- Monthly Recurring Revenue Grows by 104.8%
Year over Year -
TORONTO, April 12, 2018 /CNW/ - VersaPay
Corporation (TSXV: VPY) ("VersaPay" or the "Company"), a
leading provider of cloud-based invoicing, accounts receivable
management and payment solutions, today announced fourth
quarter ("Q4") financial results for the three and twelve-month
periods ended December 31, 2017.
"2017 was a year of transformation and growth for VersaPay, as
we sold our POS Merchant Services business at the beginning of the
year and focused on building our Accounts Receivable ("AR")
automation software business," said Craig
O'Neill, CEO of VersaPay. "We've built significant momentum
in the business, driven by a growing list of successful clients who
are achieving material reductions in Days Sales Outstanding ("DSO")
and AR process costs."
Operational Highlights:
- Strong increases in ARC™ metrics were achieved by the close of
Q4: 124 suppliers were signed up to use ARC, up from 90 at the end
of last year; 97.0 thousand end-customers were active on the
platform, up from 29.1 thousand, last year; 436.5 thousand invoices
were delivered to end-customers, up from 184,116 in Q4 2016;
payments in quarter were $101
million, compared to $38
million in Q4 of last year.
- The Company signed a strategic partnership with Royal Bank of
Canada for RBC to market and sell
ARC™, VersaPay's accounts receivable automation platform, under the
RBC brand.
- Two seasoned executives joined the Company's executive
leadership team: Chief Revenue Officer, Ross Pellizzari, and Chief Product Officer,
Jason Read, and two directors with
extensive technology sector experience joined the board:
Sheldon Pollack and Mark Kohler.
- The Company completed a private placement in October for
$10.7 million, led by the Canadian
arm of a US institutional investor.
Financial Highlights:
The following highlights treat the Company's POS Merchant
Services business, sold in February
2017, as a discontinued operation.
- Monthly Recurring Revenue ("MRR") at the end of 2017 was
$319.9 thousand, compared to
$156.2 thousand at the end of 2016,
an increase of 104.9%
- Revenue for Q4 2017 increased by 126.5% to $1.16 million compared to $0.50 million in Q4 2016.
- Revenue for the twelve months ended December 31, 2017 increased by 95.5% to
$2.96 million compared to
$1.51 million for the twelve months
ended December 31, 2016.
- Gross margin percentage for Q4 2017 was 63.5%, compared to
54.5% in Q4 2016.
- Gross margin percentage for the twelve months period ended
December 31, 2017 was 66.8%, compared
to 54.3% for the twelve months ended December 31, 2016.
- Adjusted EBITDA(1) was ($1.84) million in Q4 2017, compared to
($1.59) million in Q4 2016.
- Adjusted EBITDA was ($7.54)
million for the twelve months ended December 31, 2017, compared to ($6.44) million for the same period in 2016, in
accordance with the Company's plans to invest in people, software
development and infrastructure.
- Net earnings from discontinued operations of $8.52 million for the twelve-months ended
December 31, 2017 and reflects the
gain on sale of our POS Merchant Services business, compared to
$1.4 million for the same period in
2016
- Total comprehensive loss for Q4 2017 was ($2.52) million, compared to a loss of
($1.82) million for Q4 2016.
- Total comprehensive income for the twelve-months ended
December 31, 2017 was $0.35 million, compared to a loss of ($5.93) million for the same period in 2016, due
to the gain related to the sale of the POS Merchant Services
business.
- Total operating expense for the twelve-months ended
December 31, 2017 increased by 24.3%
to $10.1 million, compared to
$8.2 million for the twelve-months
ended December 31, 2016.
- As at December 31, 2017, the
Company had cash on hand of $15.83
million compared to $2.75
million as at December 31,
2017.
The Company has previously noted a proposed assessment from
Revenue Quebec under various rules contained in the Excise Tax Act
and the Act Respecting the Quebec Sales Tax. Since the release of
its Q3 2017 financial statements, the Company received an
assessment from Revenue Quebec of GST/HST and QST taxes owing of
$1.7 million before investment tax
credits. After applying estimated investments tax credits
paid or payable during the period of assessment, the Company has
accrued an additional $392 thousand
in its Q4 2017 financial statements as the net amount owing to
Revenue Quebec.
The term Adjusted EBITDA ("Adjusted EBITDA") is a non-IFRS
measure and refers to earnings before interest, taxes, depreciation
and amortization ("Adjusted EBITDA") and is a non-IFRS financial
measure which does not have any standardized meaning prescribed by
IFRS and is therefore unlikely to be comparable to similar measures
presented by other issuers. Adjusted EBITDA provides useful
information to users as it reflects the net earnings prior to the
effect of non-operating expenses and unusual items such as
discontinued operations. Management uses Adjusted EBITDA in
measuring the financial performance of the Company as this measure
reflects results that are controllable by management in day-to-day
operations. Management monitors Adjusted EBITDA against budget and
past results on a regular basis
The term Monthly Recurring Revenue ("MRR") is a non-IFRS
measure and includes revenues earned in a given month relating to
monthly fixed subscription fee, monthly transaction fees, ARC Lite™
revenue, and PayPort™ revenue. MRR is a common metric used in
Software as a Service ("SaaS") companies and its definition is not
guided by IFRS standards. Accordingly, MRR is unlikely to be
comparable to similar measures presented by other issuers.
Conference Call Details:
Date: Friday, April 13, 2018
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764
8609
Toll Free – North America (+1) 888
390 0605
Conference ID: 77508470
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888
390 0541
Passcode: 508470 #
Expiry Date: Friday, April 20, 2018
11:59 PM
A live audio webcast and archive of the conference call will be
available by visiting the Company's website
at http://www.versapay.com/company/investor-relations/. Please
connect at least 15 minutes prior to the conference call to ensure
time for any software download that may be needed to hear the
webcast.
About VersaPay
VersaPay is a leading cloud-based invoice presentment and
payment provider for businesses of all sizes. VersaPay's ARC
software-as-a-service offering allows businesses to easily deliver
customized electronic invoices to their customers, to accept credit
card and EFT payments and automatically reconcile payments to their
ERP and accounting software. VersaPay is headquartered in
Toronto, Canada and has operations
in Montreal.
More information about VersaPay can be found on the Company's
website at www.versapay.com or under the Company's profile on SEDAR
at www.sedar.com.
Forward Looking and Other Cautionary Statements
This news release contains "forward-looking information" which
may include, but is not limited to, statements with respect to the
activities, events or developments that the Company expects or
anticipates will or may occur in the future. Such
forward-looking information is often, but not always, identified by
the use of words and phrases such as "plans," "expects," "is
expected," "budget," "scheduled," "estimates," "forecasts,"
"intends," "anticipates," or "believes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may," "could," "would," "might"
or "will" be taken, occur or be achieved.
These forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current
judgment regarding the direction of our business. Management
believes that these assumptions are reasonable. Forward-looking
information involves known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking information. Such factors include, among
others, risks related to the speculative nature of the Company's
business, the Company's formative stage of development and the
Company's financial position.
Forward-looking statements contained herein are made as of the
date of this news release and the Company disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events or results, except as may be
required by applicable securities laws. There can be no assurance
that forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information.
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 VersaPay Corporation