Wishpond Achieves Record Revenue in Q2-2022, Exceeding $20 Million Annualized Revenue Run-Rate

• Wishpond attained 55% year-over-year revenue growth in Q2-2022 with revenue of $5.0 million, driven by Wishpond’s expanded sales team, new product introductions and successfully integrated acquisitions.

• The Company achieved positive cash flow from operating activities in Q2-2022.

• Outlook continues to look strong with increasing demand for Wishpond’s products from SMB customers.

Wishpond Technologies Ltd., 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 (the “MD&A“) for Q2-2022, representing the three and six months ended June 30, 2022.

Ali Tajskandar, Wishpond’s Chairman and CEO commented, “We are very pleased with our second quarter results which proved to be the strongest quarter in the Company’s history with 55% year-over-year growth compared to the same period last year. I am particularly proud of having achieved a significant milestone of $20 million annualized revenue run-rate⁽¹⁾. Thus far, we have not noticed any slowing down in the demand for our products. In addition, Wishpond also achieved positive cash flow from operations in the second quarter. Our outlook continues to look promising for the second half of the year with increasing sales, improving margins, and positive cash flows. Our sales pipeline remains robust and our revenue growth shows tremendous resilience despite the current uncertain economic environment.”

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• Wishpond achieved record quarterly revenue of $5,007,343 during Q2-2022, a 55% increase compared to revenue of $3,226,877 generated in the same period of 2021 (Q2-2021). The increase in revenue is attributable to the Company’s expanded sales team, new product introductions and acquisitions. Wishpond exceeded $20 million annualized revenue run-rate⁽¹⁾ for the first time in Q2-2022.
• Wishpond achieved gross profit⁽¹⁾ of $3,360,715 in Q2-2022 compared to $2,238,143 in Q2-2021, representing a 50% increase from Q2-2021, driven by an increase in overall revenue. Wishpond achieved a gross margin⁽¹⁾ of 67% in Q2-2022 (69% in Q2-2021). The gross margin⁽¹⁾ achieved in Q2-2022 is within the historical range of 65% to 70%.
• Wishpond recorded an operating loss of $658,712 in Q2-2022 ($1,093,556 in Q2-2021). The operating loss reflects continued investment in sales and lead generation, as well as in product development.
• In Q2-2022, Wishpond had negative Adjusted EBITDA⁽¹⁾ of $192,196 (negative $320,027 in Q2-2021). The improvement is primarily driven by higher revenue and recent cost saving initiatives and operational efficiencies achieved in the latter half of Q2-2022 which will result in more than $1.0 million in annual cost savings.
• In Q2-2022, Wishpond returned to net positive cash provided by operating activities of $81,354 (negative $801,512 in Q2-2021).
• As at June 30, 2022, Wishpond had $2,484,878 in cash and no debt (March 31, 2022: cash of $4,487,151 and no debt). The reduction in cash was primarily driven by an upfront cash payment of $1,726,646 for the acquisition of Viral Loops Limited (“Viral Loops“) on April 1, 2022, related transaction fees and continued investment in the business. The Company has a credit facility with a major Canadian bank for $6,000,000. As at June 30, 2022, the credit facility remained undrawn and was fully available to the Company.

On April 1, 2022, the Company completed the acquisition of certain assets and specific liabilities of Viral Loops Ltd. Viral Loops is a Software-as-a-Service (“SaaS“) company which helps its customers design, create and manage campaigns that result in higher referral visits and revenue for their eCommerce merchants. In consideration for the Viral Loops acquisition, Wishpond provided a cash payment of US$1,380,000 and a one-year performance earn-out that may be paid in cash or by the issuance of the Company’s Shares, at the sole discretion of the Company. The one-year earn-out will be based on the projected revenue of the business and is payable on a quarterly basis.

On April 20, 2022, the Company announced that the number of Winback’s customer installations had increased by over 50%, including more than 180 Wishpond clients who are trialing the platform under promotional pricing plans. Wishpond also developed and launched new innovative features to the Winback platform over the last quarter.

On June 15, 2022, the Company announced that the renewal of its Notice of an Intention to make a Normal Course Issuer Bid (“NCIB“) was approved by the TSX Venture Exchange. Under the renewed NCIB, the Company may, during the 12-month period commencing June 20, 2022 and ending June 19, 2023, purchase up to 2,613,316 Shares in total, being 5% of the total number of 52,266,332 Shares outstanding as at June 3, 2022. During the quarter ended June 30, 2022, the Company did not purchase any common shares under the NCIB (Q1-2022: 130,100 shares for aggregate consideration of $157,265).

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• On July 12, 2022, the Company announced the launch of an all-new Website Builder product that includes lead tracking and segmentation tools, personalization abilities, advanced forms and pop-ups, integration with Wishpond’s email marketing tool, referral marketing, calendar functionality, pop-ups, and more. Every element of this ground-breaking Website Builder has been designed to help businesses generate leads and sales. The Website Builder is expected to increase customer retention, reduce churn, and increase customer satisfaction.
• On July 20, 2022, the Company announced its annualized revenue run-rate⁽¹⁾ exceeded $20 million for the first time in the Company’s history.  Also on the same date, the Company announced its cost saving initiatives and operational efficiencies resulted in the Company expecting to realize more than $1.0 million in cost savings over the course of the next twelve months.

In line with the Company’s focus on profitable growth, Wishpond is scrutinizing all discretionary expenditures across the organization, with the intent of optimizing operations and achieving cost-saving synergies. The Company has a clean balance sheet and is able to continue to fund the growth of its sales team and new product launches from cash flows from operations, without having to raise any additional equity or debt capital.

David Pais, Wishpond’s Chief Financial Officer commented, “Wishpond is in a very strong financial position with a strong balance sheet, improving cash flows and solid performance across its businesses.  We are very pleased with the integrations of our most recent acquisitions, Winback and Viral Loops. Furthermore, we are very pleased with our laser focus on realizing cost efficiencies while maintaining our impressive revenue growth. We look forward to delivering our results and performance in the coming quarters.”