OneSoft Solutions Inc. Reports Third Quarter Fiscal 2023 Financial Results

Rhea-AI Summary

OneSoft Solutions Inc. (TSXV:OSS)(OTCQB:OSSIF) announces a 33% and 59% increase in Q3 and year-to-date revenue, with Q3 Fiscal 2023 revenue at $2.8 million. The company's gross profit improved by 38.3% to $2.1 million, and net income increased by 139.6% to $118,892. OneSoft reiterates its Fiscal 2023 guidance with a forecasted revenue of $7.5 million year-to-date. The company's business operations and sales activities are progressing as expected, with a webcast scheduled to discuss the financial results.

Positive

• 33% and 59% increase in Q3 and year-to-date revenue respectively
• Gross profit improved by 38.3% to $2.1 million
• Net income increased by 139.6% to $118,892
• Reiterates Fiscal 2023 guidance with a forecasted revenue of $7.5 million year-to-date
• Business operations and sales activities are progressing as expected

Negative

• None.

Revenue for Q3 and Year to Date Increased 33% and 59% Respectively

EDMONTON, AB / ACCESSWIRE / November 16, 2023 / OneSoft Solutions Inc. (the "Company" or "OneSoft") (TSXV:OSS)(OTCQB:OSSIF) , a North American developer of cloud-based business solutions, announces its financial results for the three and nine months ended September 30, 2023. OneSoft Solutions will host a webcast to discuss the financial results today at 11:00am ET (8:00am PT). Registration details are posted below.

Please refer to the interim unaudited condensed Consolidated Financial Statements and Management's Discussion and Analysis (" MD&A ") for the three and nine months ended September 30, 2023 filed on www.sedarplus.ca for more information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars.

FINANCIAL RESULTS

FINANCIAL HIGHLIGHTS

• Revenue in Q3 Fiscal 2023 was $2.8 million, an increase of 33% or $0.7 million over Q3 Fiscal 2022 revenue of $2.1 million.
• Annual recurring revenue increased quarter over quarter by $645,698 or 41.3% due to greater CIM use by new and existing customers and the inclusion of IM Operations software maintenance revenue.
• Gross profit increased 38.3% to $2.1 million in Q3 Fiscal 2023 from $1.5 million in Q3 Fiscal 2022.
• Gross profit as a percentage of sales was 76.9% in Q3 Fiscal 2023, an improvement over the 73.9% gross profit percentage reported in Q3 Fiscal 2022.
• Net income in Q3 Fiscal 2023 was $118,892, an improvement of $418,785 or 139.6% from a loss of $299,893 in Q3 Fiscal 2022, driven by the increase in revenue and gross profit.
• Adjusted EBITDA, a Non-GAAP measure reconciled to net income (loss) in the MD&A filed on SEDAR+, improved from a loss of $0.1 million in Q3 Fiscal 2022 to a positive $0.3 million in Q3 Fiscal 2023.
• Liquid assets increased to $6.7 million at September 30, 2023 ($4.7 million as at December 31, 2022), comprised of cash and cash equivalents of $4.3 million and accounts receivable of $2.4 million. The Company has $238,364 of debt outstanding from its June 2022 acquisition of Bass Engineering's Integrity Management business operations.

Quarterly Revenue

The chart below shows revenue for the past twenty-nine quarters (7.25 years). Quarterly revenue increased as a result of the expanded use of CIM by existing customers, continued addition of new customers, and the acquisition of IM Operations' customers acquired June 30, 2022.

REITERATING FISCAL 2023 GUIDANCE

Further to the Company's Fiscal 2023 guidance stated in a news release issued on January 24, 2023 , the Company advises its progress for the first nine months of Fiscal 2023 as follows.

• Revenue was $7.5 million year-to-date September 30, 2023 and Management is not changing its revenue guidance for forecasted Fiscal 2023 revenue at this time.
• Management reiterates its gross profit guidance of $7.6 million in Fiscal 2023 as forecasted.
• Fiscal 2023 operating expenses, net of costs capitalized, were forecasted at $7.7 million and Other expenses were forecasted at $1.2 million. At September 30, 2023, operating expenses for 9 months were $75,200 higher and other expenses were lower than projected by $310,000. The Company has increased its software development and customer service teams, resulting in increased forecasted expenses in the second half of 2023. Net changes to forecasted expenses for the balance of Fiscal 2023 may be negatively impacted; however, the additional expense is partly being offset by lower contingency expenses that were budgeted in our original guidance.
• The following table states forecasted cash and deferred revenue balances as at December 31, 2023 and actual values as at September 30, 2023. Management believes the Fiscal 2023 guidance figures will be achieved.

CIM Use and Revenue Generating Data-Miles

The following table estimates the miles of customers' pipelines operated, miles that are subject to multi-year SaaS agreements and miles of pipeline data ingested into CIM for which revenue was earned ("data-miles").

^{Note 1:} The revenue per mile for revenue generating miles includes CIM revenue only and excludes IM Operations revenue. Quarterly figures are annualized.

BUSINESS UPDATE

We achieved positive net income in Q3 Fiscal 2023, the first profitable quarter since fiscal year ended December 31, 2018. Since then, the Company's priority has been to enhance our CIM solution and increase our revenue, competitive moat and customer loyalty, which although resulting in operational losses, serves to increase future opportunities and shareholder value. We increased resources again in 2023 to further advance our technological leadership and strengthen our competitive moat, as was discussed in the Business Update section of our last MD&A for Q2 2023 . The additional costs resulting from recruiting additional employees will not materially increase expenses projected in the Company's Fiscal 2023 financial guidance in January 2023, as some of the previously anticipated expenses will not materialize and higher revenue diminishes the impact of higher technology development expenses.

