Delivers Record Q2 Revenue, up 56%, Grows ARR 54%
Vancouver, British Columbia--(Newsfile Corp. - August 18, 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 three and six months ended June 30, 2020.
Summary of Quarterly Results
3 months ended June 30, | 6 months ended June 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Revenue | $ | 1,746,426 | $ | 1,118,946 | $ | 3,471,126 | $ | 2,115,022 | ||||
% Increase | 56% | 61% | 64% | 61% | ||||||||
Gross Margin | 1,419,455 | 962,258 | 2,844,624 | 1,812,920 | ||||||||
Gross Margin % | 81% | 86% | 82% | 86% | ||||||||
Operating Expenses1 | 2,184,542 | 1,642,319 | 4,360,204 | 3,121,955 | ||||||||
% Increase | 33% | 4% | 40% | 6% | ||||||||
EBITDA Loss2 | (765,087 | ) | (680,061 | ) | (1,515,580 | ) | (1,309,035 | ) | ||||
% Increase / (Decrease) | 13% | (35%) | 16% | (32%) | ||||||||
Net loss | (1,077,581 | ) | (927,947 | ) | (2,017,328 | ) | (1,753,612 | ) | ||||
% Increase / (Decrease) | 16% | (21%) | 15% | (23%) | ||||||||
Loss per share3 | (0.03 | ) | (0.06 | ) | (0.07 | ) | (0.11 | ) | ||||
At June 30, 2020 | At December 31, 2019 | |||||||||||
Annual Recurring Revenue ("ARR")4 | $ | 7,266,998 | $ | 6,501,074 | ||||||||
% Increase over prior year period | 54% | 85% | ||||||||||
Modified Working Capital ex. of Deferred Revenue and Debt | 5,916,133 | 2,800,748 | ||||||||||
Deferred Revenue | 4,435,119 | 4,407,953 | ||||||||||
% Increase over prior year period | 48% | 90% | ||||||||||
Total assets | 9,053,983 | 6,468,469 | ||||||||||
Lease liabilities | 1,089,135 | 1,182,835 | ||||||||||
Long-term and Convertible Debt | 1,000,000 | 3,283,199 | ||||||||||
Shareholder Deficiency | 1,088,356 | (4,260,076 | ) |
"We're extremely thankful for the industry that we're in and the services that we deliver," said David MacLaren, Founder and CEO. "These are challenging times for all, we're simply happy we can help organizations quickly transition to a safe, secure and reliable work-from-anywhere environment. As a result, revenue is at a record high, and we continued to see strong growth in our customer base both here at home and around the world. In June, we experienced a quick rebound in market sentiment, enabling us to generate new customer billings in excess of those achieved in Q2 last year, and we've seen improving pipeline metrics in each month since. While this was offset somewhat by increased churn amongst some of our smaller customers that were hit hardest, we're confident that our expanded product and customer success teams will be able to provide a helping hand to our customers - large and small - where necessary in the months to come."
Continued MacLaren, "Our innovation and unique approach to the DAM industry continues to differentiate us, increase our market share, and drive our business forward. Microsoft Canada's recent AI & Machine Learning Impact Award highlights the work that we're doing at the edge of DAM, enterprise video management, and creative operations. We pride ourselves on how we approach product development: taking a step back, listening to our customers, and building what's right - not just what's been done before. As we continue to lean in during these challenging economic - and personal - times, we're very excited about what the future holds for MediaValet: our team members, customers, partners and shareholders."
Rob Chase, Executive Chair and CFO, commented, "Our second quarter was a milestone for us. Not only did we continue to attain solid revenue growth, but we also significantly improved our balance sheet. With $7.13 million of warrants and convertible debentures exercised in H1 2020, we were able to repay $2 million of long-term debt, favorably modify the terms of our remaining $1 million of debt, settle our convertible debentures, and finish the quarter with $5.92 million of modified working capital. This has enabled us to continue our investment strategy, expand our team to accelerate our innovative product roadmap, ensure best-in-class service and support, and increase our go-to-market team growth potential. We're confident these investments will deliver increasing and efficient returns as the market rebounds."
Results of Operations
Key Financial Metrics:
Technology and Product:
Operations and Corporate:
1 Operating Expenses include Sales & Marketing, Research & Development and General & Administrative.
2 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.
3 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.
4 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.
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, 61 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, Wrike, 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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