Annual revenue up 35% to $51.5 million on 21% year-over-year ARPU
growth
Thinkific Payments adoption continues to
grow, and exited 2022 with a 23% penetration rate
Fourth Quarter Adjusted EBITDA loss
improves by 50% year-over-year, to $4.4
million
Thinkific reports in U.S. dollars and in
accordance with IFRS
VANCOUVER, BC, Feb. 23,
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 its financial results for the quarter and year ended
December 31, 2022.
"Thinkific continues to focus on the needs of the Creator, and
support their success," said Greg
Smith, Co-Founder and CEO. "Simply put, we focus on
providing the tools for new Creators to launch and succeed quickly,
enabling them to sell more through the monetization of features
like memberships and communities, as well as delivering results for
highly successful Creators and larger businesses with more complex
needs. This combined approach not only drives their business, but
ours.
"To continue to drive growth, as well as achieve profitability,
we have taken decisive action in the past year to align our
organizational structure with a focus on the highest return
investments, and operational efficiency," stated Mr. Smith. "I am
confident that the team will deliver on our business objectives,
and achieve profitability."
Fourth Quarter Financial
Highlights
- Revenue increased 28% to $13.8
million compared with the fourth quarter of 2021, driven by
year-over-year growth in total Paying Customers(1) and
increasing ARPU(1).
- Gross margin of 78% was up from 74% in the fourth quarter of
2022, driven by efficiency improvements. These gains were partially
offset by the success of our Thinkific Payments offering, which has
a lower overall gross margin.
- Net loss for the fourth quarter of 2022 was $3.7 million, compared to a net loss of
$9.4 million in the fourth quarter of
2021.
- Adjusted EBITDA(2) losses improved for the third
consecutive quarter. This trend is expected to continue with the
Company targeting Adjusted EBITDA(2) profitability run
rate exiting 2023. Adjusted EBITDA(2) loss of
$4.4 million for the fourth quarter
reflects operational efficiencies and the reduction in cost
structure achieved over the last few quarters, as well as ongoing
revenue growth.
- Total Paying Customers(1) grew 4% to 33.6 thousand
in the fourth quarter of 2022, following three quarters of stable
total Paying Customers(1).
- ARPU(1) increased 21% to $138 per month compared with $114 in the fourth quarter of 2021, primarily
driven by the increasing adoption of Thinkific Payments.
- ARR(1) grew 18% to $51.5
million from $43.8 million in
the fourth quarter of 2021, due to increase in
ARPU(1).
- Thinkific Payments continued to be well received by Creators,
and Gross Payments Volume ("GPV")(1) was $22.8 million for the fourth quarter compared to
$6.4 million in the prior year.
GPV(1) is the total dollar value of transactions
processed using Thinkific Payments, and represented 22% of the
$106.0 million of GMV(1)
processed during the quarter. Thinkific Payments was launched in
November 2021, and has seen steadily
increasing adoption.
- Cash and cash equivalents were $93.8
million at the end of the fourth quarter of 2022.
"Thinkific is very well positioned to execute on its long-term
strategy, having financial flexibility and cost discipline,"
commented Corinne Hua, CFO of
Thinkific. "We are laser focused, and firmly committed to exiting
the year with a run rate that results in positive Adjusted
EBITDA."
Fiscal Year 2022 Financial
Highlights
- Revenue increased 35% to $51.5
million in 2022, driven by year-over-year growth in
ARPU(1) and total Paying Customers(1).
- Gross margin decreased slightly to 76% in 2022 compared to 77%
in 2021, impacted by the increase in the adoption of Thinkific
Payments, which has a lower gross margin profile. This was offset
by efficiencies in customer support.
- Net loss of $36.4 million in 2022
compared to a prior year net loss of $26.4
million.
- Adjusted EBITDA(2) loss of $26.4 million increased 36% from $19.5 million in 2021. While the Adjusted
EBITDA(2) loss for 2022 was greater than 2021, the
Company is targeting Adjusted EBITDA(2) profitability
exiting 2023. The increased Adjusted EBITDA(2) loss
year-over-year was primarily driven by higher headcount.
