Tiny Reports First Quarter Results
Tiny reported Q1 2024 revenue of $48.9 million, a 35% increase from Q1 2023. Recurring revenue rose to $9.3 million, making up 19% of total revenue. EBITDA improved to $3.4 million from a negative $1.1 million in Q1 2023. However, the company recorded a net loss of $8.9 million, up from a $4.1 million loss the previous year, primarily due to depreciation and amortization costs. Cash from operations was $2.9 million, reversing a $1.0 million outflow in Q1 2023. Total debt increased to $135.8 million from $131.2 million, mainly due to investments. Assets slightly decreased to $386.0 million. The acquisition of WholesalePet was completed, and Tiny Fund I is now fully deployed.
- Revenue increased by 35% to $48.9 million.
- Recurring revenue rose to 19% of total revenue.
- EBITDA improved to $3.4 million from a negative $1.1 million.
- Cash from operations was $2.9 million, reversing a $1.0 million outflow.
- Tiny completed the acquisition of WholesalePet.
- Net loss expanded to $8.9 million from $4.1 million.
- Unrestricted cash decreased to $25.6 million from $26.9 million.
- Total debt increased to $135.8 million from $131.2 million.
- Assets decreased to $386.0 million from $392.6 million.
- Depreciation and amortization contributed $6.7 million to net losses.
- Total revenue for Q1 2024 of
$48.9 million - Cash from operations in Q1 2024 of
$2.9 million - Annualized recurring revenue(1)
$37.0 million
Victoria, British Columbia--(Newsfile Corp. - May 28, 2024) - Tiny Ltd. (TSXV: TINY) (formerly, WeCommerce Holdings Ltd.) ("Tiny" or "the "Company"), a technology holding company with a strategy of acquiring majority stakes in businesses, today announced the financial results for Tiny Ltd. for the three-month period ended March 31, 2024. Currency amounts are expressed in Canadian dollars unless otherwise noted.
Management Commentary
"Tiny's first quarter results proved resilient, with both cost discipline and organic growth initiatives beginning to show progress across the portfolio. On the investing front, we completed the acquisition of WholesalePet, concluding the Tiny Fund I ("Tiny Fund") deployable capital. We continue to evaluate a number of attractive opportunities with all future acquisitions being completed in Tiny. Tiny Fund will continue distributing dividends quarterly alongside carried interest when applicable to Tiny."
Q1 2024 Financial Results
| For the three-month periods ended March 31, | |||||
| 2024 | 2023 | ||||
| Revenue | 48,939,598 | 36,331,948 | |||
| Operating loss | (4,323,720 | ) | (1,069,841 | ) | |
| Net loss | (8,854,467 | ) | (4,080,911 | ) | |
| EBITDA (1) | 3,350,915 | (1,114,399 | ) | ||
| EBITDA % (1) | 7 | % | (3 | )% | |
| Recurring revenue (1) | 9,256,874 | 1,592,713 | |||
| Recurring revenue % (1) | 19 | % | 4 | % | |
| Cash provided by/(used in) operating activities | 2,852,254 | (992,792 | ) | ||
| Basic loss per share | (0.05 | ) | (0.03 | ) | |
| Diluted loss per share | (0.05 | ) | (0.03 | ) | |
(1) Refer to Non-IFRS Measures for further information
- Revenue for the three months ended March 31, 2024 was
$48.9 million , an increase of$12.6 million or35% compared to prior year. The results of March 31, 2023 do not include the results from the Software and Apps segment, as a result of the Merger in Q2 2023, and it would have contributed an additional$13.6 million . - Recurring revenue(1) in Q1 2024 was
$9.3 million and made up19% of total revenue, an increase from4% in Q1 2023. This was due to the addition of the Software and Apps segment of which$8.2 million or61% of its revenue was recurring. - The Company ended Q1 2024 with cash inflow from operations of
$2.9 million , up from prior Q1 2023 of cash outflow of$1.0 million . - Net loss in Q1 2024 was
$8.9 million compared to net loss of$4.1 million in Q1 2023, an increase of$4.8 million compared to prior year. Software and Apps contributed net losses of$4.8 million , of which$6.7 million is related to depreciation and amortization of the intangibles acquired as part of the Merger. - Unrestricted cash on hand on March 31, 2024 was
$25.6 million compared to$26.9 on December 31, 2023. Total debt outstanding on March 31, 2024 was$135.8 million compared to$131.2 million on December 31, 2023. The majority of the increase in debt of$4.6 million is due to investments in Tiny Fund with the remaining$0.8 million increase due to foreign exchange. - Total assets on March 31, 2024 were
$386.0 million compared to$392.6 million on December 31, 2023. - EBITDA in Q1 2024 was
$3.4 million compared to$(1.1) million in Q1 2023. When excluding Software and Apps's contribution of$3.4 million of the Q1 2024 EBITDA, EBITDA year-over-year increased by$1.0 million to$0.1 million due to one-time costs incurred in Q1 2023 prior to the Company going public.
Financial Statements
Tiny Ltd's consolidated financial statements and Management's Discussion and Analysis ("MD&A") for Q1 2024 is available on SEDAR+ at www.sedarplus.ca.
About Tiny
Tiny is a Canadian-based investment company focused primarily on acquiring majority stakes in businesses that it expects to hold over the long-term. The Company is structured to give maximum flexibility to operating management teams by maintaining a focus at the parent company level on only three areas: capital allocation, management, and incentives. This structure enables each company to run independently and focus on what they do best, within an incentive structure that is designed to drive results for both the operating business and ultimately for Tiny and its shareholders.
