Jasper Commerce Reports Fiscal 2022 Financial Results

Jasper reports 42% year over year subscription revenue growth for twelve months ended July 31, 2022

Total revenue for twelve months ended July 31, 2022 of $1.68 million, up 23% year over year, in-line with management guidance

VANCOUVER, BC, Nov. 28, 2022 /CNW/ - Jasper Commerce Inc. (TSXV: JPIM) ("Jasper" or the "Company"), a leading provider of Product Information Management ("PIM") solutions, announces its fourth fiscal quarter ("Q4 2022") financial results for the three and twelve month periods ended July 31, 2022. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars.

Financial Highlights – 42% Subscription Revenue Growth in Twelve Months Ended July 31, 2022

• Total revenue was $1,679,089 for the twelve months ended July 31, 2022 ("FY2022"), growing 23% year-over-year from $1,369,322 for the twelve months ended July 31, 2021 ("FY2021"), in-line with the Company's FY 2022 financial guidance provided on August 11, 2022.
• Revenues from subscriptions were up 42% year-on-year in FY 2022 to $1,221,167, compared to $857,409 in FY2021. Revenue growth from subscriptions was driven by an increase in Enterprise license sales.
• Revenue for Q4 2022 was $372,798 versus $361,991 for the three months ended July 31, 2021 ("Q4 2021"). Total Q4 year-on-year revenue growth was relatively flat, as clients deferred professional services projects.
• Revenue from subscriptions for Q4 2022 was up 25% to $332,627, compared to $265,839 in Q4 2021 as a result of new sales acquired through earlier marketing campaigns. Sales in Q4 are typically stronger than other quarters based on seasonality, as eCommerce merchants seek out new merchandising solutions ahead of Back to School and Black Friday selling seasons.
• Expenses for FY 2022 were $9,565,128 versus $3,025,986 for FY 2021. Non-recurring Listing costs of $2,292,750 related to the reverse takeover, the fair value of additional shares issued on conversion of debentures to equity and hiring of new staff and vendor scale up accounted materially for the increase of expenses in FY 2022. Expenses for Q4 2022 were $1,278,679 compared to $595,634 in Q4 2021.
• Net loss for FY 2022 was $7,886,039, compared to a net loss of $1,656,664 for FY 2021. Net loss for Q4 2022 was $905,881 versus a $233,643 net loss in Q4 2021.  The larger net-loss in Q4 2022 was primarily due to an increase in headcount compared to 2021.

Management Commentary and Outlook

"After completing both our go public transaction and successful $6 million financing, we have been investing in sales and marketing to continue our organic growth," said Jasper CEO Jon Marsella. "We also continued working on what we call 'product smoothing', which simply stated refers to product refinements and knowledge base improvement to make the PIM easier to understand and quicker to onboard for smaller merchants. I'm pleased with the Company's twelve-month performance with 42% growth in subscription revenue, during an unanticipated and tough macroeconomic environment in 2022. I am optimistic for our future prospects as we advance discussions with new partners that should open new channels of growth."

The expected closing timeframe for the Cartika acquisition is now the first week of January, 2023 in order to accommodate a slightly longer closing process than anticipated. We've already seen some positive results in terms of cost reductions for Jasper arising from infrastructure improvements by working with the Cartika technology team ahead of the acquisition closing. 

On a Pro Forma basis, for Jasper's Fiscal 2023 (ending July 31, 2023) and now including seven months of Cartika contribution, the Company expects total revenue of $3.2 million to $3.7 million, up as much as 120% from Fiscal 2022 revenue of $1.68 million, with gross margins on such revenue of the combined entities estimated to be between 50 and 55%. This acquisition is expected to advance our EBITDA break-even in FY2023 by approximately two months.

New revenue opportunities arising from cross selling amongst the two Companies' non-overlapping customer bases could provide additional upside.

This news release should be read in conjunction with Jasper's unaudited interim condensed consolidated financial statements and the accompanying notes, as at and for the quarter ended July 31, 2022. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the Jasper's website at www.jasperpim.com.

About Jasper Commerce Inc.

Jasper offers a Product Information Management ("PIM") solution that has the objective of empowering eCommerce merchants to manage and merchandise their products from a single source of truth, facilitating them to sell more, sell faster and work smarter. Jasper's PIM is accessible from anywhere via a web-browser and is intended to simplify the process by which online merchants import product data into the PIM. Once uploaded, merchants can add various product data including product attributes, images, videos, marketing information, inventory quantities and price books and efficiently merchandise their products using various features that include, among other things, the ability to adjust product categorization, pricing data and other key metrics. Jasper's PIM also allows for automatic syncing to popular eCommerce storefronts, marketplaces, or other connected channels, whenever new products are added to the PIM.

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.

Investors are cautioned that, except as disclosed in the Filing Statement prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.

Forward Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements, including statements relating to the final acceptance by the Exchange, the issuance of a final bulletin by the Exchange, the use of proceeds of the Offering and the business plans of the Company. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Any number of factors could cause actual results to differ materially from these forward‐looking statements as well as future results. Although the Company believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

SOURCE Jasper Commerce, Inc.

Mike Hodes, CFO, [email protected]; Nik Thadani, Investor Relations, [email protected], [phone]