Renoworks Announces Third Quarter 2024 Financial Results and Record Third Quarter Revenue
CALGARY, AB, Nov. 5, 2024 /CNW/ - Renoworks Software Inc. (TSXV: RW) ("Renoworks" or the "Company), an industry leader in visualization and lead generation technology for the home renovation and new construction sector, announces its financial results for the nine-months ended September 30, 2024. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.
Financial highlights for the fiscal year to date 2024 with comparatives for 2023 are as follows:
- Revenues of $5,210,091, a 9% increase from the prior period's $4,789,569.
- Deferred Revenue of $2,589,790 at September 30, 2024 compared to $1,633,394 at December 31, 2023.
- Recurring revenue of $1,961,850 versus $1,632,48 for the same period in 2023, a 20% increase.
- Gross margin of 74% versus 72% in 2023.
- Net loss of $2,333 compared to a net loss of $284,664 for the same period in 2023, an improvement attributed primarily to the rise in licensing and hosting revenue of 20% and improved profit margins.
- Cash at September 30, 2024 was $748,223, an increase of $102,674 from $645,549 at the end of fiscal 2023.
- The Company's working capital at September 30, 2024 was a negative $228,292 compared to a negative working capital of $228,357 at December 31, 2023 an increase of $65 primarily due to an increase in accounts receivable balances of $581,424. Excluding deferred revenue, a significant non-cash item included in working capital, the Company's working capital at September 30, 2024 is positive $2,081,183 ($1,264,069 – Dec 31, 2023).
- As at September 30, 2024, the Company had 40,664,635 common shares issued and outstanding.
Financial highlights for the third quarter of fiscal 2024 with comparatives for 2023 are as follows:
- Quarterly revenue of $1,894,911 for the three months ended September 30, 2024 versus $1,716,307 in 2023.
- Recurring revenue of $662,321 versus $559,660 for the same period in 2023, an 18% increase.
- Gross margins continue to be strong at 74% and 71%, respectively for the third quarters of 2024 and 2023.
- Net income of $110,364 for the quarter ended September 30,2024 compared to a net income of $68,174 in 2023.
Renoworks reported a 9% increase in revenues for the first nine months of 2024 compared to the same period in 2023. This growth was driven by a 20% rise in licensing revenue and an 8% increase in design services revenue. The Company earned aggregate revenues of $5,210,091, an increase of $420,522 from the $4,789,569 revenues earned in the nine months ended September 30, 2023.
Net loss for the nine months ended September 30, 2024, was $2,333, a significant improvement when compared to the net loss of $284,664 reported for the same period in 2023. This improvement is attributed to increased revenue, and an improved gross margin of 74%, up from 72%.
"The progress we've achieved in the first nine months of 2024 is a testament to our team's dedication and our strategic focus on innovation," said Doug Vickerson, CEO of Renoworks. "By expanding our licensing revenue through innovative services for enterprise customers and enhancing our contractor solutions, we've not only grown our revenue but also significantly increased the value we provide to our clients."
"Despite facing increased costs to remain competitive, particularly in advancing our AI and data science capabilities, we've stayed committed to our long-term strategy," continued Mr. Vickerson. "Our investments in AI, data science, and platform functionality are yielding tangible results, enabling us to deliver cutting-edge visualization and design-led experiences that meet the evolving needs of the industry."
Adjusted EBITDA for the nine months ended September 30, 2024, was a positive $49,793, an increase of $264,299 compared to a negative Adjusted EBITDA of $214,506 for the same period in 2023.
Financial results from operations year to date with comparatives for 2023 are as follows:
Nine Months Ended Sept 30 |
||
2024 |
2023 |
|
Revenue |
$5,210,091 |
$4,789,569 |
Gross Profit |
$3,843,980 |
$3,436,906 |
Expenses |
$3,950,964 |
$3,703,268 |
Net Loss |
$2,333 |
$284,664 |
Loss per share |
$0.00 |
$0.01 |
Adjusted EBITDA |
$49,793 |
($214,506) |
Weighted Average Shares Outstanding |
40,664,635 |
40,664,103 |
Cash increase (decrease) from operations |
$104,893 |
($381,129) |
Financial results from operations for the third quarter 2024 with comparatives for 2023 are as follows:
Three Months Ended Sept 30 |
||
2024 |
2023 |
|
Revenue |
$1,894,911 |
$1,716,307 |
Gross Profit |
$1,402,502 |
$1,216,144 |
Expenses |
$1,335,240 |
$1,170,893 |
Net Profit |
$110,364 |
$68,174 |
Income per share |
$0.01 |
$0.01 |
Adjusted EBITDA |
$125,395 |
$92,382 |
Weighted Average Shares Outstanding |
40,664,635 |
40,664,635 |
The Company's financial position as of September 30,2024 and December 31, 2023 is as follows:
|
|
|
Cash Balance |
$748,223 |
$645,549 |
Accounts Receivable |
$1,237,064 |
$666,193 |
Working Capital |
($228,292) |
($228,357) |
Deferred Revenue |
$2,589,790 |
$1,633,394 |
Long- term liabilities |
$280,315 |
$140,968 |
Shareholder's Equity (Deficiency) |
($157,978) |
($195,192) |
Deficit |
($10,235,120) |
($10,232,787) |
Total Assets |
$2,548,573 |
$1,672,766 |
About Renoworks
Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review their product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API (Application Programming Interface). For more information, visit www.renoworks.com and www.renoworkspro.com.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+ (www.sedarplus.ca).
Forward Looking Information
Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.
For further information on Renoworks, please contact: Doug Vickerson, CEO, Phone: 403-296-3880, E-mail: [email protected]
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