Wishpond Marks First Anniversary of Propel IQ; Highlighting Lower Customer Churn Rates and Accelerating Customer Growth
- Over 500 new Propel IQ customers added by Wishpond in a year.
- Propel IQ shows up to 40% lower customer churn rate compared to single point solutions.
- Monthly Recurring Revenue (MRR) from Propel IQ customers increased 10-fold.
- Propel IQ expected to exceed 80% gross margins, a significant improvement from traditional range of 65% to 70%.
- Customer Lifetime Value (LTV) with Propel IQ is over 20% higher than other solutions.
- Propel IQ integrates lead generation, SMS marketing, referral marketing, and sales engagement software on one platform.
- Wishpond anticipates continued growth and profitability with Propel IQ becoming a cornerstone for the company.
- None.
- Since launching a year ago, Wishpond has added over 500 new Propel IQ customers, which is generating higher gross margins and has shown up to
40% lower customer churn rate than the Company's previous single point solutions.
Ali Tajskandar, CEO of Wishpond, commented, "Propel IQ is putting Wishpond on track for its next stage of growth. We believe that our investment of time and resources in the past year is yielding a very promising growth trajectory for the platform, with over 500 customers currently subscribing to Propel IQ. Furthermore, transitioning from our traditional silo offerings to a self-serve model with a fully integrated and bundled software platform is allowing the Company to improve its gross margins and customer retention, while providing our customers access to a full featured digital marketing platform. Looking ahead, we anticipate the growth of Propel IQ to continue this trajectory and become a cornerstone for growth and profitability for Wishpond."
Propel IQ is already having an impact on the Company's overall business as its customer churn rate is almost
Wishpond is pleased to share the following key metrics for Propel IQ:
- Over 500 Customers: Since launch, the number of Propel IQ customers has increased to over 500 users, now representing more than
10% of Wishpond's total customer base. - 10-fold Increase in Monthly Recurring Revenue (MRR): MRR from Propel IQ customers has increased approximately 10-fold over the past year.
- Greater than
80% Gross Margin: Wishpond expects Propel IQ's gross margins will exceed80% , a significant improvement from the Company's traditional gross margin range of65% to70% . - Up to
40% Lower Customer Churn: The customer churn rate for Propel IQ customers is between 30 and40% lower in some cohorts compared to customers of other Wishpond solutions. - Increase in Customer Lifetime Value (LTV): Customer LTV is over
20% higher than customers of other Wishpond solutions.
Propel IQ is the most extensive solution offered by Wishpond to date, bringing together powerful technology from Wishpond's different brands. In addition to Wishpond's legacy lead generation and marketing technology solutions, Propel IQ includes short message service (SMS) marketing from Winback, referral marketing from Viral Loops, and sales engagement software from PersistIQ, all integrated on one platform. With Propel IQ, businesses can manage the complete customer life cycle on one platform, eliminating the disruption of switching to new marketing and sales tools.
Jordan Gutierrez, Chief Operating Officer of Wishpond added, "We believe that Propel IQ is much more than another product; it's a strategic move for Wishpond as a leading innovator and provider of digital marketing solutions. Consolidating the technologies from Wishpond's prior acquisitions on a unified platform will be especially advantageous for our small and medium-sized customers. Overall, this platform allows customers to experience a cheaper, single, bundled price that delivers the value of our integrated product suite. We expect it to be a win-win scenario for both the Company and its customers."
Wishpond Technologies Ltd.
Per: "Ali Tajskandar"
Founder, Chairman and Chief Executive Officer
Wishpond Technologies Ltd.
Based out of
This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, 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 a further understanding of results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Customer Churn Rate (CCR), Customer Lifetime Value (LTV) and Monthly Recurring Revenue (MRR) should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. CCR, LTV and MRR do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
CCR is defined by management as the percentage of customers who have canceled their subscriptions over time. Management believes CCR is a useful financial measure because it provides further insight as to what products have the ability to generate continuous customer engagement and revenue.
LTV is defined by management as the average revenue that a customer generates before they churn. Management believes LTV is useful as a forward looking estimate of the average revenue that a customer will generate throughout its lifespan as a customer with Wishpond.
MRR is defined by management as the sum of all active subscriptions in the period. Management believes MMR is a useful financial measure because it provides information as to the expected amount of revenue generated from active customer subscriptions for a particular month.
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.
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including, without limitation, statements relating to the growth trajectory, future revenue and profitability of Propel IQ, the lower CCR of Propel IQ, and any other financial metrics related to Propel IQ as compared to Wishpond's other business or generally and the ability to achieve outcomes in the future, and other potential success and business results, containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts", "schedule" and other similar expressions. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information 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, risks associated with changes in Propel IQ's revenue or future profitability, changes to customer preferences, competition, use cases for Propel IQ and the risk factors discussed in the public disclosure documents of the Company which such risk factors are incorporated herein by reference and are available through SEDAR+ at www.sedarplus.ca. The forward-looking information 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 information, whether as a result of new information, future events or otherwise.
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SOURCE Wishpond Technologies Ltd.
FAQ
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