SaaS Revenue Grows 23% Y/Y, Offsetting
Expected Seasonal Professional Services
CUPERTINO, Calif., Aug. 24,
2023 /CNW/ - (TSXV: BWLK) (OTCQB:
BWLKF) Boardwalktech Software Corp. ("Boardwalktech" or the
"Company"), a leading digital ledger platform and enterprise
software solutions company, is pleased to report its financial
results for the three-month period ended June 30, 2023. All figures are reported in U.S.
dollars, unless otherwise indicated. Boardwalktech's financial
statements are prepared in accordance with International Financial
Reporting Standards ("IFRS").
Financial Highlights:
- Revenue for Q1-FY24 was $1.55
million, a 3% increase from $1.51
million in Q1-FY23, and versus $1.65
million in Q4-FY23. Revenue from recurring SaaS licenses in
Q1-FY24 increased 23% year-over-year from higher incremental
licenses executed with both new and existing customers, but was
offset by a 46% seasonal decline in professional services.
- Annual recurring revenue ("ARR"), at June 30, 2023 was $5.8
million, a 14% year-over-year increase versus ARR of
$5.1 million at June 30, 2022. ARR is a non-IFRS measure, and the
Company defines ARR as the recurring revenue expected based on
annual license subscriptions and recurring services.
- Gross margin for Q1-FY24 was 90.0%, comparable with the 90.2%
level in Q1-FY23 and Q4-FY23.
- Adjusted EBITDA for Q1-F23 was a loss of $(0.5) million, versus the $(0.3) million loss in Q1 -FY23, and $(0.4) million loss in Q4-FY23.
- Non-IFRS net loss for Q1-FY24 (as defined in the Non-IFRS
Financial Measures section) totaled $(0.5)
million, or a loss of $(0.01)
per basic and diluted share, versus a $(0.3)
million non-IFRS loss in Q1 -FY23, or a loss of $(0.01) per basic and diluted share, and a versus
a $(0.5) million non-IFRS loss in
Q4-FY23, or a loss of $(0.01) per
basic and diluted share. These changes were due to the lower
professional services revenue in Q1-FY24.
- Net loss for Q1-FY24 was $(0.9)
million, or a loss of $(0.02)
per basic and diluted share, which was largely unchanged versus a
$(0.9) million loss in Q1-FY23, or
$(0.2) per basic and diluted share,
and a $(0.9) million loss in Q4-FY23,
or $(0.02) per basic and diluted
share.
Outlook Update
- The Company continues to project revenue for the upcoming
fiscal year to be $8.5 million to
$10.0 million range, based upon a
pick-up of business activity and customer (re)engagements as summer
winds down.
- While the Company believes it has sufficient funds and current
receivables to achieve its guidance, the Company does recognize it
has more opportunities than sales and services resources to close
upside growth.
Operational Highlights
- On June 1, 2023, the Company
announced that it had both added another new customer (Nintex) to
its list of growing clients while securing a fourth license with an
existing global customer (Estee
Lauder), with incremental revenue from these contracts
expected to exceed $200,000 in the
next twelve months, including over $100,000 of recurring revenue in the first
year.
"Growth exiting Fiscal Year 2023 continued into the first
quarter of this year, as the Company recorded a new historic high
in recurring revenue licenses, both from new and existing
customers, further demonstrating our 'land and expand' strategy.
Our ARR is approaching $6 million and
continues to grow each quarter." Chief Executive Officer
Andrew T. Duncan commented, "We
continue to build on and replenish our pipeline, adding new
prospects in both the enterprise sector and via our teaming
partners in the global banking and financial services channel.
Exiting the summer, we have been experiencing a notable pick up in
both new engagements and even customer re-engagements. Thus, we
expect to close incremental deals with new enterprises and
financial services companies in the months ahead.
The Boardwalktech low code digital ledger platform continues
to gain traction with these enterprises, especially in supply
chain, as it seamlessly solves the many problems associated with
structured and unstructured data delivering improved visibility and
decision making along with outstanding results and ROI."
Earnings Conference Call Details
Boardwalktech management will be hosting its earnings conference
call today (August 24, 2023)
Time:
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at 4:15 PM Eastern Time
/ 1:15 PM Pacific Time.
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To join the call, please use the following dial-in
information:
US/Canada:
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1-888-664-6383 (toll
free)
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International:
|
UK:
08006522435
Germany: 0800 7240293
Switzerland: 0800312635
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Webcast:
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https://emportal.ink/45p28GH
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|
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Replay: A replay of the call will be available until
August 31, 2023 and can be accessed
by dialing 1-888-390-0541 and entering access code
225070#
RSU Grants
As part of the Company's annual ongoing retention program and as
allowed under the 2019 Equity Incentive Plan, as amended and
approved by shareholders on June 2,
2022, the Company has granted an aggregate of 2,245,000
Restricted Stock Units ("RSU's") to officers, directors and
employees of the Company, set to vest over a three-year period.
These grants will be deemed effective as of August 31, 2023.
About Boardwalktech Software Corp.
Boardwalktech has developed a patented Digital Ledger Technology
Platform currently used by Fortune 500 companies running
mission-critical applications worldwide. Boardwalktech's digital
ledger technology and its unique method of managing vast amounts of
structured and unstructured data is the only platform on the market
today where multiple parties can effectively work on the same data
simultaneously while preserving the fidelity and provenance of the
data. Boardwalktech can deliver collaborative, purpose-built
enterprise information management applications on any device or
user interface with full integration with enterprise systems of
record in a fraction of the time it takes other non-digital ledger
technology-based platforms. Boardwalktech is headquartered in
Cupertino, California with offices
in India and operations in
North America. For more
information on Boardwalktech, visit our website at
www.boardwalktech.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and statements are not
representative of historical facts or information or current
condition, but instead represent only the Company's beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of the Company's
control. Generally, such forward-looking information or statements
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or may contain statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance, or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks including, without limitation, the risks
discussed under the heading "Risk Factors" in the Company's filing
statement dated May 30, 2018.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
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.
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SOURCE BoardwalkTech