Wishpond Achieves Record Monthly Recurring Revenue in April 2022
- Wishpond announces record monthly recurring revenue (MRR) for April 2022
- Wishpond continues to experience strong performance across all its businesses with impressive organic growth in the Company's PersistIQ sales automation business
- Wishpond remains well positioned for continued growth with increasing revenue in 2022 and improving cash flows.
VANCOUVER, BC, May 3, 2022 /CNW/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) ("Wishpond" or the "Company"), a provider of marketing-focused online business solutions, is pleased to announce a business update for the month ended April 30, 2022. Wishpond is pleased to report that the Company's monthly recurring revenue ("MRR") was at an all-time high in April 2022. Record performance was driven by healthy organic growth as Wishpond achieved record MRR in the month of April even without the inclusion of its most recent acquisitions of Winback and Viral Loops.
Wishpond continues to experience strong performance across all of its businesses. In particular, Wishpond's PersistIQ subsidiary exceeded expectations, recording a record high MRR in April 2022. The Company is also pleased to see a rebound in Brax's ad management revenue which was negatively affected by seasonality in Q1. Winback is also proving to be a strong solution for cross-selling to Wishpond's existing customers; increasing the stickiness of Wishpond's incumbent customers. Meanwhile, Viral Loops reported an excellent MRR in its first month as a Wishpond subsidiary in April, in line with management expectations. All of Wishpond's five acquisitions were completed after the Company went public in December 2020.
"While our business in the earlier part of Q1, 2022 was affected by post-holiday seasonality, we were thrilled to see MRR growth return in March and April." said Ali Tajskandar, CEO of Wishpond. We are expecting continuing growth in May and look forward to providing another update when we report on our Q1 financial results at the end of May".
Despite the current turbulent macroeconomic backdrop highlighted by high inflation and increasing interest rates, Wishpond remains well positioned for continued growth with increasing revenue each quarter in 2022, improving cash flows and a strong cash balance. In line with the Company's focus on profitable growth, Wishpond has begun scrutinizing all discretionary expenditures across the organization in February and March 2022 with the intent of optimizing costs and achieving cost saving synergies and economies of scale. The outlook for Wishpond remains positive for the rest of the year and the Company is able to continue to fund the growth of its sales team and new product launches with its cash flow from operations.
Wishpond's acquisition strategy has complemented the Company's organic growth very nicely. All of Wishpond's acquisitions have been cash flow generating companies that can benefit from the Company's sales and marketing expertise, and their products and solutions offer great cross selling opportunities to our core Wishpond customers. Wishpond has structured all of its acquisitions so that future earn-outs could be paid in cash or stock to preserve flexibility.
Further to the Company's news release dated March 1, 2021 with respect to the Company's acquisition of PersistIQ, Inc. (the "PersistIQ Acquisition"), the Company is pleased to announce that it will pay an earn-out payment of US$427,071.16 (C$544,387.61) by the issuance of 460,408 common shares in the capital of the Company ("Common Shares") at a deemed price per Common Share of C$1.1824 to the vendors in respect thereof in satisfaction of the third earn-out payment payable pursuant to the PersistIQ Acquisition. All prior earn-out payments in respect of the PersistIQ Acquisition were paid from cash on hand.
Additionally, further to the Company's news release dated September 1, 2021 with respect to the Company's acquisition of certain assets and specific liabilities from AtlasMind Inc. (d/b/a Brax.io) (the "Brax Acquisition"), the Company is pleased to announce that it will pay an earn-out payment of US$149,332.73 (C$189,921.37) by the issuance of 156,933 Common Shares at a deemed price per Common Share of C$1.2102 to the vendors in respect thereof in satisfaction of the second earn-out payment payable pursuant to the Brax Acquisition. All prior earn-out payments in respect of the Brax Acquisition were paid from cash on hand.
The issuance of any Common Shares in satisfaction of the earn-out payments is subject to the approval of the TSX Venture Exchange.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing-focused online business solutions. Wishpond's vision is to become the leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation, and sales conversion capabilities on one integrated platform. Wishpond replaces disparate marketing solutions with an easy-to-use product, for a fraction of the cost. Wishpond serves over 3,700 customers who are primarily small and medium-sized businesses (SMBs) in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions and continues to add new features and applications with great velocity. The Company employs a Software-as-a-Service (SaaS) business model where substantially all the Company's revenue is subscription-based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX Venture Exchange under the ticker "WISH", and on the OTCQX Best Market under the ticker "WPNDF". For further information, visit: www.wishpond.com.
ON BEHALF OF THE BOARD
"Ali Tajskandar"
Director and CEO
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 with respect to the issuance of Common Shares in satisfaction of the earn-outs noted herein, the grant of TSX Venture Exchange approval in respect of same, future performance of the Company, including the continued growth of the Company and future acquisitions as well as statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions, and statements related to the features, adoption, usability, performance and results related to the new email marketing platform introduced by Wishpond. Readers are cautioned to not 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 related to the performance, adoption and market acceptance of Wishpond's products and services, TSX Venture Exchange review and approval, general market conditions, as well as 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.sedar.com. 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.
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.
SOURCE Wishpond Technologies Ltd.
Pardeep S. Sangha, Investor Relations, Wishpond Technologies Ltd., [email protected], 604-572-6392
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