wishpond-reports-continued-revenue-and-adjusted-ebitda-growth-in-q3-2023

Wishpond Reports Continued Revenue and Adjusted EBITDA Growth in Q3-2023

 

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 Q3-2023, representing the three and nine months ended September 30, 2023. Copies of the Interim Financial Statements and MD&A are available on the Company’s profile on SEDAR at www.sedar.com.

Ali Tajskandar, Wishpond’s Founder and CEO commented, “The first nine months have been a period of transition in which we launched Propel IQ, the Company’s next generation marketing platform, and then re-trained and re-structured our sales team to sell this new bundled product offering. This has resulted in slower growth in 2023; however, we are now experiencing an acceleration of Propel IQ sales and have thus resumed the expansion of our sales team. Over the past two months we averaged over 3% month-over-month growth in MRR driven by increased sales of Propel IQ, which is also having an impact on increasing gross margins and lowering customer churn.

Ali Tajskandar further adds, “In the third quarter we continued our streak of achieving positive Adjusted EBITDA for the fifth quarter in a row. Wishpond’s cost optimization efforts over the past year have contributed to the Company’s continued positive Adjusted EBITDA profile. We maintain a positive outlook for the remainder of 2023 and look forward to next year with renewed optimism based on continued sales growth and improving cash flows. In addition, Wishpond is leading the innovation and development of AI powered marketing tools. We are garnering significant interest for our AI products including AI Website Builder, Braxy AI Ad Manager, Sales Email AI and the soon to be launched SalesCloser AI.”

Third Quarter 2023 Financial Highlights:

  • Wishpond achieved quarterly revenue of $5,763,847 during Q3-2023, compared to $5,483,256 generated in the same period of 2022 (Q3-2022). Revenue growth was primarily driven by organic growth resulting from stronger product demand, an increase in sales and marketing activities, and new product introductions.
  • Wishpond achieved Gross Profit of $3,825,821 in Q3-2023 (Q3-2022: $3,629,111), driven by an increase in overall revenue.
  • Wishpond achieved a Gross Margin percentage of 66% during Q3-2023 (Q3-2022: 66%).
  • During Q3-2023, Wishpond achieved positive Adjusted EBITDA(1) of $319,001 (Q3-2022: $593,047).
  • Wishpond generated positive cash flow from operations of $225,367 in Q3-2023 (Q3-2022: ($208,054))
  • As at September 30, 2023, Wishpond had $909,796 in cash and no debt (December 31, 2022: cash of $2,692,644 and no debt). The reduction in cash balances was caused in part by earnout payments for businesses acquired in 2022, investment in the business and changes in working capital.

Third Quarter 2023 Business Highlights:

  • On July 27, 2023, the Company announced the launch of a new partnership program introducing a transformative approach to collaboration for affiliates, marketing agencies, and other technology companies to collaborate closely with Wishpond’s marketing platform.
  • On August 11, 2023, the Company successfully renewed its credit facility with a major Canadian bank that was originally entered into on September 21, 2021. The renewed credit facility maintains the secured revolving operating line with a borrowing capacity of up to $6,000,000 based on recurring revenue, an interest rate equal to the Canadian Prime Rate plus 2.0% per annum and is secured against the Company’s assets.
  • On August 16, 2023, the Company announced the upcoming launch of SalesCloser AI, an AI-powered sales rep that can deliver personalized, round-the-clock sales calls and product demos without the need for human intervention. The AI-powered platform is poised to transform industries across the board, particularly benefiting virtual sales professionals, SaaS companies, consultants, and various B2B enterprises that rely on online sales interactions.
  • On September 5, 2023, the Company announced a partnership with Fiverr International Ltd. (“Fiverr”) to be part of its Fiverr Certified program and create a unique and certified freelance marketplace for the Propel IQ platform. The Fiverr Certified team will selectively scout skilled professionals and agencies, both internally and from Wishpond’s existing partner network. Fiverr will then onboard qualified professionals onto the co-branded marketplace, primed to provide exceptional services to Wishpond’s small and medium-sized business “SMB” customers. Wishpond plans to leverage this marketplace to better service its SMB customers and broaden its market presence in regions where the Company does not service users.
  • On September 26, 2023, the Company announced the launch of Sales Email AI. Engineered to deliver tailored responses to emails from potential clients, Wishpond anticipates that Sales Email AI will provide its users a level of personalization that sets it apart from traditional automated responses. Designed to elevate and streamline sales communications, Sales Email AI will be a new feature of PersistIQ, Wishpond’s outbound sales solution.

