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ProntoForms Reports Q1 2022 Financial Results


Achieves 14% annual growth in recurring revenue and fourth quarter growth of 2% over Q4 2021

OTTAWA, May 05, 2022 (GLOBE NEWSWIRE) -- ProntoForms Corporation (TSXV: PFM), the global leader in no-code app development platforms for field teams, announced today its first quarter (Q1) financial results for the period ended March 31, 2022. All amounts are in US dollars unless otherwise stated.

“We achieved 14% growth in recurring revenue over the 2021 comparable quarter. Our Annual Recurring Revenue (ARR) base at the end of Q1 was $19.6 million with 41% from customers with greater than $100,000 of ARR. As we continue our transition to focus on enterprise sales, we saw a Q1 decrease in our ARR base by 0.7%. The decrease can be attributed partly to a 1.5% reduction in ARR from the completion of a one-year project and lower new bookings in the quarter as we transition through the longer sales cycles typical of the larger enterprise sales on which we are increasingly focused. We are pleased that we were able to follow up our first quarter with a recent enterprise expansion of over $180,000 ARR, bringing that customer to a total of approximately $870,000 ARR,” said Alvaro Pombo, Founder and Chief Executive Officer.

Mr. Pombo continued, “Our most recent customer expansion win demonstrates the success of our enhanced go-to-market. We’re scaling conversations with our customers on how our platform can help them address pressing business challenges, like inflation and the labor market. Our improved team is uncovering more enterprise expansion opportunities.”

Financial Highlights - 2022 First Quarter

  • Recurring revenue in Q1 2022 increased by 14% to $4.89 million compared to $4.31 million in Q1 2021, and increased by 2% compared to $4.80 million in Q4 2021.
  • Total revenue for Q1 2022 increased by 9% to $5.04 million compared to $4.61 million in Q1 2021, and increased by 1% compared to $5.01 million in Q4 2021.
  • Gross margin for Q1 2022 was 84% of total revenue compared to 85% in Q1 2021 and 84% in Q4 2021. Gross margin on recurring revenue was 89% for Q1 2022 compared to 91% in Q1 2021 and 90% in Q4 2021.
  • Operating loss for Q1 2022 was $1.49 million, up from an operating loss of $1.07 million in Q1 2021 and up from an operating loss of $1.03 million in Q4 2021.
  • Net loss for Q1 2022 was $1.54 million, up from a net loss of $1.10 million in Q1 2021 and up from a net loss of $1.12 million in Q4 2021.

Recent Operational Highlights

Notable new and expansion progress from enterprise customers, including:

  • Subsequent to Q1, a global heavy manufacturing organization increased their commitment to ProntoForms by over $180K ARR to approximately $870K ARR. This ARR is contractually committed through contracts expiring at various times from late 2022 through the end of 2023. This increase will support their full asset lifecycle business model.
  • A Fortune 500 power and renewable energy global enterprise deployed ProntoForms’ technology starting with 450 subscriptions across two sub-divisions. ProntoForms supports health and safety reporting, inspection processes for wind and hydro turbines, and gathering performance metrics to enable their field engineers and salespeople.
  • A Fortune 500 oil & gas enterprise has expanded its multi-year deployment of ProntoForms by 200 subscriptions for a total of over 2000 subscriptions as part of a global Master Services Agreement (MSA) where ProntoForms is the sole mobile forms solution approved for use in field operations.
  • A Fortune 500 HVAC and refrigeration organization added over 510 ProntoForms subscriptions to support field technicians in reliably completing complex work.
  • ProntoForms announced the general availability of a new client app for the macOS® operating system software, now available on the macOS App Store® online store.

Q1 Conference Call Date:

Date: Thursday, May 5th, 2022
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local Toronto – (+1) 647-794-4605
Toll Free – (+1) 866-575-6539
Conference ID: 9536629

Recording Playback Numbers:
Local Toronto– (+1) 647-436-0148
Toll Free – (+1) 888-203-1112
Passcode: 9536629
Expiry Date: May 12th, 2022 at 11:59pm EDT

About ProntoForms Corporation
ProntoForms is the global leader in field-focused low-code application platforms for enterprise. The Company's solution is used to create apps and forms to collect and analyze field data with smartphones and tablets – either as a standalone solution or as a mobile front-end to enterprise systems of record.

The Company’s 100,000+ subscribers harness the intuitive, secure, and scalable solution to increase productivity, improve quality of service, and mitigate risks. The Company is based in Ottawa, Canada, and trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.

For additional information, please contact:

Alvaro Pombo
Chief Executive Officer
ProntoForms Corporation
613.599.8288 ext. 1111
Babak Pedram
Investor Relations
Virtus Advisory Group Inc.

