Wishpond Achieves 73% Revenue Growth and Record Revenue
Ali Tajskandar, Wishpond's Chairman and CEO commented: "Second quarter 2021 was another tremendous quarter for Wishpond as we once again achieved record quarterly revenue with 73% year-over-year growth. In fact, our US revenue grew by over 100% despite the negative currency headwinds in the quarter. We are very pleased with the progress we have made with our first two acquisitions, Invigo and PersistIQ, which continue to perform well. During the second quarter we launched our Appointments product, which came from the Invigo acquisition, and the Outbound Sales Solution, which came from the PersistIQ acquisition. We are beginning to witness the synergistic benefits of our acquisitions through cross selling the Company's products and services across the different parts of the growing organization. Our positive Q2 results and momentum position us for strong year-over-year growth in the back half of 2021." Second Quarter 2021 Financial Highlights: Wishpond achieved record quarterly revenue of $3,226,877 during Q2-2021, an increase of 73% compared to revenue of $1,868,341 generated in Q2-2020. The increase in revenue was primarily driven by higher organic growth from the Company's incremental investment in its sales team and inorganic growth from the positive contribution of its Invigo and PersistIQ acquisitions. Wishpond's revenue was negatively impacted in the second quarter by the weakening of the US dollar. Had this decrease in exchange rate not occurred, the Company estimates consolidated revenues would have been higher by approximately $272,709 as compared to the exchange rate in Q2-2020. Revenues were also negatively impacted by an initial acquisition accounting adjustment related to PersistIQ's deferred revenue balance resulting in a negative impact of approximately $133,389 in the second quarter. Wishpond achieved Gross profit(1) of $2,238,143, representing an 86% increase from Q2-2020, driven by an increase in overall revenue. Wishpond achieved a Gross margin(1) percentage of 69% during Q2-2021, compared to Q2-2020 at 64%. During Q2-2021, Wishpond had negative Adjusted EBITDA(1) of $320,027 compared to positive Adjusted EBITDA(1) of $201,708 in Q2-2020. The decline in Adjusted EBITDA is attributable to a higher level of operating spend primarily as a result of increased headcount in the Company's sales and product development teams in preparation for future growth. As at June 30, 2021, Wishpond had $10,065,393 in cash and no long-term debt.