ProntoForms Reports Q2 2020 Financial Results
Records 18% growth in recurring revenue over Q2 2019
OTTAWA, August 20, 2020 -- 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, 2020.
“We acknowledge our customers’ continued resilience and patience during these challenging times. When the COVID-19 pandemic started, we successfully adapted our operations with new home and virtual work environments,” said Alvaro Pombo, Founder and Chief Executive Officer of ProntoForms. “We saw a slight decrease in our revenue base in March, April, and May but ended the quarter with a strong June resulting in the net growth of our Annual Recurring Revenue (ARR) Base of 2.5% over the previous quarter. We recorded positive income in the quarter by accessing COVID-related government assistance and managing expenses. We ended the quarter in a strong financial position with $5.5 million in cash.”
Mr. Pombo continued, “Recurring revenue decreased by 1% sequentially following 4% sequential growth in Q1 2020. Despite elevated SMB churn early on, our ARR Base increased to $16.14 million at June 30, 2020 as several deals were finalized towards the end of the quarter. We continued strong enterprise expansion, and customers with more than $100,000 of ARR each represented 38% of that base—up from 30% a year ago.”
Mr. Pombo continued, “Leading IT analysts see continued investment in low-code applications as a long-term business trend. Additionally, they note that the pandemic is elevating custom low-code apps to the CIO office as key solutions to accelerate enterprise digital transformation strategies. We continue to invest in and release cutting edge capabilities in our platform to bolster existing field operation tech stacks and empower field technicians. We see the ongoing expansion of use cases and subscribers of our enterprise base as an indicator of the quantifiable value our platform provides to customers.”
Financial Highlights – 2020 Second Quarter
- Recurring revenue in Q2 2020 increased by 18% to $3.89 million compared to $3.30 million in Q2 2019 and decreased by 1% compared to $3.94 million in Q1 2020.
- Total revenue for Q2 2020 increased by 13% to $4.16 million compared to $3.68 million in Q2 2019 and decreased by 2% compared to $4.24 million in Q1 2020.
- Gross margin for Q2 2020 was 88% of total revenue compared to 84% in Q2 2019 and 85% in Q1 2020. Gross margin on recurring revenue was 93% for Q2 2020 compared to 90% in Q2 2019 and 92% in Q1 2020.
- Operating income for Q2 2020 was $0.35 million, up from an operating loss of $0.42 million in Q2 2019 and $0.24 million in Q1 2020. Gross margins and operating income were positively impacted by government assistance of $0.6 million that was earned in the second quarter.
- Net income for Q2 2020 was $0.21 million, up from a net loss of $0.53 million in Q2 2019 and $0.17 million in Q1 2020.
- As at June 30, 2020, ProntoForms' cash and net working capital balances were $5.52 million and $3.59 million respectively, compared to $5.70 million and $3.37 million as at December 31, 2019.
Recent Operational Highlights
- Notable new and expansion progress from enterprise customers, including:
- A Fortune 500 medical equipment manufacturer signed a $580K, forty-month commitment to expand the use of ProntoForms to improve equipment uptime, increase service reliability, and meet meticulous compliance requirements.
- A top ten global medical device manufacturer signed a $415K professional services agreement with ProntoForms to develop expanded capabilities that would enable multiple technicians to collaborate over extended periods of time on complex medical equipment installations.
- A global brand manufacturer grew its ProntoForms deployment from 8K to 12K+ subscribers. The subscriber addition encompasses all North American-based employees working in corporate offices and customer locations as a key technology component of its re-opening strategy to improve the safety of employees and customers.
- A Global 500, European-based logistics company has expanded its ProntoForms subscribers to support outsourced logistic services.
- A leading American food manufacturer and processing company signed a $80K agreement and rapidly deployed a ProntoForms solution. The solution helps ensure employee safety and uninterrupted operations across multiple plants.
- A global brand manufacturer of facility equipment expanded its commitment to ProntoForms with an agreement of $132K ARR, bringing its total commitment to over $1.1M of ARR. The company uses the platform to create custom applications to improve the full cycle of equipment installation, maintenance, and services.
- ProntoForms, with ServiceMax, hosted an invitation-only digital transformation Zoom event for 25 top medical device manufacturers. Founder and CEO, Alvaro Pombo, was moderator of a digital transformation panel discussion featuring two of world's top ten medical manufacturing brands—Philips Healthcare and Medtronic—on how custom low-code applications are key part of their digital strategy supporting the field engineers.
Q1 Conference Call Date:
Date: Thursday, August 20th, 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: 47753649
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 753649 #
Expiry Date: Thursday, August 27th, 2020 at 11:59pm EST
About ProntoForms Corporation
ProntoForms is the global leader in field-focused low-code application platforms for enterprise. The Company's solution is used to create apps and forms to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to enterprise 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
613.599.8288 ext. 1111
Chief Financial Officer