Delivers Record Year with Revenue up 77%, Net Billings up 92% and ARR up 85%
Vancouver, British Columbia--(Newsfile Corp. - April 8, 2020) - MediaValet Inc. (TSXV: MVP) (the Company), a leading provider of enterprise digital asset management ("DAM") and creative operations software, is pleased to report its results for the year and the three months ended December 31, 2019.
Summary of Quarterly Results
3 months ended December 31, 2019 | Year ended December 31, 2019 | |||||||||||
2019(1) | 2018(2) | 2019(1) | 2018(2) | |||||||||
Revenue | $ | 1,677,012 | $ | 841,920 | $ | 5,160,970 | $ | 2,923,122 | ||||
% Increase | 99% | 43% | 77% | 34% | ||||||||
Gross Margin | 1,411,264 | 681,862 | 4,407,343 | 2,296,231 | ||||||||
Gross Margin % | 84% | 81% | 85% | 79% | ||||||||
Operating Expenses1,2,3 | 2,105,420 | 1,517,997 | 7, 010,662 | 5,915,149 | ||||||||
% Increase | 39% | 17% | 19% | 3% | ||||||||
EBITDA Loss1,2,4 | (694,156 | ) | (836,135 | ) | (2,603,319 | ) | (3,618,918 | ) | ||||
% (Decrease) / Increase | (17%) | 1% | (28%) | (8%) | ||||||||
Net loss | (1,042,296 | ) | (949,236 | ) | (3,592,327 | ) | (4,234,120 | ) | ||||
% Increase / (Decrease) | 10% | (7%) | (15%) | (15%) | ||||||||
Loss per share5 | (0.04 | ) | (0.06 | ) | (0.20 | ) | (0.30 | ) | ||||
As at December 31, 2019 | As at December 31, 2018 | |||||||||||
Annual Recurring Revenue (“ARR”)6 | $ | 6,501,074 | $ | 3,511,967 | ||||||||
% Increase | 85% | 41% | ||||||||||
Modified Working Capital ex. of Deferred Revenue and Debt | 2,800,748 | (164,546 | ) | |||||||||
Deferred Revenue | 4,407,953 | 2,323,742 | ||||||||||
% Increase | 90% | 57% | ||||||||||
Total assets | 6,486,469 | 1,980,184 | ||||||||||
Lease liabilities | 1,182,835 | - | ||||||||||
Long-term and Convertible Debt | 3,283,199 | 3,150,000 | ||||||||||
Shareholder Deficiency | (4,260,076 | ) | (5,174,656 | ) |
"Fiscal 2019 was a breakout year for MediaValet," said David MacLaren, Founder and CEO. "We built upon our core enterprise Cloud DAM offering, adding new features and enhancements that make a meaningful difference for our customers, resulting in increased adoption and integration within customer environments. At the same time, DAM has rapidly progressed as a mission-critical part of the marketing stack, making our Cloud solutions increasingly must-haves, especially in the current environment where working remotely has become a requirement. Our sales and marketing teams have been able to reach prospective buyers more easily than ever before and do so with high quality, referenceable, customer case studies that truly set us apart from the competition."
Continued Mr. MacLaren, "The result, a record year for customer acquisition, retention and expansion. I'm proud to report that we grew our ARR by 85% to $6.5M, adding $3.0M of net new ARR - up 192% from last year - and attained Net Billings(7) of $7.2 million, up 92% from last year after a record in Q4'18 of $2.3M, up 75% from Q4'17. Highlighting the impact of our strategic focus and the growing DAM market; it took us eight years to surpass the $1 million mark in quarterly Net Billings, and just one year to surpass $2M."
Mr. MacLaren added, "In 2019, we continued to strengthen our operational and platform security. This included adding a Head of Information Security and obtaining our SOC II Type II certification, preparing us to handle the latest macro-economic and environmental climates. This has proven essential for our response to the current pandemic, as we were able to rapidly implement our remote contingency plan, across our entire organization, without interruption. We believe our proven ability to shift to providing our services remotely, and to enable our customers to do the same, will help us to continue our growth trend through these challenging times."
