Renoworks Announces First Quarter 2023 Financial Results and Provides Outlook
CALGARY, ALBERTA, May 29, 2023 – Renoworks Software Inc. (TSXV: RW) (“Renoworks” or the “Company), an industry leader in visualization and lead generation technology for the home renovation and new construction sector, announces its financial results for the first quarter of fiscal 2023 ended March 31, 2023 (“Q1 2023”). 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 first quarter of 2023:
- Revenues of $1,354,175, up 3% over the prior year’s $1,315,917.
- Deferred Revenue of $1,594,697 for the quarter ended March 31, 2023 versus $1,413,786 for the year ended December 31, 2022.
- Recurring revenue of $515,333 versus $460,784 for the same period in 2022, a 12% increase;
- Gross margin of 73% versus 63% in the first quarter of 2022.
- Net loss of $384,653 compared to a net loss of $332,546 in the first quarter of 2022.
- At March 31, 2023, the Company had 40,664,635 common shares issued and outstanding.
Renoworks experienced a 3% increase in revenue in Q1 2023 compared to the same period in 2022. Growth was primarily driven by a 44% increase in libraries revenue and a 12% increase in hosting and licensing revenues.
“We see significant opportunities to transform the industry with our innovative solutions, which includes our extensive product library catalogue,” explained Doug Vickerson, CEO of Renoworks. “This database of product information is the largest collection of building product information and enables Renoworks and its partners, like our recent partnership with CostCertified, to capture immense customer design intent data to inform business decisions and create user experiences.”
The Company recognizes the importance of technological advancements and aims to accelerate customer acceptance and adoption of its digital visualization products through ongoing investment in R&D, AI, contractor solutions, data science, and platform functionality.
Mr. Vickerson emphasized the growth opportunities that its contractor solutions, Renoworks Pro, brings to the Company. He stated, “Renoworks Pro is a powerful tool that enables contractors and remodelers to enhance their sales process and generate higher project revenue. This quarter, we secured additional strategic sales and marketing partnerships with industry leaders such as Angi Leads, marketing agencies, channel partners, and technology integrations, to build upon our initial positive results last quarter and further the growth of our contractor solution for 2023.”
Financial results from operations for the first quarter 2023 with comparatives for 2022 are as follows:
"This quarter, we secured additional strategic sales and marketing partnerships with industry leaders such as Angi Leads, marketing agencies, channel partners, and technology integrations, to build upon our initial positive results last quarter and further the growth of our contractor solution for 2023."
| Three Months Ended March 31 | ||
|---|---|---|
| 2023 | 2022 | |
| Revenue | $1,354,175 | $1,315,917 |
| Gross Profit | $993,922 | $823,044 |
| Expenses | $1,370,260 | $1,145,410 |
| Net Loss | $384,653 | $332,546 |
| Loss per share | $0.01 | $0.01 |
| Adjusted EBITDA | ($362,156) | ($263,387) |
| Weighted Average Shares Outstanding | 40,663,101 | 38,976,288 |
The Company’s financial position as of March 31, 2023 with comparatives from December 31, 2022 is as follows:
| March 31, 2023 | December 31, 2022 | |
|---|---|---|
| Cash Balance | $344,392 | $704,080 |
| Accounts Receivable | $824,641 | $734,706 |
| Working Capital | ($117,781) | $207,163 |
| Deferred Revenue | $1,594,697 | $1,413,786 |
| Long-term Liabilities | $215,648 | $161,875 |
| Shareholder's Equity (Deficiency) | ($133,588) | $232,715 |
| Deficit | ($10,119,669) | ($9,735,016) |
| Total Assets | $1,601,734 | $1,788,806 |
Within the MD & A reference is made to “working capital”, which is a non-IFRS measure. Working capital is traditionally defined as current assets less current liabilities. Included in the working capital calculation is significant non-cash deferred revenue, which when removed from the traditional working capital calculation, management believes is a better indicator of the Company’s liquidity and its ability to meet current obligations. Excluding deferred revenue, a significant non-cash item included in working capital, the Company’s working capital at March 31, 2023 is positive $1,261,268 ($1,459,074 – Dec 31, 2022).
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
Sean Peasgood, IR
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, 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.