Wishpond Reports Q3-2024 Financial Results with a 79% Year-over-Year Improvement in Adjusted EBITDA
Wishpond Technologies reported Q3-2024 financial results, achieving its highest Adjusted EBITDA since 2022 at $0.6 million, a 79% increase year-over-year. The company reached an 11% Adjusted EBITDA margin through cost optimizations and sales team restructuring. Revenue was $5.1 million, down from $5.8 million in Q3-2023, primarily due to reduced spending from a legacy email delivery customer. Gross margin improved to 69% from 66% year-over-year. The company launched SalesCloser AI, its new flagship virtual sales agent product, and announced a collaboration with Roomvu Technologies to enhance lead follow-up for real estate agents.
Wishpond Technologies ha riportato i risultati finanziari del terzo trimestre del 2024, raggiungendo il suo più alto EBITDA rettificato dal 2022 con 0,6 milioni di dollari, un aumento del 79% rispetto all'anno precedente. L'azienda ha realizzato un margine EBITDA rettificato dell'11% grazie a ottimizzazioni dei costi e ristrutturazioni del team di vendita. I ricavi sono stati di 5,1 milioni di dollari, in calo rispetto ai 5,8 milioni di dollari nel terzo trimestre del 2023, principalmente a causa della diminuzione della spesa da parte di un cliente storico per la consegna di email. Il margine lordo è migliorato al 69% rispetto al 66% dell'anno precedente. L'azienda ha lanciato SalesCloser AI, il suo nuovo prodotto di agente di vendita virtuale di punta, e ha annunciato una collaborazione con Roomvu Technologies per migliorare il follow-up dei lead per gli agenti immobiliari.
Wishpond Technologies informó sobre los resultados financieros del tercer trimestre de 2024, alcanzando su mayor EBITDA ajustado desde 2022 con 0,6 millones de dólares, un aumento del 79% en comparación con el año anterior. La empresa logró un margen de EBITDA ajustado del 11% mediante optimizaciones de costos y una reestructuración del equipo de ventas. Los ingresos fueron de 5,1 millones de dólares, en comparación con los 5,8 millones de dólares en el tercer trimestre de 2023, principalmente debido a una reducción del gasto por parte de un cliente antiguo de entrega de correos. El margen bruto mejoró al 69% desde el 66% en comparación con el año anterior. La empresa lanzó SalesCloser AI, su nuevo producto de agente de ventas virtual, y anunció una colaboración con Roomvu Technologies para mejorar el seguimiento de leads para agentes inmobiliarios.
Wishpond Technologies는 2024년 3분기 재무 실적을 보고했으며 2022년 이후 가장 높은 조정 EBITDA인 60만 달러를 달성하여 전년 대비 79% 증가했습니다. 이 회사는 비용 최적화와 영업팀 구조 조정을 통해 11%의 조정 EBITDA 마진을 달성했습니다. 매출은 510만 달러로, 2023년 3분기의 580만 달러에서 감소했으며, 이는 주로 기존 이메일 전송 고객의 지출 감소 때문입니다. 총 마진은 전년 대비 66%에서 69%로 개선되었습니다. 이 회사는 자사 대표 가상 판매 에이전트 제품인 SalesCloser AI를 출시했으며, 부동산 에이전트를 위한 리드 후속 조치를 강화하기 위해 Roomvu Technologies와 협력한다고 발표했습니다.
Wishpond Technologies a annoncé les résultats financiers du troisième trimestre 2024, atteignant son plus haut niveau d'EBITDA ajusté depuis 2022 avec 0,6 million de dollars, soit une augmentation de 79 % par rapport à l'année précédente. L'entreprise a réalisé une marge d'EBITDA ajustée de 11% grâce à des optimisations de coût et à une restructuration de l'équipe de vente. Les revenus s'élevaient à 5,1 millions de dollars, en baisse par rapport à 5,8 millions de dollars au troisième trimestre 2023, principalement en raison d'une réduction des dépenses d'un client historique en livraison d'e-mails. La marge brute s'est améliorée à 69% contre 66 % l'année précédente. L'entreprise a lancé SalesCloser AI, son nouveau produit phare d'agent de vente virtuel, et a annoncé une collaboration avec Roomvu Technologies pour améliorer le suivi des prospects pour les agents immobiliers.