Business Highlights Subsequent to September 30, 2023:

  • On October 3, 2023, the Company announced the integration of Brax with Facebook, a strategic enhancement in the way that businesses manage their advertising campaigns on the world’s largest social media platform. This new integration paves the way for advertisers to harness the power of Brax’s advanced ad creation tools and robust rules engine, enhancing their return on investment while streamlining their ad management processes.

Outlook:

Wishpond expects to achieve record revenue and Adjusted EBITDA in 2023, driven by organic growth from increasing sales of the Company’s new Propel IQ bundled product, in addition to ramping up the size of its sales team and launching new AI-powered products. The Company continues to have an active pipeline of sales opportunities and robust demand for its products. Management is pleased to re-iterate the Company’s key goals for 2023:

  • Increase Monthly Recurring Revenue through both organic and inorganic means.
  • Scale the size of the sales team to help achieve the Company’s organic growth profile.
  • Remain Adjusted EBITDA positive by balancing growth with increased positive cash flow from operations.
  • Invest in Research and Development so that the Company can continue to launch new AI powered products and services to increase long-term value for its clients.
  • Leverage the Propel IQ platform to further accelerate the Company’s growth, improve margins, and increase customer retention and long-term customer value.

Wishpond has demonstrated a disciplined capital allocation strategy, having successfully completed and integrated six acquisitions since the Company’s public listing in December of 2020. Given management’s successful acquisition track record, the Company may choose to accelerate its growth in the form of future acquisitions. Management may also choose to reinvest cash flows generated by the Company to accelerate organic growth or in the form of share repurchases.

David Pais, Wishpond’s Chief Financial Officer commented, “Our cash balance at the end of Q3-2023 experienced a small decline compared to the prior quarter Q2-2023, partly due to a cash earn-out of approximately $100K in the quarter. I am pleased to report that the Company’s last cash earn-out payment will be in Q4-2023 and we expect our cash balance to improve in 2024. We feel confident in our ability to fund the Company’s future growth through cash flow from operations. We look forward to reporting higher revenue growth and profitability in 2024.

Webinar Conference Call Details:

As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q3-2023 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/Results_Q3_2023

Date: 

November 16, 2023

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 #:

851 3340 7536

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
ended

Three months

ended

Nine months
ended

Nine months
ended

September 30,
2023

September 30,
2022

September 30,
2023

September 30,
2022

$

$

$

$

Revenue

5,763,847

5,483,256

17,027,081

14,568,916

Gross profit

3,825,821

3,629,111

11,195,550

9,526,021

Gross margin

66 %

66 %

66 %

65 %

Adjusted EBITDA(1)

319,001

593,047

744,000

(39,668)

Cash – end of the period

909,796

2,257,127

909,796

2,257,127

Reconciliation to Adjusted EBITDA

Three months
ended

Three months
ended

Nine months
ended

Nine months
ended

September 30,
2023

September 30,
2022

September 30,
2023

September 30,

 2022

$

$

$

$

Income (loss) before
income taxes

329,154

(145,127)

(1,106,096)

(2,148,921)

Depreciation and
amortization

390,353

341,681

1,139,504

937,651

Interest income

(234)

(2,728)

(3,690)

Interest expense

8,990

8,990

Remeasurement of

contingent consideration
liability

(49,127)

(22,232)

(40,612)

Other expenses

111,764

178,127

376,009

453,889

Stock based

compensation expense

(521,260)

267,727

350,553

762,015

Adjusted EBITDA

319,001

593,047

744,000

(39,668)

Footnotes:

(1)

EBITDA and Adjusted EBITDA 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“.

On Behalf of the Board of Wishpond
Ali Tajskandar
Chairman and Chief Executive Officer

wishpond-announces-acquisition-of-essential-studio-manager-–-a-provider-of-business-management-solutions-for-small-businesses

Wishpond Announces Acquisition of Essential Studio Manager – a Provider of Business Management Solutions for Small Businesses

 

Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the “Company” or “Wishpond“), a provider of marketing-focused online business solutions, is pleased to announce that it has completed the acquisition (the “Acquisition“) of certain assets of Essential Studio Manager LLC (“ESM”). Based out of Wilmington, Delaware, ESM is a provider of business management software, including invoicing and customer relationship management (“CRM“) solutions for small businesses in the services industry. With this Acquisition, Wishpond has added another piece to its goal of offering a complete end-to-end customer lifecycle solution to small businesses which streamlines and automates their sales, marketing, and business management processes.

