Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) reported a year-over-year jump in revenue and profits for the first quarter driven by increased sales of its all-in-one marketing platform Propel IQ.
Revenue for the quarter came in at $6.1 million, representing an annualized revenue run-rate of more than $24 million. This marked an 8% increase from the same period in 2023 where revenue was $5.6 million.
Gross profit increased 12% to $4.1 million from $3.7 million at an improved gross margin percentage of 68%, compared to 66% in the year-ago quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $0.3 million, up 39% year-over-year, the company’s seventh quarter of adjusted profits.
“Despite the typical seasonal downturn expected in Q1 2024, I am pleased to report our revenues remained relatively stable in comparison to Q4 2023,” Wishpond CEO Ali Tajskandar commented.
“We maintained our consistency in achieving our seventh consecutive quarter of positive adjusted EBITDA. This improvement stems from the sustained momentum of our cost optimization initiatives initiated last year, coupled with the ongoing growth and profitability of Propel IQ.”
The company said it expects to see accelerated growth in the second half of 2024 driven by increased Propel IQ sales and the launch of its virtual AI sales agent SalesCloser AI in April, which can conduct sales calls and demonstrations in multiple languages.
“SalesCloser AI has generated immense interest within the industry, as we pioneer the future of sales calls and product demos through the use of artificial intelligence,” Tajskandar said.
“We're confident that SalesCloser AI will lead the charge in reshaping how companies engage with their stakeholders, heralding a new era of efficiency and effectiveness in sales processes. With the combination of our Propel IQ all-in-one marketing platform, and SalesCloser AI, Wishpond is poised for its next phase of growth."
The company’s cash position is expected to improve in the second half of 2024 as the result of higher revenues and as it has paid out all its earn-outs related to prior acquisitions, CFO David Pais highlighted.
“We look forward to reporting higher revenue growth, profitability for the remainder of 2024,” Pais said.