MediaValet Reports Annual and Fourth Quarter 2022 Results

Revenue Grows 37% to $12.8M and ARR Increases 36% to $14.8M

Vancouver, British Columbia--(Newsfile Corp. - March 14, 2023) - MediaValet Inc. (TSX: MVP) (the Company), a leading provider of cloud-native enterprise digital asset management ("DAM"), video content management and creative operations software, is pleased to report its results for the three and twelve months ended December 31, 2022. All figures in Canadian dollars ("CAD") unless otherwise stated for figures in U.S. dollars ("USD", "U$").

Summary of Quarterly and Annual Results

"MediaValet continued its multi-year track record of strong performance in 2022 in spite of broad economic challenges," commented Rob Chase, President and CEO of MediaValet. "We have increased our customer focus and balanced our investment horizon to continue providing unrivalled support, an ease-of-use DAM experience and innovative solutions that maximize and extend the value of our customers' digital assets and customer experience platforms. I am proud to be a part of such a talented group of leaders as we deliver on the next stage of growth and drive toward profitability with increasing focus and accountability."

Dave Miller, CFO, also commented, "While holding our operating costs in check, we continued to deliver topline growth in Revenue, ARR and billings on our path towards profitability. In step with our growth phase, we are focused on operational excellence and cost optimization through a disciplined and accountability-based approach to strategic investment in high-return initiatives. This gives us confidence that we will continue to unlock performance gains in our operating structure and will grow to cash positive operations within our available financial resources."

Q4 and Fiscal 2022 Financial Highlights

• Grew ARR to $14.78 million, an increase of 36% (31% in U.S. dollars) compared to $10.84 million at December 31, 2021 and 8% sequential increase (6% in U.S. dollars). Net new ARR ("NNARR") of $1.13 million in Q4'22 increased 35% from $0.84 million Q4'21 and increased 27% sequentially from Q3'22. Fiscal 2022 NNARR was a record $3.94 million, up 79% from $2.20 million in Fiscal 2021. The increases reflect the Company's operational expansion completed in 2021, net dollar retention of 101%, the strengthening US Dollar and continuing market demand for enterprise DAM solutions despite the current macro-economic environment. As organizations continue to implement their necessary digital strategies, an effective DAM becomes critical to reducing costs, requiring less people to manage media workflows and ensuring continuity in difficult times.

• Revenue grew to $3.61 million in Q4'22, up 41% from $2.57 million in Q4'21, and up 10% sequentially from Q3'22. Revenue in Fiscal 2022, grew to $12.84 million, up 37% from $9.34 million in Fiscal 2021. The increases are due to the NNARR and deferred revenue growth from ramping customer acquisition and strong net retention performance.

• Gross margins remained strong at 80% ($2.88 million) in Q4'22 compared to 82% ($2.09 million) in Q4'21 and 81% ($2.67 million) in Q3'22. Gross Margins in Fiscal 2022 of $10.43 million, or 81% down 1% from $7.64 million or 82% in Fiscal 2021.

• Incurred Operating Costs of $5.17 million in Q4'22, a 9% increase from $4.74 million in Q4'21, and a sequential increase of 5% compared to Q3'22. Operating costs in Fiscal 2022 were $20.11 million, a 26% increase from $15.99 million in Fiscal 2021. The Company has not expanded its operational infrastructure in Fiscal 2022 as evidenced by the reduction in headcount to 98 from 102 at December 31, 2021. As such, the increases in reported Operating Costs reflect the normalized impact of the operational expansion completed in Fiscal 2021, variable cost increases with revenue growth and inflationary adjustments to payroll. Management continues to tightly manage Operating Costs to balance its market opportunity, strategic vision, and available capital resources.

• Reported a Q4'22 EBITDA loss of $2.30 million, an improvement of 13% from $2.64 million in Q4'21, and an improvement of 1% sequentially from Q3'22. EBITDA loss in Fiscal 2022 was $9.68 million an increase of 16% from $8.35 million in Fiscal 2021. The increased annual loss was expected and is primarily due to the step-increase in Operating Costs completed in line with the Company's long-term growth strategy. Management believes this growth investment is aligned with the Company's available capital resources.

• Ended Fiscal 2022 with modified working capital (excluding deferred revenue, lease liabilities and debt) of $2.31 million (December 2021: $9.15 million), total lease liabilities and debt of $1.07 million (Fiscal 2021: total lease liabilities and debt of $1.78 million).

Q4 & Fiscal 2022 Business Highlights

• New customer win and expansion announcements, including:

  • Q4'2022: a North American telecom provider (with first-year billings of $64,000); and a large North American auto parts manufacturer and retailer ($130,000); a $135,000 expansion with one of the world's leading entertainment companies, the fourth since winning the Customer in 2019;

  • Q3'2022: a global leader in industrial software ($93,000), including custom SharePoint and Adobe Experience Manager integrations built by one of MediaValet's integration partners to increase DAM connectivity across the Customer's technology stack;

  • Q2'2022: a Fortune 500 global auto-industry manufacturer ($85,000); our third NBA franchise ($103,000); the producers of a highly rated multi-year television drama series ($113,000);

  • Q1'2022: a well-known global developer, manufacturer and distributor of pharmaceutical and skincare products ($133,000); a leading manufacturer of physical security products ($75,000); an award-winning brand advertising agency ($139,000); a premier sports-related not-for-profit foundation that provides learning and leadership programs to minority college students ($130,000); and a $63,500 expansion by one of our largest not-for-profit customers, increasing its ARR to $255,000;

  • All the new contracts include MediaValet's enterprise DAM platform, various exciting add-on features and integrations, and our professional services covering implementation and ongoing training and support.

