VANCOUVER, BC --(Marketwired - August 29, 2017) - MediaValet Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloudbased digital asset management software, is pleased to report its second quarter results for 2017.
Summary of Quarterly Results
"2017 continues to deliver strong quarter-over-quarter and year-over-year revenue growth," commented David MacLaren, founder and CEO of MediaValet. "To date, our growth has been fueled by rapid feature development, strategic integrations and highly targeted marketing campaigns. These initiatives continue to expand our market share, grow our average deal size and increase our gross margin. On the horizon, as our new channel partners begin to ramp up, we see our channel program starting to contribute meaningfully to our growth trajectory."
"With our operating teams fully staffed, and both ARR and topline Revenue expected to continue growing quarter-over-quarter, we're confident EBITDA losses and cash requirements will continue to lessen each quarter going forward," added Mr. MacLaren. "Thanks to the continued suggestions, ideas and feedback from our diverse list of customers, and the truly amazing ability of our R&D team, this positive trend in our top and bottom line will be supported by an innovative and robust product roadmap full of exciting new technology, feature enhancements and add-on products."
Continued Mr. MacLaren, "Given our accomplishments to date, we plan to maintain our current operating budget and to continue delivering topline growth through strategic marketing initiatives, innovative product development, and targeted geographic and industry expansion. We believe this will enable us to acheive cash positive operations in 2018."
Second Quarter Fiscal 2017 Highlights:
- Achieved highest quarterly Revenue to date of $533,275, up 57% from Q2 last year, and up 14% sequentially from Q1'17. Revenue includes both recurring revenue and one-time set up fees. Recurring revenue increased 81% compared to Q2 last year and 16% sequentially. For the year-to-date period, recurring revenue increased 78%.
- Grew Annual Recurring Revenue ("ARR") to $2,302,479, an increase of 88% compared to $1,226,456 at June 30, 2016, and 13% sequential increase from $2,033,045 at March 31, 2017.
- Closed quarterly net new ARR adds of $269,434 in Q2'17, up 71% from $157,291 in Q2'16.
- Increased Deferred Revenue at June 30, 2017 by 115% to $1,617,128 from $751,335 at June 30, 2016, and up 21% sequentially from $1,339,476 at March 31, 2017.
- Increased Gross Margin to 83% in Q2'17 from 74% in Q2'16 as a result of increasing sales volume, improved operating efficiencies, and new paid feature add-ons. Q1'17 Gross Margin was 82%.
- Reported an EBITDA loss of $1,110,830 in Q2'17, down 7% from Q2'16 and 6% from Q4'16, as the Company's increasing sales volume offsets the stabilized level of infrastructure costs.
- Operating Expenses were $1,554,825 for Q2'17, up 8% from Q2'16 and up 3% sequentially from Q1'17 due mainly to higher commission expense on higher sales volume. The Company intends to keep cash operating expenses relatively stable as it continues to unlock additional operating capacity in its existing infrastructure.
- Completed integration into the world's leading document management and storage system, Microsoft SharePoint. MediaValet's integration enables SharePoint users -- for the first time -- to view, manipulate and share all popular formats and sizes of photos, videos, audio files, graphics, animations and 2D and 3D CAD files within the platform.
- Completed integration into the world's most popular website content management system (CMS), WordPress. This integration enables creative and administrative web teams to access the latest, approved media assets directly from within WordPress, saving organizations valuable time and resources and ensuring brand consistency across all digital platforms.
- Announced full integration with Microsoft Office 365 and the release of a full-screen, multi-page Microsoft Office and PDF viewer. MediaValet users now enjoy the unrivalled ability to view, edit and save Microsoft Word, Excel and PowerPoint documents directly within MediaValet -- an industry first that will further help expand the reach of DAM beyond marketing departments, increasing productivity across organizations.
- Announced a European based FTSE-100 company, with over 15,000 staff, selected MediaValet and an S&P 100 company expanded its MediaValet implementation to provide global marketing libraries for several more of its various global divisions.
- Announced a channel partnership with Long View Systems Corporation, one of North America's leading systems integrators and managed service providers.
Year-to-date Fiscal 2017 Highlights:
- Increased ARR to $2,302,479, up 88% over last year.
- Achieved highest six month Revenue to date of $999,233, up 68% from the same period last year.
- Closed $502,755 of net new ARR in first six month, up 95% from $257,682 in the same period last year.
- Increased Deferred Revenue at June 30, 2017 by 34% to $1,617,128 from $1,203,687 at December 31, 2016.
- Increased Gross Margin to 83% for the six months ending June 30, 2017 from 74% last year, and 82% in Q1'17, as a result of increasing sales volume and improved operating efficiencies from R&D investments in product enhancements and tools.
- Reported an EBITDA loss of $2,232,165 for the six months ending June 30, 2017, down 10% from the first have of last year, as the Company's increasing sales volume offsets the stabilized level of infrastructure costs.
- Launched the first DAM integration of an AutoCAD viewer for viewing, sharing and publishing 2D and 3D rendered models in a highly secure, centralized, cloud-based, enterprise-wide asset library. MediaValet's AutoCAD viewer paves the way for those organizations that create and work with 2D and 3D rendered models to embrace the cloud and share their work with a broader audience.
- Announced the development of mobile applications for iOS, Android and Windows devices. Extending DAM functionality to all major mobile platforms takes DAM beyond the walls of organizations, driving brand consistency, increasing individual, team and corporate wide productivity, and enabling deeper collaboration across organizations and their corporate ecosystems.
- Announced a variety of new customers that included Margaritaville and the City of Eagan.
Highlights Subsequent to Quarter end:
- Announced full integration with Slack, the world's fastest growing team collaboration and communication platform. This integration will provide organizations with an elegant and simple way to collaborate on marketing assets and manage asset related workflows and approvals.
- Awarded Gold by the International Association of Microsoft Channel Partners (IAMCP) in their 2017 award competition for partner-to-partner solutions that drive customer value. The award recognized MediaValet's partnership with Long View Systems for their outstanding efforts that deliver exceptional solutions and services to their customers through implementation of joint partner solutions.
- Won the 2017 IMPACT Award for Digital Transformation Leadership at Microsoft's world partner conference, Inspire. The award recognizes a partner that has set the standard for the evolution of businesses in the digital age by transforming their business practices and enabling their customers to harness the opportunities of cloud, big data, mobile and social to become more empowered, engaged, and efficient.
Outlook
With the increasing productivity of the sales and marketing team, the impactful milestones being achieved by the product development team, and the Company's strong customer retention rate, management intends to maintain its current level of investment and continue implementing its growth strategy with a focus on optimizing excess capacity in the Company's current operating structure. While some variable costs such as cost of revenue and sales commissions will increase with revenue, management believes it has sufficient infrastructure and staff to continue growing revenues throughout 2017 without materially increasing operating costs.
MediaValet's full financial statements and related MD&A are now available on SEDAR.