Espial Reports Fourth Quarter 2018 Results Recent Highlights
- Fourth quarter revenue was $6.7 million.
- Annualized recurring SaaS revenue increased 81% to $7.5 million from $4.1 million at the end of last year.
- Fourth quarter adjusted EBITDA1 of $0.2 million. Net income was $0.3 million.
- Announced Inter Mountain Cable Inc. (IMC), a leading provider of high-speed internet, digital TV, telephone, and commercial services will use Espial’s Elevate video platform to power a variety of advanced TV services across IMC’s IPTV and cable networks.
- Announced TDS Broadband Services signed an Elevate SaaS agreement with Espial to provide its cable video subscribers with an immersive experience and easy access to OTT services, including Netflix and YouTube.
- Announced WOW!, a leading broadband and communication services provider will use the Espial Elevate video platform to power its WOW! Ultra service.
- Tele Columbus, now PUR, launched new marketing campaigns and promotions for their advanceTV service, powered by Espial.
“I’m pleased with the progress we made in 2018, growing our annualized SaaS revenues 81% from 2017 and delivering positive adjusted EBITDA in the fourth quarter. In 2018, we continued to innovate on our cable and IPTV cloud software products by introducing advanced user experiences, integrating OTT content from Netflix and YouTube, expanding support for a wide range of consumer-owned devices, enhancing intelligent voice navigation, and the use of analytics – all of which help Pay TV operators optimize their video business,” said Jaison Dolvane, CEO of Espial”. “As we enter 2019, we have a broad base of deployed customers, growing SaaS revenue and a strong balance sheet. Our opportunities in 2019 will focus on helping operators bring to market new IP-based video services with low-cost set-top boxes and App-based TV offerings for consumer-owned devices.”
Financial Summary
For the three-month period ended December 31, 2018, revenue was $6.7 million compared with revenue of $10.2 million for the three months ended December 31, 2017. Adjusted EBITDA for the fourth quarter of fiscal 2018 was $0.2 million compared to $0.9 million for the fourth quarter of fiscal 2017. Net income for the quarter was $0.3 million, increasing from $0.2 million in the fourth quarter of fiscal 2017.
Q4 Financial Results
- Fourth quarter revenue was $6,667,208 compared with revenue of $10,157,477 in the same period a year ago. Fourth quarter software license revenue was $2,428,087 compared to $6,081,188 in the fourth quarter of fiscal 2017. Software subscription revenue increased to $1,870,631 from $1,032,115 in the fourth quarter of 2017. Professional services revenue for the fourth quarters of 2018 and 2017 were $993,388 and $974,680, respectively. Maintenance and support revenue for the fourth quarter was $1,375,102 compared to $2,069,494 last year.
- North American revenues were $4,510,756 in the fourth quarter of 2018 compared to $6,163,111 in 2017. European revenues were $1,698,535 in the fourth quarter of 2018 compared to $1,821,618 in 2017. Asia revenues were $457,917 in the fourth quarter of 2018 compared to $2,172,748 in 2017.
- Gross margin for the fourth quarter of fiscal 2018 was 75% compared to 77% in the fourth quarter of fiscal 2017.
- Operating expenses in the fourth quarter of fiscal 2018 were $5,725,089 compared to $7,650,090 in the fourth quarter of fiscal 2017.
- Adjusted EBITDA for the fourth quarter of fiscal 2018 was $164,043, compared to $863,929 in fiscal 2017.
- Net income in the fourth quarter was $258,734 compared to $227,794 last year.
Fiscal 2018 Financial Results
- Total revenue for the fiscal year ended December 31, 2018 was $26,669,588 compared with revenue of $33,433,064 in 2017. Software license revenue for the 2018 fiscal year was $9,357,949 compared to $17,919,074 in fiscal 2017. Software subscription revenue was $6,339,804 compared to $1,032,115 in 2017. Professional services revenue for the fiscal years of 2018 and 2017 was $4,523,798 and $6,029,779, respectively. Maintenance and support revenue for the year ended December 31, 2018 was $6,448,037 compared to $8,452,096 last year.
- North American revenues were $16,184,271 in the 2018 fiscal year compared to $19,665,586 in 2017. European revenues were $8,633,364 in the 2018 fiscal year compared to $9,270,019 in 2017. Asia revenues were $1,851,953 in the 2018 fiscal year compared to $4,497,459 in 2017.
- Gross margin for the 2018 fiscal year was 73% compared to 74% in fiscal 2017.
- Operating expenses for the 2018 fiscal year were $25,384,205 compared to $32,784,839 in fiscal 2017.
- Adjusted EBITDA for the fiscal year ended December 31, 2018 was a loss of $1,649,577 compared to a loss of $4,966,478 in fiscal 2017.
- Net loss in the 2018 fiscal year was $4,520,021 compared to a net loss of $8,522,959 in 2017.
Cash and cash equivalents on December 31, 2018 was $33,405,255.
A complete set of financial statements and management’s discussion and analysis for the period ended December 31, 2018 will be available at https://www.sedar.com.
Conference Call
The Company will be hosting a conference call to discuss the Q4 2018 financial results on February 28, 2019 at 5:00PM EDT and the phone number to join the results discussion is:
- Toll Free line (Canada/US) 866-521-4909
- Toll line (International/Local) 647-427-2311
The playback for the call will be available two hours after the call’s completion and will be available until 11:59PM ET on March 29, 2019, at the following numbers and passcode:
Toll-free line: +1-800-585-8367 or +1-416-621-4642, Passcode: 1138149