first quarter of fiscal 2022 results - Q1 FY22 total revenue of $22.6 million growth of 10% compared to $20.5 million in Q1 FY21
- Core growth platforms continue to perform, ecommerce solutions revenue grew by 15%, Strategic Sourcing grew by 15% and US-based Strategic Sourcing grew by 32% compared to Q1 FY21
MONTREAL, Aug. 11, 2021 (GLOBE NEWSWIRE) -- mdf commerce inc. (the “Corporation”) (TSX:MDF), a SaaS leader in digital commerce technologies, reported Q1 FY2022 financial results for its first quarter ended on June 30, 2021. Financial references are expressed in Canadian dollars unless otherwise indicated.
“Q1 fiscal 2022 continued many of the positive trends seen throughout fiscal 2021,” said Luc Filiatreault, CEO of mdf commerce. “Our core growth platforms, Strategic Sourcing and ecommerce, both had double digit growth with our ecommerce solutions and US-based Strategic Sourcing achieving 15% and 32% growth respectively, year-over-year. When combined with our legacy platforms, consolidated revenue grew by 10% year-over-year for the first quarter. We continued to win new contracts this quarter and we saw a steady onboarding of public agencies and suppliers for Strategic Sourcing. Our sales pipeline is healthy and gives us confidence that our organic growth will gain momentum in subsequent quarters.”
First Quarter Fiscal 2022 Financial Results
Total revenue for the quarter was $22.6 million, a $2.0 million or 10.0% increase over $20.5 million reported for Q1 FY2021. Based on constant currency1, total revenue increased by $2.5 million or 12.4% compared to the first quarter in FY2021.
The recurring revenue (“MRR”)2 portion of total revenue was $16.4 million, or 72.5% of total revenue compared to $15.8 million or 77.0% for the same quarter of FY2021.
The three business platforms contributed to revenue growth for the first quarter as follows:
- Unified Commerce platform, which includes ecommerce and Supply Chain Collaboration solutions, generated revenue of $9.9 million for the first quarter, an increase of 8.7% over $9.1 million reported for the same period last year.
- ecommerce, which consists of Orckestra and k-ecommerce solutions, represented $6.7 million of Unified Commerce revenue in the first quarter of FY2022, up $0.9 million or 15.3% from $5.8 million reported in the corresponding quarter last year. Right of use revenue was $3.7 million for the first quarter of FY2022 compared to $3.6 million for the first quarter of FY2021. Professional services revenue for ecommerce to support large customer deployments was $3.0 million compared to $2.1 million reported for Q1 FY2021, an increase of 41%.
- The Supply Chain Collaboration solution represented $3.2 million of Q1 FY2022 Unified Commerce revenue, a decrease of $0.1 million or 2.8% compared to the first quarter of the previous year.
- Strategic Sourcing platform, which includes Merx, Bidnet, governmentbids and ASC solutions, was $8.9 million, a $1.1 million or 14.8% increase over $7.7 million reported for the first quarter of the previous year.
- US-based Strategic Sourcing represented revenue of $4.6 million, a $1.1 million or 32.3% increase compared to the previous year corresponding quarter. The US-based Bidnet solution benefited from both additional buying agencies, which drove an increase in paying suppliers and from the acquisition of Vendor Registry on November 18, 2021.
- emarketplaces platform revenue was $3.8 million, a 2.8% or $0.1 million increase compared to $3.7 million reported for the same quarter of FY2021. Revenues from Jobboom represented an increase of $0.4 million as this sector is showing recovery after a slowdown in early fiscal 2021 during the COVID-19 pandemic, while revenues from the other solutions remained stable. Revenues from these legacy emarketplaces solutions continue to represent a diminishing percentage of total revenues, representing 16.8% of total revenues for Q1 FY2022 compared to 18.0% in Q1 FY2021.
1 Certain revenue figures and changes from prior period are analyzed and presented on a constant currency basis and are obtained by translating revenues from the comparable period of the prior year denominated in foreign currencies at the foreign exchange rates of the current period. The Company believes that this Non-IFRS financial measure is useful to compare its performance that excludes certain elements prone to volatility. Refer to the “Non-IFRS Financial Measures and Key Performance Indicators” section.
2 “MRR” is a key performance indicator and is composed of subscription and support revenues that are recurring in nature. Therefore, they exclude onetime fees and professional fees and other types of non-recurring revenues. Refer to the “Non-IFRS Financial Measures and Key Performance Indicators” section.
Gross margin for Q1 FY2022 was $13.2 million or 58.7% compared to $14.0 million or 68.0% reported for Q1 FY2021. The decrease in the gross margin percentage is mainly due higher salary costs, increased headcount and professional fees to support customer implementations and deployments, higher hosting and licencing costs for cloud-based solutions.
Total operating expenses for Q1 FY2022 were $17.5 million, compared to $14.7 million for Q1 FY2021, an increase of $2.9 million or 19.5%.
- General and administrative expenses totalled $5.0 million during Q1 FY2022, $1.3 million higher than $3.7 million for Q1 FY2021. The increase is primarily due to salary and related expenses associated with higher salaries and increased headcount; these expense increases are net of a $0.2 million increase in federal wage subsidies in the context of COVID-19. Professional services and recruiting costs increased by $0.7 million mainly related to the implementation of strategic and foundational initiatives.
- Selling and marketing expenses totalled $6.1 million for Q1 FY2022 compared to $5.0 million for Q1 FY2021. The increase is mainly attributable to a $0.5 million increase in salaries and related expenses associated with salary increases and higher headcount and an increase of $0.6 million in professional fees and promotional costs.
- Technology expenses totalled $6.4 million for Q1 FY2022, $0.5 million higher compared to $5.9 million in the first quarter of FY2021. The increase is mainly attributable to higher professional services costs and lower R&D and e-business tax credits during Q1 FY2022 as compared to the first quarter in FY2021.
The operating loss of $4.3 million for Q1 FY2022 compares to the operating loss of $0.7 million reported for Q1 FY2021. During the first quarter of fiscal 2022 we continued investing in people and foundational upgrades as we aim to accelerate future growth, improve our scalability by simplifying and accelerating project implementation and the integration of new acquisitions, ultimately allowing us to capitalize on emerging market conditions.
The Corporation recorded a net loss of $4.3 million or $0.15 loss per share (basic and diluted) in Q1 FY2022 compared to a net loss of $1.2 million or $0.08 loss per share (basic and diluted) in the same quarter of FY2021.
Adjusted EBITDA3 loss was $1.5 million for Q1 FY2022 compared to Adjusted EBITDA3 of $2.1 million reported for Q1 FY2021. Adjusted EBITDA3 declined year-over-year due to increased foundational investments in operations, salary increases including additional headcount, and additional sales and marketing, R&D, and professional services to support large deployment contracts. As deployments accelerate over the coming quarters, professional services expenses are expected to remain elevated, and the Corporation expects to continue to make foundational investments to improve scalability as the Corporation grows.
“mdf commerce is actively investing to scale our two core growth platforms, Unified Commerce and Strategic Sourcing,” remarked CFO Deborah Dumoulin. “We believe that the investments in people and foundational infrastructure will help ensure that we capture the opportunities presented to us by the accelerated market adoption of ecommerce and strategic sourcing solutions, and that we can convert these opportunities into future cashflows that offer compelling value for shareholders.”
https://www.globenewswire.com/news-release/2021/08/11/2279244/0/en/mdf-commerce-reports-first-quarter-of-fiscal-2022-results.html