Vancouver, British Columbia--(Newsfile Corp. - June 27, 2023) - Jasper Commerce Inc. (TSXV: JPIM) ("Jasper" or "the Company"), a leading provider of Product Information Management ("PIM") solutions, today announced its financial results for the third quarter of fiscal 2023 ("Q3 2023") ending April 30, 2023. All amounts are expressed in Canadian dollars unless otherwise specified.
Jasper reported a net loss of $622,978 for Q3 2023. This shows marked progress compared to a loss of $1,160,010 in Q2 2023 and a substantial loss of $4,799,640 in Q3 2022. The decreased loss in Q3 2023 largely stemmed from a drop in operating expenses, from $1,523,499 in the previous quarter to $966,493.
In Q3, Jasper saw approximately $140,000 in new bookings for its software subscription Annual Recurring Revenue (ARR), achieving a targeted sequential growth rate of 10% for new contracts. The recognized software subscription revenue for the quarter was $314,460, a 3% decrease from Q2 2023. This is reflective of Jasper's strategic move away from unprofitable business as it prioritized cost reduction and profitability. Software subscription revenue in Q3 2023 saw a modest 1% increase compared to Q3 2022.
The total revenue for Q3 2023 was $343,515, a slight decrease from $363,489 in Q2 2023 and $383,297 in Q3 2022, mainly due to lower services revenue.
Management anticipates a return to sequential growth of recognized software revenue in Q4 2023, driven by Q3 bookings. The Company projects reductions in quarterly operating expenses, aiming for around $730,000 ($630,000 excluding non-cash items) in the coming quarters.
"Jasper Commerce set in motion its transformation plan in December 2022, with the twin goals of reducing operating expenses by approximately 50% and achieving an annual revenue growth rate of around 50%," commented Gerry Hurlow, Jasper's Chairman and Interim CEO. " While these are challenging goals, we have made great progress and are continuing to forecast that the Company will be cash flow positive by March 2024."
Other Q3 highlights include:
- The completion of a $900,000 debenture financing.
- Jasper was rated as the top Product Information Management software for Strategy and Innovation by Info Tech research.
- The addition of four new customers, spanning both B2C and B2B companies.
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 April 30, 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
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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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