- Winback offers SMS eCommerce marketing solutions for small-medium sized businesses with a specialization in providing cart abandonment technology to Shopify merchants.
- Winback is expected to be immediately accretive to Wishpond, generating recurring revenue with healthy gross margins and positive cashflows.
VANCOUVER, BC, Jan. 4, 2022 /PRNewswire/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the "Company" or "Wishpond"), a provider of marketing-focused online business solutions, is pleased to announce that it has completed its previously announced acquisition of certain assets and specific liabilities (the "Assets") from AtlasMind Inc. (d/b/a) Winback.chat ("Winback"). The total consideration for the Assets was US$700,000, paid with cash on hand. Based out of New York, Winback provides Wishpond with user-friendly and automated SMS marketing solutions, including a cart abandonment tool that can also be sold to Wishpond's existing eCommerce clients, thereby creating a stickier offering.
"We are pleased to welcome Winback to the Wishpond family", said Ali Tajskandar, Chairman and CEO of Wishpond. "Winback is a great strategic fit with our current product offerings and its cross-sell opportunities are expected to increase our customer lifetime value. Winback is our fourth acquisition since going public just over a year ago; establishing Wishpond's track record as a disciplined acquirer and capital allocator."
Winback provides an automated SMS marketing platform for small-medium sized businesses, including a cart abandonment app for Shopify merchants, which installs with one click. Winback's technology is triggered when a shopper browses but doesn't add anything to their cart. In the past Winback's customers have witnessed an up to 35x return on their investment. The product is extremely intuitive and user-friendly making it a great fit with Wishpond's target customer base.
Winback has a diversified customer base of over 350 monthly paying customers, generating an annual revenue run rate exceeding US$450,000. The majority of Winback's customers are based in the United States, aligning well with Wishpond's targeted growth plans. Winback is a healthy company with growing recurring revenue, strong EBITDA margins over 20%, and positive cash flow. Winback will continue to maintain its own brand and will maintain existing client relationship, while Wishpond will provide operational support. The ability to sell and add Winback's products to Wishpond's existing packages is expected to create a higher value product to Wishpond's customers, resulting in greater MRR (Monthly Recurring Revenue) and increased customer retention and long-term value.
WISHPOND TECHNOLOGIES LTD.
Per: "Ali Tajskandar"
Ali Tajskandar, Chairman and Chief Executive Officer
About Wishpond Technologies Ltd.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing-focused online business solutions. Wishpond's vision is to become the leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company offers an "all-in-one" marketing suite that provides companies with marketing, promotion, lead generation, and sales conversion capabilities from one integrated platform. Wishpond replaces entire marketing functions in an easy-to-use product, for a fraction of the cost. Wishpond serves over 3,000 customers who are primarily small-to-medium size businesses (SMBs) in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions and continues to add new features and applications with great velocity. The Company employs a Software-as-a-Service (SaaS) business model where substantially all the Company's revenue is subscription-based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX Venture Exchange under the ticker "WISH", and on the OTCQX Best Market under the ticker "WPNDF". For further information, visit: www.wishpond.com.
Cautionary Disclaimers
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. Any securities referred to herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. Person absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
Notice Regarding Forward Looking Statements
Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward looking statements in this news release include statements that the total purchase price is anticipated to be approximately US$700,000, and statements regarding anticipated financial results. There are numerous risks and uncertainties that could cause actual results and Wishpond's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) COVID-19 risks; (ii) difficulties and delays associated with integrating and growing the Winback.chat business; (iii) other factors beyond the control of the Company; and (iv) risks outlined in Wishpond's publicly filed documents available on SEDAR. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Wishpond Technologies Ltd.