- Total Paying Customers(1) grew 4% to 33.6 thousand
in 2022 compared to 2021. The modest growth reflected a lower rate
of new customer acquisition relative to 2021.
- ARPU(1) increased 21% to $138 per month in 2022 compared to $114 in 2021, driven by customers upgrading to
higher tier subscription plans, and the increasing adoption of
Thinkific Payments.
- ARR(1) grew 18% to $51.5
million from $43.8 million in
2022 relative to 2021, largely as a result of increasing
ARPU(1), as well as total Paying Customers(1)
growth.
- Thinkific Payments' Gross Payments Volume ("GPV")(1)
was $66.7 million in 2022 relative to
$9.2 million in 2021, and represented
16% of the $409.8 million of
GMV(1) processed during the year.
Full Year 2022 Operational
Highlights
Thinkific made significant progress in 2022 with a number of
initiatives:
- Introduction of Thinkific Communities. Thinkific
Communities enables Creators to own their community and foster
relationships with their brand at the forefront. Thinkific
Communities transform a traditional one-way learning experience
into a collaborative exchange. With learning communities, Creators
can drive engagement and generate sustainable income with diverse
selling strategies including paid community memberships, bundles
with courses, and upsells to exclusive, relevant content. Creators
with active communities generate more income and offer more ways
for their students to learn.
- Growth of Thinkific Payments. From the launch of
Thinkific Payments in November, 2021, it has seen steady growth in
adoption among Creators. Thinkific Payments enables Creators to
sell more, and spend less time on administration. Its penetration
rate rose from 6% in the fourth quarter of 2021 to 22% for the same
period in 2022.
- Introduction of new selling features, including Order
Bumps and Improved Checkout. To help customers increase order
value and expand income streams, Thinkific introduced order bumps,
subscriptions, coupons and installments, built for use with
Thinkific Payments. Creators can now tailor various payment models,
such as one time sales, upsells, installments, discounts and
recurring payments, to their business needs and learning experience
offers. These features are available to all Thinkific Payments
customers on any paid plan, providing a full suite of modern online
sales tools natively on Thinkific, which all serve to help Creators
Sell More.
- Significant improvements to empower partners.
Enhancements were made to our API, app store, and other technical
solutions to support our partners building apps, integrations and
customizations for Thinkific Creators.
- Bulk Selling. This feature allows for seamless "B2B"
sales for Creators, including selling volume licenses, tiered
pricing, and customized checkout.
Full Year 2022 Corporate Highlights
- In March 2022, following a
rigorous review of the Company's organizational structure,
Thinkific executed on a reduction in workforce to increase
efficiency and lower costs. The Company-wide workforce reduction
reduced headcount by 20%, and significantly improved Thinkific's
Adjusted EBITDA(2) loss on a quarterly basis through
2022.
- Thinkific continued to strengthen the breadth and depth of its
board with the addition of two new members: Steve Krenzer, a veteran technology executive,
with deep experience in finance and operations, as well as sales
and marketing; and Melanie Kalemba,
who brings extensive experience in sales and business development,
and scaling SaaS companies.
- In September 2022, Thinkific
announced that Steve Krenzer was
appointed to the role of President for a term of approximately 18
months. Reporting to CEO, Greg
Smith, Mr. Krenzer is responsible for driving operational
excellence, and further advancing an execution-focus across the
organization. Mr. Krenzer is maintaining his role and
responsibilities on the Board of Directors during his tenure as
President.
- Thinkific continued to receive recognition for its strong
corporate culture as well as growth in 2022. Thinkific was named to
the Deloitte Technology Fast 50, which celebrates the world-class
achievements and tremendous evolution of the Canadian technology
sector. Thinkific was also recognized as one of the Best Workplaces
in Canada by "Great Places to
Work®".
Subsequent to Year End
- In January, 2023, Thinkific announced its intention to achieve
positive Adjusted EBITDA(2) run rate exiting 2023. A
significant contributor to improved quarterly Adjusted
EBITDA(2) through 2023 is the result of the
announced reduction in workforce that aligns the Company's talent
with key growth initiatives, as well as reducing its expense
structure.
