ProntoForms Reports Annual and Q4 2020 Financial Results
Achieves 18% annual growth in recurring revenue and fourth quarter growth of 6% over Q3 2020
OTTAWA, March 11th, 2021 -- 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 period ended December 31, 2020.
“2020 was a challenging year for everyone, however, we saw resilience in our customers to adapt and continue to provide high-quality, safe service delivery in the field. Our business reflected the resilience of our customers and our employees,” said Alvaro Pombo, Founder and Chief Executive Officer of ProntoForms. “While we saw steady growth in our Annualized Recurring Revenue (“ARR”) base coming into 2020, our first quarter of 2020 showed roughly flat sequential growth due to increased churn—mainly in SMB—in the early stages of the pandemic. We saw improved growth in the second and third quarters as enterprise bookings improved. We then saw continued improvement in bookings in the fourth quarter, but this was offset by a decrease in our base of approximately 6% caused by a mutually agreed upon discontinuation of our AT&T reseller agreement. This isolated churn event meant our ARR base only increased by 1% in the fourth quarter but left us with a much stronger base of direct customers with term contracts that can continue to grow. We thank AT&T for their valued partnership over many years.”
Mr. Pombo continued, “We look forward to 2021 and we do so with clarity on our business strategy. We made great progress on our go-to-market framework by empowering frontline workers with powerful mobile solutions, focusing on key verticals where ProntoForms demonstrates rapid adoption, and tightening execution on new logo acquisition and existing customer expansion—including sales with our strong partners. As we prepare for the next level of growth, we do so with a strengthened balance sheet, a proven resilience, a tighter go to market, and a stronger than ever customer base to grow upon.”
Financial Highlights – 2020 Year
- Recurring revenue for the year-ended December 31, 2020 increased by 18% to $16.19 million compared to $13.74 million for 2019.
- Total revenue for the year-ended December 31, 2020 increased by 17% to $17.67 million compared to $15.10 million for 2019.
- Gross margin for 2020 was $15.03 million or 85% of total revenue compared to $12.56 million (83%) in 2019. Gross margin on recurring revenue was 92% for 2020 compared to 90% for 2019.
- Loss from operations was $0.96 million, for the year-ended December 31, 2020 down from $1.86 million for 2019.
- Net loss for the year-ended December 31, 2020 was $1.49 million, down from a net loss of $2.27 million in 2019.
- As at December 31, 2020, the Company's cash and net working capital balances were $7.75 million and $5.10 million respectively.
Financial Highlights - 2020 Fourth Quarter
- Recurring revenue in Q4 2020 increased by 14% to $4.31 million compared to $3.77 million in Q4 2019, and increased by 6% compared to $4.06 million in Q3 2020.
- Total revenue for Q4 2020 increased by 16% to $4.71 million compared to $4.07 million in Q4 2019, and increased by 4% compared to $4.55 million in Q3 2020.
- Gross margin for Q4 2020 was 85% of total revenue compared to 84% in Q4 2019 and 82% in Q3 2020. Gross margin on recurring revenue was 91% for Q4 2020 compared to 90% in Q4 2019 and 91% in Q3 2020.
- Operating loss for Q4 2020 was $0.57 million, down from an operating loss of $0.58 million in Q4 2019 and up from an operating loss of $0.49 million in Q3 2020.
- Net loss for Q4 2020 was $0.92 million, up from a net loss of $0.78 million in Q4 2019 and up from a net loss of $0.61 million in Q3 2020.
Recent Operational Highlights
- Notable new and expansion progress from enterprise customers, including:
- A global business consulting firm expanded its ProntoForms users by 22,000 to help frontline workers collect rich data for 500,000+ energy audit inspections designed to improve energy efficiency and meet government environmental impact targets.
- A multi-billion global medical device manufacturing company deployed ProntoForms to over 850 frontline workers to improve field processes and quality control.
- A global medical radiation device manufacturer deployed ProntoForms to 400 field engineers to improve hospital radiation asset uptime and expand services. The deployment integrates directly with their leading field service management and financial systems, allowing technicians to identify opportunities for new services and generate accurate quoting and billing documents for customers.
- A global heavy manufacturing organization deployed ProntoForms to 410 field technicians. The deployment integrates with their current field service management system.
- One of ProntoForms' largest customers, a global HVAC organization, expanded their European deployment of ProntoForms by 80 subscriptions. They use ProntoForms to increase technician productivity and reduce asset downtime.
- ProntoForms, together with Service Council, hosted a digital transformation Zoom event for field service leaders, featuring field operation executives from medical device and heavy manufacturing organizations.
- ProntoForms' CEO Alvaro Pombo and an executive from one of the largest food processing companies in America discussed how to calculate next steps for organizations responding to COVID-19 at WBR Field Service Connect.
- ProntoForms' customer PURELL/GOJO's story was highlighted in a Salesforce blog post "24 Apps that Led to Pandemic Superpowers in 2020" and a Salesforce eBook titled "Inspiring Insights From Our Year Inside."
- ProntoForms launched the new Teamwork feature that increases collaboration between field technicians. This feature is highly sought after by organizations with sophisticated asset processes that involve multiple technicians.
Q4 Conference Call Date:
Date: Thursday, March 11th, 2021
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local Toronto – (+1) 416 764 8688
Toll Free – (+1) 888 390 0546
Conference ID: 38563980
Recording Playback Numbers:
Local Toronto– (+1) 416 764 8677
Toll Free – (+1) 888 390 0541
Passcode: 563980 #
Expiry Date: Thursday, March 18th, 2021 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.
co-Chief Executive Officer
Chief Financial Officer