Company operations through Q3 2023 have generally progressed in accordance with Management's expectations, including the addition of new customers and increasing interest in new functionality modules from existing customers. The Company organized a user group conference during Q3 2023, which took place during the first week of October at the Microsoft Executive Briefing Centre in Houston. This event was attended to maximum capacity by our customers, who collaboratively shared their input regarding current CIM functionality and future technology requirements. We are pleased to report that customers expressed complimentary views that our services and development personnel and CIM solution are highly valued, and that most customers intend to utilize new functionality modules that are under development or part of our technology roadmap.

BUSINESS OUTLOOK

Q3 Fiscal 2023 results continued to progress our achievement of the guidance disclosed by the Company in January 2023, and Management is optimistic that Q4 Fiscal 2023 will evolve as anticipated, with continued sales and revenue growth into Fiscal 2024 and the foreseeable future. We are encouraged that our customer base and pipeline miles under CIM use continues to increase and that some large pipeline operators, such as our latest customer addition, are viewing the adoption of CIM as a better alternative than pursuing in-house software development projects.

Sales efforts are currently underway with prospective customers in North America and certain international regions, which we expect will result in new customer adds. OneSoft is poised to achieve 47% revenue growth in Fiscal 2023 over Fiscal 2022, with near to break-even cash flow. With a strong and strengthening balance sheet, sufficient cash on hand, a strong base of hallmark customers who generate recurring revenues and promising ongoing sales activities we believe there will be no requirement to raise additional capital to execute current business and operational plans.

Q3 2023 EARNINGS WEBCAST / CONFERENCE CALL

OneSoft's CEO Dwayne Kushniruk, President & COO Brandon Taylor and CFO Paul Johnston will host a live webcast on Thursday, November 16, 2023 at 11:00am ET to review the results, provide Company updates, and answer investor questions following the presentation. Webcast / Conference call details are as follows:

DATE: Thursday, November 16, 2023
TIME: 11:00am ET (8:00am PT)
WEBCAST: Webcast Link

OPTIONAL PARTICIPANT TELEPHONE NUMBERS:

• Canada/ USA: 1-800-319-4610 (Toll-free)
• International Toll-Free 1-604-638-5340 (TOLL)

Callers should dial in 5 - 10 min prior to the scheduled start time and simply ask to join the OneSoft Solutions call.

REPLAY: Available at: https://www.onesoft.ca/

About OneSoft and OneBridge

OneSoft has developed software technology and products that have capability to transition legacy, on-premises licensed software applications to operate on the Microsoft Azure Cloud Platform. Our business strategy is to seek opportunities to incorporate Data Science and Machine Learning (a component of Artificial Intelligence), business intelligence and predictive analytics to create cost-efficient, subscription-based software-as-a-service solutions. Visit www.onesoft.ca for more information.

OneSoft's wholly owned subsidiaries, OneBridge Solutions develops and markets revolutionary new SaaS solutions that use advanced Data Sciences and Machine Learning to analyze big data using predictive analytics to assist Oil & Gas pipeline operators to predict pipeline failures and thereby save lives, protect the environment, reduce operational costs, and address regulatory compliance requirements. Visit www.onebridgesolutions.com for more information.

For more information, please contact.

OneSoft Solutions Inc. Dwayne Kushniruk, CEO dkushniruk@onesoft.ca 587-416-6787

Sean Peasgood, Investor Relations Sean@SophicCapital.com | 647-494-7710

Forward-looking Statements

This news release contains forward-looking statements relating to the future operations and profitability of OneSoft Solutions Inc. (the " Company ") and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects", "believe", "will", "intends", "plans" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking information is provided to deliver information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

In respect of the forward-looking information and statements the Company has placed reliance on certain assumptions that it believes are reasonable at this time, including expectations and assumptions concerning, among other things: the impact of Covid-19 on the business operations of the Company and its current and prospective customers; the availability and cost of labor and services; the efficacy of its software; our interpretation based on various industry information sources regarding the total miles of pipeline in the USA and globally and which segments are piggable; our understanding of metrics, activities and costs regarding evaluation, inspection and maintenance is in alignment with various industry information sources and is reasonably accurate; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; that there are no unforeseen material development or other costs related to current growth projects or current operations; the success of growth projects; future operating costs; interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; the sufficiency of budgeted capital expenditures in carrying out planned activities; and no changes in applicable tax laws. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to many factors and risks. These include but are not limited to the risks associated with the industries in which the Company operates in general such as: costs and expenses; interest rate and exchange rate fluctuations; competition; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws.

Readers are cautioned that the foregoing list of factors is not exhaustive. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether because of new information, future events or otherwise, except as expressly required by Canadian securities law.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act or other laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: OneSoft Solutions Inc.

View source version on accesswire.com:
https://www.accesswire.com/804124/onesoft-solutions-inc-reports-third-quarter-fiscal-2023-financial-results

FAQ

What is OneSoft Solutions Inc.'s Q3 Fiscal 2023 revenue?

OneSoft Solutions Inc.'s Q3 Fiscal 2023 revenue is $2.8 million, representing a 33% increase.

What is the forecasted revenue for Fiscal 2023?

The forecasted revenue for Fiscal 2023 is $7.5 million year-to-date.

When is OneSoft Solutions Inc.'s webcast to discuss the financial results?

OneSoft Solutions Inc. will host a live webcast on Thursday, November 16, 2023, at 11:00am ET to review the results, provide Company updates, and answer investor questions.

What is the CEO's name?

OneSoft's CEO is Dwayne Kushniruk.