- Thinkific released its Digital Learning Trends Report,
highlighting top industry trends that include: the shifting tide
from creator entertainers to creator educators; the emergence of
microlearning as a solution for life-on-the-go; the rise of
community-first digital learning; and the diversification of income
streams offering financial security in uncertain economic
times.
Outlook
Thinkific expects to exit 2023 with a profitable Adjusted
EBITDA(2) run rate, benefiting from both top-line
growth, and a continued reduction in its cost structure.
For the first quarter of 2023, the Company expects:
- Revenue of $13.8 million -
$14.0 million; and
- Adjusted EBITDA(2) loss in the range of $3.3 million to $3.9
million.
Actual results may differ materially from Thinkific's financial
outlook as a result of, among other things, the factors described
under "Forward-Looking Statements" below.
Quarterly Conference Call and
Webcast Information
A conference call will be held at 2:30 PM
PT (5:30 PM ET) on
February 23, 2023 to discuss Thinkific's fourth quarter
financial and operational results. To participate in the call,
please dial 1.888.664.6383 (US/Canada toll-free) or 1.416.764.8650
(International/Toronto). For those
unable to participate, a replay will be available commencing at
4:30 PM PT (7:30 PM ET) on February 23, 2023 by dialing
1.888.390.0541 (US/Canada
toll-free) or 1.416.764.8677 (International/Toronto). The passcode is 537564#. The replay
will expire at 8:59 PM PT
(11:59 PM ET) on March 2, 2023. The conference call will also be
available via webcast on the Investor Relations section of
Thinkific's website at
investors.thinkific.com/events-and-presentations.
Thinkific's audited consolidated financial statements and
accompanying notes, and Management's Discussion and Analysis for
the year ended December 31, 2022 are
available on the Company's website at www.thinkific.com and on
SEDAR at www.sedar.com.
About Thinkific
Thinkific (TSX:THNC) makes it simple for entrepreneurs 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 courses and other
learning products, and to 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, with a
distributed team.
For more information, please visit www.thinkific.com.
Non-IFRS Measures
The information presented within this press release includes
"Adjusted EBITDA" and certain industry metrics. The "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. We also use certain
industry metrics: "Annual Recurring Revenue", "Paying Customers",
"Average Revenue per User", "Gross Merchandise Volume" and "Gross
Payments Volume". These industry metrics are unaudited and are not
directly derived from our financial statements. 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.
Please refer to "Reconciliation to IFRS from Non-IFRS measures"
in this press release for more information.
Key Performance
Indicators
We monitor the following industry metrics to help us evaluate
our business, measure our performance, identify trends affecting
our business, formulate business plans and make strategic
decisions: "Annual Recurring Revenue" or "ARR", "Average Revenue
per User" or "ARPU", "Gross Merchandise Volume" or "GMV", "Paying
Customers" and "Gross Payments Volume" or "GPV". Our key
performance indicators may be calculated in a manner different than
similar key performance indicators used by other companies.
"Paying Customers" is the count of
unique Thinkific subscribers on paid plans as of period end,
excluding all trial and free customers, and including both monthly
and annual subscribers.
"ARPU" is the average monthly
Revenue per Paying Customer in the quarter. ARPU is calculated by
taking the average Revenue for each month in the quarter and
dividing this by the average number of Paying Customers for the
same quarter.
"ARR" is the annual value of all
current Paying Customer subscriptions at the end of the period,
with the number of Paying Customers multiplied by 12 times the
average monthly subscription plan fee in effect on the last day of
that period.
"GMV" is the total dollar value of
all transactions of course sales, membership subscriptions, or
other products or services by our Creators, facilitated through our
platform during the period, net of refunds. GMV does not include
transactions for course sales, membership subscriptions, or other
products or services processed by APIs or certain apps where the
Company does not record the transaction value.
"GPV" is the total dollar value of
transactions processed using Thinkific Payments in the period, net
of refunds and inclusive of sales taxes where applicable. GPV does
not represent revenue earned by us. We believe that growth in GPV
is an indicator of success of our Creators in monetizing their
learning products and of our Thinkific Payments offering and is a
positive growth driver of revenue and ARPU.
Forward-Looking
Statements
This press release includes forward-looking statements and
forward–looking information within the meaning of applicable
securities laws in Canada.