Wishpond Technologies hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und konnte mit 0,6 Millionen Dollar das höchste bereinigte EBITDA seit 2022 erreichen, was einem Anstieg von 79 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte eine bereinigte EBITDA-Marge von 11% durch Kostenoptimierungen und eine Umstrukturierung des Verkaufsteams. Der Umsatz betrug 5,1 Millionen Dollar, im Vergleich zu 5,8 Millionen Dollar im dritten Quartal 2023, was hauptsächlich auf sinkende Ausgaben eines alten E-Mail-Belieferungs-Kunden zurückzuführen ist. Die Bruttomarge verbesserte sich von 66 % auf 69 % im Jahresvergleich. Das Unternehmen hat SalesCloser AI, sein neues Flaggschiff-Produkt als virtueller Verkaufsagent, eingeführt und eine Zusammenarbeit mit Roomvu Technologies angekündigt, um die Nachverfolgung von Leads für Immobilienmakler zu verbessern.
- Adjusted EBITDA increased 79% YoY to $571,228
- Achieved 11% Adjusted EBITDA margin, highest since 2022
- Gross margin improved to 69% from 66% YoY
- Generated positive operating cash flow of $0.2 million in Q3
- Revenue declined to $5.06M from $5.76M YoY
- Cash position decreased to $1.08M from $1.42M at year-end 2023
- Credit facility drawdown increased to $1.3M from $0.99M at year-end 2023
- Wishpond achieved Adjusted EBITDA(1) of
$0.6 million 79% compared to Q3-2023 and the best Adjusted EBITDA level since 2022. - Wishpond is pleased to report it achieved an Adjusted EBITDA margin of
11% in Q3-2024 as a result of cost optimizations and restructuring of its sales team.
Ali Tajskandar, Wishpond's Founder and CEO commented, "I am pleased to report that Wishpond has achieved Adjusted EBITDA of
Ali Tajskandar further adds, "Wishpond is making exciting strides with its new flagship product, SalesCloser AI ("SalesCloser"), a revolutionary virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos. We are actively exploring new sales outreach programs and potential channel partnerships to expand SalesCloser's reach, unlock new customer opportunities, and drive broader adoption of the platform. Recently, we announced a collaboration with Roomvu Technologies Inc. ("Roomvu"), a leading real estate marketing platform used by over 220,000 real estate agents, to leverage SalesCloser in enhancing lead follow-up and boosting sales conversions. Collaborations like these are an excellent example of how a partner can provide us with greater and more efficient access to a potential customer base. Furthermore, we are seeing a steady increase in bookings for SalesCloser demos each day. As we broaden the platform's rollout, we anticipate that SalesCloser will be a key contributor in driving new growth to our business in 2025."
Adrian Lim, Wishpond's Chief Financial Officer commented, "Despite a decline in quarterly revenue, Wishpond was able to achieve very strong margins and cash flows in Q3-2024. Wishpond's revenue decline in Q3-2024 was attributable to the transition of its sales team driven by cost optimization efforts and the integration of SalesCloser into its sales processes. In the long term, we anticipate using SalesCloser to grow the Company's own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition, revenue was negatively impacted due to a decrease in spending from Wishpond's legacy customer for email delivery services. While this customer contributed to Wishpond's revenue, these sales were not as profitable compared to the newer business generated through our Propel IQ platform ("Propel IQ"). As a result, this offset of less profitable revenue enabled Wishpond to achieve its most profitable quarter in two years, growing Adjusted EBITDA margin to
Third Quarter 2024 Financial Highlights:
- Wishpond achieved quarterly revenue of
$5,055,738 $5,763,847 - Revenue was impacted by a decline in revenue from the Company's legacy customer of email delivery services which reduced its spending from
$338,359 $48,969 - Wishpond achieved a gross profit of
$3,490,107 $3,825,821 - Wishpond achieved a gross margin percentage of
69% during Q3-2024 (Q3-2023:66% ). - During Q3-2024, Wishpond achieved positive Adjusted EBITDA(1) of
$571,228 $319,001 11% , and an increase of79% from Q3-2023. - As at September 30, 2024, Wishpond had
$1,084,978 $1,300,535 $1,424,585 $994,658
Third Quarter 2024 Business Highlights:
- On July 8, 2024, the Company announced the appointment of Adrian Lim as Chief Financial Officer (CFO). Mr. Lim has responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions.
