Wishpond Reports 38% Revenue Growth in Q1-2023
VANCOUVER, BC, May 25, 2023 /PRNewswire/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the "Company" or "Wishpond"), a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements (the "Interim Financial Statements") and management's discussion and analysis (the "MD&A") for Q1-2023, representing the three months ended March 31, 2023. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR at www.sedar.com.
Ali Tajskandar, Wishpond's Chairman and CEO commented, "We are very pleased with our first quarter results in which Wishpond achieved 38% annual revenue growth, primarily driven by the Company's organic growth. In the first quarter we also launched our new Website Builder, which is powered by generative Artificial Intelligence (AI) technologies. The use of AI technologies is rapidly changing the digital marketing landscape and Wishpond is at the forefront of utilizing these new innovations to provide SMBs with new advantages against larger competitors. We are actively working on developing additional AI-powered marketing tools which we intend to launch in the coming quarters."
Ali Tajskandar adds, "Given Wishpond's clean balance sheet and the management team's successful acquisition track record, we are once again looking at new opportunities and building our acquisition pipeline, leading to the recent acquisition of Essential Studio Manager ("ESM"). ESM marks the Company's sixth acquisition; it brings more than 150 customers into the Wishpond family and it expands Wishpond's award-winning 'all-in-one' sales and marketing technology platform with additional new business management and CRM functionality. Our outlook remains positive for 2023, with the launch of new AI-powered products, continued organic growth and potential for new acquisitions. We expect to see continued sales growth, positive Adjusted EBITDA(1), and positive cash flows for this year. "
First Quarter 2023 Financial Highlights:
First Quarter 2023 Business Highlights:
Events Subsequent to March 31, 2023:
Management continues to have a positive outlook for Wishpond in 2023. The Company has not felt material negative impacts due to interest rate and inflationary trends, supply chain, or other macroeconomic effects. Wishpond's performance is highly positive across all its businesses, with robust demand for its products. Management is optimistic about the Company's growth prospects, and is pleased to share Wishpond's key goals for 2023:
Wishpond currently expects to achieve record revenue and cash flows in 2023, driven by organic growth from ramping up sales of the Company's new Propel IQ bundled product offerings, increasing the size of its sales team and new AI-powered product introductions. Wishpond has a clean balance sheet and expects to continue to fund the growth of its sales team and new product launches from cash flows generated from operations, without having to raise any additional equity or debt capital.
Given the Company's strong balance sheet and management's successful acquisition track record, the Company may choose to accelerate its growth in the form of future acquisitions. Wishpond has demonstrated a disciplined capital allocation strategy, having successfully completed and integrated six acquisitions since the Company's public listing in December of 2020. Management may also choose to reinvest cash flows generated by the Company to accelerate organic growth or in the form of share repurchases.
David Pais, Wishpond's Chief Financial Officer commented, "Our cost optimization efforts over the past year continue to contribute to the Company's positive Adjusted EBITDA profile. Wishpond remains in an extremely strong financial position with a clean balance sheet, and growing profitability. Based on the Company's performance in Q1 and growth momentum, we expect to continue delivering strong results in 2023."
Webinar Conference Call Details:
As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q1-2023 financial results today at 12:00 PM (PST) / 1:00 PM (EST).
To register for the webinar, please visit the following URL: https://bit.ly/WISH_Q1_2023
Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond's Interim Financial Statements and MD&A.
Reconciliation to Adjusted EBITDA
On Behalf of the Board of Wishpond
About Wishpond Technologies Ltd.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing-focused online business solutions. Wishpond is a leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company's Propel IQ platform offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation, ad management, referral marketing, sales conversion and outbound sales automation capabilities on one integrated platform. Wishpond replaces disparate marketing solutions with an easy-to-use product, for a fraction of the cost. Wishpond serves over 4,000 customers who are primarily small and medium-sized businesses (SMBs) in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions including an artificial intelligence (AI) powered website builder and continues to add new features and applications. The Company employs a Software-as-a-Service (SaaS) business model where most of the Company's revenue is subscription-based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX Venture Exchange under the ticker "WISH", and on the OTCQX Best Market under the ticker "WPNDF". For further information, visit: www.wishpond.com.
Cautionary Statements, Summary Information
Information presented in this press release may be only a summary of all available information and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and MD&A, and to not rely only on the information presented in this press release. In the event of conflict between the provisions of this press release on the one hand, and the Interim Financial Statements and MD&A on the other hand, the information in the Interim Financial Statements and MD&A shall govern.
Non-GAAP Financial Measures
In this press release, Wishpond has used the following terms ("Non-GAAP Financial Measures") that are not defined by IFRS, but are used by management to evaluate the performance of Wishpond and its business: adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), monthly recurring revenue, gross profit and gross margin. These measures may also be used by investors, financial institutions and credit rating agencies to assess Wishpond's performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable IFRS financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. See the disclosure under the heading "Additional GAAP and Non-GAAP Measures" in Wishpond's MD&A for a discussion of Non-GAAP Financial Measures and certain reconciliations to GAAP financial measures. The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:
Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, all information contained under the heading "Outlook" herein, references to expected results from future operations, references to the growth of the Company's product portfolio, including whether additional AI powered products or features may be developed in the future, and the functionality and timing of such products, financial results or operational activities that may be undertaken by the Company, the results of the Company's cost-savings, research and development and other initiatives, any future acquisitions, share purchases or other activities done to grow the Company both organically or inorganically, expectations, beliefs, plans, future operations, origination of additional targets in which the Company may hold an interest and acquisition opportunities for the Company, the impact of broader economic factors including inflation and other general economic risks on the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as "expect", "anticipate", "plan", "continue", "estimate", "intend", "expect", "may", "will", "project", "predict", "potential", "targets", "projects", "is designed to", "strategy", "should", "believe", "contemplate" and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable and are based on, among other things, the expectations and analysis of current market trends and opportunities of management of the Company, such forward-looking statements has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including, but not limited to, economic uncertainty and instability as a result of the ongoing inflation and supply chain issues, higher interest rate climate, tightening of credit availability and recessionary risks, pandemic related risks, Russia-Ukraine war, instability in global commodity and securities markets, shifts in consumer and institutional spending and marketing strategies, risks related to data breaches and privacy, the changing global market and competition for the products and services supplied by the Company, and the additional risk factors discussed in the continuous disclosure materials of the Company which are available under the Company's profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Wishpond Technologies Ltd.
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