ProntoForms Reports Q1 2017 Financial Results

ProntoForms (TSXV:PFM) has announced its first quarter financial results for the three months ended March 31, 2017.
As quoted in the press release:

“Our direct channel delivered 41% year over year recurring revenue growth resulting in 12% growth in total recurring revenue over the comparable first quarter in 2017 and the direct channel now accounts for 62% of the quarterly recurring revenue,” said Alvaro Pombo, CEO of ProntoForms. “We also have strong operating leverage with a 91% gross margin on our recurring revenue and our strategy is to maintain the rapid growth of our direct channel with additional resources, and increasing lead flow provided by strategic partners.”

“Flexible workflows are core to any field automation initiative of any scale, and we are investing to maintain our leadership position in automating workflows, analytics, and cloud-to-cloud integrations,” Mr. Pombo continued. “The improvements to our platform increase the value of our solution to our growing customer base, and provide a growing list of tangible opportunities with leading application providers.”

Financial Highlights – 2017 First Quarter

• Recurring revenue in Q1 2017 increased by 12% to $2,864,607, compared to $2,567,697 in Q1 2016, and increased by 2% compared to $2,801,858 in Q4 2016. Recurring revenue consisted of non-operator channel recurring revenue of $1,771,839 (41% growth vs. Q1 2016 and 5% growth vs. Q4 2016) and operator channel recurring revenue of $1,092,768 (17% decrease vs. Q1 2016 and 2% decrease vs Q4 2016).
• Total revenue for Q1 2017 increased by 8% to $3,095,626, compared to $2,856,245 in Q1 2016, and grew by 2% compared to $3,023,213 in Q4 2016.
• Gross margin for Q1 2017 was 83% of total revenue compared to 81% in Q1 2016 and 83% in Q4 2016. Gross margin on recurring revenue was 91% for Q1 2017 compared to 89% for Q1 2016 and 89% in Q4 2016.
• Operating loss for Q1 2017 was $1,014,604, up from a loss of $898,878 in Q1 2016, and up from a loss of $913,754 in Q4 2016. The increase in operating loss from the prior year is attributed to a conscious approach to invest more in operational and sales productivity and product development.
• Net loss and comprehensive loss for Q1 2017 was $1,151,939, up from a net loss of $1,127,673 in Q1 2016, and $1,010,661 in Q4 2016.
• As at March 31, 2017, the Company’s cash and net working capital balances were $4,284,484 and $2,028,911 respectively.

Click here to read the full press release.