Achieves a 29% Increase in Revenue and 25% Increase in ARR
VANCOUVER, Nov. 22, 2018 /CNW/ - MediaValet Inc. (TSX-V:MVP)
("MediaValet" or the "Company"), a leading provider of enterprise
cloud‐based digital asset management ("DAM") software, is pleased
to report its results for the three and nine month periods ended
September 30, 2018.
Summary of Quarterly Results
|
|
|
|
|
|
3 months
ended
September
30, 2018
|
3 months
ended
September
30, 2017
|
9 months
ended
September
30, 2018
|
9 months
ended
September
30, 2017(1)
|
|
Revenue
|
$
|
769,739
|
$
|
598,538
|
$
|
2,081,202
|
$
|
1,597,771
|
|
% Increase from
prior year period
|
29%
|
|
30%
|
|
|
Gross
Margin
|
593,742
|
502,366
|
1,614,369
|
1,329,459
|
|
Gross Margin
%
|
77%
|
84%
|
78%
|
83%
|
|
Operating
Expenses(2)
|
1,454,283
|
1,367,463
|
4,397,152
|
4,426,721
|
|
% Increase from
prior year period
|
6%
|
|
(1%)
|
|
|
EBITDA
Loss(3)
|
(860,541)
|
(865,097)
|
(2,782,783)
|
(3,097,262)
|
|
% Decrease from
prior year period
|
(1%)
|
|
(10%)
|
|
|
Net
loss
|
(993,707)
|
(1,154,358)
|
(3,284,884)
|
(3,955,269)
|
|
% Decrease from
prior year period
|
(14%)
|
|
(17%)
|
|
|
Loss per
share
|
(0.004)
|
(0.013)
|
(0.016)
|
(0.045)
|
|
|
|
As at
September
30,
2018
|
As at
December 31,
2017
|
|
Annual Recurring
Revenue ("ARR")(4)
|
|
|
$
|
3,150,232
|
$
|
2,488,494
|
|
% Increase from
prior year period
|
|
|
25%
|
|
|
Working Capital
(Net of debt and deferred revenue)
|
|
|
192,514
|
(
1,703,442)
|
|
Deferred
Revenue
|
|
|
1,839,061
|
1,478,285
|
|
Total
assets
|
|
|
1,710,401
|
591,990
|
|
Total
Debt
|
|
|
3,000,000
|
6,180,250
|
|
Shareholder
(Deficiency)
|
|
|
$
|
(4,184,544)
|
$
|
(
9,321,028)
|
"We're extremely pleased with our year-to-date and
3rd quarter performance," commented David MacLaren, founder and CEO of MediaValet.
"We've achieved a lot over the past three quarters: we released V4,
the industry's fastest 100% cloud-based DAM platform; we launched
the first hybrid (desktop-to-sever-to-cloud) file-management
solution for creative teams, Creative Spaces; and, we raised
$8.6M in February, enabling us to
significantly increase our go-to-market partner and direct sales
and marketing programs. In our second quarter, we saw these efforts
generate increased sales pipeline activity, and in Q3 we are now
beginning to see the impact of these efforts in our top-line ARR
and revenue numbers. In particular, our ARR is up 25% from last
year to $3.15 million on third
quarter net additions of $282,602,
increasing 32% over Q3 last year and 20% sequentially. This
represents nearly half of our net new business for the year,
signalling the growth momentum we've been building toward."
Mr. MacLaren continued, "I'm also pleased to announce that we
reached a major milestone in Q3; our Billings(5) topped
$1 million for the first time at a
record $1.11 million - up 100% over
Q3 last year and up 61% sequentially. This is an important
achievement for us, as it results in a significant reduction in our
operating cash requirements and indicates a notable advance toward
self-funding operations. The increased Billings are a result
of strong existing customer retention, particularly following the
release of V4, and accelerated new customer acquisition with total
new customer Billings increasing 23% over last year and 38%
sequentially. As a result, we believe that our technology and
operational milestones delivered this year are on the mark and have
us well positioned to continue building a solid and sustained
growth momentum in the quarters ahead."
