CALGARY,
AB, April 19, 2023 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or the
"Company), an industry leader in visualization and lead
generation technology for the home renovation and new construction
sector, announces its financial results for the fourth quarter and
fiscal year ended December 31, 2022.
The financial statements and related management's discussion and
analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Unless otherwise stated, all dollar amounts are Canadian
dollars.
Financial highlights for fiscal 2022:
- Annual revenues of $5,941,830, up
7% over the prior year's $5,553,379.
- Deferred Revenue of $1,413,786
for the year ended December 31, 2022
compared to $1,389,547 in 2021.
- Gross margin of 64% versus 63% in fiscal 2021.
- Net loss of $1,320,786 compared
to a net loss of $608,960 in fiscal
2021, as key investments were made into growth areas such as AI Gen
2, Renoworks Pro solution for contractors and the integration of
new features sets, which all should lead to growth in 2023.
- Cash at the end of the year was $704,080, down $485,266 from $1,189,346 at the end of fiscal 2021.
- As at December 31, 2022, the
Company had 40,662,635 common shares issued and outstanding.
Financial highlights for the fourth quarter of fiscal
2022:
- Quarterly revenue of $1,201,509
for the three months ended December 31,
2022 versus $1,258,956 in
2021.
- Gross margins continue to be strong at 62% and 62%,
respectively for the fourth quarters of 2022 and 2021.
- Net loss of $705,601 for the
quarter ended December 31, 2022
compared to a net loss of $360,626 in
2021.
"In 2022 we invested in the areas of our business that we feel
will drive future growth for Renoworks, while also significantly
improving our customer's outcomes," said Doug Vickerson, CEO of Renoworks. "To address
these opportunities, investments in personnel were established
early in the year and contributed to technology advancements across
our platform. These investments have led to our recently
deployed AI Gen 2, CostCertified estimation integration, refreshed
Renoworks Pro solution for contractors and several other
partnerships that were added in 2022, which should all pay off in
2023 and beyond. In summary, the Company made significant
investments throughout the year, positioning us well as we move
into 2023, all while strategically managing our cash position
closely."
Mr. Vickerson added, "Renoworks saw growth in Design Services
and enterprise sales, which grew by 11% and 13%, respectively.
Furthermore, the Company's Renoworks Pro solution is
re-establishing itself as a much-needed tool for contractors and
remodelers and has evolved to meet the needs of its customers and
the market. Initial results and feedback for Renoworks Pro and its
new features has been strong."
Subsequent events to year end:
- Released Renoworks Pro, the Company's newly rebuilt
contractor-focused visualizer solution. This online subscription
service empowers remodelers with advanced AI-based design
visualization, lead capture, and CRM integration capabilities.
- Launched next generation AI Image recognition and visualization
technology. Renoworks AI Gen 2 is faster, more accurate and more
scalable, which is leading to better outcomes for customers using
the Renoworks platform.
- Signed a strategic partnership with CostCertified and mutual
reseller agreement. The partnership calls for the companies to sell
an all-in-one solution for roofing contractors and exterior
remodelers combining Renoworks visualization technology with
CostCertified's technology that de-risks construction
workflows.
- Gunner launches online roofing platform using Renoworks
technology.
- Announced partnership with Sherwin-Williams' MetalVue program
to drive growth in the metal roofing industry.
Furthermore, the Company was awarded a grant for over
$100,000 through Alberta Innovates'
R&D Associates program. The program supports high-potential,
high-growth technology and knowledge-based SMEs in Alberta to employ an R&D professional with
advanced technical skills required by the SME to make that last
leap from research to a marketable product.
Financial results from operations for the fiscal year 2022 with
comparatives for 2021 are as follows:
|
Twelve Months Ended
December 31
|
2022
|
2021
|
Revenue
|
$5,941,830
|
$5,553,379
|
Gross Profit
|
$3,788,526
|
$3,485,777
|
Expenses
|
$5,179,700
|
$4,022,917
|
Net Loss
|
$1,320,786
|
$608,960
|
Loss per
share
|
$0.03
|
$0.02
|
Adjusted
EBITDA
|
($1,064,609)
|
($368,259)
|
Weighted Average Shares
Outstanding
|
40,167,566
|
37,829,136
|
Cash
increase/(decrease) from operations
|
($1,184,487)
|
$93,930
|
Financial results from operations for the fourth quarter 2022
with comparatives for 2021 are as follows:
|
Three Months Ended
December 31
|
2022
|
2021
|
Revenue
|
$1,201,509
|
$1,258,956
|
Gross Profit
|
$740,887
|
$783,066
|
Expenses
|
$1,471,824
|
$1,130,499
|
Net Loss
|
$705,601
|
$360,626
|
Loss per
share
|
$0.02
|
$0.01
|
Adjusted
EBITDA
|
($651,047)
|
($263,630)
|
Weighted Average Shares
Outstanding
|
40,662,635
|
38,916,463
|
The Company's financial position as of December 30, 2022 with comparatives from 2021 is
as follows:
|
December 31,
2022
|
December 31,
2021
|
Cash Balance
|
$704,080
|
$1,189,346
|
Accounts
Receivable
|
$734,706
|
$596,182
|
Working
Capital
|
$207,163
|
$470,642
|
Deferred
Revenue
|
$1,413,786
|
$1,389,547
|
Long- term
liabilities
|
$161,875
|
$212,053
|
Shareholder's Equity
(Deficiency)
|
$232,715
|
$571,776
|
Deficit
|
($9,735,016)
|
($8,414,230)
|
Total Assets
|
$1,788,806
|
$2,214,085
|
About Renoworks
Renoworks Software Inc. develops and sells unique digital
visualization software and integration solutions for the remodeling
and new home construction industry. Renoworks delivers its
technology to manufacturers, contractors, builders, and retailers
offering solutions to one of the home improvement industry's
greatest challenges: enabling homeowners to review their product
selections in a hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform and generates revenues from five main business lines:
Renoworks Enterprise, Renoworks PRO, Renoworks Design Services,
Renoworks FastTrack, and Renoworks API (Application Programming
Interface). For more information, visit www.renoworks.com and
www.renoworkspro.com.
*Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under IFRS.
However, management of Renoworks believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. Adjusted EBITDA is defined as earnings before interest
income, taxes, depreciation and amortization, stock based
compensation, restructuring costs, impairment charges and other
non-recurring gains or losses. Management believes Adjusted EBITDA
is a useful measure that facilitates period-to-period operating
comparisons.
Adjusted EBITDA does not have any standardized meanings
prescribed by IFRS and therefore may not be comparable to similar
measures presented by other issuers. Readers are cautioned that
Adjusted EBITDA is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as
indicators of performance, cash flow or profitability. References
to the Renoworks' Adjusted EBITDA should be read in conjunction
with the financial statements and management's discussion and
analysis of Renoworks posted on SEDAR (www.sedar.com).
Forward Looking Information
Certain statements in this news release, other than
statements of historical fact, are forward looking information that
involves various risks and uncertainties. Such statements relating
to, among other things, the prospects for the Company to enhance
operating results, are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from
information contained herein. There can be no assurance that such
statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral forward
looking statements are based on the estimates and opinions of the
management on the dates they are made and expressly qualified in
their entirety by this notice. The Company assumes no obligation to
update forward-looking statements should circumstances or
management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.