Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) reported a surge in its second quarter Adjusted EBITDA driven by effective cost management and the strong growth potential of its new AI-powered sales agent.
The provider of marketing-focused online business solutions achieved an Adjusted EBITDA of $0.5 million, marking a 151% rise compared to the same period in 2023.
The quarter ended June 30, 2024 represents the eighth consecutive quarter of positive Adjusted EBITDA for Wishpond, the company said in a statement.
Wishpond's revenue for Q2 2024 reached $5.83 million, a 3% increase year-over-year, driven by stronger product demand and new product launches. The company's gross profit also grew by 7% to $3.94 million, with a gross margin improvement from 65% to 68%.
CEO Ali Tajskandar highlighted the launch of Wishpond's new flagship product, SalesCloser AI, during the quarter. The AI-powered virtual sales agent is designed to conduct sales calls and product demonstrations autonomously, targeting various industries.
“Our dedicated efforts in cost reductions, coupled with improvements in various business operations have driven significant efficiencies, resulting in an improvement in our Adjusted EBITDA and cash flows,” Tajskandar said.
“Furthermore, we expect margins to continue trending upwards as adoption of our Propel IQ platform grows, and we begin ramping up sales of our new SalesCloser solution.”
Tajskandar emphasized the potential of SalesCloser AI to drive new growth for the company in 2025 and noted that Wishpond will soon implement the technology internally for lead generation and sales development.
Adrian Lim, Wishpond's newly appointed CFO, also expressed optimism about the company's improved cost structure and cash flow outlook for the remainder of 2024, with major annual expenses largely behind them.
Looking ahead, Wishpond said it expects to achieve record revenue and Adjusted EBITDA for 2024, bolstered by the increasing adoption of its Propel IQ platform and the ramp-up of SalesCloser AI sales.