Wishpond Technologies Ltd, a provider of marketing-focused online business solutions, posted interim third-quarter results that saw its revenue jump 38% year-over-year on the back of sales and product integrations from its acquisitions.
For the period ended September 30, 2022, the Vancouver, British Columbia-based marketing technology solutions company, reported revenue of $5,483,256, compared to revenue of $3,976,965 in 3Q 2021.
Wishpond chalked up the revenue increase to the company's “expanded sales team and product integrations from its acquisitions.”
READ: Wishpond Technologies highlights growth after acquiring Viral Loops Technologies
The company achieved a gross profit of $3,629,111, compared to $2,760,709 in the same period a year earlier. Wishpond’s gross margin also expanded by 66%.
During the quarter, Wishpond’s positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to $593,047, a 190% increase from an adjusted EBIDTA of $204,322 in 3Q 2021.
Wishpond said the improvement was driven by “higher revenue, cost management initiatives, and operational efficiencies” initiated earlier in the year, which is expected to result in over $1 million in annual cost savings.
During the quarter, Wishpond had a positive cash flow from operating activities of $670,595, compared to a negative $134,219 cash flow in 3Q 2021.
As of September 30, 2022, Wishpond had $2.70 million in cash and short-term investments and no debt. The company said cash balances have “held steady” despite a quarterly cash earnout payment to Viral Loops in the 3Q and continued investment in the business.
Wishpond enjoys a credit facility with a major Canadian bank for $6 million, which remains undrawn, said the company.
In a statement accompanying the numbers, Wishpond Technologies CEO Ali Tajskandar said: "We are thrilled with our 3Q quarter results which were the strongest in the company's history with record revenue and adjusted EBITDA. I am especially proud of the cash flow performance with the company generating $0.7 million of positive cash flows from operations. As part of a cost reduction initiative launched in 2Q 2022, Wishpond continued to scrutinize all new expenditures with the intent to optimize operations and achieve cost-saving synergies.”
“Wishpond has now achieved positive cash flows from operations for the second quarter in a row, a tremendous accomplishment allowing the business to further strengthen its balance sheet,” he added.
As a result, Tajskandar said he expected Wishpond to have the “flexibility” to continue to invest in growth initiatives without the need to go to the market to raise additional capital.
Rosy outlook
The management said Wishpond's outlook for the year and heading into 2023 remains “strong and resilient.” The firm hasn’t felt any impact from swirling inflation, supply chain, and other macroeconomic factors.
"We continue to experience increasing demand for our products and have not witnessed any slowing down or negative impacts due to external macroeconomic conditions,” said Tajskandar. “Our outlook remains positive as we head into 2023 with increasing sales, positive adjusted EBITDA, and positive cash flows. We expect to grow rapidly as our sales pipeline remains robust and we begin to introduce bundled solutions to our customers."
Wishpond CFO David Pais said Wishpond remains in an “extremely strong financial position” with a “clean and healthy balance sheet.”
“Based on the company's performance thus far, we are expecting very strong results in 4Q 2022, and we look forward to sharing those results in the new year," added Pais.
Business highlights
In July this year, Wishpond launched its all-new website builder product that includes lead tracking and segmentation tools, personalization abilities, advanced forms and pop-ups, integration with Wishpond's email marketing tool, referral marketing, calendar functionality, popups, and more. The website builder is expected to increase customer retention, reduce churn, and increase customer satisfaction, said the company.
Wishpond has recently completed the integration of its recently acquired subsidiary Viral Loops, resulting in improved growth in the combined businesses due to greater cross-selling and bundling opportunities with larger deal sizes.
Wishpond will be hosting a webinar conference call to discuss its results at 10:00 am (PST) and 1:00 pm (EST).
To register, please use this click here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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