OTCPK:VPYYF - Post by User
Post by
luberonon Jun 05, 2018 11:03am
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(from) Virtus Advisory newsletter
(from) Virtus Advisory newsletterVersaPay (TSXV:VPY) - VersaPay reported their Q1’18 financial results at the end of the month, with revenue coming in slightly below expectations but still showing strong growth. Highlights from the quarter include:
- Annual Recurring Revenue (ARR) of $3.72m in Q1’18 compared to ARR of $1.93m in Q1’17, an increase of 93%
- Revenue of $1.0 million in Q1’18 compared to $0.49 million in Q1’17.
- Adjusted EBITDA loss of $2.51m compared to Adjusted EBITDA loss of $1.80m in Q1’17
- Despite the revenue coming in slightly short of expectations, we view the increase in ARR as much more significant in terms of future prospects of the company. ARR is a common metric among SaaS companies and one that is usually more indicative of growth than recognized revenue. That level of growth in ARR is not easy to come by for any SaaS-based business, and we believe investors should remain confident in this type of growth.
- Furthermore, we remind readers that Livingston Financial has not yet fully rolled out and we expect that this can make a material impact to revenue going forward. Management anticipates additional companies going live on the platform over the course of this year.
- Analysts at Haywood and PI Financial remain confident in the story as well. Haywood has revised its price target to $2.50 (from $2.75) while PI Financial has kept their target at $3.50.
- Potential Catalysts Include:
- Livingston completing its rollout
- RBC accelerating commercialization throughout Q3 and Q4
- Potential M&A
- Additional large customer wins
- Expanded presence in the US