iPass Inc (NASDAQGS:IPAS), a leading provider of mobile connectivity reported total revenue of $11.4 million and a GAAP net loss of $4 million. The company said that it had an adjusted EBITDA loss of $3.4 million for the quarter ended March 31, 2018. As quoted in the press release: “As you know, since joining iPass, … Continued
iPass Inc (NASDAQGS:IPAS), a leading provider of mobile connectivity reported total revenue of $11.4 million and a GAAP net loss of $4 million.
The company said that it had an adjusted EBITDA loss of $3.4 million for the quarter ended March 31, 2018.
As quoted in the press release:
“As you know, since joining iPass, we’ve been on a mission to transform our business to software and technology,” said Gary Griffiths, iPass president and CEO. “Today, we’re announcing a multimillion-dollar license for iPass SmartConnect software, which marks a milestone on this journey, while providing cash and bolstering the balance sheet. Last quarter we emphasized the importance of achieving positive cash flow, and we remain committed to that goal. To that end, we’ve made significant progress lowering our Network Access Costs (“NAC”), which we expect to be about $10 million lower this year than in 2017. In addition, while operating expenses have already been reduced dramatically from pre-2016 levels, we have continued to lower expenses and have lowered our quarterly break-even revenue point to less than $15 million. So with cost and expense significantly better than last year, and deals like the one announced today in the pipeline, all focus is on getting back to revenue growth. And we believe we have access to sufficient cash to meet these goals.”
- Revenue of $11.4 million in Q1’18 as closing Veri-Fi™ business was slower than expected on global General Data Protection Regulation (“GDPR”) concerns ahead of the May 25, 2018 enactment in the European Union.
- Net Annual Contract Value (“ACV”), defined as the annualized sales value under committed contract for newly acquired or significant upsell customers signed, in Q1’18 totaled $1.6 million compared to $1.2 million in Q4’17 and $0.9 million in Q3’17.
- Customer Churn, defined as the annualized impact on revenue, based on the prior quarter run-rate, of any customer that terminates or has write-down of committed contract value, was $1.5 million in Q1’18 compared to $1.0 million in Q4’17 and $1.1 million in Q3’17.
- Network Access Cost (“NAC”) was $6.8 million in Q1’18, down from $9.1 million in Q4’17 and $10.3 million in Q3’17, with no adverse impact on the usage capacity under contract.
- Capital Raise was $0.5 million in the quarter from the common stock purchase agreement signed in November 2017, leaving capacity of $8.3 million available. In April 2018, we raised an additional $0.8 million under this facility, bringing the total raised to $2.5 million since inception in November 2017.
- Nasdaq Delisting Extension Granted on May 7, 2018, to regain compliance with the previously received Nasdaq delisting notice. We will transfer from the Nasdaq Global Market to the Nasdaq Capital Market and continue to remediate our bid price and market capitalization deficiencies in accordance with the plan we presented to Nasdaq in April 2018.
“We continue to aggressively pursue opportunities to strengthen our balance sheet, including cash-rich, non-dilutive deals like the one we announced today,” continued Griffiths. “Our investment in iPass SmartConnect has opened up large markets in the enterprise space, allowing management insight, understanding, and control of their mobile workforce, while providing to mobile operators, and those that depend on them, intelligent management of global connectivity with access to low-cost, secure, and reliable networks to relieve constrained cellular capacity. And given the emerging reality of the expected costs of 5G deployments, the value of iPass SmartConnect will be even more apparent.”