Wishpond Technologies Ltd. (TSX-V:WISH, OTCQX:WPNDF) has announced record revenue of $5,007,343 for the second quarter ended June 30, 2022, a 55% increase from a year ago, on the back of an expanded sales team, new product introductions and acquisitions.
The marketing-focused online business solutions provider also revealed that it has returned to net positive cash from operating activities of $81,354 for the second quarter, compared to a loss of $801,512 in the same quarter a year ago.
"We are very pleased with our second quarter results, which proved to be the strongest quarter in the company's history, with 55% year-over-year growth compared to the same period last year,” Wishpond chairman and CEO Ali Tajskandar said in a results statement. “I am particularly proud of having achieved a significant milestone of $20 million annualized revenue run-rate.”
READ: Wishpond is on pace to deliver organic revenue growth over coming quarters
“Thus far, we have not noticed any slowing down in the demand for our products. In addition, Wishpond also achieved positive cash flow from operations in the second quarter. Our outlook continues to look promising for the second half of the year with increasing sales, improving margins, and positive cash flows. Our sales pipeline remains robust and our revenue growth shows tremendous resilience despite the current uncertain economic environment," he added.
Wishpond said it achieved gross profit of $3,360,715 in the three months ended June 30, 2022, compared to $2,238,143 in Q2 2021, representing a 50% increase, driven by an increase in overall revenue.
Gross margin was 67% in Q2 2022, within the historical range of 65% to 70%, against 69% in Q2 2021.
The company recorded an operating loss of $658,712 in Q2 2022, compared to $1,093,556 in Q2 2021, reflecting continued investment in sales and lead generation, as well as in product development.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was negative $192,196 from negative $320,027 in Q2 2021, with the improvement driven primarily by higher revenue and recent cost-saving initiatives and operational efficiencies, the company said, adding that these measures are expected to result in more than $1.0 million in annual cost savings.
Wishpond had $2,484,878 in cash and no debt as of June 30, 2022 and the company’s $6,000,000 credit facility with a major Canadian bank remains undrawn and is fully available.
No need for additional equity or debt
Looking ahead, Wishpond expects to achieve record revenue and cash flows in the second half of the year, driven by increased capacity in the company's sales team, positive contributions from its acquisitions and new product-related revenues.
It said revenue and earnings growth are expected to continue in the second half of 2022 with the integration of its recent acquisitions, and an increase in cross-selling opportunities between products and solutions offered across all of its product lines.
In line with the company's focus on profitable growth, Wishpond is scrutinizing all discretionary expenditures across the organization, with the intent of optimizing operations and achieving cost-saving synergies.
It has a clean balance sheet and is able to continue to fund the growth of its sales team and new product launches from cash flows from operations, without having to raise any additional equity or debt capital.
Wishpond CFO David Pais commented: "Wishpond is in a very strong financial position with a strong balance sheet, improving cash flows and solid performance across its businesses. We are very pleased with the integrations of our most recent acquisitions, Winback and Viral Loops.
“Furthermore, we are very pleased with our laser focus on realizing cost efficiencies while maintaining our impressive revenue growth. We look forward to delivering our results and performance in the coming quarters," he added.
Wishpond will host a webinar conference call to discuss its Q2 2022 results today at 1.00pm ET. Register here for the webinar.
-- Updated for cash flow figures --
Contact the author at jon.hopkins@proactiveinvestors.com