ProntoForms Reports Q3 2021 Financial Results

ProntoForms Corporation (TSXV: PFM), the global leader in field-focused low-code application platforms for enterprise, announced today its third quarter (Q3) financial results for the period ended September 30, 2021.

“We are pleased to report that our Annual Recurring Revenue Base (ARR) increased by 3.2% in the 2021 third quarter following increases of 4.7% and 4.2% in the first and second quarters. The Q3 growth in bookings was reduced by approximately 1.1% caused by a discontinuation of our Mexico operator reseller agreement. Our base is now $19.2 million and overall customer usage continues to be resilient with 41% of our base from customers with greater than $100,000 of ARR. We continue to steadily add new, large customer logos with good expansion profiles,” said Alvaro Pombo, Founder and Chief Executive Officer.

Mr. Pombo continued, “We are encouraged by the continued steady growth in net bookings and enterprise opportunities. Our platform continues to provide value to world-class enterprise organizations thanks to our continued investment in vertical product solutions, platform capabilities, and enterprise go-to-market. This quarter was marked by our user conference, EMPOWER’21 - sessions featured Fortune 500 field service leaders, Service Council and ServiceMax, industry analysts, and ProntoForms product experts. During this event, ProntoForms’ new customer community was also announced and officially launched.”

“The number and pedigree of enterprise customers here at Prontoforms is impressive and through personal discussions they are very pleased with how the solution meets their business requirements, especially in the field,” said Mike Kramer, Chief Revenue Officer. “We have enormous potential for geographic and use-case expansion for these existing and new enterprise customers that continue to come onboard and often see hard ROI in excess of 100% within the first year.”

Financial Highlights – 2021 Third Quarter

• Recurring revenue in Q3 2021 increased by 15% to $4.66 million compared to $4.06 million in Q3 2020, and increased by 2% compared to $4.55 million in Q2 2021.
• Total revenue for Q3 2021 increased by 8% to $4.89 million compared to $4.55 million in Q3 2020, and increased by 1% compared to $4.84 million in Q2 2021.
• Gross margin for Q3 2021 was 84% of total revenue compared to 82% in Q3 2020 and 85% in Q2 2021. Gross margin on recurring revenue was 89% for Q3 2021 compared to 91% in Q3 2020 and 90% in Q2 2021.
• Operating loss for Q3 2021 was $1.00 million, up from an operating loss of $0.49 million in Q3 2020 and down from an operating loss of $1.07 million in Q2 2021.
• Net loss for Q3 2021 was $1.11 million, up from a net loss of $0.61 million in Q3 2020 and remained flat from a net loss of $1.12 million in Q2 2021.
• As at September 30, 2021, ProntoForms’ cash and net working capital balances were $6.51 million and $3.20 million respectively, compared to $7.75 million and $5.10 million as at December 31, 2020.

Recent Operational Highlights

• Notable new and expansion progress from enterprise customers, including:
  • A Fortune 500 oil & gas company deployed ProntoForms in partnership with a leading EHS and quality solution to 700 field technicians to support their asset compliance and leak inspection workflows.
  • A Fortune 500 energy supplier deployed ProntoForms to their technicians to achieve step-by-step delivery workflows, transparent customer service, and report generation capabilities.
  • A Fortune 500 building material supplier expanded their commitment to ProntoForms by over 150 subscriptions. They use ProntoForms for quality and safety inspections with data collection that fuels operational analytics.
  • A global leader in fuel storage deployed ProntoForms to support their QA inspections and asset management workflows. ProntoForms is connected to their field service management platform.
• ProntoForms EMPOWER’21 user conference occurred on September 1st, with over 700 registrants for the digital event.
• New features and improvements to the ProntoForms platform, including:
  • Data Routing that provides simple tools to process complex data that flows into a form and to use it to run the business logic in that form, automating as much of the process in the field as possible.
  • Mobile search enhancements including additional search parameters and a Recent Searches list to increase the efficiency of our mobile search capabilities.
  • ProntoForms Teamwork Direct Transfer that enables a mobile user to transfer a partially completed form to the user of their choosing with the form appears in that person’s inbox.

ProntoForms will hold a conference call on November 4th, at 9:00am EST hosted by CEO Alvaro Pombo and CFO Dave Croucher. A question and answer session will follow.

Date: Thursday, November 4th, 2021Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:Local Toronto – ([phone]Toll Free – ([phone]Conference ID: 7363323

Recording Playback Numbers:Local Toronto– ([phone]Toll Free – ([phone]Passcode: 7363323Expiry Date: November 11th, 2021 at 11:59pm EST

A live audio webcast and archive of the conference call will be available by visiting the Company’s website at www.prontoforms.com/company/investor-relations. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

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.

For additional information, please contact:

Alvaro PomboChief Executive Officer ProntoForms Corporation 613.599.8288 ext. 1111 [e-mail]

Babak PedramInvestor RelationsVirtus Advisory Group [e-mail]

Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, the potential for geographic and use-case expansion these existing and new enterprise customers, ROI levels experienced by customers and anticipated market trends are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company’s business and value may not grow as anticipated or at all, its partnering strategy may not generate increasing lead flow or maintain current lead flow levels and anticipated market trends may not occur or continue. Historical growth levels and results may not be indicative of future growth levels or results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Annual Recurring Revenue Base is a key performance indicator used by the Company which does do not have a definition in IFRS and may be calculated in a manner different from similar key performance indicators used by other companies. Please refer to the Company’s most recent management discussion and analysis available at www.sedar.com for a discussion of the Company’s use and method of calculation of key performance indicators such as Annual Recurring Revenue Base. There are a number of risk factors that could cause future results to differ materially from those described herein.  Please see “Risk Factors Affecting Future Results” in the Company’s annual management discussion and analysis dated March 16, 2018 found at www.sedar.com for a discussion of such factors.

