Calgary, August 19, 2022 - 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 -month period ended June 30, 2022.
"We experienced modest revenue growth in the quarter as private capital deal activity slowed significantly from the previous period,” said Gord Breese, Katipult CEO. “Katipult’s workflow automation and productivity tools for managing deals is exactly the productivity advantage our customers rely on to navigate these periods of significant volatility.”
The following provides a summary of the results for the second quarter of 2022. The full results and related management discussion and analysis are available on the Corporation's SEDAR profile (www.sedar.com).
Q2 2022 Summary
Revenue
Subscription revenue increased 7.1% from $409K recognized in the second quarter of 2021 to $438K in the second quarter of 2022.
Gross Profit
Gross Profit percentage was 77.1% in the first quarter of 2022. The Corporation has been able to consistently maintain a gross profit percentage of over 70%.
Adjusted EBITDA (1)
Adjusted EBITDA losses decreased to $316K in three-month ended June 30, 2022, due mostly to an increase in subscription revenue offset by an increase in salaries, subcontractors, and benefits expenditures - as the Corporation invests in key employees.
Net loss and comprehensive loss
Net loss and comprehensive loss increased to $502K in the second quarter of 2022. The increased loss is due to the above noted higher expenditures in addition to a change in the non-cash fair value the Corporation’s outstanding 2018 Debentures, and higher finance costs from the accretion of the 2021 Debenture.
Cash and cash equivalents
As at June 30, 2022, the Corporation had a cash and cash equivalents and marketable securities balance of $1.9 million, Working Capital of $1.2 million, and total assets of $2.1 million.
