Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) has said it expects to report record revenue for the second quarter (Q2) of 2022, exceeding the previous record of $4.7 million achieved in the fourth quarter of fiscal 2021, boosted by a diversified customer base and robust demand for its products and services.
The company said its business has not been hindered by macroeconomic challenges such as high inflation, rising interest rates and supply chain disruptions that have affected other industries around the world.
Wishpond posted higher monthly recurring revenue (MRR) for April, May and June compared to the same months in the first quarter of 2022, and said it has continued to experience similar growth in July.
Based on the revenue achieved in June, the company’s annualized revenue run-rate (ARR) now exceeds $20 million for the first time in its history, Wishpond added.
READ: Wishpond Technologies launches new website builder product
"We are thrilled with our preliminary results for the second quarter of 2022,” Wishpond chairman and CEO Ali Tajskandar said in a statement. “Our sales pipeline remains robust and our revenue growth shows tremendous resilience despite the uncertain economic environment. The success we are achieving indicates that our products and services are valuable tools for our customers, which they need to generate leads and sales, especially when operating in an uncertain business environment."
“Furthermore, I am happy to note that Wishpond expects to be cash-flow positive in the second half of the year as a result of the growth we have experienced as well as the cost-saving initiatives that we have implemented," he added.
Wishpond said it renewed its focus on integrating its acquisitions during the second quarter and implemented a number of cost-saving initiatives and operational efficiencies designed to conserve cash.
As a result, the company expects to realize more than $1.0 million in cost savings over the next 12 months.
"The management team spent a considerable amount of time on operational and efficiency reviews during the quarter and we are very happy with the results of these efforts," Wishpond CFO David Pais said.
"The company is committed to a laser focus on realizing cost efficiencies while it keeps one foot on the pedal of its sales generation engine. Our financial success is predicated on doing more with less. We expect to maintain our sales growth even while we run the business cost effectively. We believe that these two objectives are not mutually exclusive," he added.
Wishpond said it remains on track to implement several planned product and feature enhancements, including a new website builder product announced recently. It also previously announced improvements to its native advertising platform and its new email marketing platform.
Gartner award
Wishpond also announced three new awards from Gartner, one of the world's most significant platforms for business software reviews and research, including retaining its position as the leading marketing software solution across various categories.
The two other recognitions were for the GetApp Category Leaders Award for content marketing, which it described as a major achievement to be recognised as one of the most popular and highest-rated content marketing platforms available, and the Software Advice Front Runners award.
“These badges show that Wishpond is a powerful and well-trusted software solution for small businesses. Gartner is a premier company with an excellent reputation for picking winners, and Wishpond's recognition and success on this platform reveals just how much value the software provides its clients,” the company added.
Wishpond CEO Ali Tajskandar and CFO David Pais will host a webinar to provide updates on the business on Thursday, July 21, 2022 at 2.00pm ET.
Registration details are here.
Wishpond, a digital marketing solutions provider, hopes to empower entrepreneurs to achieve success online by offering them marketing, promotion, lead generation, and sales conversion capabilities on one integrated platform. Wishpond replaces disparate marketing solutions with an easy-to-use product for a fraction of the cost. It serves over 3,700 customers who are primarily small and medium-sized businesses in a variety of industries.
Contact the author at jon.hopkins@proactiveinvestors.com