Certain information in this press release may constitute forward-looking information. For example, statements about the Company’s future growth or value, potential benefits of using the Company’s products, customers’ commitment to use the Company’s products going forward, the recurring nature of the Company’s revenues, the revenues anticipated to be received by the Company from recent contracts referred to above and anticipated market trends are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company’s business and value may not grow as anticipated or at all, revenue anticipated from contracts may not be received due to many risks, including factors specific to the customer, and anticipated market trends may not occur or continue. Historical growth levels and results may not be indicative of future growth levels or results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. There are a number of risk factors that could cause future results to differ materially from those described herein. Please see “Risk Factors Affecting Future Results” in the Company’s annual management discussion and analysis dated March 10, 2022 found at for a discussion of such factors. Please also refer to the Company’s management discussion and analysis for the year ended December 31, 2021 for a description of how the Company determines and uses ARR. ARR is a key performance indicator used by the Company and is not meant as an indication such amounts will necessarily be included in revenues in any given fiscal year.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the three months ended March 31, 2022 and 2021
(in US dollars)
Three months ended March 31,
Recurring revenue $ 4,890,716 4,306,308
Professional and other services 150,394 307,155
5,041,110 4,613,463
Cost of revenue:(1)
Recurring revenue 552,072 393,829
Professional and other services 255,377 281,935
807,449 675,764
Gross margin 4,233,661 3,937,699
Research and development(1) 1,771,752 1,811,424
Selling and marketing(1) 2,934,240 2,299,800
General and administrative(1) 1,017,374 893,451
5,723,366 5,004,675
Loss from operations (1,489,705 ) (1,066,976 )
Foreign exchange loss (27,843 ) (9,672 )
Finance costs (26,060 ) (28,164 )
Net loss and comprehensive loss $ (1,543,608 ) (1,104,812 )
Net loss and comprehensive loss
per common share basic and diluted $ (0.01 ) (0.01 )
Weighted average number of common shares
basic and diluted 127,819,003 124,499,218
(1) Amounts include share-based compensation expense as follows:
Cost of revenue $ 5,360 865
Research and development 101,667 50,077
Selling and marketing 170,088 26,246
General and administrative 151,088 85,349
Total share-based compensation expense $ 428,203 162,537

Condensed Interim Consolidated Statements of Financial Position
March 31, 2022 and December 31, 2021
(in US dollars)
March 31, December 31,
Current assets:
Cash and cash equivalents $ 7,431,964 $ 6,082,289
Accounts receivable 3,266,731 3,199,216
Investment tax credits receivable 139,565 117,599
Unbilled receivables 50,187 36,406
Related party loan receivable 85,993 84,757
Prepaid expenses and other receivables 1,414,916 907,228
Contract acquisition costs 276,257 273,062
12,665,613 10,700,557
Property, plant and equipment 306,726 331,717
Contract acquisition costs 137,862 157,693
Right-of-use asset 339,486 403,143
$ 13,449,687 $ 11,593,110
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 2,389,419 $ 2,533,743
Deferred revenue - current portion 6,068,352 5,411,380
Lease obligation - current portion 312,229 303,650
8,770,000 8,248,773
Long-term debt 5,710,904 3,261,825
Deferred revenue 23,864 33,068
Lease obligation 107,830 184,766
14,612,598 11,728,432
Shareholders' equity:
Share capital 31,293,115 31,141,138
Contributed surplus 864,907 864,907
Share-based payment reserve 2,908,710 2,544,668
Deficit (36,414,078 ) (34,870,470 )
Accumulated other comprehensive income 184,435 184,435
(1,162,911 ) (135,322 )
$ 13,449,687 $ 11,593,110

Condensed Interim Consolidated Statements of Cash Flows
For the three months ended March 31, 2022 and 2021
(in US dollars)
Three months ended March 31,
Cash (used in) provided by:
Operating activities:
Net loss $ (1,543,608 ) $ (1,104,812 )
Items not involving cash:
Share-based compensation 428,203 162,537
Accretion on lease obligations 6,256 9,953
Accretion of transaction costs 282 7,045
Amortization of property, plant and equipment 38,666 40,761
Amortization of right-of-use asset 63,657 63,657
Unrealized foreign exchange losses 21,949 12,403
Other finance costs 25,778 21,119
Interest paid (29,097 ) (23,999 )
Interest received 3,319 2,880
Lease interest paid (6,256 ) (9,953 )
Changes in non-cash operating working capital items (90,870 ) 1,066,816
(1,081,721 ) 248,407
Financing activities
Payment of lease obligations (74,610 ) (64,923 )
Procceds from drawdown of credit facility 2,402,124 -
Proceeds from the exercise of options 87,816 239,455
2,415,330 174,532
Investing activities
Purchase of property, plant and equipment (13,675 ) (19,753 )
(13,675 ) (19,753 )
Effect of exchange rate changes on cash 29,741 35,963
Increase in cash and cash equivalents 1,349,675 439,149
Cash and cash equivalents, beginning of period 6,082,289 7,747,542
Cash and cash equivalents, end of period $ 7,431,964 $ 8,186,691

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