Katipult Technology Corp. (TSXV: FUND) ("Katipult" or the "Corporation"), provider of an industry leading and award-winning cloud-based software infrastructure for powering the exchange of capital in equity and debt markets, is pleased to announce its financial results for the three and six months ended June 30, 2020.
Q2 Summary
|
2020 |
2019 |
2018 |
||||||
|
($ Cdn thousands) |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
|
Subscription revenue |
329 |
329 |
329 |
365 |
307 |
303 |
251 |
188 |
|
Integration revenue |
- |
31 |
53 |
22 |
77 |
160 |
24 |
122 |
|
Total revenue |
329 |
360 |
382 |
387 |
384 |
463 |
275 |
310 |
|
Gross profit |
253 |
295 |
312 |
311 |
306 |
377 |
201 |
229 |
|
Gross profit - percentage |
76.9% |
81.9% |
81.7% |
80.4% |
79.7% |
81.4% |
73.1% |
73.9% |
|
Selling, general, and administrative |
495 |
517 |
509 |
438 |
447 |
494 |
569 |
463 |
|
Research and development |
219 |
182 |
161 |
190 |
212 |
254 |
257 |
222 |
|
Adjusted EBITDA |
(325) |
(267) |
(219) |
(242) |
(224) |
(238) |
(511) |
(471) |
|
Net income (loss) and comprehensive income (loss) |
(620) |
(728) |
709 |
(353) |
(343) |
(707) |
(520) |
(596) |
- Subscription revenue remained flat quarter over quarter but increased by 7.2% when compared to the same quarter last year.
- Integration revenue was zero during the quarter as the Corporation continues to move away from one-time revenue pricing models to higher on-going recurring revenue models with enterprise customers
- One of the Corporation's key metrics is Monthly Recurring Revenue (MRR). The focus of the management of the Corporation is to grow the MRR through targeting more established customers. Management expects this strategy to generate higher per customer recurring revenue and reduce the current number of smaller customers. The MRR as at June 30, 2020 is $110K. The Corporation had no additional MRR or loss in MRR during the quarter.
- Gross profit as a percentage of sales ("Gross Margin") was lower due to lower integration revenue partially offset by lower expenses related to cost of revenue. Gross Margin has remained above 70% for the last 10 quarters.
- EBITDA was lower quarter over quarter and year over year largely due to lower integration revenue and margins and higher personnel costs on a year over year basis.
- Cash, cash equivalents and marketable securities balance as at June 30, 2020 was $1.3 million compared to $1.9 million as at December 31, 2019.
"We continue to successfully execute on our plan to move up market as enterprise customers recognize the value of our product offering." said Gord Breese, President and CEO.
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.
