PopReach Announces First Quarter 2023 Results
Revenue of $36.5 million - 152% growth year-over-year
Pro Forma Consolidated1 Revenue grew 17% year-over-year
Adjusted EBITDA2 of $3.0 million - 200% growth year-over-year
(All figures in US dollars, unless otherwise indicated)
/NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
TORONTO, May 30, 2023 /CNW/ - PopReach Corporation ("PopReach" or the "Company") (TSXV: POPR) (OTCQX: POPRF), a multiplatform digital technology company, announced its financial results for the three months ended March 31, 2023.
"Our financial results for the first quarter of 2023 show that the portfolio of companies we've assembled is continuing to deliver strong organic revenue growth while generating significant adjusted EBITDA and free cash flow each quarter," said Jon Walsh, CEO of PopReach. "The recent backing from a syndicate of four of Canada's leading banks for US$115 million in credit facilities is another major validation of our expansion strategy. We are excited about the additions of SCS and OpenMoves in the second quarter and the potential for further synergies."
Financial Highlights for the First Quarter 2023
Significant developments in Q1 2023 and subsequent to quarter end
Selected Unreviewed and Unaudited Pro Forma Consolidated Financial Information
The Pro Forma Consolidated Revenue provided above is presented as if the reverse takeover transaction between PopReach and Federated Foundry Limited and the acquisition of each of Q1Media, Inc. ("Q1Media"), NotifyAI, LLC ("NotifyAI"), Crucial Interactive Holdings Inc. ("Contobox"), and Ubiquity Agency, LLC ("Ubiquity") were completed at the beginning of 2022.
The unreviewed and unaudited Pro Forma Consolidated Revenue provided above (the "Pro Forma Revenue") is derived from the Revenue figures presented in PopReach's financial statements, and in Management's Discussion and Analysis, filed on the Company's profile on SEDAR at www.sedar.com for the applicable periods ("As Reported Revenue") after taking into account the following adjustments: (i) As Reported Revenue for the three month period ending March 31, 2023 reflecting Pro Forma Revenue for the period of $36.5 million; and (ii) As Reported Revenue for the three month period ending March 31, 2022 increased by $16.7 million to reflect Pro Forma Revenue for the period of $31.2 million.
The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS"). However, the Company considers certain non-IFRS financial measures as useful additional information to assess its financial performance. These measures, which it believes are widely used by investors, securities analysts and other interested parties to evaluate its performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted Free Cash Flow".
Adjusted EBITDA and Adjusted Free Cash Flow
Consolidated adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS measure of financial performance. Company management defines Adjusted EBITDA as IFRS Net income (loss) adding back finance costs, income taxes, depreciation amortization, gain/loss on disposal of assets and extinguishment of loans, fair value gain/loss on financial liabilities and contingent consideration, and excludes discontinued operations and the effects of significant items of income and expenditure which may have an impact on the quality of earnings, such as impairments where the impairment is the result of an isolated, non-recurring event. It also excludes the effects of equity-settled share-based payments, foreign exchange gains/losses, changes in deferred revenues, changes in deferred cost of sales, and other extraordinary one-time expenses. See reconciliation of Adjusted EBITDA in the table below.
Company management defines "Adjusted Free Cash Flow" as Adjusted EBITDA less capital expenditures, such as acquisition of property and equipment and additions to intangibles, and income taxes paid during the applicable period. See reconciliation of Adjusted Free Cash Flow in the table below.
The presentation of these non-IFRS financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS and may be different from non-IFRS financial measures used by other companies.
Management believes Adjusted EBITDA and Adjusted Free Cash Flow are useful financial metrics to assess its operating performance on a cash basis before the impact of non-cash and extraordinary one-time items.
The following table presents the Company's calculation of Adjusted EBITDA and Adjusted Free Cash Flow for each period:
PopReach's Financial Statements for the three months ended March 31, 2023, and Management's Discussion and Analysis for the same period, are posted on its corporate website at www.popreach.com and available on the Company's profile on SEDAR at www.sedar.com.
About PopReach Corporation
PopReach, a Tier 1 Issuer on the TSX Venture Exchange, with shares also trading on OTCQX® Best Market, is a multi-platform technology company focused on assembling the most effective and complete suite of advertising, marketing and monetization solutions for brands, advertisers and publishers. We acquire, optimize and scale market-leading digital technology businesses providing cross-platform, performance-driven advertising and data solutions to attract, engage and monetize high-value consumers. Our portfolio includes: PopReach Games, a free-to-play mobile game publisher; NotifyAI, a push notification advertising platform; Q1Media, an industry-leading advertising and media service provider; Contobox, a leading edge customer engagement platform; Ubiquity, a data driven user acquisition and marketing technology platform; SCS, an integrated agency powering brand performance with data and creativity; and OpenMoves, a Google Premier Partner driving creative and growth across pay-per-click advertising and search engine optimization.
Additional information about the Company is available at www.sedar.com.
Neither the 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.
Cautionary Statement Regarding Forward-Looking Information
SOURCE PopReach Corporation
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