Wishpond Achieves 90% Revenue Growth and Record Revenue in Third Quarter 2021

  • Q3-2021 revenue growth driven by Wishpond’s expanded sales team, new product introductions and the Company’s acquisitions.
  • Wishpond returned to Adjusted EBITDA positive in Q3-2021.
  • The Company now exceeds $16M in annualized revenue run-rate

VANCOUVER, BC, Nov. 25, 2021 /PRNewswire/ – Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the “Company” or “Wishpond“), a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements (the “Interim Financial Statements“) and management’s discussion and analysis (“MD&A“) for Q3-2021, representing the three and nine months ended September 30, 2021. Copies of the Interim Financial Statements and MD&A are available on the Company’s profile on SEDAR at www.sedar.com.

“Third quarter 2021 was an outstanding quarter for Wishpond which demonstrated that our organic and inorganic growth strategy is working,” commented Ali Tajskandar, Wishpond’s Chairman and CEO. “Wishpond’s revenue in Q3 increased by 90% YoY driven by the success of our expanded sales team, new product introductions and the acquisitions of Invigo, PersistIQ and Brax. We are also very pleased to return to positive Adjusted EBITDA in the third quarter of 2021. In the first half of the year, we made investments in our product development and sales teams, which are now paying off for the Company, as we are now exceeding $16M in annualized revenue run-rate.”

Ali Tajskandar adds, “The Invigo, PersistIQ and Brax acquisitions have broadened our product portfolio and proven to be accretive to Wishpond’s financial profile. We are beginning to witness the synergistic benefits of our acquisitions through cross selling the Company’s products and services across the different parts of the growing organization. We continue to have a robust pipeline of potential acquisition opportunities and a strong balance sheet with an undrawn credit facility providing the Company with ample cash to continue to execute on our inorganic growth strategy.”

Third Quarter 2021 Financial Highlights:

  • Wishpond achieved record quarterly revenue of $3,976,965 during Q3-2021, an increase of 90% compared to revenue of $2,095,933 generated in Q3-2020. The increase in revenue was primarily driven by higher organic growth from the Company’s incremental investment in its sales team and inorganic growth from the positive contribution of its acquisitions. Wishpond generated 73% of its revenue in the United States, where the Company’s growth remained remarkably strong with 104% year-over-year revenue growth in the US market.
  • Wishpond achieved Gross profit(1) of $2,760,709, representing an 82% increase from Q3-2020, driven by an increase in overall revenue. Wishpond achieved a Gross margin(1) percentage of 69% during Q3-2021, compared to 72% during Q3-2020. The Gross margin(1) achieved for Q3-2021 was within the historical range of 65% to 70%.
  • During Q3-2021, Wishpond had Adjusted EBITDA(1) of $204,322 compared to Adjusted EBITDA(1) of $175,653 in Q3-2020. The increase in Adjusted EBITDA is attributable to an increase in revenue from Wishpond and it’s newly acquired subsidiaries, Invigo, PersistIQ, and Brax.
  • As at September 30, 2021, Wishpond had $7,758,720 in cash and no long-term debt.
  • As of September 30, 2021, the Company had 51,835,687 common shares issued and outstanding.

Third Quarter 2021 Business Highlights:

  • On September 29, 2021, the Company entered into a new credit facility agreement with National Bank of Canada’s Technology and Innovation Banking Group for a $6 million dollar secured revolving operating line. The credit facility remains undrawn as of today’s date.
  • On August 31, 2021, the Company completed the acquisition of certain assets and specific liabilities of AtlasMind Inc., doing business as Brax.io (“Brax“). Brax is a rapidly growing and profitable Software-as-a-Service business that offers a robust advertising platform for the management of a company’s digital ads across multiple sources and is expected to be immediately accretive to Wishpond.
  • On July 14, 2021, the Company announced that the Depository Trust Company (“DTC“) has made Wishpond common shares eligible for electronic deposit at DTC. The Company believes that the opportunity to clear and settle trades in its common shares on the OTCQX should provide a more seamless experience for its U.S. shareholders.

Events Subsequent to September 30, 2021:

  • On October 21, 2021, Wishpond launched its new integration of Zoom with Wishpond Appointments, and the availability of the Wishpond Zoom App in the Zoom App Marketplace. Wishpond Appointments now connects seamlessly with Zoom allowing Wishpond’s customers to easily create virtual meetings for their next business call, customer meeting, or consultation.

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