Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) told investors sales of Propel IQ are accelerating following a transition period as it launched the next-generation marketing platform and re-trained and re-structured its sales team to sell the new bundled product offering.
Announcing the company’s third-quarter results, founder and CEO Ali Tajskandar said while the transition has resulted in slower growth in 2023, Wishpond has now resumed the expansion of its sales team.
“Over the past two months, we averaged over 3% month-over-month growth in MRR (monthly recurring revenue) driven by increased sales of Propel IQ, which is also having an impact on increasing gross margins and lowering customer churn,” Tajskandar commented in a statement.
"In the third quarter, we continued our streak of achieving positive adjusted EBITDA for the fifth quarter in a row. Wishpond's cost optimization efforts over the past year have contributed to the company's continued positive adjusted EBITDA profile,” he added.
For the quarter ended September 30, 2023, Wishpoind grew revenue by 5.1% to $5.76 million driven by stronger product demand, an increase in sales and marketing activities, and new product introductions.
Adjusted EBITDA (underlying earnings) amounted to $319,001, compared to $593,047 in 3Q 2022.
The company generated positive cash flow from operations of $225,367, up from $208,054 a year earlier, and ended the period with $909,796 in cash and no debt.
Following the end of the quarter, Wishpoind highlighted the integration of its ad management platform Brax into Facebook. The integration will allow advertisers to leverage Brax to manage their advertising campaigns on the social media platform.
It said it expects to achieve record revenue and adjusted EBITDA in 2023, driven by organic growth from increasing sales of the Propel IQ bundled product, in addition to ramping up the size of its sales team and launching new AI-powered products.
“We maintain a positive outlook for the remainder of 2023 and look forward to next year with renewed optimism based on continued sales growth and improving cash flows,” Tajskandar concluded.
“In addition, Wishpond is leading the innovation and development of AI-powered marketing tools. We are garnering significant interest for our AI products including AI Website Builder, Braxy AI Ad Manager, Sales Email AI and the soon-to-be-launched SalesCloser AI.”
Vancouver, British Columbia-based Wishpond is a provider of marketing-focused online business solutions.
Contact the author at stephen.gunnion@proactiveinvestors.com