Forward-looking statements and information may relate to our future
financial outlook and anticipated events or results and may include
information regarding our financial position, business strategy,
growth strategies, addressable markets, budgets, operations,
financial results, taxes, dividend policy, plans and objectives.
Particularly, information regarding our expectations of future
results, performance, achievements, prospects or opportunities or
the markets in which we operate is forward-looking information. In
some cases, forward-looking information can be identified by the
use of forward-looking terminology such as "plans", "targets",
"trends", "directional indicator", "indicator", "future success",
"expects", "is expected", "opportunity", "budget", "scheduled",
"estimates", "outlook", "forecasts", "projection", "scalability",
"trajectory", "prospects", "strategy", "intends", "anticipates",
"adoption", "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or, "will", "occur" or "be achieved", and similar
words, or the negative of these terms and similar terminology. In
addition, any statements that refer to expectations, intentions,
projections or other characterizations of future events or
circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances.
Forward-looking statements in this press release include, but are
not limited to statements regarding our financial position,
management's ability to effectively invest, increase business
efficiencies necessary to build and maintain a sustainable cost
structure; business strategy, budgets, operations, investments,
financial results, plans and objectives around growth and
profitability, expected improvements to, and achieving breakeven
Adjusted EBITDA, revenue growth; industry trends; growth in our
industry; our growth rates and growth strategies; addressable
markets for our solutions; expected effectiveness to our business
resulting from changes to pricing tiers; customer acquisition
improvements; advances in and expansion of our offered platform
service; the development, success and effectiveness of new
products, features, and services; effectiveness of our marketing
efforts; expectations regarding our revenue and the revenue
generation potential of our platform and other products; and
Thinkific's commitment towards strong corporate governance, the
expected benefits from the collective experience of the company's
board directors, their experience and skill set as a member of the
board of directors and the expected benefits that board directors
may bring to position the Company for greater success and value
creation in the future.
Forward-looking statements and information are based on our
opinions, estimates and assumptions that, while considered by the
Company to be appropriate and reasonable as of the date of this
press release, are subject to known and unknown risks,
uncertainties, and other factors that may cause the actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
information, including, but not limited to, the Company's ability
to execute on its growth strategies; the impact of changing
conditions in the global e-learning market in which the Company
operates; fluctuations in currency exchange rates and volatility in
financial markets; changes in attitudes, financial condition and
demand of our target market; developments and changes in applicable
laws and regulations; and such other factors discussed in greater
detail under the "Risk Factors" section of our Annual Information
Form ("AIF").
Forward-looking statements and information are necessarily based
upon estimates and assumptions, which are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are beyond the Company's control and
many of which, regarding future business decisions, are subject to
change. Assumptions or factors underlying the Company's
expectations regarding forward-looking statements or information
contained in this press release include, among others: our ability
to continue investing in infrastructure to support our growth and
brand recognition; our ability to continue maintaining, innovating,
improving and enhancing our technological infrastructure and
functionality, performance, reliability, design, security and
scalability of our Platform (as defined in our AIF); our ability to
maintain existing relationships with Creators (as defined in our
AIF) and to continue to expand our Creators' use of our platform;
our ability to acquire new Creators; our ability to maintain
existing material relationships on similar terms with service
providers, suppliers, partners and other third parties; our ability
to build our market share and enter new markets and industry
verticals; the continued development, rollout, integration and
success of new products, features, and services; our ability to
retain key personnel; our ability to maintain and expand geographic
scope; our ability to execute on our expansion and growth plans;
our ability to obtain and maintain existing financing on acceptable
terms; currency exchange and interest rates; the impact of
competition; the changes and trends in our industry or the global
economy; and the changes in laws, rules, regulations, and global
standards. The foregoing list of assumptions cannot be considered
exhaustive.
