAAP Loss from Operations is calculated as follows:

Management use this information to measure operating results in relation to available working capital and cash and believes that this measure provides useful supplemental information to investors and is computed on a consistent basis for each reporting period.

The Company uses "Non-GAAP Net Loss" as a non-GAAP financial measure within the MD&A but it is not a defined term under IFRS to assess performance. Non-GAAP Loss from Operations is calculated as follows:

Management use this information to measure financial results in relation to available working capital and cash and believes that this measure provides useful supplemental information to investors and is computed on a consistent basis for each reporting period.

Option Grant

Options to purchase up to 855,000 common shares of the Company were approved for grant by the Board of Directors, including 800,000 to certain directors and officers. The options were approved for grant to be effective as of March 31, 2015 pursuant to the terms of the Company's stock option plan and are exercisable for a period of five years from the effective date at an exercise price to the closing price of the common shares on March 30, 2015. Stock option grants are subject to necessary regulatory approvals.

About ProntoForms® and ProntoForms Corporation

ProntoForms is a mobile workflow solution used by over 3,000 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 management portal to manage teams and data flow, and provides the ability to export or connect data to the back office or to popular cloud services. The scalable solution is deployed by any size business, in any industry, to speed up business processes, raise productivity and achieve operational excellence. ProntoForms is a 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.