Revenue growth 28%, and Software ARR up 22%
Vancouver, British Columbia--(Newsfile Corp. - March 21, 2024) - MediaValet Inc. (TSX: MVP) (the "Company" or "MV"), 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, 2023. All figures in Canadian dollars ("CAD").
Achievements in fiscal 2023 include continued overall growth in revenue at 28% to $16.4 million, resulting in a reduction in adjusted EBITDA loss of 40% compared to fiscal 2022. Ending Software ARR increased 22% to $18.0 million on Net New ARR of $0.6 million (NNARR) in Q4 2023, down 45% from Q4 2022 and down 43% sequentially.
MediaValet recently announced on January 24th, 2024, that the Company had entered into an arrangement agreement pursuant to which, subject to shareholder and other customary approvals, an affiliate of STG Partners LLC will acquire all of the issued and outstanding common shares of the Company for $1.71 per Share in cash. In light of this announcement, the Company will forego its quarterly earnings call.
Q4 2023 Highlights
Three months ended December 31, | Years ended December 31, | |||
2023 | 2022 | 2023 | 2022 | |
Revenue | $ 4,332,512 | $ 3,613,156 | $ 16,398,358 | $ 12,840,710 |
% Increase over prior year | 20% | 41% | 28% | 37% |
Gross Margin | 3,605,210 | 2,876,156 | 13,332,416 | 10,431,452 |
Gross Margin % | 83% | 80% | 81% | 81% |
Adjusted Operating Costs1 | 4,436,514 | 5,172,613 | 19,176,615 | 20,114,705 |
% Increase over prior year | (14%) | 9% | (5%) | 26% |
Adjusted EBITDA Loss1 | (831,322) | (2,296,455) | (5,844,199) | (9,683,253) |
% Increase (Decrease) over prior year | (64%) | (13%) | (40%) | 16% |
Net loss | (1,317,840) | (2,879,243) | (8,350,760) | (11,095,044) |
% Increase (Decrease) over prior year | (54%) | (4%) | (25%) | 17% |
Basic and diluted loss per share | (0.03) | (0.07) | (0.19) | (0.28) |
Balance as at | ||||
Dec. 2023 | Dec. 2022 | |||
Annual Recurring Revenue-Closing ("ARR")2 | ||||
Software ARR | 17,972,187 | 14,782,415 | ||
% Increase over prior year period | 22% | 36% | ||
Managed Service ARR | 164,000 | - | ||
Total ARR-Closing | 18,136,187 | 14,782,415 | ||
Modified working capital1 | 778,081 | 2,313,955 | ||
Cash | 510,462 | 216,815 | ||
Bank Indebtedness (up to $9 million) | 3,461,002 | 501,017 |
Key Financial Metrics:
1 Adjusted Operating Costs, Adjusted EBITDA Loss, and Modified Working Capital are non-IFRS measures. See "Non-IFRS Measures" section of the Company's MD&A for further discussion, the "Results of Operations" section and the "Liquidity and Capital Resources" section of the MD&A for reconciliation to the most directly comparable IFRS measure. Adjusted Operating Costs includes Sales and Marketing, Research and Development, and General and Administrative expenses, and excludes share-based compensation, depreciation, and certain non-recurring expenses. The Company considers Restructuring Costs, as defined in the Company's MD&A, to be non-recurring in nature and not indicative of continuing operations. We use this metric as a supplemental measure to review and assess operating performance and assess our ability to generate cash flow. Management believes Adjusted EBITDA Loss provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs, and non-recurring expenses. Modified Working Capital is a non-IFRS measure that represents current assets less current liabilities and adjusted to exclude contract acquisition assets, deferred revenue, lease liabilities and debt. We use this metric as a supplemental measure to assess financial sustainability and sufficient liquidity to preserve the Company's capacity to continue operating, in providing benefits to our stakeholders and in providing an adequate return on investment to our shareholders by selling our services at a price commensurate with the level of operating risk assumed by the Company.
2Annual Recurring Revenue (ARR) provides an indication of future revenue and billings from customers as of the reporting date. ARR represents the sum of the annualized recurring software and managed service fees 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. The average US dollar exchange rate of ARR was C$1.3437 at December 31, 2023 and C$1.3141 at December 31, 2022.
MediaValet's full financial statements and related MD&A are now available on SEDAR+ at www.sedarplus.ca.
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 | [email protected] | (604) 688-2321
Dave Miller, CFO | [email protected] | (604) 688-2321
Investor Relations
Babak Pedram | [email protected] | (416) 646-6779
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/202715