Results of Operations
Key Financial Metrics:
- Grew third quarter revenue to $0.77
million, up 29% from $0.59
million in Q3 2017, and up 11% sequentially. For the
year-to-date ("YTD") period, revenue of $2.08 million was up 30% from $1.60 million last year-to-date. As over 90% of
revenue is from annual subscriptions, the growth reflects the
increasing ARR from by solid customer acquisition and
retention.
- Achieved a Gross Margin of 78% YTD, down from 83% last YTD. The
decline is primarily due to duplicative data center costs being
incurred during migration from the Company's V3 to V4
platform.
- Incurred Operating Expenses of $1.45
million for Q3 2018, a 6% increase (restated 9%) from
$1.37 million in Q3 last year, and an
8% sequential decrease. YTD Operating Expenses were $4.40 million, a 1% decrease over $4.43 million last YTD (restated +1%). The change
from the prior year is due to increased spend on direct and partner
sales and marketing programs following the equity financing
completed in February 2018. This is
offset by reductions in R&D following the completion of V4
development. Note that restated percentages are provided where
applicable to provide the change from prior periods had IFRS 15
been applied with retroactive restatement.
- Reported a Q3 2018 EBITDA loss of $0.86
million, a 1% decrease (restated +4%) from a EBITDA loss of
$0.87 million in Q3 2017 and an 18%
sequential decrease. For the YTD period, the EBITDA loss was
$2.78 million, down 10% (restated 7%)
from $3.10 million last YTD. The
reduced losses reflect continued revenue growth as a result of the
Company's growing recurring revenue base and efforts to manage
operating cost levels.
- Increased Annual Recurring Revenue ("ARR") to $3.15 million, an increase of 25% compared to
$2.52 million at September 30, 2017, and a 10% sequential
increase. The increased ARR is a result of efforts to maintain and
grow the customer base through delivering must-have innovations
(eg. V4, Advanced Search and Creative Spaces), and executing on our
go-to-market strategy.
- Ended the quarter with $68,001 of
cash on hand (December 31, 2017 -
$44,359), working capital of
$0.19 million (December 31, 2017 – negative $1.70 million) and long term debt of $3.00 million (December
31, 2017 - $6.18
million).
Technology and Product:
- In September 2018,
announced successful rollout of V4 to all existing customers,
increasing customer value and user experience, while enabling a
reduction in operating costs. V4 delivers industry leading platform
and application speed and advanced search capabilities, resulting
in increased user adoption metrics and opportunity win rate, and a
doubling in MediaValet's developer
community.
- In June 2018, announced
that Gartner, Inc. (NYSE:IT) (Gartner) named MediaValet in its 2018
Market Guide for Digital Asset Management, as one of nineteen
Representative Vendors covering on-premises, cloud, hybrid and SaaS
deployments. MediaValet was positioned as one of the most
enterprise-grade, globally available DAM systems on the
market.
- In May 2018, delivered a
number of technology and product milestones including the launch of
V4 for new customers and Creative Spaces for large, high volume
creative teams, which management believes will materially increase
the value delivered to customers, enable us to attract more new
customers, and increase existing customer retention and expansion.
These developments increased the enterprise class capability of the
system – including providing unparalleled speed and search features
– and provide unique integrations and features that solve critical
customer issues and provide differentiation to MediaValet.
Operations and Corporate:
- Subsequent to quarter end (October
25, 2018), announced modification of the $3 million of secured senior debentures, reducing
the interest rate to 7% (from 10%) and extending the maturity dates
to November 7, 2021.
- Provided an update on Creative Spaces (October 18, 2018), announcing that the new
solution has received rave reviews from customers, Creative
Directors and creatives, and is proving to be a major
differentiator for MediaValet. Customers have indicated that it is
successfully addressing the unique and long standing file
management problems experienced by creative teams during the
ideation and work-in-progress (WIP) stages of media production.
