Record $1.48 million in total quarterly revenue, $452,940 of which is recurring
CALGARY, ALBERTA, August 25, 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, is pleased to announce that its financial results for the second quarter ended June 30, 2021, had record quarterly revenues of $1.48 million. 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 second quarter 2021, ending June 30, 2021:
- Total revenue of $1,478,095 versus $1,334,140 in the year-ago quarter, an 11% increase;
- Recurring revenue of $452,940 versus $423,156 in the year-ago quarter, a 7% increase;
- Design Services revenue of $770,742 versus $696,692 in the year-ago quarter, an 11% increase;
- Gross margins of 62% versus 69% in Q2 2020, a decrease of 700bps;
- Net loss of $47,976 compared to a net income of $236,790 in the year-ago quarter;
- Cash of $1,598,610 versus $523,555 as December 31, 2021 and $846,236 of working capital;
- As at June 30, 2021, the Company had 38,419,302 common shares issued and outstanding.
"...Our pipeline remains robust; our clients see increased traffic and more conversions of high-quality leads, and we anticipate this trajectory to continue through the rest of the year."
“Continued investment in the Renoworks platform has resulted in more clients adopting our visualization technology that removes home repair and remodeling frictions,” said Doug Vickerson, CEO of Renoworks. “This resulted in record quarterly revenues, driven primarily by a strong construction and repair and remodel season that began at the beginning of 2021 and has continued through June 2021.”
“Construction product brands continue to capitalize on these trends, evolving their design-focused approach by putting Renoworks’ visualization technology at its core. As a result, Renoworks has focused on bringing new innovative solutions to its platform, strengthening relationships with clients, and improving its technology to better help our clients’ businesses. Our pipeline remains robust; our clients see increased traffic and more conversions of high-quality leads, and we anticipate this trajectory to continue through the rest of the year.”
Financial results from operations for the second quarter 2021 with comparatives for 2020 are as follows:
| Three Months Ended March 31 | ||
|---|---|---|
| 2021 | 2020 | |
| Revenue | $1,478,095 | $1,334,140 |
| Gross Profit | $914,331 | $925,383 |
| Expenses | $913,311 | $661,360 |
| Income (Loss) | ($47,976) | $236,790 |
| Income (Loss) per share | ($0.00) | $0.01 |
| Adjusted EBITDA | $581 | $299,244 |
| Weighted Average Shares Outstanding | 37,108,810 | 36,610,507 |
Financial results from operations year-to-date 2021 with comparatives for 2020 are as follows:
| Six Months Ended June 30 | ||
|---|---|---|
| 2021 | 2020 | |
| Revenue | $2,899,436 | $2,451,994 |
| Gross Margin | $1,841,744 | $1,698,987 |
| Expenses | $1,840,438 | $1,524,088 |
| Income (Loss) | ($90,901) | $166,123 |
| Income (Loss) per share | ($0.00) | $0.00 |
| Adjusted EBITDA | $6,575 | $291,829 |
| Weighted Average Shares Outstanding | 36,735,209 | 36,610,507 |
The Company’s financial position as of June 30, 2021 and December 31, 2020 is as follows:
| June 30, 2021 | December 31, 2020 | |
|---|---|---|
| Cash Balance | $1,598,610 | $523,555 |
| Accounts Receivable | $658,810 | $617,161 |
| Working Capital | $846,236 | $276,098 |
| Deferred Revenue | $1,511,643 | $970,835 |
| Long-term Liabilities | $245,892 | $344,434 |
| Shareholder's Equity (Deficiency) | $832,373 | $203,577 |
| Deficit | ($7,896,171) | ($7,805,270) |
| Total Assets | $2,611,744 | $1,534,171 |
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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