Renoworks Announces Profitable Second Quarter 2023 Financial Results
CALGARY, ALBERTA, August 24, 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 second quarter ended June 30, 2023 (“Q2 2023”). 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 in Canadian dollars.
Financial highlights for the second quarter of fiscal 2023:
- Quarterly revenue of $1,719,087, down 3% from the prior year’s $1,770,960.
- Deferred Revenue of $1,375,094 for the quarter ended June 30, 2023, versus $1,413,786 for the year ended December 31, 2022.
- Recurring revenue of $557,491 versus $458,822 for the same period in 2022, a 12% increase.
- Gross margin of 71% versus 67% in the second quarter of 2022.
- Net income of $30,442 compared to a net loss of $57,529 in the second quarter of 2022.
- At June 30, 2023, the Company had 40,664,635 common shares issued and outstanding.
Renoworks revenue in the second quarter totaled $1,719,087. While this figure represents a decrease of $51,873 compared to the corresponding period in 2022, the Company remains focused on sustained growth and reported positive net income of $30,442 compared to a loss of $57,529 for the same period in 2022.
The Company’s strategic focus on enriching its offerings with AI-driven solutions reflects its enduring commitment to enhancing its customer experience. The Company continues to make steady progress in expanding the adoption of its Renoworks Pro contractor solutions through direct sales and more importantly a network of strategic partners. In the quarter further advancements were made in broadening market reach and establishing strong collaborations that can impact the industry.
Doug Vickerson, CEO of Renoworks, commented on the Company’s second-quarter performance, stating: “Our continued focus on enhancing our platform with AI technologies and fostering strong strategic partnerships for technological innovation, value delivery and Renoworks Pro adoption is yielding promising outcomes. As the industry evolves, Renoworks remains committed to delivering cutting-edge solutions that empower our customers and drive their success while building upon our wins in 2023. While revenue declined slightly year over year, our focus on maintaining strong gross margins was a factor that led to positive net income this quarter.”
Renoworks’ Adjusted EBITDA for the three-months ended June 30, 2023, was $53,895, indicating a noteworthy increase of $43,713 compared to Adjusted EBITDA of $10,182 for the corresponding period in 2022. This positive trajectory underscores the Company’s ongoing efforts to optimize platform and operational efficiency and performance.
Financial results from operations year to date with comparatives for 2022 are as follows:
"Our continued focus on enhancing our platform with AI technologies and fostering strong strategic partnerships for technological innovation, value delivery and Renoworks Pro adoption is yielding promising outcomes."
| Six Months Ended June 30 | ||
|---|---|---|
| 2023 | 2022 | |
| Revenue | $3,073,263 | $3,086,877 |
| Gross Profit | $2,220,762 | $2,003,246 |
| Expenses | $2,532,376 | $2,412,596 |
| Net Loss | $352,874 | $390,075 |
| Loss per share | $0.01 | $0.01 |
| Adjusted EBITDA | ($306,924) | ($253,205) |
| Weighted Average Shares Outstanding | 40,663,599 | 39,009,164 |
| Cash Decrease from Operations | $302,490 | $778,083 |
Financial results from operations for the second quarter 2023 with comparatives for 2022 are as follows:
| Three Months Ended June 30 | ||
|---|---|---|
| 2023 | 2022 | |
| Revenue | $1,719,087 | $1,770,960 |
| Gross Profit | $1,226,840 | $1,180,201 |
| Expenses | $1,162,116 | $1,267,183 |
| Net Income (Loss) | $30,442 | ($57,529) |
| Income (Loss) per share | $0.00 | ($0.00) |
| Adjusted EBITDA | $53,895 | $10,182 |
| Weighted Average Shares Outstanding | 40,664,635 | 40,265,318 |
The Company’s financial position as of June 30, 2023 and December 31, 2022 is as follows:
| June 30, 2023 | December 31, 2022 | |
|---|---|---|
| Cash Balance | $398,089 | $704,080 |
| Accounts Receivable | $719,428 | $734,706 |
| Working Capital | ($112,113) | $207,163 |
| Deferred Revenue | $1,375,094 | $1,413,786 |
| Long-term Liabilities | $179,707 | $161,875 |
| Shareholder's Equity (Deficiency) | ($84,059) | $232,715 |
| Deficit | ($10,087,890) | ($9,735,016) |
| Total Assets | $1,521,266 | $1,788,806 |
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.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.