Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) announced its financial results for Q3 2024, achieving adjusted EBITDA of $0.6 million, a 79% increase compared to Q3 2023.
The marketing solutions provider also reported its highest level of profitability since 2022, marked by an adjusted EBITDA margin of 11%.
The company attributed this achievement to its cost optimization and the restructuring of its sales team.
“Achieving double-digit EBITDA margin is a rare accomplishment for a software company of our size, and I am incredibly proud of our team for reaching this significant milestone,” Wishpond CEO Ali Tajskandar commented.
“Our dedication to reducing costs and driving greater efficiencies throughout our business has led to substantial improvements in both profitability and cash flow.”
Revenue for the quarter totaled $5.06 million, a year-over-year decrease from $5.76 million which was attributed to reduced spending by a legacy customer and a sales team transition.
However, Wishpond noted that these shifts enabled a focus on higher-margin activities, leading to an improved gross margin of 69%, up from 66% in the year-ago quarter.
Gross profit was $3.49 million, compared to $3.83 million in Q3 2023.
Looking ahead, the company expects to improve its adjusted EBITDA as it expands the utilization of its virtual sales agent SalesCloser into its sales processes.
SalesCloser is also expected to grow Wishpond’s internal sales capacity, reduce hiring costs and further improve margins and profitability.
"Wishpond is making exciting strides with its new flagship product, SalesCloser AI, a revolutionary virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos,” Tajskandar commented.
“We are actively exploring new sales outreach programs and potential channel partnerships to expand SalesCloser's reach, unlock new customer opportunities, and drive broader adoption of the platform.”
Adrian Lim, Wishpond CFO, added: “We expect our gross margins to continue trending upwards as adoption of Propel IQ grows, and we begin ramping up sales of our new SalesCloser solution."