Launch of new Renoworks Pro contractor
solution and manufacturer adoption of enterprise platform drives
increase in recurring and top-line revenue
CALGARY,
AB, Nov. 24, 2022 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company"), the leading end-to-end visualization platform
for the home remodeling and new home construction industry,
announced financial results for the third quarter ended
September 30, 2022. The financial
statements and related management's discussion and analysis
("MD&A") can be viewed on SEDAR at www.sedar.com. Unless
otherwise stated, all dollar amounts are Canadian dollars.
Financial highlights for the third quarter 2022, ending
September 30, 2022:
- Total revenue grew 19% to $1,653,445 versus $1,394,987 in the same period in 2021;
- Recurring revenue of $476,915
versus $454,329 for the same period
in 2021, a 5% increase;
- Design Services revenue of $830,812 compared to $709,092 in Q2 2021, a 17% increase;
- Gross margins of 63% versus 62% in the third quarter 2021;
- Net loss of $225,110 compared to
a net loss of $157,434 in the year
ago quarter;
- Cash of $1,000,437 versus
$1,189,346 as December 31, 2021;
- As at September 30, 2022, the
Company had 40,662,635 common shares issued and outstanding.
"In Q3, Renoworks began selling annual subscriptions to our new
Renoworks Pro platform for contractors, which helps contractors
grow their businesses with lead generation, A.I.-assisted design,
analytics, and other features that have resonated with our
enterprise manufacturer customers in recent years." said
Doug Vickerson, CEO of Renoworks.
"The adoption of the New Renoworks Pro Saas product by contractors,
along with the continuing adoption of our new platform and features
among manufacturers, is driving an increase in top line and
recurring revenue in Q3 and we expect this trend to continue as we
take these solutions to market in the construction season of
2023."
Financial results from operations for the third quarter 2022
with comparatives for 2021 are as follows:
|
Three Months Ended
September 30
|
2022
|
2021
|
Revenue
|
$1,653,445
|
$1,394,987
|
Gross Margin
|
$1,044,394
|
$860,966
|
Expenses
|
$1,295,281
|
$1,051,980
|
Loss
|
$225,110
|
$157,434
|
Loss per
share
|
$0.01
|
$0.00
|
Adjusted
EBITDA
|
($160,613)
|
($111,207)
|
Weighted Average
Shares
Outstanding
|
40,662,635
|
38,515,822
|
Financial results from operations year-to-date 2022 with
comparatives for 2021 are as follows:
|
Nine Months Ended
September 30
|
2022
|
2021
|
Revenue
|
$4,740,321
|
$4,294,423
|
Gross Margin
|
$3,047,639
|
$2,702,711
|
Expenses
|
$3,707,876
|
$2,892,418
|
Loss
|
$615,185
|
$248,334
|
Loss per
share
|
$0.02
|
$0.00
|
Adjusted
EBITDA
|
($413,562)
|
($104,630)
|
Weighted Average
Shares
Outstanding
|
39,744,955
|
37,221,489
|
The Company's financial position as of September 30, 2022 and December 31, 2021 is as follows:
|
September 30,
2022
|
December 31,
2021
|
Cash Balance
|
$1,000,437
|
$1,189,346
|
Accounts
Receivable
|
$1,067,194
|
$596,182
|
Working
Capital
|
$870,099
|
$470,642
|
Deferred
Revenue
|
$1,420,945
|
$1,389,547
|
Long- term
liabilities
|
$179,891
|
$212,053
|
Shareholder's
Equity
|
$891,161
|
$571,776
|
Deficit
|
($9,029,415)
|
($8,414,230)
|
Total Assets
|
$2,452,737
|
$2,214,085
|
About Renoworks
Renoworks Software Inc. develops and sells unique digital
visualization software and integration solutions for the remodeling
and new home construction industry. Renoworks delivers its
technology to manufacturers, contractors, builders, and retailers
offering solutions to one of the home improvement industry's
greatest challenges: enabling homeowners to review their product
selections in a hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform and generates revenues from five main business lines:
Renoworks Enterprise, Renoworks PRO, Renoworks Design Services,
Renoworks FastTrack, and Renoworks API (Application Programming
Interface). For more information, visit www.renoworks.com and
www.renoworkspro.com.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS.
However, management of Renoworks believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. Adjusted EBITDA is defined as earnings before interest
income, taxes, depreciation and amortization, stock based
compensation, restructuring costs, impairment charges and other
non-recurring gains or losses. Management believes Adjusted EBITDA
is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized meanings
prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Readers are cautioned that
Adjusted EBITDA is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as
indicators of performance, cash flow or profitability. References
to the Renoworks' Adjusted EBITDA should be read in conjunction
with the financial statements and management's discussion and
analysis of Renoworks posted on SEDAR (www.sedar.com).
Forward Looking
Information
Certain statements in this news release, other than
statements of historical fact, are forward looking information that
involves various risks and uncertainties. Such statements relating
to, among other things, the prospects for the company to enhance
operating results, are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from
information contained herein. There can be no assurance that such
statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral forward
looking statements are based on the estimates and opinions of the
management on the dates they are made and expressly qualified in
their entirety by this notice. The Company assumes no obligation to
update forward-looking statements should circumstances or
management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.