Ali Tajskandar, Chairman and CEO of Wishpond, commented on the acquisition, “We are extremely happy to announce our first acquisition of the year and the sixth acquisition since going public in December of 2020. We’ve begun to look at new tuck-in acquisition opportunities once again, and we are really excited about adding ESM as it furthers our mission to help small businesses grow and succeed. ESM has built a comprehensive suite of complementary business productivity solutions which we believe our customers will derive tremendous value from as part of Wishpond’s product offering. We expect this acquisition will provide significant benefits to small businesses, allowing them to streamline and automate their marketing and business processes, save time and money, and focus on growing their business.”

Founded in 2013, ESM has more than 150 customers, primarily comprised of small services-oriented businesses from various industries. ESM helps these small businesses manage their financial and CRM-related processes such as invoicing, expense management, booking appointments, automated customer communication, contract digital signing, embedded forms, notifications, and more. These functions consume a significant amount of time and attention from entrepreneurs who have a limited time and budget. Instead, for the low cost of a monthly subscription, ESM allows small business owners to spend their time on growing their business.

Wishpond will retain ESM’s brand, website, and client relationships while providing operational support and offering cross-selling opportunities. ESM is expected to be integrated with Wishpond’s next-generation Propel IQ platform this year. Wishpond customers using Propel IQ’s sales and marketing platform will then be able to provide contract signing, invoicing and access other CRM functionality from one single platform.

Jordan Gutierrez, Chief Operating Officer of Wishpond, added “ESM is a natural fit for Wishpond’s customers as it complements our existing sales and marketing software and solutions. This acquisition expands our product offering and allows Wishpond to serve a broader range of small business customers. Furthermore, this acquisition will create cross-selling opportunities for Wishpond as we can offer ESM’s software to Wishpond’s existing base of over 4,000 customers, increasing the value of our customer relationships. We expect this acquisition will result in higher customer retention and an increase in long-term customer value for Wishpond. We believe ESM allows Wishpond to provide the most complete solution on the market for small business to manage their sales, marketing, invoicing, and customer relationship efforts.”

wishpond-appoints-new-chief-financial-officer

Wishpond Appoints New Chief Financial Officer

 

Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the “Company” or “Wishpond“), a provider of marketing focused online business solutions, is pleased to announce the appointment of David Pais as Chief Financial Officer (CFO), effective immediately. Reporting directly to Ali Tajskandar, Chairman and CEO of Wishpond, Mr. Pais will have responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions. He will assume the Chief Financial Officer role from Juan Leal, who will continue to support the Company in an M&A related advisory role.

Mr. Pais is an experienced, growth-oriented CFO, having worked at several technology companies in Vancouver over the last twenty years, including PHEMI Systems, Fortress Blockchain (TSXV: FORT), Nuri Technologies, Apivio Systems (TSXV: APV), UTStarcom, and Star Solutions.  He was intimately involved in equity and debt financings as well as the execution of numerous corporate finance transactions in each of these companies, including spin-offs, acquisitions, and divestitures and executing a reverse take-over transaction. Mr. Pais has extensive public market experience from his time as CFO of both Fortress Blockchain and Apivio Systems. Most recently, Mr. Pais was the CFO of PHEMI Systems, a venture capital backed company with a big data platform for health data that enables analytics and artificial intelligence.  In addition, Mr. Pais has broad exposure to the technology industry including software and hardware products, telecom infrastructure, VoIP, cybersecurity, and cryptocurrency mining.

Previously, Mr. Pais also worked at Ernst & Young LLP’s corporate finance group, advising clients with merger and acquisition, financing, valuation, and due diligence., and Mr. Pais has experience working at a private equity firm in Los Angeles.  He holds a Master of Business Administration degree in Finance and a Master’s Degree in Accountancy from the University of Missouri and has passed the CPA examination in the US.

“We are thrilled to welcome David to Wishpond’s executive team. His deep financial experience in the technology sector will be a valuable asset to the company as we enter Wishpond’s next stage of growth,” said Ali Tajskandar, Chairman and CEO of Wishpond. “I also want to thank Juan Leal, who served as our CFO since January 2020 and was instrumental in our public listing process and in executing the four acquisitions completed to date. I am pleased that Juan is able to continue to assist us with our strategic acquisitions and corporate development activities.”

Mr. Pais commented, “I am very excited to be joining Wishpond and leading the strong financial team that Juan has built. I was drawn to Wishpond because of the exceptional team and opportunity to be a part of a rapidly growing technology company. I look forward to working with the Wishpond team as it achieves its milestones in the years ahead.”