Since its launch in May 2018,
Creative Spaces has driven 17% (updated) of new subscription
revenue year-to-date and the deal size has been 50% to 100% higher
than average.
- Launched a new channel partnership (October 3, 2018) with Wrike, Inc., a leading
collaborative work management platform for high performance teams,
to deliver an all-in-one solution for marketing departments. Wrike
has since created a full integration using MediaValet's industry
leading API, and as of November
15th, 2018 is offering it as a value-added
solution to their 17,000 plus customer base as announced by Wrike
here. This follows announcements on September 19th of MediaValet's channel program
progress with a 2.25x increase in channel-generated sales and on
September 20th of MediaValet winning
Top Enterprise Solution at the 2018 Canadian Channel Innovation
Awards.
- Announced go-to-market progress in the Asia-Pacific region (August 16th) and with high-security conscious
organizations (September
13th). As the only Cloud-DAM provider who can offer a
data residency guarantee in Australia and New
Zealand, and following the launch of targeted marketing
programs, the region has grown to >5% of recurring revenue in
the last year. In addition, positioned as one of the highest
enterprise-grade Cloud-DAMS on the market, MediaValet is seeing
strong adoption from security-focused and tightly regulated
customer segments such as financial, government, healthcare and
legal, which have accounted for 35% of new customer wins YTD in
2018.
|
1
Fiscal 2017 figures have not been restated for adoption of
IFRS 9 and IFRS 15 as the changes were applied starting in Q1 2018
on a cumulative effect basis. The YTD percent change to September
30, 2018 compared to restated 2017 amounts, is a 1% increase for
YTD Operating Expenses, and a 7% decline for YTD EBITDA Loss. See
the "Adoption of New Account Standards" section
below.
|
|
|
2
Operating Expenses include Sales & Marketing, Research &
Development and General & Administrative
expenses.
|
|
|
3
EBITDA is a non-IFRS measure of profit and loss. Management
believes EBITDA provides a meaningful measure for assessment of
Company performance as it removes non-cash and non-operating
expenses.
|
|
|
4
Annual Recurring Revenue (ARR) is a non-IFRS measure of future
revenue and billings from customers as of the reporting date. ARR
represents the sum of the annual recurring revenue from existing
customer contracts or commitments as of the reporting period end
date. Management believes ARR to be a meaningful measure for
assessment of Company performance. ARR is recorded as deferred
revenue when it is invoiced and is recognized in revenue evenly
over the contract term.
|
|
|
5
Billings are a non-IFRS measure representing the sum of invoiced
sales in the period, including both existing customer renewal
invoices and new customer invoices with standard payment terms
(generally net-30). Billings are calculated by subtracting closing
deferred revenue from opening deferred revenue and adding
recognized revenue for the period. Management believes Billings are
an important measure for understanding the business, as given that
the related revenue is deferred and amortized, Billings provides a
measure of the amount of cash generated from customers in the
period.
|
MediaValet's full financial statements and related MD&A are
now available on SEDAR.
About MediaValet, Inc.
MediaValet stands at the forefront of the enterprise cloud-based
digital asset management industry. Built exclusively on Microsoft
Azure and available in 140 countries, 54 Microsoft data center
regions, around the world, MediaValet delivers unparalleled
enterprise class security, reliability, redundancy and scalability
while offering the largest global footprint of any DAM solution. In
addition to providing all core DAM capabilities and local
desktop-to-cloud support for creative teams, MediaValet offers
industry leading integrations into Slack, Adobe Creative Suite,
Microsoft Office 365, Oracle Marketing Cloud (Eloqua), Drupal 8,
WordPress, Hootsuite and many other best-in-class 3rd
party applications.
Follow MediaValet: Blog, Twitter and LinkedIn
Surf: www.mediavalet.com
"Neither the 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 MediaValet Inc.