Record Fourth Quarter Revenue of $19.7 Million, Up 28% from Prior Year
BETHESDA, Md., April 20,
2022 /PRNewswire/ -- Brivo, a leading provider of
cloud-based access control and smart building technologies that
recently entered into a definitive merger agreement with Crown
PropTech Acquisitions (NYSE:CPTK), today announced that the
business generated 2021 total revenue of $73.4 million, representing a 28% increase over
2020 revenue and exceeding the high end of the previously provided
2021 expected revenue range of $71.6 million to $72.5 million.
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"2021 was a banner year for Brivo. In addition to posting record
revenue, we secured a range of new partnerships, launched numerous
product innovations, and expanded our position significantly in new
markets. We also grew our organization across all departments,
adding 49 new people in Sales, and increasing R&D by 61%,
further cementing Brivo as the global leader in mobile, cloud-based
access control and smart place platforms. While these investments
have impacted our near-term earnings, they are positioning Brivo to
accelerate sales growth and product innovation to capture the
compelling opportunity ahead of us," said Steve Van Till, Chief Executive Officer of
Brivo. "Our growth momentum is carrying over into 2022 as we
continue to see a secular trend among large enterprises migrating
their physical security systems to the cloud. We are also
making steady progress on our business combination with Crown
PropTech Acquisitions to become a publicly-listed company."
Fourth Quarter and Full Year 2021 Financial
Highlights
- Total revenue was $19.7 million
in the fourth quarter, a 28% increase year-over-year. For 2021,
total revenue grew 28% over 2020 to $73.4
million.
- Net loss was $(5.3) million in
the fourth quarter, compared to a net loss of $(0.7) million in the prior year period. For
2021, net loss was $(9.2) million
compared to net income of $1.0
million in 2020.
- Adjusted EBITDA in the fourth quarter was $(3.0) million, compared to $1.6 million in the prior year period. For 2021,
Adjusted EBITDA was $(0.7) million
compared to $8.5 million in
2020.
- Ended 2021 with $34.1 million of
Annual Recurring Revenue (ARR)1 in 2021.
Business Highlights
- Surpassed 45,000 customer accounts across enterprise,
commercial, and multifamily verticals, reaching more than 72,000
business locations in 42 countries.
- Surpassed cumulative sales of over one million mobile access
control credentials worldwide, expanding keyless building entry
across enterprise, commercial, and multifamily properties.
- Brivo has focused on the growing trend of hybrid work and
the need to provide critical data to business owners and security
professionals as return to work protocols grow and evolve. To that
end, in 2021 and to date in 2022, Brivo launched
several major product innovations and partner integrations
including:
-
- real-time anomaly detection using neural networks;
- an AI-driven visual intelligence analytic fusing video and
access data;
- occupancy tracking to gauge space utilization; and
- integration between Brivo's cloud-based physical access control
platform and Milestone's XProtect video management
system.
1 Annual Recurring Revenue (ARR) represents the
annualized end of period monthly recurring revenue. It is not a
forecast of future revenue as it represents a historical single
point in time metric.
About Brivo
Brivo, Inc., created the cloud-based
access control and smart spaces technology category over 20 years
ago and remains the global leader serving commercial real estate,
multifamily residential and large distributed enterprises. The
company's comprehensive product ecosystem and open API provide
businesses with powerful digital tools to increase security
automation, elevate employee and tenant experience, and improve the
safety of all people and assets in the built environment. Brivo's
building access platform is now the digital foundation for the
largest collection of customer facilities in the world, occupying
over 300 million square feet across 42 countries. On November 10, 2021, Brivo entered into a
definitive merger agreement with Crown PropTech Acquisitions (NYSE:
CPTK) that will result in Brivo becoming a publicly listed company
on the New York Stock Exchange under the new ticker symbol "BRVS."
Additional information about the transaction can be viewed
here: www.brivo.com/about/investor-relations. Legal
Disclaimer: https://www.brivo.com/about/investor-relations/legal-disclaimer/.
Non-GAAP Financial Information
This press release includes financial measures not presented in
accordance with United States
generally accepted accounting principles ("U.S. GAAP") including
Adjusted EBITDA and other metrics derived therefrom. We
define Adjusted EBITDA as net income (loss) excluding interest and
income tax expense, depreciation and amortization and stock-based
compensation.
We believe that that these measures provide an additional way of
viewing aspects of our operations that, when viewed with the
U.S. GAAP results, provide a more complete understanding of
our results of operations and the factors and trends affecting our
business. However, non-GAAP financial measures should be considered
a supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with
U.S. GAAP. Non-GAAP financial measures used by us may
differ from the non-GAAP measures used by other companies,
including our competitors. We encourage investors and others to
review our financial information in its entirety, not to rely on
any single financial measure. The following table provides a
reconciliation of net income (loss), the most directly comparable
U.S. GAAP financial measure, to Adjusted EBITDA:
|
Quarters Ended
December 31
|
|
Years Ended
December 31,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in thousands)
|
|
(in thousands)
|
Net
(loss)/income
|
$
(5,309)
|
|
$
(661)
|
|
$
(9,227)
|
|
$
1,041
|
Interest
expense
|
220
|
|
358
|
|
912
|
|
1,161
|
Income tax
provision
|
71
|
|
22
|
|
71
|
|
24
|
Depreciation and
amortization
|
1,910
|
|
1,743
|
|
7,278
|
|
5,920
|
Stock compensation
expense
|
66
|
|
96
|
|
267
|
|
327
|
Adjusted
EBITDA
|
$
(3,042)
|
|
$
1,558
|
|
$ (699)
|
|
$
8,473
|
|
|
|
|
|
|
|
|
Forward Looking Statements
This press release includes
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as "estimate," "plan,"
"project," "forecast," "intend," "will," "expect," "anticipate,"
"believe," "seek," "target" or other similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding estimates and
forecasts of financial and performance metrics, projections of
market opportunity and market share, expectations and timing
related to commercial product launches, potential benefits of the
proposed business combination and the potential success of Brivo's
go-to-market strategy, and expectations related to the terms and
timing of the proposed business combination. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of Brivo's and
Crown's management and are not predictions of actual performance.
