Annual Recurring Revenue Increases 86% to $1.8M as Investment in Operations and Product Development Continues to Deliver
VANCOUVER, BC--(Marketwired - April 27, 2017) - MediaValet Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloud‐based digital asset management software, is pleased to report its fourth quarter and annual results for the period ended December 31, 2016.
Summary of Quarterly Results
3 months ended Dec 31'16 |
3 months ended Dec 31'15 |
Year ended Dec 31'16 |
Year ended Dec 31'15 |
||
Annual Recurring Revenue | $ 1,799,722 | $ 968,773 | |||
% Increase | 86% | ||||
Revenue | $ 392,240 | $ 237,359 | $ 1,349,501 | $ 942,684 | |
% Increase | 112% | 43% | |||
Gross Margin | $ 310,830 | $ 146,774 | $ 1,041,850 | $ 613,850 | |
Gross Margin % | 79% | 62% | 77% | 65% | |
Operating Expenses | $ 1,698,969 | $ 1,232,319 | $ 6,098,735 | $ 3,769,553 | |
% Increase | 38% | 62% | |||
EBITDA | $ (1,388,139) | $ (1,085,545) | $ (5,056,885) | $ (3,155,703) | |
Net loss | $ (1,655,946) | $ (1,210,674) | $ (5,838,367) | $ (3,559,232) | |
Loss per share | $ (0.02) | $ (0.02) | $ (0.07) | $ (0.05) | |
Total assets | $ 1,505,088 | $ 1,018,219 | |||
Deferred Revenue | $ 1,203,687 | $ 492,164 | |||
Long-term Debt | $ 3,370,000 | $ 117,668 |
"Q4'16 marked another record quarter with net adds to ARR reaching $318,000, up 426% over the prior year, increasing ARR by 86% to $1.8 million at year end," commented David MacLaren, founder & CEO of MediaValet. "This growth is a direct result of our ongoing investment in sales and marketing and product development, as the DAM market and the DAM needs of organizations continue to grow at a rapid pace."
"We're extremely proud of the new features, integrations and enhancements delivered by our R&D team this year. These new capabilities have continued to set us apart from the competition, broaden our target market and increase our average deal size. It is these innovations that have enabled our sales and marketing teams to win an exciting list of new customers in 2016. With each new feature and product integration, MediaValet meets the DAM needs of more industries, organizations, departments and users around the world."
Continued Mr. MacLaren, "Our fiscal 2016 operating expenses of $6.1 million were in line with our internal budget as we sought to increase our operational infrastructure and product features to enable us to capitalize on the market opportunity ahead of us. We were able to finance this investment through sales growth and a combination of equity and debt financing in order to achieve a balanced cost of capital. We intend to keep our fiscal 2017 operational expenses at a similar level as we continue to build sales momentum and increase our operating leverage."
"With ARR ending 2016 at $1.8 million, operational expenses leveling out, and our sales, marketing and R&D teams entering 2017 with strong momentum, we're poised to deliver an exciting year of growth and financial performance."
Fourth Quarter Fiscal 2016 Highlights:
Highlights Fiscal 2016:
Highlights subsequent to quarter-end:
Outlook
With continued quarter-over-quarter growth in ARR and increasing gross margin, win rate and deal size, management intends to maintain its current level of investment in sales and marketing, and research and development. For the remainder of 2017 and into 2018, management will focus on utilizing the excess capacity currently available in the company's operating structure. While some variable costs will increase with revenue, management believes it has sufficient infrastructure and staff to continue growing revenues throughout 2017 without materially increasing operating costs.
MediaValet's full financial statements and related MD&A are now available on SEDAR.
About MediaValet, Inc.
MediaValet stands at the forefront of the cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available on 34 highly secure and hyper scalable data centers around the world, MediaValet is uniquely equipped to meet the digital asset management needs of any organization, no matter its size, its industry or its location. Cutting-edge technology, exceptional product design, and unlimited friendly customer service are at the core of MediaValet's DNA -- ensuring exceptional customer and user experiences are delivered at all times.
"Neither the 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."
For further information, please contact:
Corporate Office
David MacLaren
CEO
[email protected]
(604) 688-2321
Press Relations
Babak Pedram
[email protected]
(416) 644-5081
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