- On July 10, 2024, the Company announced that the renewal of its Notice of an Intention it filed to make a Normal Course Issuer Bid ("NCIB") was approved by the TSX Venture Exchange. Under the renewed NCIB, the Company may, during the 12-month period commencing July 15, 2024, and ending July 14, 2025, purchase up to 2,707,931 Shares in total, being
5% of the total number of 54,158,620 Shares outstanding as at June 26, 2024. - On August 1, 2024, the Company successfully renewed its credit facility with a major Canadian bank. The renewed credit facility maintains the secured revolving operating line with a borrowing capacity of up to
$6,000,000 - On August 8, 2024, the Company announced the launch of a new rewards distribution program through its Viral Loops product platform. The new program launched with successful integrations with the Stripe App Marketplace, Tremendous, and Sendoso allowing Viral Loops customers to use their referral rewards on any of these platforms, which the Company believes will increase Average Order Value(1) and Customer Lifetime Value(1). The program is expected to drive increased customer engagement and strengthen Wishpond's overall market position and capabilities in the referral marketing space.
- On August 19, 2024, the Company announced the launch of a new Integrations Marketplace for its AI-powered virtual sales agent, SalesCloser AI. The Integrations Marketplace is designed to seamlessly integrate SalesCloser with a wide range of tools, including CRM systems, email marketing platforms, and task management software, enhancing efficiency and sales effectiveness through advanced workflow automation.
Business Highlights Subsequent to September 30, 2024:
- On October 23, 2024, the Company entered into a collaboration agreement with Roomvu, a leading real estate marketing platform used by over 220,000 real estate agents, to utilize SalesCloser to enhance lead follow-up and sales conversion for Roomvu. This collaboration is anticipated to empower real estate agents to significantly improve the efficiency of managing leads, with aims to ultimately drive sales higher at the same time as improving the client experience.
Outlook:
For 2025, Wishpond's focus is on profitable growth. The Company expects to improve upon the Adjusted EBITDA levels achieved in 2024. The Company is also expanding the utilization of its SalesCloser virtual sales agent in its sales processes in order to drive new sales of Wishpond products. SalesCloser will be used to help grow Wishpond's own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition to using SalesCloser to sell Wispond's own products, the Company is also ramping up its SalesCloser revenue generated from external customers.
Management is pleased to introduce the Company's key goals for 2025:
- Accelerate organic revenue growth and increase Monthly Recurring Revenue (MRR)(1).
- Achieve positive Adjusted EBITDA in each quarter in 2025.
- Increase utilization of SalesCloser in internal sales processes to drive sales of Wishpond's own products.
- Accelerate revenue growth of SalesCloser to external customers.
- Improve margins, decrease churn and increase long-term customer value.
Webinar Conference Call Details:
As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q3-2024 financial results today at 10:00 AM (PT) / 1:00 PM (ET).
To register for the webinar, please visit the following URL: https://bit.ly/wp_q3
Date: November 20, 2024
Time: 10:00 AM PT (1:00 PM ET)
Dial-in: +1 778 907 2071 (
+1 647 374 4685 (
Meeting ID #: 886 0009 0567
Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond's Interim Financial Statements and MD&A.
Three-months September 30, | Three-months September 30, | Nine-months September 30, | Nine-months September 30, | |
Revenue | 5,055,738 | 5,763,847 | 16,934,710 | 17,027,081 |
Gross profit | 3,490,107 | 3,825,821 | 11,561,777 | 11,195,550 |
Gross margin | 69 % | 66 % | 68 % | 66 % |
Adjusted EBITDA(1) | 571,228 | 319,001 | 1,403,142 | 744,000 |
Credit facility – end of period | (1,300,535) | - | (1,300,535) | - |
Cash - end of the period | 1,084,978 | 909,796 | 1,084,978 | 909,796 |
Net decrease in cash during the |
(68,609) |
(188,489) |
(645,484) |
(1,782,848) |
Reconciliation to Adjusted EBITDA
Three-months September 30, | Three-months September 30, | Nine-months September 30, | Nine-months September 30, | |
Income (Loss) before income |
86,180 |
329,154 |
(505,046) |
(1,106,096) |
Depreciation and amortization | 411,504 | 390,353 | 1,228,151 | 1,139,504 |
Interest income | - | - | - | (2,728) |
Interest expense | 36,557 | 8,990 | 115,276 | 8,990 |
Remeasurement of contingent | - |
- | - |
(22,232) |
Other expenses | 107,019 | 111,764 | 259,601 | 376,009 |
Stock based compensation |
(70,032) |
(521,260) |
305,160 |
350,553 |
Adjusted EBITDA | 571,228 | 319,001 | 1,403,142 | 744,000 |
Footnotes: | |
(1) | Adjusted EBITDA, MRR, Annualized Revenue Run-Rate(1), Average Order Value, Customer Churn Rate(1) and LTV are not financial measures recognized by International Financial Reporting Standards ("IFRS"), do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. See "Cautionary Statements – Non-GAAP Financial Measures" for more information and definitions of each non-GAAP term used in this press release. |
On Behalf of the Board of Wishpond
"Ali Tajskandar"
Chairman and Chief Executive Officer
About Wishpond Technologies Ltd.
