Renoworks reports year-over-year revenue growth of 25% to $3.8 million
CALGARY, ALBERTA, May 1, 2019 – Renoworks Software Inc. (TSXV: RW)(“Renoworks” or the “Company), the leading visualizer for the home remodeling and new home construction industry, today announced financial results for the fourth quarter ended December 31, 2018.
Financial and business highlights for the fourth quarter and fiscal 2018:
- Record annual revenue of $3,843,239, up 25% over prior year.
- Quarterly revenue of $938,133 for the three months ended December 31, 2018 compared to $784,5451 in 2017, an increase of 20%.
- Design Services revenue of $1,107,228 in 2018 versus $593,756 in 2017, an increase of 86%.
- Design services revenue of $217,510 for the three months ended December 31, 2018 compared to $151,367 in 2017, up 44%.
- Net loss of $474,888 for 2018. As Renoworks’ growth strategy progresses, it remains flexible to invest in the recruitment of qualified personnel in response to increased demand and to further the Company’s efforts to fulfill its long-term strategies of software development, increased marketing and financial growth.
- As at December 31, 2018, the Company had 33,837,810 common shares issued and outstanding.
“The Company continues to benefit from the investments in our infrastructure, R&D, operations and marketing over the last year,” stated Doug Vickerson, CEO of Renoworks. “This has made our significant growth in design services possible, which has contributed to strong top line results, as well as accelerated our development of our next generation platform. These results maintain our record trend of consistent year-over-year quarterly revenue growth with increases of 10%, 28%, 45%, and 20% beginning with Q1 of 2018.”
Mr. Vickerson continued, “Additionally, alongside our strategic partner, Geomni, we announced our 3D modeling and automated measurement solution, Renoworks FastTrack, which has allowed us to effectively position Renoworks for growth both in the remodeling market and in new markets beyond remodeling.”
“As the industry continues to embrace the customer journey surrounding the remodeling process, our dominance in the essential design segment and alliance with Geomni will provide the catalyst in delivering these solutions faster to our growing client list of building product manufacturers and distributors.
Mr. Vickerson added, “Our commitment to bringing our clients substantial innovation and engagement remains a cornerstone in our strategy and we are moving quickly to address the multitude of categories in the market and the industry’s demands with our core technology. For this reason, we anticipate continued growth in 2019.”
Financial results from operations for the fourth quarter 2018 with comparatives for 2017 are as follows:
"The Company continues to benefit from the investments in our infrastructure, R&D, operations and marketing over the last year."
| Three Months Ended December 31 | ||
|---|---|---|
| 2018 | 2017 (restated) | |
| Revenue | $938,133 | $784,545* |
| Gross Margin | $507,617 | $503,408* |
| Expenses | $677,377 | $697,567* |
| Loss | $233,091 | $239,466* |
| Loss per share | ($0.01) | $0.001 |
| Adjusted EBITDA | ($209,327) | ($182,969) |
| Weighted Average Shares Outstanding | 33,659,248 | 33,562,810 |
Financial results from operations for the year ended December 31, 2018 with comparatives for 2017 are as follows:
| Twelve Months Ended December 31 | ||
|---|---|---|
| 2018 | 2017 (restated) | |
| Revenue | $3,843,239 | $3,055,382* |
| Gross Margin | $2,612,279 | $2,165,712* |
| Expenses | $2,683,636 | $2,565,247* |
| Loss | $474,888 | $828,812* |
| Loss per share | $0.01 | $0.02 |
| Adjusted EBITDA | ($337,056) | ($662,474)* |
| Weighted Average Shares Outstanding | 33,659,248 | 33,562,810 |
| Cash Used in Operations | $318,125 | $646,331* |
The Company’s financial position as of December 31, 2018 with comparatives from 2017 is as follows:
| December 31, 2018 | December 31, 2017 (restated) | |
|---|---|---|
| Cash Balance | $385,335 | $719,298 |
| Accounts Receivable | $464,365 | $396,841 |
| Working Capital | ($94) | $396,774* |
| Deferred Revenue | $956,494 | $1,071,051* |
| Long-term Liabilities | $336,080 | $392,687* |
| Shareholder's Equity (Deficiency) | ($202,086) | $140,267* |
| Deficit | ($7,242,757) | ($6,767,869)* |
| Total Assets | $1,158,998 | $1,481,698* |
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 true-to-life virtual environment before committing to purchases and construction. Renoworks markets its technologies as innovative engagement tools and generates revenues from four main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, 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
Renoworks Software Inc.
2721 Hopewell Place NE
Calgary, Alberta, Canada T1Y 7J7
For investor information for Renoworks please contact:
Rob Gamley
Phone: 604-689-7422
Email: rob@contactfinancial.com
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC, Canada V7Y 1G5
*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).
1 IFRS 15 transition adjustments
The 2017 financial results have been restated due to the Company’s conversion to IFRS 15 effective January 1, 2018. The Company has adopted the standard effective January 1, 2018 using the full retrospective method which requires each prior reporting period presented to be restated.
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, 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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