Tiny currently has three principle reporting segments: Digital Services, which provides design, engineering, brand positioning and marketing services to help companies of all sizes deliver premium web and mobile products; Software and Apps, which is home to a complementary portfolio of recurring revenue software businesses that support merchants, as well as digital themes businesses that sell templates to Shopify merchants; and Creative Platform, which is comprised primarily of Dribbble, the social network for designers and digital creatives, as well as a premier online marketplace for digital assets such as fonts and templates.
For more about Tiny, please visit www.tiny.com or refer to the public disclosure documents available under Tiny's SEDAR profile on SEDAR+ at www.sedarplus.ca.
Company Contact:
David Charron
Chief Financial Officer
Phone: 416-418-3881
Email: david@tiny.com
Non-IFRS Financial Measures
This news release makes to reference to certain non-IFRS measures and ratios, hereafter, referred to as "non-IFRS measures". These measures are not recognised measures under IFRS, and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. The Company uses non-IFRS measures including "EBITDA", "EBITDA %", and "recurring revenue". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. As required by Canadian securities laws, the Company defines and reconciles these non-IFRS measures below:
EBITDA and EBITDA %
EBITDA is defined as earnings (net income or loss) before finance costs, income taxes, depreciation and amortization. EBITDA is reconciled to net income (loss) from the financial statements.
EBITDA % ratio is determined by dividing EBITDA by total revenue for the year.
EBITDA and EBITDA % is frequently used to assess profitability before the impact of finance costs, income taxes, depreciation and amortization. Management uses non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare annual operating budgets. EBITDA and EBITDA % are measures commonly reported and widely used as a valuation metric.
Recurring Revenue
Recurring Revenue consists of revenues generated through subscriptions that grant access to products and services with recurring billing cycles. The subscriptions are recognized on an overtime basis in accordance with IFRS 15.
Recurring Revenue is a part of total revenue disclosed in the financial statements, as determined in accordance with IFRS 15.
Recurring Revenue represents revenues that are stable and the Company expects to earn continuously. Recurring Revenue % is determined by dividing Recurring Revenue by total revenue for the year. Recurring Revenue is frequently used to determine any indicators of future revenue growth and revenue trends. Recurring Revenue and Recurring Revenue % are measures commonly reported and widely used as a valuation metric.
Annualized recurring revenue was calculated by multiplying the quarterly recurring revenue by four.
NON-IFRS MEASURES RECONCILIATIONS
EBITDA and EBITDA %
| For the three-month periods ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Net loss | $ | (8,854,467 | ) | $ | (4,080,911 | ) | |
| Income tax expense/(recovery) | 461,541 | (281,862 | ) | ||||
| Depreciation and amortization | 8,724,754 | 1,729,243 | |||||
| Interest expense | 3,019,087 | 1,519,131 | |||||
| EBITDA | 3,350,915 | (1,114,399 | ) | ||||
| Revenue | 48,939,598 | 36,331,948 | |||||
| EBITDA % | 7 % | (3) % | |||||
Recurring Revenue
| For the three-month periods ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Recurring revenues | $ | 9,256,874 | $ | 1,592,713 | |||
| Non-recurring revenues | 39,682,724 | 34,739,235 | |||||
| Total revenue | 48,939,598 | 36,331,948 | |||||
| Recurring revenue % of total revenue | 19 % | 4 % | |||||
Cautionary Note Regarding Forward-Looking Information
This news release contains certain forward-looking statements and forward-looking information within the meaning of Canadian securities law. Such forward-looking statements and information include, but are not limited to, statements or information with respect to: our strategies, objectives and financial plans.
Forward-looking statements and information are frequently characterized by words such as "plan", "project", "intend", "believe", "anticipate", "estimate", "expect" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company's management believes that the assumptions made and the expectations represented by such statement or information are reasonable, there can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include risks relating to reliance on the Shopify platform; the Company's limited operating history; reliance on management and key employees; conflicts of interest in relation to the Company's officers, directors, and consultants; additional financing requirements; resale of Common Shares in the publicly- traded market; market price fluctuations for the Common Shares; global financial conditions; management of growth; risks associated with the Company's strategy of growth through acquisitions; tax risks; currency fluctuations; competitive markets; uncertainty and adverse changes in the economy; unsustainability of the Company's rapid growth and inability to attract new customers, retain revenue from existing merchants, and increase sales to both new and existing customers; adverse effects on the Company's revenue growth and profitability due to the inability to attract new customers or sell additional products to existing customers; the successful integration of the Company with Tiny Capital; future results of operations being harmed due to declines in recurring revenue or contracts not being renewed; security and privacy breaches; changes in client demand; challenges to the protection of intellectual property; infringement of intellectual property; ineffective operations through mobile devices, which are increasingly being used to conduct commerce; and risks associated with internal controls over financial reporting. The Company undertakes no obligation to update forward-looking statements and information if circumstances or management's estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements and information. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Company.
For a more detailed discussion of certain of these risk factors, see the list of risk factors in the Company's MD&A dated May 27, 2024 and the management information circular dated May 13, 2024 available on SEDAR+ at www.sedarplus.ca under the Company's profile.
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.
SOURCE: TINY LTD.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210747
FAQ
What was Tiny 's revenue for Q1 2024?
How much did Tiny 's recurring revenue increase in Q1 2024?
What was Tiny 's EBITDA for Q1 2024?
What was Tiny 's net loss for Q1 2024?
How did Tiny 's cash from operations perform in Q1 2024?
What was Tiny 's total debt in Q1 2024?
How did Tiny 's assets change in Q1 2024?
What acquisition did Tiny complete in Q1 2024?
