ProntoForms Reports Annual and Q4 2019 Financial Results
Achieves 27% Annual growth in recurring revenue and Fourth Quarter growth of 8% over Q3 2019
OTTAWA, March 12, 2020 -- ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its annual and fourth quarter (Q4) financial results for the periods ended December 31, 2019.
"We are pleased to report that our Annual Recurring Revenue (ARR) base grew 27% year-to-year to reach $15.74 million by December 31, 2019. Our accelerating growth continues to be driven by enterprise expansion; accounts with more than $100K of ARR now represent 36% of our base, up from 26% a year ago," said Alvaro Pombo, Chief Executive Officer and Founder of ProntoForms. "Also in 2019, our balanced sheet was strengthened with a cash infusion from warrants, showing support from our shareholders. We plan to continue re-investing our growth to compound that into new growth in the business."
Mr. Pombo continued, "Powerful macrotrends are driving interest in our platform. These trends include workforce and talent shortages for field technicians and IT, heightened customer expectations related to service transparency, increased competition, and technology rapidly changing the maintenance and service delivery landscape. We are well positioned in the enterprise market because we help companies overcome these challenges through the quick development of customizable apps that empower field service delivery, improved data workflows and enhanced tech stacks with nimble mobile capabilities."
Financial Highlights – 2019 Year
- Recurring revenue for the year ended December 31, 2019 increased by 27% to $13.74 million compared to $10.85 million for 2018.
- Total revenue for the year ended December 31, 2019 increased by 24% to $15.10 million compared to $12.13 million for 2018.
- Gross margin for 2019 was $12,558,762 or 83% of total revenue compared to $9,980,949 (82%) in 2018. Gross margin on recurring revenue was 90% for 2019 compared to 89% for 2018.
- Loss from operations was $1.86 million, for the year ended December 31, 2019 down from $2.38 million for 2018.
- Net loss for the year ended December 31, 2019 was $2.27 million, down from a net loss of $2.50 million in 2018.
- As at December 31, 2019, the Company's cash and net working capital balances were $5.70 million and $3.37 million respectively.
Financial Highlights – 2019 Fourth Quarter
- Recurring revenue in Q4 2019 increased by 28% to $3.77 million compared to $2.95 million in Q4 2018, and increased by 8% compared to $3.50 million in Q3 2019.
- Total revenue for Q4 2019 increased by 23% to $4.07 million compared to $3.30 million in Q4 2018, and increased by 6% compared to $3.84 million, in Q3 2019.
- Gross margin for Q4 2019 was 84% of total revenue compared to 83% in Q4 2018 and 84% in Q3 2019. Gross margin on recurring revenue was 90% for Q4 2019 compared to 89% for Q4 2018 and 90% in Q3 2019.
- Loss from operations for Q4 2019 was $0.58 million, up from a loss of $0.47 million in Q4 2018 and up from a loss of $0.46 million in Q3 2019.
- Net loss for Q4 2019 was $0.78 million, up from a net loss of $0.41 million in Q4 2018 and up from a net loss of $0.42 million in Q3 2019.
2019 Operational Highlights
- Notable new customers and expansion progress from enterprise customers, including:
- A major utilities company that operates in the United States signed on with ProntoForms with a total contract value of $314,000.
- A Canadian energy resources company with more than $100M in annual revenue signed with ProntoForms to utilize the platform to improve field operations and compliance.
- A Global 500 healthcare enterprise expanded its use of the platform and increased its total subscriber count to more than 6,400.
- One of the largest elevator companies in the world launched a new deployment that grew its subscriber count to 12,000.
- ProntoForms earned a 4.7 out of 5 overall rating from enterprise customers in a Gartner Peer Insights "Voice of the Customer" report published December 12, 2019. The same report showed a 95% of customers "willingness to recommend."
- ProntoForms launched Customer Readiness and Customer Satisfaction forms. The new feature improves the customer experience from pre to post site visit—all without requiring those on the receiving end to have a ProntoForms subscription.
Q4 Conference Call Date:
Date: Thursday, March 12th, 2020
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 87042374
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 042374 #
Expiry Date: Thursday, March 19th, 2020 at 11:59pm EST
Chief Executive Officer
613.599.8288 ext. 1111
Virtus Advisory Group Inc.