Jasper reports 42% year over year
subscription revenue growth for twelve months ended July 31, 2022
Total revenue for twelve months ended
July 31, 2022 of $1.68 million, up 23% year over year, in-line
with management guidance
VANCOUVER, BC, Nov. 28,
2022 /CNW/ - Jasper Commerce Inc. (TSXV: JPIM)
("Jasper" or the "Company"), a leading provider of
Product Information Management ("PIM")
solutions, announces its fourth fiscal quarter ("Q4
2022") financial results for the three and twelve month periods
ended July 31, 2022. Unless otherwise indicated, all dollar
amounts are expressed in Canadian dollars.
Financial Highlights – 42% Subscription Revenue Growth in
Twelve Months Ended July 31,
2022
- Total revenue was $1,679,089 for the twelve months
ended July 31, 2022 ("FY2022"), growing 23%
year-over-year from $1,369,322 for the twelve months
ended July 31, 2021 ("FY2021"), in-line with the
Company's FY 2022 financial guidance provided on August 11, 2022.
- Revenues from subscriptions were up 42% year-on-year in FY 2022
to $1,221,167, compared to
$857,409 in FY2021. Revenue growth
from subscriptions was driven by an increase in Enterprise license
sales.
- Revenue for Q4 2022 was $372,798
versus $361,991 for the three months ended July 31,
2021 ("Q4 2021"). Total Q4 year-on-year revenue growth was
relatively flat, as clients deferred professional services
projects.
- Revenue from subscriptions for Q4 2022 was up 25% to
$332,627, compared to $265,839 in Q4 2021 as a result of new sales
acquired through earlier marketing campaigns. Sales in Q4 are
typically stronger than other quarters based on seasonality, as
eCommerce merchants seek out new merchandising solutions ahead of
Back to School and Black Friday selling seasons.
- Expenses for FY
2022 were $9,565,128 versus $3,025,986 for
FY 2021. Non-recurring Listing costs of $2,292,750 related to the reverse takeover, the
fair value of additional shares issued on conversion of debentures
to equity and hiring of new staff and vendor scale up accounted
materially for the increase of expenses in FY 2022. Expenses for Q4
2022 were $1,278,679 compared
to $595,634 in Q4 2021.
- Net loss for FY 2022 was $7,886,039, compared to a
net loss of $1,656,664 for FY
2021. Net loss for Q4 2022 was $905,881 versus a
$233,643 net loss in Q4 2021.
The larger net-loss in Q4 2022 was primarily due to an increase in
headcount compared to 2021.
Management Commentary and Outlook
"After completing both our go public transaction and successful
$6 million financing, we have been
investing in sales and marketing to continue our organic growth,"
said Jasper CEO Jon Marsella. "We
also continued working on what we call 'product smoothing', which
simply stated refers to product refinements and knowledge base
improvement to make the PIM easier to understand and quicker to
onboard for smaller merchants. I'm pleased with the Company's
twelve-month performance with 42% growth in subscription revenue,
during an unanticipated and tough macroeconomic environment in
2022. I am optimistic for our future prospects as we advance
discussions with new partners that should open new channels of
growth."
The expected closing timeframe for the Cartika acquisition is
now the first week of January, 2023 in order to accommodate a
slightly longer closing process than anticipated. We've already
seen some positive results in terms of cost reductions for Jasper
arising from infrastructure improvements by working with the
Cartika technology team ahead of the acquisition closing.
On a Pro Forma basis, for Jasper's Fiscal 2023 (ending
July 31, 2023) and now including
seven months of Cartika contribution, the Company expects total
revenue of $3.2 million to
$3.7 million, up as much as 120% from
Fiscal 2022 revenue of $1.68 million,
with gross margins on such revenue of the combined entities
estimated to be between 50 and 55%. This acquisition is expected to
advance our EBITDA break-even in FY2023 by approximately two
months.
New revenue opportunities arising from cross selling amongst the
two Companies' non-overlapping customer bases could provide
additional upside.
This news release should be read in conjunction with Jasper's
unaudited interim condensed consolidated financial statements and
the accompanying notes, as at and for the quarter ended July
31, 2022. Those documents have been filed with certain securities
regulatory authorities in Canada and are available on
SEDAR (www.sedar.com) and on the Jasper's website
at www.jasperpim.com.
About Jasper Commerce Inc.
Jasper offers a Product Information Management ("PIM")
solution that has the objective of empowering eCommerce merchants
to manage and merchandise their products from a single source of
truth, facilitating them to sell more, sell faster and work
smarter. Jasper's PIM is accessible from anywhere via a web-browser
and is intended to simplify the process by which online merchants
import product data into the PIM. Once uploaded, merchants can add
various product data including product attributes, images, videos,
marketing information, inventory quantities and price books and
efficiently merchandise their products using various features that
include, among other things, the ability to adjust product
categorization, pricing data and other key metrics. Jasper's PIM
also allows for automatic syncing to popular eCommerce storefronts,
marketplaces, or other connected channels, whenever new products
are added to the PIM.
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.
Investors are cautioned that, except as disclosed in the
Filing Statement prepared in connection with the Transaction, any
information released or received with respect to the Transaction
may not be accurate or complete and should not be relied upon.
Trading in the securities of a capital pool company should be
considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the Transaction and has neither approved nor disapproved
the contents of this press release.
Forward Looking Statements
The information in this news release includes certain
information and statements about management's view of future
events, expectations, plans and prospects that constitute forward
looking statements, including statements relating to the final
acceptance by the Exchange, the issuance of a final bulletin by the
Exchange, the use of proceeds of the Offering and the business
plans of the Company. These statements are based upon assumptions
that are subject to significant risks and uncertainties. Because of
these risks and uncertainties and as a result of a variety of
factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and
indicated by these forward looking statements. Any number of
factors could cause actual results to differ materially from these
forward‐looking statements as well as future results. Although the
Company believes that the expectations reflected in forward looking
statements are reasonable, it can give no assurances that the
expectations of any forward looking statements will prove to be
correct. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any forward
looking statements to reflect actual results, whether as a result
of new information, future events, changes in assumptions, changes
in factors affecting such forward looking statements or
otherwise.
SOURCE Jasper Commerce, Inc.