If any of these risks or uncertainties materialize, or if the
opinions, estimates or assumptions underlying the forward-looking
information prove incorrect, actual results or future events might
vary materially from those anticipated in the forward-looking
information provided herein. The opinions, estimates or assumptions
referred to above and described in greater detail in "Summary of
Factors Affecting our Performance" and in the "Risk Factors"
section of our 2022 Annual Information Form, which are available
under our profile on SEDAR at www.sedar.com, should be considered
carefully by prospective investors. Although we have attempted to
identify important risk factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other risk factors not presently known to
us or that we presently believe are not material, that could also
cause actual results or future events to differ materially from
those expressed in such forward-looking information. There can be
no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. No forward-looking statement is a
guarantee of future results. Accordingly, you should not place
undue reliance on forward-looking information, which speaks only as
of the date made. The forward-looking information contained in this
press release represents our expectations as of the date specified
herein, and are subject to change after such date. However, we
disclaim any intention or obligation or undertaking to update or
revise any forward-looking information whether as a result of new
information, future events or otherwise, except as required under
applicable securities laws.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements. Readers are cautioned that any such forward-looking
information should not be used for purposes other than for which it
is disclosed.
(1) Key Performance
Indicators. See definition in "Key Performance
Indicators".
|
(2) Non-IFRS measure.
See "Non-IFRS Measures" and the reconciliation to the most directly
comparable IFRS measure.
|
THINKIFIC LABS INC.
Consolidated Statements of Financial Position
(expressed in U.S. dollars)
|
December 31,
2022
|
December 31,
2021
|
|
$
|
$
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
93,846,091
|
126,054,833
|
Trade and other
receivables
|
2,712,671
|
1,392,391
|
Prepaid expenses and
other assets
|
1,797,108
|
2,769,924
|
Contract acquisition
assets
|
322,643
|
159,326
|
Total current
assets
|
98,678,513
|
130,376,474
|
|
|
|
Property and
equipment
|
1,507,600
|
766,568
|
Lease right-of-use
assets
|
2,005,835
|
754,320
|
Contract acquisition
assets
|
660,185
|
407,659
|
Intangible
assets
|
118,275
|
98,985
|
Total
assets
|
102,970,408
|
132,404,006
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
4,927,349
|
3,286,321
|
Lease
liabilities
|
443,928
|
515,348
|
Deferred
revenue
|
8,238,516
|
6,628,749
|
Total current
liabilities
|
13,609,793
|
10,430,418
|
|
|
|
Lease
liabilities
|
1,512,180
|
359,917
|
Total
liabilities
|
15,121,973
|
10,790,335
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
146,179,189
|
145,583,011
|
Contributed
surplus
|
6,925,869
|
4,865,646
|
Accumulated other
comprehensive loss
|
(38,113)
|
(38,113)
|
Accumulated
deficit
|
(65,218,510)
|
(28,796,873)
|
Total shareholders'
equity
|
87,848,435
|
121,613,671
|
Total liabilities
and shareholders' equity
|
102,970,408
|
132,404,006
|
|
|
|
THINKIFIC LABS INC.
Consolidated Statements of Loss and Comprehensive Loss
(expressed in U.S. dollars)
|
Three months
ended
December 31 ,
|
Years ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
|
$
|
$
|
$
|
$
|
Revenue
|
13,807,930
|
10,769,926
|
51,476,010
|
38,116,836
|
Cost of
revenue
|
3,044,670
|
2,752,755
|
12,362,462
|
8,902,802
|
Gross
profit
|
10,763,260
|
8,017,171
|
39,113,548
|
29,214,034
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Sales and
marketing
|
6,135,512
|
6,624,732
|
25,670,240
|
20,130,308
|
Research and
development
|
5,937,660
|
6,799,596
|
27,450,046
|
19,451,221
|
General and
administrative
|
4,064,652
|
4,966,126
|
16,936,764
|
13,939,903
|
Restructuring
|
—
|
—
|
2,287,885
|
—
|
Total operating
expenses
|
16,137,824
|
18,390,454
|
72,344,935
|
53,521,432
|
|
|
|
|
|
Operating
loss
|
(5,374,564)
|
(10,373,283)
|
(33,231,387)
|
(24,307,398)
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
Foreign exchange gain
(loss)
|
1,005,702
|
878,208
|
(4,618,051)
|
(2,312,563)
|
Finance income
(expense)
|
702,604
|
94,115
|
1,427,801
|
244,895
|
Total other income
(expenses)
|
1,708,306
|
972,323
|
(3,190,250)
|
(2,067,668)
|
Net loss and
comprehensive loss
|
|
|
|
|
|
(3,666,258)
|
(9,400,960)
|
(36,421,637)
|
(26,375,066)
|
|
|
|
|
|
Weighted average number
of
common shares
outstanding -
basic and
diluted
|
79,586,034
|
77,238,201
|
78,701,528
|
65,107,020
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
Basic and
diluted
|
$
(0.05)
|
$
(0.12)
|
$
(0.46)
|
$
(0.41)
|
THINKIFIC LABS INC.
