Record $1.42 million in quarterly revenue, $451,000 of which is recurring
CALGARY, ALBERTA, May 13, 2021 – Renoworks Software Inc. (TSXV: RW) (“Renoworks” or the “Company), the leading end-to-end visualization platform for the home remodeling and new home construction industry, announced financial results for the first quarter ended March 31, 2021. 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 2021, ending March 31, 2021:
- Total revenue of $1,421,342 versus $1,117,854 in the year-ago quarter, a 27% increase;
- Recurring revenue of $451,270 versus $396,463 for the same period in 2020, a 14% increase;
- Design Services revenue of $746,734 compared to $478,403 in Q1 2020, a 56% increase;
- Gross margins of 65% versus 69% in the first quarter 2020;
- Net loss of $42,873 compared to a net loss of $70,667 in the year ago quarter, a 39% improvement;
- Cash of $573,774 versus $523,555 as December 31, 2021;
- As at March 31, 2021, the Company had 36,614,665 common shares issued and outstanding.
"...digital transformation solutions such as those provided by Renoworks [...] capitalize on the rapid growth of consumer home renovation spending, a trend that does not seem to be abating in the United States as the economy reopens."
“Our record results reflect the resiliency of the home renovation industry during the pandemic,” said Doug Vickerson, CEO of Renoworks. “The home renovation boom has presented tremendous opportunity for construction product brands to embrace digital design solutions that deliver interactive engagement for their audiences.”
“Renoworks has consistently demonstrated that our solutions are a natural fit for construction product brands in this capacity and more. The pandemic has caused many to embrace digital transformation solutions such as those provided by Renoworks in order to capitalize on the rapid growth of consumer home renovation spending, a trend that does not seem to be abating in the United States as the economy reopens. As the Company continues to innovate its visualizer platform and design-focused offerings, expand across multiple categories, and position itself as an essential player in the design experience of the value chain, Renoworks is meeting the growing demand head-on to further establish its presence in the industry.”
Mr. Vickerson added, “Investments in innovation and our talent pool remains a key strategy for continued revenue growth and scalability of our platform. It is one of the many reasons why I am proud of our progress as an organization and look forward to the rest of 2021 with a great deal of optimism for the Company and the industry.”
Financial results from operations for the first quarter 2021 with comparatives for 2020 are as follows:
| Three Months Ended March 31 | ||
|---|---|---|
| 2021 | 2020 | |
| Revenue | $1,421,342 | $1,117,854 |
| Gross Margin | $926,414 | $773,704 |
| Expenses | $926,126 | $862,726 |
| Loss | $42,873 | $70,667 |
| Loss per share | $0.00 | $0.00 |
| Adjusted EBITDA | $6,111 | ($7,415) |
| Weighted Average Shares Outstanding | 36,610,974 | 36,610,507 |
The Company’s financial position as of March 31, 2021 and December 31, 2020 is as follows:
| March 31, 2021 | December 31, 2020 | |
|---|---|---|
| Cash Balance | $573,774 | $523,555 |
| Accounts Receivable | $769,787 | $617,161 |
| Working Capital | $226,380 | $276,098 |
| Deferred Revenue | $1,148,702 | $970,835 |
| Long-term Liabilities | $302,582 | $344,434 |
| Shareholder's Equity (Deficiency) | $177,957 | $203,577 |
| Deficit | ($7,848,143) | ($7,805,270) |
| Total Assets | $1,726,778 | $1,534,171 |
The COVID-19 pandemic continues to cast significant future uncertainty. The continued spread of COVID-19 in North America and globally could have an adverse impact on the company’s operations and financial results. The Company’s results have been positively impacted by the pandemic due to the increase in home renovation activity. However, continued quarantines, labor shortages or other disruptions for extended periods of time, or at the end of those measures, may adversely affect the Company’s revenues, ability to provide services, operating results or the ability to raise funds through debt or equity. The extent to which the pandemic could impact the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, and will include new information which may emerge concerning the severity of the pandemic and actions taken to contain the coronavirus or its impact, among other unpredictable events.
Regarding COVID-19, management developed detailed mitigation plans commencing March 17, 2020, and meets with the Board of Directors weekly to review the Company status. Employee safety and health were paramount. Every employee has worked remotely since March 15, 2020 and every employee reports vigilance in practicing safe and healthy habits at home. Further, there have been no known negative impacts to deadlines or productivity with regards to customer service, software development, or employee morale.
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
FOR INVESTOR RELATIONS FOR RENOWORKS, PLEASE CONTACT:
Sean Peasgood, Investor Relations
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 STATEMENT
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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