Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) has said it is optimistic about the outlook for 2022 after it published annual results for 2021, revealing a doubling of revenue in the final quarter of the year.
"2021 was a monumental year for Wishpond, as we accomplished record financial results in our first full year as a public company on the TSX Venture Exchange,” Ali Tajskander, Wishpond's chairman and CEO said in a statement.
Revenue reached a record $14.76 million in the year to December 31, 2021, a rise of 87% on the previous year, driven by an increase in sales and marketing activities, new product introductions and acquisitions. Adjusted EBITDA totaled $56,389.
READ: Wishpond Technologies says its Winback business is performing better than expected
Fourth-quarter revenue soared 107% to $4.66 million from $2.25 million in the same three-month period in 2020, boosted by seasonality in Wishpond's acquired businesses and an increase in the company's sales team earlier in the year.
The company achieved record adjusted EBITDA of $490,873 in the fourth quarter compared to $121,151 in Q4 2020. It reported positive cash flow from operations of $598,977 during the quarter.
Wishpond had $6.24 million in cash and no debt as at December 31, 2021.
“We set an aggressive pace in the first quarter of 2021 that we maintained throughout the year with organic and inorganic growth culminating in a record fourth quarter as well as record revenue for the year. I am also very pleased with our financial performance in the fourth quarter 2021, in which we achieved record revenue and adjusted EBITDA with 107% revenue growth compared to the fourth quarter of 2020," said Tajskander.
Commenting on the company’s recent acquisitions, he added: "Including the acquisition of Viral Loops, completed on April 1, 2022, we've now done five acquisitions since going public in December 2020. I am also happy to report that the integration of Winback, acquired on December 31, 2021, has been completed and Winback's customer growth is accelerating.
“Meanwhile, the Viral Loops integration is proceeding on schedule and we are already witnessing cross sell opportunities for offering referral marketing solutions to Wishpond's existing customer base. Our acquisition growth strategy is working nicely and it complements the company's organic growth."
The company struck an upbeat note on the outlook for 2022, predicting “healthy” year-over-year revenue growth and with adjusted EBITDA expected to exceed 2021 results.
Revenue and earnings growth is forecast to accelerate in the second half of year following the integration of recent acquisitions, an expansion in the sales team and an increase in the amount of cross-selling opportunities between products and solutions offered across product lines.
Wishpond expects an increase in its customer base and monthly recurring revenue (MRR) through organic growth and inorganic acquisitions and said it continued to invest in sales and marketing activities and operations in the first quarter of this year in order to support the organic growth anticipated in 2022.
"We are very optimistic of our outlook for the remainder of 2022," said David Pais, Wishpond's chief financial officer. "We closed Q4-2021 with the acquisition of Winback and closed Q1-2022 with the acquisition of Viral Loops, thereby ensuring strong momentum for the rest of the year. We have a strong balance sheet that enables us to continue investing in the business. We expect to achieve new record highs for revenue and adjusted EBITDA in 2022."
Contact the author at jon.hopkins@proactiveinvestors.com