Renoworks Announces Fourth Quarter and Fiscal Year 2022 Financial Results and Provides Outlook
CALGARY, ALBERTA, April 19, 2023 – Renoworks Software Inc. (TSXV: RW) (“Renoworks” or the “Company”), the world’s leading end-to-end visualization and lead generation platform for the home remodeling and new home construction industry announced financial results for the fourth quarter and fiscal year ended December 31, 2022. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com. Unless otherwise stated, all dollar amounts are Canadian dollars.
Financial highlights fiscal 2022:
- Annual revenues of $5,941,830, up 7% over the prior year’s $5,553,379.
- Deferred Revenue of $1,413,786 for the year ended December 31, 2022 compared to $1,389,547 in 2021.
- Gross margin of 64% versus 63% in fiscal 2021.
- Net loss of $1,320,786 compared to a net loss of $608,960 in fiscal 2021, as key investments were made into growth areas such as AI Gen 2, Renoworks Pro solution for contractors and the integration of new features sets, which all should lead to growth in 2023.
- Cash at the end of the year was $704,080, down $485,266 from $1,189,346 at the end of fiscal 2021.
- As at December 31, 2022, the Company had 40,662,635 common shares issued and outstanding.
Financial highlights for the fourth quarter of fiscal 2022:
- Quarterly revenue of $1,201,509 for the three months ended December 31, 2022 versus $1,258,956 in 2021.
- Gross margins continue to be strong at 62% and 62%, respectively for the fourth quarters of 2022 and 2021.
- Net loss of $705,601 for the quarter ended December 31, 2022 compared to a net loss of $360,626 in 2021.
“In 2022 we invested in the areas of our business that we feel will drive future growth for Renoworks, while also significantly improving our customer’s outcomes..."
“In 2022 we invested in the areas of our business that we feel will drive future growth for Renoworks, while also significantly improving our customer’s outcomes,” said Doug Vickerson, CEO of Renoworks. “To address these opportunities, investments in personnel were established early in the year and contributed to technology advancements across our platform. These investments have led to our recently deployed AI Gen 2, CostCertified estimation integration, refreshed Renoworks Pro solution for contractors and several other partnerships that were added in 2022, which should all pay off in 2023 and beyond. In summary, the Company made significant investments throughout the year, positioning us well as we move into 2023, all while strategically managing our cash position closely.”
Mr. Vickerson added, “Renoworks saw growth in Design Services and enterprise sales, which grew by 11% and 13%, respectively. Furthermore, the Company’s Renoworks Pro solution is re-establishing itself as a much-needed tool for contractors and remodelers and has evolved to meet the needs of its customers and the market. Initial results and feedback for Renoworks Pro and its new features has been strong.”
Subsequent events to year end:
- Released Renoworks Pro, the Company’s newly rebuilt contractor-focused visualizer solution. This online subscription service empowers remodelers with advanced AI-based design visualization, lead capture, and CRM integration capabilities.
- Launched next generation AI Image recognition and visualization technology. Renoworks AI Gen 2 is faster, more accurate and more scalable, which is leading to better outcomes for customers using the Renoworks platform.
- Signed a strategic partnership with CostCertified and mutual reseller agreement. The partnership calls for the companies to sell an all-in-one solution for roofing contractors and exterior remodelers combining Renoworks visualization technology with CostCertified’s technology that de-risks construction workflows.
- Gunner launches online roofing platform using Renoworks technology.
- Announced partnership with Sherwin-Williams’ MetalVue program to drive growth in the metal roofing industry.
Furthermore, the Company was awarded a grant for over $100,000 through Alberta Innovates’ R&D Associates program. The program supports high-potential, high-growth technology and knowledge-based SMEs in Alberta to employ an R&D professional with advanced technical skills required by the SME to make that last leap from research to a marketable product.
Financial results from operations for the fiscal year 2022 with comparatives for 2021 are as follows:
| Twelve Months Ended December 31 | |
2022 | 2021 | |
Revenue | $5,941,830 | $5,553,379 |
Gross Profit | $3,788,526 | $3,485,777 |
Expenses | $5,179,700 | $4,022,917 |
Net Loss | $1,320,786 | $608,960 |
Loss per share | $0.03 | $0.02 |
Adjusted EBITDA | ($1,064,609) | ($368,259) |
Weighted Average Shares Outstanding | 40,167,566 | 37,829,136 |
Cash increase/(decrease) from operations | ($1,184,487) | $93,930 |
Financial results from operations for the fourth quarter 2022 with comparatives for 2021 are as follows:
| Three Months Ended December 31 | |
2022 | 2021 | |
Revenue | $1,201,509 | $1,258,956 |
Gross Profit | $740,887 | $783,066 |
Expenses | $1,471,824 | $1,130,499 |
Net Loss | $705,601 | $360,626 |
Loss per share | $0.02 | $0.01 |
Adjusted EBITDA | ($651,047) | ($263,630) |
Weighted Average Shares Outstanding | 40,662,635 | 38,916,463 |
The Company’s financial position as of December 30, 2022 with comparatives from 2021 is as follows:
|
|
|
Cash Balance | $704,080 | $1,189,346 |
Accounts Receivable | $734,706 | $596,182 |
Working Capital | $207,163 | $470,642 |
Deferred Revenue | $1,413,786 | $1,389,547 |
Long- term liabilities | $161,875 | $212,053 |
Shareholder’s Equity (Deficiency) | $232,715 | $571,776 |
Deficit | ($9,735,016) | ($8,414,230) |
Total Assets | $1,788,806 | $2,214,085 |
About Renoworks
Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers offering solutions to one of the home improvement industry’s greatest challenges: enabling homeowners to review their product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API (Application Programming Interface). For more information, visit www.renoworks.com and www.renoworkspro.com.
For further information on Renoworks, please contact:
Doug Vickerson, CEO
Phone: 403-296-3880
E-mail: doug.vickerson@renoworks.com
FOR INVESTOR RELATIONS FOR RENOWORKS, PLEASE CONTACT:
Sean Peasgood, IR (Sophic Capital)
Phone: (647) 670-2366
Email: sean@sophiccapital.com
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock-based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks’ Adjusted EBITDA should be read in conjunction with the financial statements and management’s discussion and analysis of Renoworks posted on SEDAR (www.sedar.com).
Forward Looking Information
Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, realize a revenue or other return on technology and platform development, capitalize on actual or perceived opportunities in the marketplace, or adequately cope with the impact of COVID-19, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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