Renoworks Announces First Quarter 2024 Financial Results
CALGARY, ALBERTA, May 29, 2024 – 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 ended March 31, 2024. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.
Financial highlights for the first quarter of fiscal 2024 with comparatives for 2023 are as follows:
- Quarterly revenue of $1,479,390 for the three months ended March 31, 2024 versus $1,354,175 in 2023.
- Recurring revenue of $616,638 versus $515,333 for the same period in 2023, a 20% increase.
- Gross margins continue to be strong at 75% and 73%, respectively for the first quarters of 2024 and 2023.
- Net loss of $125,753 for the quarter ended March 31, 2024 compared to a net loss of $384,653 in 2023.
- Deferred Revenue of $2,057,303 March 31, 2024 compared to $1,633,394 at December 31, 2023.
- Cash at March 31, 2024 was $814,964, up $169,415 from $645,549 at the end of fiscal 2023.
- The Company’s working capital at March 31, 2024 was a negative $316,682 compared to a negative working capital of $228,357 at December 31, 2023 a decrease of $88,325 primarily due to an increase in deferred revenue balances of $423,909. Excluding deferred revenue, a significant non-cash item included in working capital, the Company’s working capital at March 31, 2024 is positive $1,523,220 ($1,264,069 – Dec 31, 2023).
- As at March 31, 2024, the Company had 40,664,635 common shares issued and outstanding.
"We continue to play a critical role in the homeowner experience and our data insights are positioned to add innovation to the industry."
The Company reported a 9% increase in revenue for the first quarter of 2024 compared to the same period in 2023, reaching $1,479,390. This growth was primarily driven by a 20% rise in licensing, hosting, and recurring revenues, due to the onboarding of new manufacturers and existing clients adopting new product lines, including data science and AI solutions. Steady growth of the Company’s contractor solution Renoworks Pro also contributed.
The net loss for the first quarter was reduced to $125,753 from $384,653 compared to the same period in 2023, attributed to increased revenues and decreased personnel costs and professional fees.
Additionally, the Company saw an improvement in gross margin percentage, mainly due to higher margins from hosting and licensing revenues and investments in efficient project delivery.
“Renoworks continues its strategy of advancing its platform with its AI Gen 2.0, Renoworks Pro software-as-a-service offering, and partner integrations while maintaining vigilance over its operational efficiency practices,” commented Doug Vickerson, CEO of Renoworks.
“We continue to focus on growth by offering enhanced solutions to our existing customers and new growth from Renoworks Pro. Our close partnerships and integrations with other tech solutions such as those with EagleView and Ingage, are laying the groundwork for exposure of visualization service, increased adoption and new revenue channels. We continue to play a critical role in the homeowner experience and our data insights are positioned to add innovation to the industry.”
The Company’s Adjusted EBITDA for the three-months ended March 31, 2024 was a negative $107,237, an improvement of $254,919 compared to a negative Adjusted EBITDA of $362,156 for the three-months ended in 2023, primarily attributable to decreased net income loss.
Based on these results, the Company will continue its strategic plan to invest in AI, data science, and overall platform functionality, along with driving revenue growth through existing customers and the contractor channel with the Renoworks Pro offering.
Financial results from operations for the first quarter 2024 with comparatives for 2023 are as follows:
| Three Months Ended March 31 | ||
|---|---|---|
| 2024 | 2023 | |
| Revenue | $1,479,390 | $1,354,175 |
| Gross Profit | $1,108,017 | $993,922 |
| Expenses | $1,295,711 | $1,370,260 |
| Net Loss | $125,753 | $384,653 |
| Income (Loss) per share | ($0.00) | ($0.01) |
| Adjusted EBITDA | ($107,237) | ($362,156) |
| Weighted Average Shares Outstanding | 40,664,635 | 40,663,101 |
The Company’s financial position as of March 31, 2024 and December 31, 2023 is as follows:
| March 31, 2024 | December 31, 2023 | |
|---|---|---|
| Cash Balance | $814,964 | $645,549 |
| Accounts Receivable | $597,655 | $666,193 |
| Working Capital | ($316,682) | ($228,357) |
| Deferred Revenue | $2,057,303 | $1,633,394 |
| Long-term Liabilities | $217,401 | $140,968 |
| Shareholder's Deficiency | $307,763 | $195,912 |
| Deficit | ($10,358,540) | ($10,232,787) |
| Total Assets | $1,861,994 | $1,672,766 |
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
*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.sedarplus.ca).
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.