Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the “Company” or “Wishpond“), a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements (the “Interim Financial Statements“) and management’s discussion and analysis (the “MD&A“) for Q3-2024, representing the three and nine months ended September 30, 2024. Copies of the Interim Financial Statements and MD&A are available on the Company’s profile on SEDAR+ at www.sedarplus.ca.
Ali Tajskandar, Wishpond’s Founder and CEO commented, “I am pleased to report that Wishpond has achieved Adjusted EBITDA of $571,228 and an Adjusted EBITDA margin of over 11% in Q3-2024, marking the Company’s most profitable quarter since 2022. Achieving double-digit EBITDA margin is a rare accomplishment for a software company of our size, and I am incredibly proud of our team for reaching this significant milestone. Our dedication to reducing costs and driving greater efficiencies throughout our business has led to substantial improvements in both profitability and cash flow. Further to this, I am excited to share that Wishpond generated cash flows from operations of positive $0.2 million during Q3-2024. Improving our Adjusted EBITDA and cash flow generation has been a core focus for the Company in 2024 and we reiterate this commitment and mandate as we head into 2025.”
Ali Tajskandar further adds, “Wishpond is making exciting strides with its new flagship product, SalesCloser AI (“SalesCloser“), a revolutionary virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos. We are actively exploring new sales outreach programs and potential channel partnerships to expand SalesCloser’s reach, unlock new customer opportunities, and drive broader adoption of the platform. Recently, we announced a collaboration with Roomvu Technologies Inc. (“Roomvu“), a leading real estate marketing platform used by over 220,000 real estate agents, to leverage SalesCloser in enhancing lead follow-up and boosting sales conversions. Collaborations like these are an excellent example of how a partner can provide us with greater and more efficient access to a potential customer base. Furthermore, we are seeing a steady increase in bookings for SalesCloser demos each day. As we broaden the platform’s rollout, we anticipate that SalesCloser will be a key contributor in driving new growth to our business in 2025.”
Adrian Lim, Wishpond’s Chief Financial Officer commented, “Despite a decline in quarterly revenue, Wishpond was able to achieve very strong margins and cash flows in Q3-2024. Wishpond’s revenue decline in Q3-2024 was attributable to the transition of its sales team driven by cost optimization efforts and the integration of SalesCloser into its sales processes. In the long term, we anticipate using SalesCloser to grow the Company’s own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition, revenue was negatively impacted due to a decrease in spending from Wishpond’s legacy customer for email delivery services. While this customer contributed to Wishpond’s revenue, these sales were not as profitable compared to the newer business generated through our Propel IQ platform (“Propel IQ“). As a result, this offset of less profitable revenue enabled Wishpond to achieve its most profitable quarter in two years, growing Adjusted EBITDA margin to 11% and improving the Company’s gross margin to 69%. Looking ahead, we expect our gross margins to continue trending upwards as adoption of Propel IQ grows, and we begin ramping up sales of our new SalesCloser solution.”
Third Quarter 2024 Financial Highlights:
- Wishpond achieved quarterly revenue of $5,055,738 during Q3-2024 (Q3-2023: $5,763,847).
- Revenue was impacted by a decline in revenue from the Company’s legacy customer of email delivery services which reduced its spending from $338,359 in Q3-2023 to $48,969 in Q3-2024.
- Wishpond achieved a gross profit of $3,490,107 in Q3-2024 (Q3-2023: $3,825,821).
- Wishpond achieved a gross margin percentage of 69% during Q3-2024 (Q3-2023: 66%).
- During Q3-2024, Wishpond achieved positive Adjusted EBITDA(1) of $571,228 (Q3-2023: $319,001), representing an Adjusted EBITDA margin of 11%, and an increase of 79% from Q3-2023.
- As at September 30, 2024, Wishpond had $1,084,978 in cash and had drawn down $1,300,535 from its credit facility (December 31, 2023: cash of $1,424,585 and $994,658 credit facility balance outstanding). The reduction in net cash was caused in part by earnout payments for businesses acquired in 2022, investment in SalesCloser marketing activities, and changes in working capital.
Third Quarter 2024 Business Highlights:
- On July 8, 2024, the Company announced the appointment of Adrian Lim as Chief Financial Officer (CFO). Mr. Lim has responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions.
- On July 10, 2024, the Company announced that the renewal of its Notice of an Intention it filed to make a Normal Course Issuer Bid (“NCIB“) was approved by the TSX Venture Exchange. Under the renewed NCIB, the Company may, during the 12-month period commencing July 15, 2024, and ending July 14, 2025, purchase up to 2,707,931 Shares in total, being 5% of the total number of 54,158,620 Shares outstanding as at June 26, 2024.
- On August 1, 2024, the Company successfully renewed its credit facility with a major Canadian bank. The renewed credit facility maintains the secured revolving operating line with a borrowing capacity of up to $6,000,000.