Consolidated Statements of Cash Flows
(expressed in U.S. dollars)
|
Years
ended
December
31,
|
|
2022
|
2021
|
|
$
|
$
|
Cash from (used
in):
|
|
|
Operating
activities
|
|
|
Net loss
|
(36,421,637)
|
(26,375,066)
|
Items not affecting
cash and cash equivalents:
|
|
|
Depreciation and
amortization
|
1,195,702
|
681,330
|
Stock-based
compensation
|
2,786,162
|
4,123,669
|
Unrealized foreign
exchange loss
|
4,652,441
|
2,308,276
|
Finance
expense
|
98,234
|
37,307
|
|
|
|
Changes in non-cash
working capital:
|
|
|
Trade and other
receivables
|
(1,320,280)
|
(585,704)
|
Prepaid expenses and
other assets
|
938,071
|
(2,197,240)
|
Investment tax credits,
net
|
—
|
936,057
|
Contract acquisition
assets
|
(652,784)
|
(637,789)
|
Accounts payable and
accrued liabilities
|
1,260,932
|
1,592,710
|
Deferred
revenue
|
1,609,767
|
1,861,135
|
Cash used in
operating activities
|
(25,853,392)
|
(18,255,315)
|
|
|
|
Investing
activities
|
|
|
Investment in property
and equipment
|
(1,232,537)
|
(550,502)
|
Investment in
intangible assets
|
(26,984)
|
(104,660)
|
Cash used in
investing activities
|
(1,259,521)
|
(655,162)
|
|
|
|
Financing
activities
|
|
|
Proceeds from issuance
of shares upon IPO
|
—
|
148,616,696
|
Share issuance
costs
|
—
|
(9,891,051)
|
Operating lease
payments
|
(521,952)
|
(538,826)
|
Exercise of stock
options
|
280,768
|
68,503
|
Cash from (used in)
financing activities
|
(241,184)
|
138,255,322
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
(4,854,645)
|
(2,356,028)
|
(Decrease) increase in
cash and cash equivalents
|
(32,208,742)
|
116,988,817
|
Cash and cash
equivalents, beginning of year
|
126,054,833
|
9,066,016
|
Cash and cash
equivalents, end of year
|
93,846,091
|
126,054,833
|
Reconciliation from IFRS to Non-IFRS Measures
(unaudited)
(expressed in thousands of U.S. dollars)
|
Three months
ended
December
31,
|
Years
ended
December
31,
|
|
2022
$
|
2021
$
|
2022
$
|
2021
$
|
Net loss and
comprehensive loss
|
(3,666)
|
(9,401)
|
(36,422)
|
(26,375)
|
Stock-based
compensation
|
663
|
1,470
|
2,786
|
4,124
|
Depreciation and
amortization
|
328
|
180
|
1,196
|
611
|
Foreign exchange (gain)
loss
|
(1,006)
|
(878)
|
4,618
|
2,313
|
Finance
income
|
(703)
|
(94)
|
(1,428)
|
(245)
|
Restructuring costs
(1)
|
—
|
—
|
2,875
|
—
|
Transaction-related
costs (2)
|
—
|
—
|
—
|
115
|
Adjusted
EBITDA
|
(4,383)
|
(8,723)
|
(26,374)
|
(19,458)
|
(1)
|
Represents
restructuring costs in the first quarter of 2022, primarily
relating to employee compensation.
|
(2)
|
Represents costs
related to our IPO, and consists of professional, legal,
consulting, and accounting fees that are non-recurring, would
otherwise not have been incurred, and are not indicative of
continuing operations.
|
SOURCE Thinkific Labs Inc.