ProntoForms Reports Q3 2018 Financial Results
Continues Momentum with 6% Sequential Growth in Recurring Revenue
OTTAWA, Ont. - November 8, 2018 - ProntoForms Corporation (TSXV: PFM), the global leader in smart mobile forms for enterprise, today announced its third quarter (Q3) financial results for the three and nine months ended September 30, 2018.
NOTE THE COMPANY COMMENCED REPORTING IN US DOLLARS JANUARY 1, 2018.
"In the 3rd quarter, we recorded 24% year over year growth in recurring revenue and 6% over Q2. Our rebounding growth in recurring revenue is a result of strong sales results combined with reduced overall churn and allowed us to make continued progress in reducing our operating loss,” said Alvaro Pombo, CEO of ProntoForms. “We also had higher revenue and margins in our professional services practice, as we worked on new enterprise deployments of ProntoForms.”
“The need for our platform continues to grow in large enterprises. IT and the business process owners want low-code solutions that gives them the agility to mobilize field processes with true enterprise grade management, scalability, security, and cloud integrations. Our strategy continues to be focused at engaging larger enterprise accounts, which typically provide longer committed contracts and future expansion opportunities. Our Annual Recurring Revenue (“ARR”) base now includes 14 customers that contribute more than $100,000 of ARR each, representing 24% of the base, up significantly from last year. In addition, we are driving new business with key channel partners that are bringing enterprise opportunities."
Financial Highlights - 2018 Third Quarter - Presented in US dollars
- Recurring revenue in Q3 2018 increased by 24% to $2,780,814, compared to $2,246,331 in Q3 2017, and increased by 6% compared to $2,624,680 in Q2 2018
- Recurring revenue consisted of non-operator channel recurring revenue of $2,085,501 (40% growth vs. Q3 2017 and 10% growth vs. Q2 2018) and operator channel recurring revenue of $695,313 (9% decrease vs. Q3 2017 and a 5% decrease vs Q2 2018)
- Total revenue for Q3 2018 increased by 30% to $3,177,846 compared to $2,437,727 in Q3 2017, and increased by 9% compared to $2,906,166, in Q2 2018
- Gross margin for Q3 2018 was 81% of total revenue compared to 81% in Q3 2017 and 83% in Q2 2018. Gross margin on recurring revenue was 88% for Q3 2018 compared to 90% for Q3 2017 and 88% in Q2 2018
- Operating loss for Q3 2018 was $510,975, down from a loss of $820,856 in Q3 2017, and down from a loss of $627,069 in Q2 2018
- Net loss for Q3 2018 was $642,066, down from a net loss of $1,038,421 in Q3 2017, and down from a net loss of $673,814 in Q2 2018
- Comprehensive loss for Q3 2018 was $620,996, down from a comprehensive loss of $903,340 in Q3 2017, and $707,809 in Q2 2018
- As at September 30, 2018, the Company’s cash and net working capital balances were $3,854,543 and $2,666,192 respectively
Recent Operational Highlights
- Q3 key enterprise customer progress includes:
- Global airline committed to deploy ProntoForms to improve operations
- Global 500 manufacturer expands ProntoForms deployment into Europe
- Multi-national medical device company surpasses $400k of purchased professional services in 2018
- $1B+ oil & gas exploration company adds ProntoForms to improve operations and safety
- ProntoForms named Market Leader in Field Service Management Software by Featured Customers:
About ProntoForms Corporation
ProntoForms is a leading provider of smart mobile forms for enterprise. The Company's solution is used to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to corporate systems of record.
The Company’s 100,000+ subscribers harness the intuitive, secure, and scalable solution to increase productivity, improve quality of service, and mitigate risks. The Company is based in Ottawa, Canada, and trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.
Chief Executive Officer
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Chief Financial Officer