These forward-looking statements are provided for illustrative
purposes only and are not intended to serve as, and must not be
relied on by any investor as, a guarantee, an assurance, a
prediction or a definitive statement of fact or probability. Actual
events and circumstances are difficult or impossible to predict and
will differ from assumptions. Many actual events and circumstances
are beyond the control of Brivo and Crown. These forward-looking
statements are subject to a number of risks and uncertainties,
including changes in domestic and foreign business, market,
financial, political and legal conditions; the inability of the
parties to successfully or timely consummate the proposed business
combination, including the risk that any required regulatory
approvals are not obtained, are delayed or are subject to
unanticipated conditions that could adversely affect the combined
company or the expected benefits of the proposed business
combination or that the approval of the shareholders of Crown or
Brivo is not obtained; the lack of third party valuation in
determining whether or not to pursue the proposed business
combination; failure to realize the anticipated benefits of the
proposed business combination; risks relating to the uncertainty of
the projected financial information with respect to Brivo; the risk
that the conditions to the financing for the proposed business
combination may not be satisfied or waived; the effect of the
announcement or pendency of the proposed business combination on
Brivo's business relationships, performance and business generally;
risks that the proposed business combination disrupts current plans
of Brivo and potential difficulties in Brivo employee retention as
a result of the proposed business combination; the ability to
implement business plans, forecasts and other expectations after
the completion of the proposed business combination, and identify
and realize additional opportunities; Brivo's ability to attract
and retain customers; the combined company's ability to up-sell and
cross-sell to customers, including the success of Brivo's
customers' development programs, which will drive future revenues;
the ability of the combined company to compete effectively and its
ability to manage growth; the amount of redemption requests made by
Crown's public shareholders; the ability of Crown or the combined
company to issue equity or equity-linked securities in connection
with the proposed business combination or in the future; the
outcome of any potential litigation, government and regulatory
proceedings, investigations and inquiries; the risk that the
combined company's securities will not be approved for listed on
the New York Stock Exchange or if approved, maintain the listing;
and those factors discussed in Crown's final prospectus dated
February 8, 2021 and Annual Report on
Form 10-K for the year ended December 31,
2021, and the preliminary proxy statement/prospectus of
Crown related to the proposed business combination, in each case,
under the heading "Risk Factors," and other documents of Crown
filed, or to be filed, with the Securities and Exchange Commission
("SEC"). If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that neither Crown nor Brivo presently know or
that Crown and Brivo currently believe are immaterial that could
also cause actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Crown's and Brivo's expectations, plans or forecasts of
future events and views as of the date of this presentation. Crown
and Brivo anticipate that subsequent events and developments will
cause Crown's and Brivo's assessments to change. However, while
Crown and Brivo may elect to update these forward-looking
statements at some point in the future, Crown and Brivo
specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing Crown's and Brivo's assessments as of any date
subsequent to the date of this press release. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
Additional Information About the Proposed Business Combination
and Where To Find It
The proposed business combination will be submitted to shareholders
of Crown for their consideration. Crown has filed a registration
statement on Form S-4 (the "Registration Statement") with the SEC
which includes a preliminary proxy statement to be distributed to
Crown's shareholders in connection with Crown's solicitation for
proxies for the vote by Crown's shareholders in connection with the
proposed business combination and other matters as described in the
Registration Statement, as well as the prospectus relating to the
offer of the securities to be issued to Brivo's shareholders in
connection with the completion of the proposed business
combination. After the Registration Statement has been declared
effective, Crown will mail a definitive proxy statement and other
relevant documents to its shareholders as of the record date
established for voting on the proposed business combination.
Crown's shareholders and other interested persons are advised to
read the preliminary proxy statement / prospectus and any
amendments thereto and, once available, the definitive proxy
statement / prospectus, in connection with Crown's solicitation of
proxies for its special meeting of shareholders to be held to
approve, among other things, the proposed business combination,
because these documents contain important information about Crown,
Brivo and the proposed business combination. Shareholders may also
obtain a copy of the preliminary or definitive proxy statement,
once available, as well as other documents filed with the SEC
regarding the proposed business combination and other documents
filed with the SEC by Crown, without charge, at the SEC's website
located at www.sec.gov or by directing a request to 667
Madison Avenue, 12th Floor, New York,
NY 10065, attention: Nikki
Sacks.
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN
APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY
AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS
OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION
CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
Participants in the Solicitation
Crown, Brivo and certain of their respective directors, executive
officers and other members of management, employees and consultants
may, under SEC rules, be deemed to be participants in the
solicitations of proxies from Crown's shareholders in connection
with the proposed business combination. Information regarding the
persons who may, under SEC rules, be deemed participants in the
solicitation of Crown's shareholders in connection with the
proposed business combination set forth in Crown's proxy statement
/ prospectus filed with the SEC. You can find more regarding the
participants in the proxy solicitation and a description of their
direct and indirect interests in the proxy statement / prospectus.
Shareholders, potential investors and other interested persons
should read the proxy statement / prospectus carefully before
making any voting or investment decisions. You may obtain free
copies of these documents from the sources indicated above.
No Offer or Solicitation
This press release does not
constitute an offer to sell or the solicitation of an offer to buy
any securities or a solicitation of any vote or approval, nor shall
there be any sale of securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction.
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