• New feature and services announcements, including:

  • Q4'2022: the launch of its enhanced, two-way integration between Wrike's workflow platform and MediaValet's DAM asset library, which enables optimized workflows and rapid execution of marketing campaigns by eliminating time-consuming admin tasks and ensuring all campaigns are using the most up-to-date, approved assets at all times.

  • Q3'2022: the launch of its new Professional Services team, providing advanced guidance in the areas of metadata models, taxonomies, keyword optimization, workflows, governance and compliance, accessibility and many more; helping MediaValet's customers expand the adoption and usage of MediaValet across their organizations.

  • Q3'2022: the Company released its Advanced Reporting and Analytics module, which helps customers maximize the ROI of their assets by enabling them to drill into their usage data to gain powerful library, asset and user insights.

Corporate Highlights:

• The Company secured a senior secured revolving demand operating credit facility ("Credit Facility") of up to $9.0 million (increased in January 2023 from the original facility of $7.0 million signed in January 2022). At December 31, 2022, $501,017 has been drawn against the Credit Facility.

• Completed early and full repayment of its secured debentures of $1.0 million in April 2022.

• During the fiscal year, employees exercised 99,611 options at an average exercise price of $0.96 per share, and all remaining outstanding warrants were exercised for 2,287,162 common shares and aggregate proceeds of $2.06 million.

• On January 5, 2023, employees exercised 11,333 options at an average exercise price of $0.68 per share for proceeds of $7,720.

• During the fiscal year, the Company granted 352,000 new hire stock options to certain employees, exercisable at a weighted average exercise price of $1.51 per share and granted 810,000 stock options to new and existing directors, officers and employees, exercisable at $1.13 per share. The options have a term of five years, and a four-year vesting term.

• On January 16, 2023, the Company announced the closing of an oversubscribed $3.5 million private placement (net proceeds of $3,477,500), consisting of 2,692,315 units of $1.30 per unit. Each unit consists of one common share and one share purchase warrant.

• On February 28, 2023, the Company announced the appointment of Rob Chase (formerly Executive Chair of the Board) as President and Chief Executive Officer (CEO) who succeeds David MacLaren, Founder and former President, CEO and Director. The Company will incur severance expenses in accordance with Mr. MacLaren's employment contract. The transition is being made in recognition of the leadership needs of the Company's next phase of growth and development.

1The Company defines Operating Costs to include Sales & Marketing, Research & Development and General & Administrative expenses, which aligns with the expenses included in EBITDA. This is a non-IFRS measure and represents operating expenses less share-based compensation and depreciation.

2 EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs. Refer to the Results of Operations section for further information on the calculation and definition of EBITDA.

3 Annual Recurring Revenue (ARR) is a non-IFRS measure that provides an indication of future revenue and billings from customers as of the reporting date. ARR represents the sum of the annual recurring revenue from existing customer contracts or commitments as of the reporting period end date, and as such management believes ARR to be a meaningful measure for assessment of Company performance. ARR is recorded as deferred revenue when it is invoiced and is recognized in revenue evenly on a monthly basis over the contract term at the US dollar exchange rate in effect at the time of invoicing. Substantially all of the Company's ARR is denominated in USD, therefore we have presented our USD ARR growth rate as management believes it represents a more meaningful measure of the underlying growth rate. The average US dollar exchange rate of ARR was C$1.3141 at December 31, 2022, C$1.2656 at December 31, 2021 and C$1.3313 at December 31, 2020.

MediaValet's full financial statements and related MD&A are now available on SEDAR.

About MediaValet, Inc. MediaValet stands at the forefront of the enterprise, cloud-native, software-as-a-service digital asset management and creative operations industries. Built exclusively on Microsoft Azure and available across 61 Microsoft data center regions in 140 countries around the world, MediaValet delivers unparalleled enterprise-class security, reliability, redundancy, compliance, and scalability; while offering the largest global footprint of any DAM solution. In addition to providing enterprise cloud-native DAM capabilities at a global scale, desktop-to-server-to-cloud support for creative teams, and overall cloud redundancy and management for all source, WIP and final assets, MediaValet offers industry-leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Workfront, Wrike, monday.com, Drupal, WordPress and many other best-in-class 3rd party applications.

For further information, please contact:

Corporate Office
Rob Chase, President & CEO | rob.chase@mediavalet.com | (604) 688-2321
Dave Miller, CFO | dave.miller@mediavalet.com | (604) 688-2321

Press Relations
Babak Pedram | babak.pedram@mediavalet.com | (416) 644-5081

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/158432