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VersaPay Announces Q1 2019 Financial Results- Revenues grow 90% year over year to $1.95 million in quarter - TORONTO, May 22, 2019 /CNW/ - VersaPay Corporation (TSXV: VPY) ("VersaPay" or the "Company"), a leading provider of cloud-based invoice-to-cash solutions including electronic invoice presentment and payment, automated collections and cash application, today announced its financial results for the three-month period ended March 31, 2019. "The first quarter was another record quarter, with total revenues growing 90% year-over-year to $1.95 million. The biggest driver of this was ARCTM which grew 175% year-over-year to $1.46 million," said Craig O'Neill, CEO of VersaPay. "Our recurring business (ARR) is approximately $6.56 million at the end of the quarter with ARCTM representing approximately 70% of this figure. This is significant because of the positive impact it has on our gross margins, which grew to 79% this quarter, up from 71% in Q1 2018." Mr. O'Neill continued, "Our subscription backlog and professional services backlog ended the quarter at $1.10 million and $0.47 million, respectively, with new subscription sales of $0.90 million and professional services sales of $0.31 million in the quarter. We will see the majority of this backlog translate to revenue in the coming one to two quarters." Operational Highlights for Q1:
Financial Highlights:
1 See further details on the new IFRS 16 – Leases accounting standard implementation in the Financial Highlights sections of the Q1 2019 Management Discussion & Analysis on SEDAR. The following is a reconciliation of Adjusted EBITDA to total comprehensive (loss) income:
The term Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") 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 before interest, taxes, depreciation and amortization and adjusted for the effect of non-operating expenses (including M&A and non-recurring restructuring activities), share-based compensation (which includes share-based payments, restricted share units, performance share units, and deferred share units), and unusual items such as discontinued operations and sales tax accrual. 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 Annualized Recurring Revenue ("ARR") is a non-IFRS measure and refers to multiplying the MRR value defined above by 12 to represent management's best estimate of forward looking 12 months of recurring revenues that the Company would earn based on the current Monthly Recurring Revenue The term Operating Expense is the aggregation of general and administrative expenses, research and development expenses, and sales and marketing expenses. The term Backlog for ARCTM Subscriptions represents the annual recurring amount that customers have contractually committed to but have not yet been billed. The term Backlog for ARCTM Professional Services represents revenue expected to be recognized in the future related to contracted non-recurring implementation services that are yet to be performed. Conference Call Details: Date: Thursday, May 23rd, 2019 Participant Dial-in Numbers: Recording Playback Numbers: 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 ARCTM 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. View original content to download multimedia:http://www.prnewswire.com/news-releases/versapay-announces-q1-2019-financial-results-300855531.html SOURCE VersaPay Corporation |