Rob Chase, Executive Chair and CFO commented, "It has been an exciting year for us on all fronts - from operational excellence, to product enhancement, to sales and customer growth, to growing our team, and to strengthening our balance sheet and Board. In fiscal 2019, we raised $5.1M of growth capital, significantly reduced our operational funding requirements, and ended the year with $2.8M of working capital. Additionally, after year end, we've raised a further $3.83M of capital from deposits for exercise of warrants, options and conversion rights. This has us well-positioned to fund our growth plan despite the swift economic slowdown caused by the global response to the recent pandemic. From a longer viewpoint, we expect the DAM industry to continue growing as enterprises recognize its importance for their marketing and creative teams, particularly as they move to remote working policies, and we believe that these industry tailwinds will continue to benefit MediaValet moving forward."
Results of Operations
Key Financial Metrics:
Technology and Product:
MediaValet first launched its new V4 platform along with its unique Advanced Search (artificial intelligence), Multi-Library and CreativeSPACES modules in 2018. Since then it has continued to enhance each of these components, doing incremental releases on a weekly and monthly basis. In Fiscal 2019, this continued commitment to product innovation and advancement has led to a number of announcements, including:
Operations and Corporate:
Subsequent Events:
1 Adoption of IFRS 16: Fiscal 2018 figures have not been restated for adoption of IFRS 16 as the changes were applied starting January 1, 2019 on a Modified retrospective basis. Had fiscal 2018 figures been restated, the 2019 percentage change from 2018 ("2018 proforma") would be a 22% increase (Q4'19: 43%) for Operating Expenses, and a 22% decline (Q4'19: 9%) for EBITDA Loss. IFRS 16 did not impact the Net Loss. See "Adoption of New Account Standards".
2 Adoption of IFRS 15: Fiscal 2017 figures have not been restated for adoption of IFRS 15 as the changes were applied starting January 1, 2018 on a cumulative effect basis. Had fiscal 2017 figures been restated, the 2018 percentage change would ("2017 proforma") be a 6% increase (Q4'18: 22%) for Operating Expenses, and a 4% decline (Q4'18: 8% increase) for EBITDA Loss. See "Adoption of New Account Standards".
3 Operating Expenses include Sales & Marketing, Research & Development and General & Administrative.
4 EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs.
5 Per share figures have been adjusted to reflect the 15:1 share consolidation completed on September 9, 2019. Note that quarterly loss per share amounts may not aggregate to the annual amount disclosed in the annual financial statements due to rounding.
6 Annual Recurring Revenue (ARR) is a non-IFRS measure that provides an indication of future revenue and billings from customers as of the reporting date. ARR represents the sum of the annual recurring revenue 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.
7 Net Billings are a non-IFRS measure representing the sum of invoiced sales in the period, including both existing customer renewal invoices and new customer invoices with standard payment terms (generally net-30). Net Billings are calculated by subtracting closing deferred revenue from opening deferred revenue and adding recognized revenue for the period. Management believes Net Billings are an important measure for understanding the business, as given that the related revenue is deferred and amortized, Net Billings provides a measure of the amount of cash generated from customers in the period.
MediaValet's full financial statements and related MD&A are now available on SEDAR.
About MediaValet, Inc.
MediaValet stands at the forefront of the enterprise cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available in 140 countries, 54 Microsoft data center regions, around the world, MediaValet delivers unparalleled enterprise class security, reliability, redundancy and scalability while offering the largest global footprint of any DAM solution. In addition to providing all core DAM capabilities and local desktop-to-cloud support for creative teams, MediaValet offers industry leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Oracle Marketing Cloud (Eloqua), Drupal 8, WordPress, Hootsuite and many other best-in-class 3rd party applications.
For further information, please contact:
Corporate Office
David MacLaren, CEO | [email protected] | (604) 688-2321
Rob Chase, Executive Chairman and CFO | [email protected] | (604) 688-2321
Press Relations
Babak Pedram | [email protected]| (416) 644-5081
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