Growth in billings from enterprise customers are leading the blockchain technology company to break even by fiscal year end.
Boardwalktech (TSXV:BWLK), an enterprise blockchain technology company announced an 80 percent increase in recurring licenses compared to the same time last year. With a 13 percent year-over-year increase in revenues to US$1.24 million, Boardwalktech reported a 86 percent gross margin and negative US$600,000 in adjusted earnings before interest, tax, depreciation and amortization.
As quoted in the press release:
“The first half of fiscal year 2020 has shown significant growth in our annual recurring revenue base which now totals $3.9 million,” said Andrew T. Duncan, Chief Executive Officer. “Our focus for the remainder the year is to achieve our goal of hitting profitability by fiscal year end through the combination of accelerating our pipeline to add new enterprise clients onto the Boardwalktech platform and recognizing the operational leverage that comes with a strong recurring revenue base.
Mr. Duncan continued, “As a result of adding the Company’s first direct sales force during the Summer of 2018, we saw an 80% increase in recurring license billings year-to-date versus the comparable six-month period last year, which will be fully recognized as revenue over the life of those contracts. We believe the continuing growth in bookings and billings demonstrates the value and strong ROI of the Boardwalktech software platform being implemented by some of the largest global enterprises. As well, we continue to implement specific cost savings actions that have accelerated the decline in our cash burn rate as revenues grow and with our current trajectory and pipeline, believe we can achieve break-even towards the end of this year.”