Renoworks Announces First Quarter 2022 Financial Results
CALGARY, ALBERTA, May 31, 2022 – Renoworks Software Inc. (TSXV: RW) (“Renoworks” or the “Company”), the leading end-to-end visualization platform for the building construction industry, announces financial results for the three months ended March 31, 2022 (“Q1 2022”). The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com. Unless stated otherwise, all dollar amounts are expressed as Canadian dollars. Q1 2022 Financial Highlights:
- Revenue of $1,315,917 in Q1 2022 compared to $1,421,342 for the three months ending March 31, 2021 (“Q1 2021″)
- Deferred Revenue of $1,371,801 for Q1 2022 versus $1,389,547 at December 31, 2021.
- Gross margins remain strong at 63% in Q1 2022 versus 65% in Q1 2021.
- Net loss of $332,546 for Q1 2022 compared to a net loss of $42,873 in Q1 2021.
- As at March 31, 2022, the Company had 39,052,635 common shares issued and outstanding. As at May 26, 2022 there are 40,662,635 common shares issued and outstanding after share issuances in connection with Renoworks’ recently-closed $805,000 private placement.
- Cash balance of $781,265 at the end of the quarter and $113,654 debt. Subsequent to quarter end, the Company raised $805,000 leaving the Company well capitalized to execute on its 2022 growth plans.
“Although our revenue declined year-over-year in the first quarter, I want to emphasize that we are confident that our current sales and marketing efforts will return the Company revenue growth in the second quarter of 2022,” said Renoworks CEO Doug Vickerson. “In Q1 we were focused on launching our new AI-based lead generation platform. Now that our AI platform is generally available, we are focused on monetization by closing sales relationships. We are seeing demand from the repair market associated with harsher weather in some regions, and believe that our new innovative products can drive revenue growth.”
“Although our revenue declined year-over-year in the first quarter, I want to emphasize that we are confident that our current sales and marketing efforts will return the Company revenue growth in the second quarter of 2022,”
Financial results from operations for the first quarter 2022 versus 2021 are as follows:
|
Three Months March 31 |
||
|
2022 |
2021 |
|
|
Revenue |
$1,315,917 |
$1,421,342 |
|
Gross Margin |
$823,044 |
$926,414 |
|
Expenses |
$1,145,410 |
$926,126 |
|
Net Loss |
$332,546 |
$42,873 |
|
Loss per share |
($0.01) |
($0.00) |
|
Adjusted EBITDA |
($263,387) |
$6,104 |
|
Weighted Average Shares Outstanding |
38,976,288 |
36,610,974 |
The Company’s financial position as of March 31, 2022 versus 2021 is as follows:
|
March 31, 2022 |
December 31, 2021 |
|
|
Cash Balance |
$781,265 |
$1,189,346 |
|
Accounts Receivable |
$582,873 |
$596,182 |
|
Working Capital |
$258,040 |
$470,642 |
|
Deferred Revenue |
$1,371,801 |
$1,389,547 |
|
Long- term liabilities |
$196,798 |
$212,053 |
|
Shareholder’s Equity |
$301,834 |
$571,776 |
|
Deficit |
($8,746,776) |
($8,414,230) |
|
Total Assets |
$1,787,289 |
$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.
For further information on Renoworks, please contact:
Doug Vickerson, CEO
Phone: 403-296-3880
E-mail: doug.vickerson@renoworks.com
Renoworks Software Inc.
2721 Hopewell Place NE
Calgary, Alberta, Canada T1Y 7J7
Investor Relations
Sean Peasgood
Phone: 647-670-2366
E-mail: Sean@SophicCapital.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, realize a revenue or other return on technology and platform development, capitalize on actual or perceived opportunities in the marketplace, or adequately cope with the impact of COVID-19, 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.
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