- On August 8, 2024, the Company announced the launch of a new rewards distribution program through its Viral Loops product platform. The new program launched with successful integrations with the Stripe App Marketplace, Tremendous, and Sendoso allowing Viral Loops customers to use their referral rewards on any of these platforms, which the Company believes will increase Average Order Value(1) and Customer Lifetime Value(1). The program is expected to drive increased customer engagement and strengthen Wishpond’s overall market position and capabilities in the referral marketing space.
- On August 19, 2024, the Company announced the launch of a new Integrations Marketplace for its AI-powered virtual sales agent, SalesCloser AI. The Integrations Marketplace is designed to seamlessly integrate SalesCloser with a wide range of tools, including CRM systems, email marketing platforms, and task management software, enhancing efficiency and sales effectiveness through advanced workflow automation.
Business Highlights Subsequent to September 30, 2024:
- On October 23, 2024, the Company entered into a collaboration agreement with Roomvu, a leading real estate marketing platform used by over 220,000 real estate agents, to utilize SalesCloser to enhance lead follow-up and sales conversion for Roomvu. This collaboration is anticipated to empower real estate agents to significantly improve the efficiency of managing leads, with aims to ultimately drive sales higher at the same time as improving the client experience.
Outlook:
For 2025, Wishpond’s focus is on profitable growth. The Company expects to improve upon the Adjusted EBITDA levels achieved in 2024. The Company is also expanding the utilization of its SalesCloser virtual sales agent in its sales processes in order to drive new sales of Wishpond products. SalesCloser will be used to help grow Wishpond’s own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition to using SalesCloser to sell Wispond’s own products, the Company is also ramping up its SalesCloser revenue generated from external customers.
Management is pleased to introduce the Company’s key goals for 2025:
- Accelerate organic revenue growth and increase Monthly Recurring Revenue (MRR)(1).
- Achieve positive Adjusted EBITDA in each quarter in 2025.
- Increase utilization of SalesCloser in internal sales processes to drive sales of Wishpond’s own products.
- Accelerate revenue growth of SalesCloser to external customers.
- Improve margins, decrease churn and increase long-term customer value.
Webinar Conference Call Details:
As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q3-2024 financial results today at 10:00 AM (PT) / 1:00 PM (ET).
To register for the webinar, please visit the following URL: https://bit.ly/wp_q3
Date: November 20, 2024
Time: 10:00 AM PT (1:00 PM ET)
Dial-in: +1 778 907 2071 (Vancouver local)
+1 647 374 4685 (Toronto local)
Meeting ID #: 886 0009 0567
Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond’s Interim Financial Statements and MD&A.
|
Three-months September 30, |
Three-months September 30, |
Nine-months September 30, |
Nine-months September 30, |
|
|
Revenue |
5,055,738 |
5,763,847 |
16,934,710 |
17,027,081 |
|
Gross profit |
3,490,107 |
3,825,821 |
11,561,777 |
11,195,550 |
|
Gross margin |
69 % |
66 % |
68 % |
66 % |
|
Adjusted EBITDA(1) |
571,228 |
319,001 |
1,403,142 |
744,000 |
|
Credit facility – end of period |
(1,300,535) |
– |
(1,300,535) |
– |
|
Cash – end of the period |
1,084,978 |
909,796 |
1,084,978 |
909,796 |
|
Net decrease in cash during the |
(68,609) |
(188,489) |
(645,484) |
(1,782,848) |
Reconciliation to Adjusted EBITDA
|
Three-months September 30, |
Three-months September 30, |
Nine-months September 30, |
Nine-months September 30, |
|
|
Income (Loss) before income |
86,180 |
329,154 |
(505,046) |
(1,106,096) |
|
Depreciation and amortization |
411,504 |
390,353 |
1,228,151 |
1,139,504 |
|
Interest income |
– |
– |
– |
(2,728) |
|
Interest expense |
36,557 |
8,990 |
115,276 |
8,990 |
|
Remeasurement of contingent |
– |
– |
– |
(22,232) |
|
Other expenses |
107,019 |
111,764 |
259,601 |
376,009 |
|
Stock based compensation |
(70,032) |
(521,260) |
305,160 |
350,553 |
|
Adjusted EBITDA |
571,228 |
319,001 |
1,403,142 |
744,000 |
|
Footnotes: |
|
|
(1) |
Adjusted EBITDA, MRR, Annualized Revenue Run-Rate(1), Average Order Value, Customer Churn Rate(1) and LTV are not financial measures recognized by International Financial Reporting Standards (“IFRS“), do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. See “Cautionary Statements – Non-GAAP Financial Measures” for more information and definitions of each non-GAAP term used in this press release. |
On Behalf of the Board of Wishpond
“Ali Tajskandar“
Chairman and Chief Executive Officer
