- Full year 2020 AssetCare™️ revenues were C$20.5 million compared to C$8.9 million in full year 2019, up 130%
year-over-year
- Full year 2020 revenues were C$26.9
million compared to full year 2019 revenues of C$18.3 million, up 47% year-over-year with 2020
gross margins of 62% compared to 2019 gross margins of
59%.
- Total connected assets were 59,462 at year-end 2020 compared
to 41,088 at year-end 2019, up 45% year-over-year
CALGARY, AB, March 23, 2021 /CNW/ - mCloud Technologies
Corp. (TSXV: MCLD) (OTCQB: MCLDF) ("mCloud" or the
"Company"), a leading provider of asset management solutions
combining IoT, cloud computing, artificial intelligence ("AI") and
analytics, today announced its financial results for the fourth
quarter and full year ended December 31,
2020 ("Q4 2020" and "FY 2020").
"Our fourth quarter results illustrate the solid growth
trajectory and gross margins we are creating via recurring
AssetCare subscriptions and our international growth," said
Russ McMeekin, mCloud President and
CEO. "We continue to add new AssetCare customers and have been
tremendously successful in cross-selling and up-selling AssetCare
to our existing customer base, which has seen us nearly triple our
net dollar retention through AssetCare solutions on a full-year
basis."
Full Year 2020 and Q4 2020 Revenue Highlights
All figures in millions of Canadian dollars
|
|
|
|
Three months
ended
December 31, 2020
|
Year ended
December 31, 2020
|
|
2020
|
2019
|
2020
|
2019
|
AssetCare
Initialization
|
$
|
2.672
|
$
|
4.354
|
$
|
7.689
|
$
|
5.965
|
AssetCare Over
Time
|
5.546
|
1.276
|
12.809
|
2.940
|
Engineering
Services
|
1.005
|
4.379
|
6.430
|
9.436
|
Total
|
9.223
|
10.009
|
26.928
|
18.340
|
mCloud achieved FY 2020 revenues of C$26.9 million compared to full year 2019
revenues of C$18.3 million
representing a 47% year-over-year increase. In FY 2020, the gross
margin on total revenues were 62% compared to 59% in full year
2019.
On a full year basis, AssetCare revenues were up 130% at
C$20.5 million compared to
C$8.9 million in full year 2019.
AssetCare revenues were key to improving the Company's gross margin
profile for the year. Total recurring AssetCare Over Time revenues
were C$12.8 million in FY 2020
compared to C$2.9 million in full
year 2019, a 335% increase year-over-year.
On a total connected asset basis, the Company reached 59,462
assets in FY 2020, compared to 41,088 in full year 2019, a 45%
increase year-over-year.
On a quarterly basis, the Company saw Q4 2020 revenues of
C$9.2 million compared to third
quarter ended September 30, 2020 ("Q3
2020") revenues of C$6.1 million, up
51% quarter-over-quarter. Q4 2020 revenues attributed to AssetCare
were C$8.2 million, compared to
C$5.6 million revenues in Q3 2020, an
increase of 46% quarter-over-quarter.
4,692 connected assets were added in Q4 2020, a 9% increase
quarter-over-quarter.
2020 in Review
Over the course of 2020, mCloud focused on the evolution of
AssetCare into a complete, end-to-end suite of asset performance
management solutions in the key market areas of connected
buildings, wind for renewable energy production, and process
industries including oil and gas. On January
27, 2020, mCloud announced it had completed its acquisition
of Construction Systems Associates, Inc. ("CSA"), providing the
Company with the foundation for high-precision laser scanning and
3D digital twin capabilities now used at oil and gas and FPSO sites
internationally. This also made mCloud the leading provider of 3D
solutions in the nuclear power industry, with an estimated install
base of 95% of all nuclear sites in the
United States now using mCloud's portfolio of 3D
solutions.
As announced on February 10, 2020,
the Company completed its acquisition of AirFusion, Inc., adding a
unique digital blade inspection capability to its wind solution
portfolio.
On October 13, 2020, the Company
further announced it had completed its acquisition of kanepi Group
Pty Ltd. ("kanepi"), providing the Company with a robust visual
analytics and data visualization platform that was quickly
integrated into the AssetCare technology stack to bolster mCloud's
AssetCare Mobile offering for connected workers, enabling mobile
solutions on mobile phones, tablets, and intrinsically-safe
industrial headsets. Technology from kanepi also provided a sound
foundation for enterprise-wide solutions and applications, now
being offered to these customers as AssetCare Enterprise.