Neither 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.

 

PRONTOFORMS CORPORATION
Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
For the three and nine months ended September 30 2021 and 2020
(in US dollars)
					Three months ended September 30,						Nine months ended September 30,
					2021			2020			2021			2020
Revenue:
	Recurring revenue			$	4,663,400			4,056,073		$	13,520,106			11,888,948
	Professional and other services				229,114			494,364			826,918			1,066,547
					4,892,514			4,550,437			14,347,024			12,955,495
Cost of revenue (1):
	Recurring revenue				490,935			370,730			1,336,320			968,395
	Professional and other services				278,464			450,433			853,217			964,533
					769,399			821,163			2,189,537			1,932,928
Gross margin					4,123,115			3,729,274			12,157,487			11,022,567
Expenses:
	Research and development (1)				1,662,040			1,480,276			5,354,452			3,823,516
	Selling and marketing (1)				2,647,524			1,991,105			7,316,475			5,402,342
	General and administrative (1)				810,781			750,383			2,616,034			2,179,434
					5,120,345			4,221,764			15,286,961			11,405,292
Income (loss) from operations					(997,230	)		(492,490	)		(3,129,474	)		(382,725	)
Foreign exchange (loss) gain					(89,495	)		(14,221	)		(128,442	)		108,884
Finance costs					(28,165	)		(103,000	)		(86,401	)		(296,094	)
Net income (loss) and comprehensive income (loss)				$	(1,114,890	)		(609,711	)	$	(3,344,317	)		(569,935	)
Net income (loss) and comprehensive income (loss)
	per common share basic and diluted			$	(0.01	)		(0.01	)	$	(0.03	)		(0.00	)
Weighted average number of common shares
	basic and diluted				125,918,010			117,666,390			125,231,045			118,536,260
(1) Amounts include share-based compensation expense as follows:
Cost of revenue				$	7,047		$	11,823		$	10,261		$	41,520
Research and development					32,481			46,455			115,347			98,373
Selling and marketing					60,712			38,762			101,039			107,587
General and administrative					76,633			50,975			226,001			146,804
Total share-based compensation expense				$	176,873		$	148,015		$	452,648		$	394,284

 

PRONTOFORMS CORPORATION
Condensed Interim Consolidated Statements of Financial Position
September 30, 2021 and December 31, 2020
(in US dollars)
					September 30,				December 31,
					2021				2020
Assets
Current assets:
	Cash and cash equivalents			$	6,512,069			$	7,747,542
	Accounts receivable				2,568,265				3,333,139
	Investment tax credits receivable				175,525				117,092
	Unbilled receivables				123,721				235,518
	Related party loan receivable				84,338				84,392
	Prepaid expenses and other receivables				1,117,722				738,415
	Contract acquisition costs				225,786				214,583
					10,807,426				12,470,681
Property, plant and equipment					351,601				407,522
Contract acquisition costs					80,163				28,950
Right-of-use asset					466,800				657,771
				$	11,705,990			$	13,564,924
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities			$	2,782,402			$	2,434,376
	Deferred revenue - current portion				4,530,012				4,657,581
	Lease obligation - current portion				298,131				274,312
					7,610,545				7,366,269
Long-term debt					3,238,537				3,219,484
Deferred revenue					47,418				-
Lease obligation					260,911				486,302
					11,157,411				11,072,055
Shareholders' equity:
	Share capital				31,097,291				28,342,861
	Contributed surplus				864,907				864,907
	Share-based payment reserve				2,152,545				3,506,948
	Warrant reserve				-				-
	Deficit				(33,750,599	)			(30,406,282	)
	Accumulated other comprehensive income				184,435				184,435
					548,579				2,492,869
				$	11,705,990			$	13,564,924

PRONTOFORMS CORPORATION
Condensed Interim Consolidated Statements of Cash Flows
For the nine months ended September 30, 2021 and 2020
(in US dollars)
					Nine months ended September 30,
					2021				2020
Cash provided by (used in):
Operating activities:
	Net income (loss)			$	(3,344,317	)		$	(569,935	)
	Items not involving cash:
		Share-based compensation			452,648				394,284
		Accretion on long-term debt			-				141,527
		Accretion on lease obligations			27,575				35,151
		Accretion of transaction costs			21,135				-
		Change in fair value of derivative liability			-				2,794
		Amortization of property, plant and equipment			121,628				119,380
		Amortization of right-of-use asset			190,971				190,971
		Unrealized foreign exchange losses (gains)			120,086				(144,741	)
	Other finance costs				65,266				151,773
	Interest paid				(74,438	)			(159,576	)
	Interest received				9,173				7,803
	Lease interest paid				(27,575	)			(35,151	)
	Changes in non-cash operating working capital items				644,390				(158,230	)
					(1,793,458	)			(23,950	)
Financing activities
	Payment of lease obligations				(204,918	)			(176,926	)
	Settlement of derivative liability				-				(50,075	)
	Proceeds from the exercise of options				947,379				249,240
					742,461				22,239
Investing activities
	Purchase of property, plant and equipment				(65,707	)			(59,184	)
					(65,707	)			(59,184	)
Effect of exchange rate changes on cash					(118,769	)			45,713
Decrease in cash and cash equivalents					(1,235,473	)			(15,182	)
Cash and cash equivalents, beginning of period					7,747,542				5,700,003
Cash and cash equivalents, end of period				$	6,512,069			$	5,684,821