Based out of
Cautionary Statements, Summary Information
Information presented in this press release is only a summary and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and MD&A, and not to rely only on the information presented in this press release. In the event of conflict between the information in this press release on the one hand, and the Interim Financial Statements and MD&A on the other hand, the information in the Interim Financial Statements and MD&A shall govern.
Non-GAAP Financial Measures
In this press release, Wishpond has used the following terms ("Non-GAAP Financial Measures") that are not defined by IFRS, but are used by management to evaluate the performance of Wishpond and its business, including: Adjusted EBITDA, MRR, Annualized Revenue Run-Rate, Average Order Value, Customer Churn Rate, LTV, gross profit, and gross margin. These measures may also be used by investors, financial institutions and credit rating agencies to assess Wishpond's performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable IFRS financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. See the disclosure under the heading "Additional GAAP and Non-GAAP Measures" in Wishpond's MD&A for a discussion of Non-GAAP Financial Measures and certain reconciliations to GAAP financial measures. The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:
- Adjusted EBITDA: Adjusted EBITDA should not be construed as an alternative to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Company's performance. The Company defines "Adjusted EBITDA" as Income or Loss before income taxes less interest, depreciation and amortization, remeasurement of contingent consideration liability, filing fees, credit facility setup and renewal fees, earn-out remuneration, foreign currency losses (gains), acquisition related expenses, net other expenditures (income), and stock-based compensation. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.
- Average Order Value: The Company defines Average Order Value, or AOV, as the aggregate dollar amount of all customer orders over a period of time divided by the aggregate number of orders during that same period. Management believes AOV to be a useful financial measure because it helps to track the impact of sales initiatives and product offerings on customer spending patterns
- Monthly Recurring Revenue: The Company uses Monthly Recurring Revenue, or MRR, as a directional indicator of subscription revenue going forward assuming customers maintain their subscription plan the following month. MRR is the total of all monthly subscription plan fees paid by customers in effect on the last day of that period. If customers pay for more than one month upfront, the amount is divided by the number of months in the subscription period. Discounts are deducted prior to the calculation and one-time payments and metered based charges are excluded.
- Annualized Revenue Run-Rate: The Company uses Annualized Revenue Run-Rate as an indicator of financial performance that takes the current revenue in the quarter and converts it to an annual figure to get the full-year equivalent.
- Customer churn rate: The Company defines Customer Churn Rate as the percentage of customers who have canceled their subscriptions over time. Management believes Customer Churn Rate to be a useful financial measure because it provides further insight as to what products have the ability to generate continuous customer engagement and revenue.
- Customer Lifetime Value: The Company defines Customer Lifetime Value, or LTV, 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.
Forward-Looking Statements
Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, all information contained under the heading "Outlook" herein, references to expected results from future operations, future growth of the Company's products and platforms, the future development and increased use of products incorporating artificial intelligence, including SalesCloser, improvement in the Company's cash position and increased revenue generation, references to the growth of the Company's product portfolio and future profitability, including whether additional products or features may be developed in the future, and the functionality and timing of such products, financial results or operational activities that may be undertaken by the Company, the results of the Company's cost-savings, research and development and other initiatives, any future acquisitions or other activities done to grow the Company both organically or inorganically, expectations, beliefs, plans, future operations, the impact of broader economic factors including inflation and other general economic risks on the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as "expect", "anticipate", "plan", "continue", "estimate", "intend", "expect", "may", "will", "project", "predict", "potential", "targets", "projects", "is designed to", "strategy", "should", "believe", "contemplate" and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable and are based on, among other things, the expectations and analysis of current market trends and opportunities of management of the Company, such forward-looking statements have 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 to Propel IQ and SalesCloser's revenue and profitability, changes to customer preferences, competition, use cases for Propel IQ and SalesCloser, economic uncertainty and instability as a result of the ongoing inflation and supply chain issues, higher interest rate climate, tightening of credit availability and recessionary risks, pandemic related risks, wars, instability in global commodity and securities markets, shifts in consumer and institutional spending and marketing strategies, risks related to data breaches and privacy, the changing global market and competition for the products and services supplied by the Company, and the additional risk factors discussed in the continuous disclosure materials of the Company which are available under the Company's profile on SEDAR+ at www.sedarplus.ca. The forward-looking statements 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 statements, whether as a result of new information, future events or otherwise.
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.
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SOURCE Wishpond Technologies Ltd.
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