Wishpond Marks First Anniversary of Propel IQ; Highlighting Lower Customer Churn Rates and Accelerating Customer Growth
- Since launching a year ago, Wishpond has added over 500 new Propel IQ customers, which is generating higher gross margins and has shown up to 40% lower customer churn rate than the Company's previous single point solutions.
VANCOUVER, BC, March 5, 2024 /CNW/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the "Company" or "Wishpond"), a provider of marketing-focused online business solutions, is pleased to provide the following update on Propel IQ, the Company's next generation digital marketing platform. Launched in March 2023, Propel IQ is Wishpond's 'All-in-One' marketing platform built to serve all our customers' digital marketing needs.
Ali Tajskandar, CEO of Wishpond, commented, "Propel IQ is putting Wishpond on track for its next stage of growth. We believe that our investment of time and resources in the past year is yielding a very promising growth trajectory for the platform, with over 500 customers currently subscribing to Propel IQ. Furthermore, transitioning from our traditional silo offerings to a self-serve model with a fully integrated and bundled software platform is allowing the Company to improve its gross margins and customer retention, while providing our customers access to a full featured digital marketing platform. Looking ahead, we anticipate the growth of Propel IQ to continue this trajectory and become a cornerstone for growth and profitability for Wishpond."
Propel IQ is already having an impact on the Company's overall business as its customer churn rate is almost 40% lower than Wishpond's single product point solutions. The Company believes that Propel IQ has a lower churn rate as it provides customers access to multiple solutions and customers are able to move up the digital marketing value chain compared to using a single point solution. The lower churn allows Wishpond to increase the Lifetime Value (LTV) of each customer. Furthermore, it is expected that Wishpond's overall gross margins and other key performance indicators will improve as revenue from Propel IQ becomes a larger percentage of the Company's overall revenue.
Wishpond is pleased to share the following key metrics for Propel IQ:
- Over 500 Customers: Since launch, the number of Propel IQ customers has increased to over 500 users, now representing more than 10% of Wishpond's total customer base.
- 10-fold Increase in Monthly Recurring Revenue (MRR): MRR from Propel IQ customers has increased approximately 10-fold over the past year.
- Greater than 80% Gross Margin: Wishpond expects Propel IQ's gross margins will exceed 80%, a significant improvement from the Company's traditional gross margin range of 65% to 70%.
- Up to 40% Lower Customer Churn: The customer churn rate for Propel IQ customers is between 30 and 40% lower in some cohorts compared to customers of other Wishpond solutions.
- Increase in Customer Lifetime Value (LTV): Customer LTV is over 20% higher than customers of other Wishpond solutions.
Propel IQ is the most extensive solution offered by Wishpond to date, bringing together powerful technology from Wishpond's different brands. In addition to Wishpond's legacy lead generation and marketing technology solutions, Propel IQ includes short message service (SMS) marketing from Winback, referral marketing from Viral Loops, and sales engagement software from PersistIQ, all integrated on one platform. With Propel IQ, businesses can manage the complete customer life cycle on one platform, eliminating the disruption of switching to new marketing and sales tools.
Jordan Gutierrez, Chief Operating Officer of Wishpond added, "We believe that Propel IQ is much more than another product; it's a strategic move for Wishpond as a leading innovator and provider of digital marketing solutions. Consolidating the technologies from Wishpond's prior acquisitions on a unified platform will be especially advantageous for our small and medium-sized customers. Overall, this platform allows customers to experience a cheaper, single, bundled price that delivers the value of our integrated product suite. We expect it to be a win-win scenario for both the Company and its customers."
Wishpond Technologies Ltd.
Per: "Ali Tajskandar"
Founder, Chairman and Chief Executive Officer
Wishpond Technologies Ltd.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing-focused online business solutions. Wishpond is a leading provider of digital marketing solutions that empower customers to achieve success online. The Company's Propel IQ platform offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation, ad management, referral marketing, sales conversion, and outbound sales automation 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 4,000 customers in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions, including an AI powered website builder, an AI email automation tool, an AI Sales Agent and continues to add new AI enabled features and applications. The Company employs a Software-as-a-Service (SaaS) business model where most of 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.
This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Customer Churn Rate (CCR), Customer Lifetime Value (LTV) and Monthly Recurring Revenue (MRR) should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. CCR, LTV and MRR do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
CCR is defined by management as the percentage of customers who have canceled their subscriptions over time. Management believes CCR is a useful financial measure because it provides further insight as to what products have the ability to generate continuous customer engagement and revenue.
LTV is defined by management 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.
MRR is defined by management as the sum of all active subscriptions in the period. Management believes MMR is a useful financial measure because it provides information as to the expected amount of revenue generated from active customer subscriptions for a particular month.
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.
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 relating to the growth trajectory, future revenue and profitability of Propel IQ, the lower CCR of Propel IQ, and any other financial metrics related to Propel IQ as compared to Wishpond's other business or generally and the ability to achieve outcomes in the future, and other potential success and business results, containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts", "schedule" and other similar expressions. Readers are cautioned not to 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 associated with changes in Propel IQ's revenue or future profitability, changes to customer preferences, competition, use cases for Propel IQ and 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.sedarplus.ca. 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.
SOURCE Wishpond Technologies Ltd.
Pardeep S. Sangha, Investor Relations, Wishpond Technologies Ltd., Email: [email protected], Phone: 604-572-6392
Share this article