Jasper Commerce Reports Q1 Fiscal 2023 Financial Results

Subscription revenue grows Jasper reports 8% year over year, aided by new sales strategy

VANCOUVER, BC, Dec. 19, 2022 /CNW/ - Jasper Commerce Inc. (TSXV: JPIM) ("Jasper" or the "Company"), a leading provider of Product Information Management ("PIM") solutions, announces its first fiscal quarter ("Q1 2023") financial results for the three month period ended October 31, 2022. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars.

Financial Highlights – 8% Subscription Revenue Growth in Three Months Ended October 31, 2022

• Revenues from subscriptions grew 8% year-on-year in Q1 2023 to $308,554 versus $285,038 for the three months ended October 31, 2021 ("Q1 2022"). Revenue growth from subscriptions was driven by an increase in Enterprise license sales and is consistent with management's plan to steadily add subscription revenue every month.
• Total revenue was $379,726 for the three months ended October 31, 2022, declining 16% year-over-year from $452,262 in Q1 2022. The year-over-year decline was due to a $96,052 reduction in lower margin professional services, as the Company reduced focus on custom projects.
• Expenses for Q1 2023 were $1,691,366 versus $1,443,953 for Q1 2022. Expenses increased primarily due to increased investment in employee headcount and outsourced services.
• Net loss for Q1 2023 was $1,311,640 compared to a net loss of $991,691 for Q1 2022. The larger net-loss in Q1 2023 was primarily due to an increase in headcount compared to Q1 2022 in order to support the Company's growth strategy.

Management Commentary and Outlook

Looking forward to fiscal 2023, management expects the revenue growth of the SaaS PIM Subscription business to accelerate. Revenue from professional services will likely decline as a percentage of overall revenue.

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 October 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]