- Thinkific announces reduction in workforce of approximately
75 people.
- The Company commits to reaching positive Adjusted EBITDA
exiting 2023.
- Thinkific affirms Q4 2022 outlook of $13.5 - $13.7
million in revenue and Adjusted EBITDA loss in the range of
$5.1 million to $5.7 million.
Thinkific reports in U.S. dollars and in accordance with
IFRS
VANCOUVER, BC, Jan. 10,
2023 /CNW/ - Thinkific Labs Inc. ("Thinkific" or the
"Company") (TSX: THNC), a leading cloud-based software platform
that enables entrepreneurs and established businesses of all sizes
to create, market and sell digital learning products, today
announced a reduction in workforce. This reduction aligns the
Company's talent with key growth initiatives, and reduces its
expense structure, resulting in Thinkific achieving positive
Adjusted EBITDA exiting 2023.
"We closed the fourth quarter as expected, and with the
initiatives we announced today, profitability is in sight," said
Greg Smith, Co-Founder and CEO of
Thinkific. "Having said that, any decision that affects people is
not easy to make, and we understand the impact it has on both the
Thinkers to whom we are saying goodbye, as well as the ones who are
staying.
"We are grateful to our team for creating our exceptional
culture, industry-leading products, and for working to ensure the
success of our Creators. Creator success remains our north star,
and we will continue to focus our efforts on building the most
innovative products, features and tools that make it easy for our
customers to build and scale amazing digital learning businesses,"
concluded Mr. Smith.
Today, Thinkific Co-Founder and CEO, Greg Smith sent this letter to Thinkific
employees.
"My mandate as Thinkific's President is clear: to drive
profitability and growth. We must concentrate our efforts on the
projects that deliver the greatest impact for our customers and our
business," said Steve Krenzer,
President of Thinkific. "The steps we have taken today, while
difficult, will sharpen our focus, and are critical to us executing
on our long-term business strategy," said Mr. Krenzer.
Thinkific will be reporting its fourth quarter and year end
financial and operational results for 2022 on February 22, 2023. At this time, it will
communicate its outlook for the first quarter of 2023, and provide
a general business update, including further details on this
announcement.
About Thinkific
Thinkific (TSX: THNC) makes it simple for creator-educators and
established businesses of any size to scale and generate
revenue by teaching what they know. Our platform gives businesses
everything they need to build, market, and sell digital learning
products—from courses to communities—and run their business
seamlessly under their own brand, on their own site. Thinkific's
50,000 active creators earn hundreds of millions of dollars in
direct course sales while teaching tens of millions of students.
Thinkific is headquartered in Vancouver,
Canada and has a distributed team.
For more information, please visit www.thinkific.com.
Non-IFRS Measures
The information presented within this news release includes
"Adjusted EBITDA". "Adjusted EBITDA" is not a recognized measure
under International Financial Reporting Standards ("IFRS") as
issued by the International Accounting Standards Board, does not
have a standardized meaning prescribed by IFRS, and is therefore
unlikely to be comparable to similar measures presented by other
companies. Rather, this measure is provided as additional
information to complement those IFRS measures by providing further
understanding of our results of operations from management's
perspective. Accordingly, it should not be considered in isolation
nor as a substitute for analysis of our financial information
reported under IFRS. The non-IFRS measure and industry metrics are
used to provide investors with supplemental measures of our
operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS measures. We also believe that securities analysts, investors
and other interested parties frequently use non-IFRS measures and
industry metrics in the evaluation of issuers. Our management also
uses the non-IFRS measure and industry metrics in order to
facilitate operating performance comparisons from period to period,
to prepare annual operating budgets and forecasts and to determine
components of management compensation.
"Adjusted EBITDA" is defined as net income (loss) excluding
taxes, interest, depreciation and amortization (or EBITDA), as
adjusted for stock-based compensation, foreign exchange loss
(gain), net finance (income) expense, restructuring costs and
transaction-related costs. Adjusted EBITDA does not have a
standardized meaning under IFRS and is not a measure of operating
income, operating performance or liquidity presented in accordance
with IFRS, and is subject to important limitations.
Forward looking
Information
This news release includes forward-looking statements and
forward–looking information within the meaning of applicable
securities laws ("forward-looking statements"). Often, but not
always, forward–looking information can be identified by the use of
words such as "plans", "is expected", "expects", "scheduled",
"intends", "contemplates", "anticipates", "believes", "proposes" or
variations (including negative and grammatical variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements in this news release include
statements regarding the Company's product-led growth strategy;
future financial outlook; the impact of the restructuring;
objectives to reach positive Adjusted EBITDA, drive growth and
long-term value creation; the potential for realizing efficiencies,
lowering costs and decreasing operating expenses. Such statements
and information are based on the current expectations of
Thinkific's management, and are based on assumptions and subject to
risks and uncertainties. Although Thinkific's management believes
that the assumptions underlying these statements and information
are reasonable, they may prove to be incorrect. Except as required
by applicable securities laws, forward–looking statements and
information speak only as of the date on which they are made and
Thinkific undertakes no obligation to publicly update or revise any
forward–looking statement or information, whether as a result of
new information, future events or otherwise.
SOURCE Thinkific Labs Inc.