Research and development continued at pace in 2020, with the
introduction of new AssetCare solutions for industrial heat
exchangers, process control systems, and artificial lift at
connected wells, which has contributed to the Company's continued
strong growth in connected assets over the course of the year. In
response to the global pandemic, mCloud rapidly expanded its
AI-powered HVAC optimization capabilities to include indoor air
quality optimization capabilities, working closely with industry
health experts to address the rising need for better indoor air
safety and compliance with new health and safety regulations around
the world.
As interest around Environmental, Social, and Corporate
Governance ("ESG") has grown, the Company has increased its focus
on the application of AssetCare to address ESG issues in high-risk
sectors that include oil and gas and mining. mCloud has developed
new ESG solutions to assist businesses in driving improved
efficiencies and the decarbonization of industrial processes across
the board. These ESG efforts ramped up considerably in February 2021, with the Company announcing a
partnership with Invest Alberta Corporation and the relocation of
its global headquarters to Calgary,
Alberta.
Looking Ahead in 2021
The Company maintains a strong backlog and sales pipeline from
which it expects to double the growth of AssetCare revenues in 2021
with robust gross margin performance. mCloud continues to work with
customers through the business conditions and restrictions imposed
by the global pandemic, and as these restrictions ease, the Company
retains its line of sight to connecting 70,000 assets toward the
middle of this year, marking the milestone at which the Company
expects its recurring revenues from AssetCare will sustain the
Company's regular operations on an ongoing basis.
Once the 70,000 connected asset milestone is achieved, mCloud
plans to turn its attention to achieving its next target of 100,000
connected assets, the point at which the Company expects it will
have a lifetime value ("LTV") to customer acquisition cost ("CAC")
ratio of 3-to-1, which enables the company to drive solid positive
EBITDA underpinned by solid growth. The Company sets a defined
target of C$4.0 million in total
contract value ("TCV") per full-time sales leader, which directly
contributes to mCloud's LTV-to-CAC efficiency.
Q4 2020 and Full Year 2020 Earnings Conference Call
The Company is hosting a conference call to discuss the
financial results for the fourth quarter and full year 2020 at
5:30 p.m. ET today.
The conference call will include prepared remarks from
Russ McMeekin, Chief Executive
Officer, and Chantal Schutz, Chief
Financial Officer. After the prepared remarks, the Company will
accept questions.
To access the conference call by telephone, dial 647-427-7450 or
1-888-231-8191. Please connect approximately 10 minutes prior to
the beginning of the call to ensure participation. The conference
call will be archived for replay by telephone until Tuesday, March 30, 2021 at midnight (ET). To
access the archived conference call, dial 1-855-859-2056 and enter
the reservation number 2256507.
A live audio webcast of the conference call will be available at
https://bit.ly/2OhQdbj. Please connect at least 15 minutes prior to
the conference call to ensure adequate time for any software
download that may be required to join the webcast. The
webcast will be archived at the above website for one year.
About mCloud Technologies Corp.
mCloud is unlocking the untapped potential of energy intensive
assets with AI and analytics, curbing energy waste, maximizing
energy production, and getting the most out of critical energy
infrastructure. Through mCloud's AI-powered AssetCare™ platform,
mCloud offers complete asset management solutions for commercial
buildings, renewable energy, healthcare, heavy industry, and
connected workers. IoT sensors bring data from connected assets
into the cloud, where AI and analytics are applied to maximize
their performance.
Headquartered in Calgary,
Canada with offices worldwide, the mCloud family includes an
ecosystem of operating subsidiaries that deliver high-performance
IoT, AI, 3D, and mobile capabilities to customers, all integrated
into AssetCare. With over 100 blue-chip customers and more than
59,000 assets connected in thousands of locations worldwide, mCloud
is changing the way energy assets are managed.
mCloud's common shares trade on the TSX Venture Exchange under
the symbol MCLD and on the OTCQB under the symbol MCLDF. mCloud's
convertible debentures trade on the TSX Venture Exchange under the
symbol MCLD.DB. For more information, visit
www.mcloudcorp.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and forward-looking
statements are not representative of historical facts or
information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives,
many of which, by their nature, are inherently uncertain and
outside of the Company's control. Generally, such forward-looking
information or forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or may contain statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "will
continue", "will occur" or "will be achieved". The forward-looking
information contained herein may include information related to the
growth of AssetCare revenues, the growth in connected assets
corresponding to recurring revenues capable of sustaining the
Company's regular operations, and the impact of its LTV-to-CAC
ratio on EBITDA.
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of the Company is speculative and
subject to several risks as discussed under the heading "Risk
Factors" on pages 29 to 46 of the Company's filing statement dated
October 5, 2017. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking information and forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward- looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE mCloud Technologies Corp.