Jasper reports 5% quarter over quarter subscription revenue growth in Q2 2023
Vancouver, British Columbia--(Newsfile Corp. - March 30, 2023) - Jasper Commerce Inc. (TSXV: JPIM) ("Jasper" or "the Company"), a leading provider of Product Information Management ("PIM") solutions, announces its second quarter ("Q2 2023") financial results for the three and six month period ended January 31, 2023. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars.
Jasper reported 5% quarter-over-quarter growth in revenue from software subscriptions, which reached $325,349 in Q2 2023, up from $308,554 in the previous quarter and $291,779 in the same quarter of the previous year. The growth reflects the Company's continued focus on its core software business.
Jasper's total revenue for the quarter was $363,489, which is lower than the $379,726 in Q1 2023 and $470,733 in Q2 2022. Lower total revenue in Q2 2023 was due to a reduction in services revenue as the Company focused resources on growing software subscription revenue.
The Company reported a net loss of $1,160,010 for the quarter.
After quarter end, Jasper closed the first tranche of its debenture unit offering (the "Offering"), issuing 636.5 units for gross proceeds of $636,500. Each unit ("Units") is comprised of: (i) $1,000 principal amount of 12% secured convertible debentures issued by the Company with a maturity date of five years from the date of issuance; and (ii) 20,000 common share purchase warrants of the Company. The Offering initially was subject to a maximum offering size of $750,000, including an over-allotment option of the Company. The Company is pleased to announce the increase to the size of the Offering to $900,000, including over-allotment, subject to any necessary regulatory approvals including the TSX Venture Exchange. The Company is working toward closing a second tranche of the Offering. For more information related to the Offering, please see the Company's press releases dated January 26, 2023 and February 16, 2023 available under the Company's profile at www.sedar.com.
The Company launched its transformation plan in January ("the Plan"), which aims to reduce its monthly expenses while increasing its software subscription revenue run rate. The Plan targets a significant decline in monthly cash costs (cost of goods plus overhead expenses less non-cash items) to $210,000 through the reduction of headcount and other expenses. These reductions have been largely implemented. The Plan also includes the addition of new software subscription revenue monthly run rate ("MRR") of $5,000 each month going forward, which equates to an MRR quarterly sequential growth rate target of approximately 10%. If the operating goals are achieved, the Company would reach cash flow breakeven by March 2024 at which time MRR would be approximately $180,000 ($2,160,000 Annual Revenue Run Rate and $540,000 quarterly).
In summary, Jasper's Q2 2023 financial results show growth in its software subscription revenue and progress towards achieving its transformation plan goals. The Company remains focused on improving its financial position and achieving cash flow breakeven by March 2024.
This news release should be read in conjunction with Jasper's unaudited financial statements and the accompanying notes, as at and for the quarter ended January 31, 2023. Those documents have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the Jasper's website at www.jasperpim.com.
About Jasper Commerce Inc.
Jasper offers a Product Information Management ("PIM") solution that has the objective of empowering eCommerce merchants to manage and merchandise their products from a single source of truth, facilitating them to sell more, sell faster and work smarter. Jasper's PIM is accessible from anywhere via a web-browser and is intended to simplify the process by which online merchants import product data into the PIM. Once uploaded, merchants can add various product data including product attributes, images, videos, marketing information, inventory quantities and price books and efficiently merchandise their products using various features that include, among other things, the ability to adjust product categorization, pricing data and other key metrics. Jasper's PIM also allows for automatic syncing to popular eCommerce storefronts, marketplaces, or other connected channels, whenever new products are added to the PIM.
For further information: Gerry Hurlow, Chairman and Interim CEO, ghurlow@meteorcapital.ca, (647) 402-9646
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.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the Offering and has neither approved nor disapproved the contents of this press release.
Forward-Looking Statements
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include statements based on current expectations involving several risks and uncertainties without limitation and are not guarantees of the Company's future performance. Actual results and future events could differ materially from those anticipated in such information. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to: the Company may not receive conditional or final approval of the TSXV for the Offering; the Offering may not close on or around the intended date; the Offering may not proceed as planned; the Company may not use the proceeds of the Offering as intended; the market for product information management systems may not continue to grow as expected; and the uncertainty surrounding the spread of COVID-19 and the impact it will have on the Company's operations and economic activity in general; and the risks and uncertainties discussed in the Company's most recent annual and quarterly reports filed with the Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com, which risks and uncertainties are incorporated herein by reference. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, the Company does not intend and undertakes no obligation to update any forward-looking statements to reflect, in particular, new information or future events.
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