From Howard Group website yesterday VidWrx Posts Record Q3 – Sales Up 72% Over A Year Ago
Company Forecasts Massive Sales Jump In 2016
Continued business traction is evident with the release of VidWrx’s third quarter results. Its backlog is skyrocketing, sales are accelerating and revenue is building strength.
We also make special note of the below sentence in the company’s MD&A:
- VidWrx expects sales to increase from a projected $1.8mm in 2015 to an estimated $10mm plus in 2016.
For reference:
Backlog – This is the total dollar value of all videos sold to date but not yet completed.
Sales – This is the total value of all videos sold in the quarter, and for which a deposit has been received.
Revenues – These are not recognized until the production has been completed and approved by the client.
Here are the the key points investors should consider when looking at the third quarter results posted on Sedar:
- Sales bookings increased 40% over the prior quarter and 72% increase year over year, reaching a record of $572,843.
- Revenue and backlog increased 13% and 27% respectively.
- The third quarter is a seasonally slow quarter, however VID still saw record sales bookings of $572,843 and demonstrated continued strength in existing repeat sales, and an increase in new agencies acquired during the quarter.
- Also in the quarter, Backlog reached another record, growing by 27% in the quarter to $1.89M, an increase of 124% over the year-ago quarter.
According to the company’s MD&A, “This growth is due largely to the development and implementation of a Revenue Performance Management System (RPM) launched late in the second quarter. In July, VidWrx began a significant ramp up of its outbound sales model through leveraging the RPM program. RPM is enabled by advanced CRM platforms and sophisticated sales development prospecting and automation platforms and is designed to optimize the sales cycle and accelerate predictable revenue growth.”
“During the fourth quarter the Company intends to optimize rate of growth and further refine the RPM system. With strategic and operational focus on the implementation and optimization of the RPM system the Company will continue to invest in the ongoing growth of its revenue engine.”
The third quarter also saw the company’s expenses go up. The company cites a number of factors, which include the initial hiring of sales and marketing staff for the implementation of the RPM sales strategy. Also mentioned are the costs associated with filing fees related to its capital activity and the issuance and repricing of options in the period. All can be considered variable occurrences, and according to management, the higher expenses should not continue in coming quarters.
To view news release, please click here.