Wishpond Technologies Ltd saw its quarterly revenue grow by 41% year-over-year as new acquisitions, coupled with organic growth powered the online marketing solutions company to a strong first quarter in 2022.
For the three-month period ended March 31, 2022, the Vancouver-based firm posted revenue of $4.08 million, compared to $2.90 million in the same period last year.
In a statement, Wishpond attributed the growth to its “expanded sales team, new product introductions and acquisitions.”
READ: Wishpond Technologies announces record recurring revenue in April 2022 led by healthy organic growth
As a result, gross profit increased to $2.54 million versus $1.80 million in 1Q 2021, with gross margins remaining flat at 62%.
The firm reported an Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) loss of $440,519, compared to a loss of $318,779 in 1Q 2021, which it attributed to increased investments in sales and product development in preparation for strong growth anticipated in the second half of 2022.
CEO Ali Tajskandar told shareholders he was proud of the quarterly results.
“The first quarter results were driven by organic growth as well as contributions from the acquisitions we completed in 2021,” he said, adding that demand for the company's products remains robust.
Tajskandar assured investors that the company's growth has not been materially impacted by the significant supply chain disruptions, inflation and other macroeconomic challenges currently affecting other industries around the globe.
“Wishpond has a very diversified customer base of small (to) medium sized businesses and the demand for our products and services remains robust with organic growth over the past year largely due to investments we have made in our sales engine,” he said.
“I am particularly encouraged with the record monthly recurring revenue (MRR) we achieved in April after the slower months in the beginning of the year. Thus far in May, we are on track to exceed April's performance with another record high for MRR, which sets the stage for strong financial performance for the second quarter and the year ahead."
Wishpond recently closed its $1.38 million acquisition of Viral Loops, a Software-as-a-Service company which helps its customers design, create and manage campaigns that result in higher referral visits and revenue for their eCommerce merchants.
The firm ended the quarter with $4.49 million in cash.
Contact Angela at angela@proactiveinvestors.com
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