ProntoForms Reports Q2 2019 Financial Results
Achieves 26% growth in recurring revenue over Q2 2018
OTTAWA, Ont. – August 22, 2019 – ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise announced today its second quarter (Q2) financial results for the period ended June 30, 2019.
“We are pleased to report that our TTM recurring revenue continues to accelerate; growing to over 25% this quarter. Quarterly recurring revenue continued to grow well in Q2 with a 5% increase over Q1 2019. Our Annual Recurring Revenue (ARR) base grew 26% year-to-year reaching $13.71 million at June 30, 2019. Our strongest area of growth is enterprise expansion; accounts with more than $100K of ARR now represent 30% of our base, up from 23% a year ago,” said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms.
Mr. Pombo continued, “We entered 2019 with a focused plan to expand our enterprise presence. As part of this strategy, we continue building our enterprise go-to-market capabilities with additional investment in product and sales expertise. Recently, a leading global IT analyst firm profiled us as a field-focused leader in the growing LCAP (low-code application platform) market segment. This multi-billion dollar market is comprised of platforms that allow IT and line of business owners to scale digital transformation by empowering non-developers to easily build apps. Recognition in this report further validates our approach of enabling enterprises to scale their field-centric automation with the use of our powerful and intuitive solution.”
Financial Highlights – 2019 Second Quarter
- Recurring revenue in Q2 2019 increased by 26% to $3.30 million compared to $2.62 million in Q2 2018, and by 5% compared to $3.16 million in Q1 2019.
- Total revenue for Q2 2019 increased by 26% to $3.68 million compared to $2.91 million in Q2 2018, and by 5% compared to $3.52 million in Q1 2019.
- Gross margin for Q2 2019 was 84% of total revenue compared to 83% in Q2 2018 and 81% in Q1 2019. Gross margin on recurring revenue was 90% for Q2 2019 compared to 88% in Q2 2018 and 89% in Q1 2019.
- Operating loss for Q2 2019 was $0.42 million, down from a loss of $0.63 million in Q2 2018 and up from a loss of $0.40 million in Q1 2019.
- Net loss for Q2 2019 was $0.53 million, down from a net loss of $0.67 million in Q2 2018 and flat compared to a net loss of $0.53 million in Q1 2019.
- As of June 30, 2019, ProntoForms’ cash and net working capital balances were $5.75 million and $3.79 million respectively, compared to $3.33 million and $2.28 million as at December 31, 2018.
Q2 2019 Operational Highlights
- We were recently recognized in an August 2019 LCAP Solution report produced by a prominent global IT analyst firm. We were one of eighteen leading solutions featured from a group of 200 considered companies and were the only field-focused LCAP solution in the report. The report also highlighted that by 2024 the majority of enterprises will use at least four low code platforms to support custom application needs.
- The company hosted its first annual user conference: “EMPOWER’19”. The two-day event provided enterprise customers the opportunity to learn and exchange with peers, gain a deeper understanding of new solution capabilities, and view the platform roadmap.
- As part of the company’s enterprise product development plan, it achieved Service Organization Control (SOC) 2 Type 2 Certification.
- Notable new customers and expansion progress from enterprise customers, including:
- A global medical device manufacturer continued its contractual expansion with 2,700 additional subscribers.
- One of America’s top five utility companies added over 600 new subscribers to improve its field operations and regulatory compliance reporting.
- A global manufacturer of electronics and HVAC systems continued expanding its deployment, adding 500 new subscribers.
- A European-based health sciences medical device manufacturer launched a new deployment of over 175 subscribers to manage the delivery, set-up, and maintenance of sophisticated medical devices.
- A leading global video streaming service company launched a new account to inspect facilities across the globe.
Q2 Conference Call Date:
Date: August 22nd, 2019
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 32792964
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 051268 #
Expiry Date: Thursday, August 29th, 2019 11:59 PM
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Chief Executive Officer
613.599.8288 ext. 1111
Virtus Advisory Group Inc.