- Annual Recurring Revenue grows 26% YoY to $37.8 million
- Q1 revenue increases 11% YoY to $15.6
million
Vancouver, BC, May 10, 2022
/CNW/ - Copperleaf® Technologies Inc. (TSX: CPLF) ("Copperleaf" or
the "Company"), a provider of enterprise decision analytics
software solutions, today announced financial results for the three
months ended March 31, 2022. All
amounts are expressed in Canadian dollars unless otherwise
stated.
"Our first quarter results demonstrated continued growth with an
11% increase in revenue over Q1 2021 and reflects the
period-to-period variability in our perpetual license revenue that
is common to our business. Our subscription revenue delivered 34%
YoY growth while we saw a decrease in perpetual licenses YoY due to
the deals that were accelerated into Q4 2021 and the general
transition towards SaaS. We delivered 26% YoY growth in
Annual Recurring Revenue, 14% YoY growth in our Revenue Backlog,
and a 108% Net Revenue Retention Rate," said Judi Hess, CEO of Copperleaf. "We are
encouraged to see momentum building with our partners and expect
growth to accelerate in the second half of the year."
Ms. Hess continued, "Beginning in the fourth
quarter of 2021 and continuing into the first quarter of 2022,
Copperleaf has invested in attracting top sales talent and
conducting sales enablement activities to address the growing
demand for our solutions. This will allow us to drive new client
acquisitions while servicing existing clients, and fully capitalize
on the sustained growth tailwinds and the large, untapped
opportunity we see in the investment planning and decision
analytics market."
First Quarter 2022 Financial Highlights
(All
Capitalized terms which are not defined in this press release have
the meaning ascribed to them in Management's Discussion and
Analysis for the three months ended March
31, 2022; Comparison periods in each case are the three
months ended March 31, 2021, unless
otherwise stated)
- Revenue of $15.6 million, an
increase of 11% over Q1 2021, driven by the increase in new clients
and expansion of existing clients.
- Annual Recurring Revenue1 as at March 31, 2022, of $38.0
million, a 26% increase from $30.1
million as of March 31,
2021.
- Subscription revenue of $9.1
million (58% of total revenue), an increase of 34% from the
prior year.
- Gross profit of $11.2 million,
compared to $11.0 million in Q1 2021,
representing a Gross Margin of 72%.
- Adjusted EBITDA1 loss of $9.0
million, compared to a loss of $0.1
million in Q1 2021.
- Net loss of $10.9 million, or
$0.16 per share, compared to a net
loss of $1.8 million, or $0.11 per share, in Q1 2021.
- As of March 31, 2022, our Net
Revenue Retention Rate1 was 108%.
- As of March 31, 2022, Revenue
Backlog1 grew 14% to $96.0
million, compared to $84.5
million as of March 31,
2021.
- Cash and cash equivalents of $162.9
million as at March 31, 2022,
compared to $161.4 million at
December 31, 2021.
1 Please refer to "Non-IFRS Measures" section of
this press release
Key Developments
- Our industry-specific solution for the UK water market,
Copperleaf H2O, continued to deliver successfully in Q1 2022 with a
win at South Staffs Water. Last year water became a core sector at
Copperleaf.
- We continue to successfully expand into new verticals with an
Oil & Gas win in Q1 in Japan
made by our direct sales team.
- Our Alliance Ecosystem continues to gain traction as partners
are building their Copperleaf practice areas and engaging in active
partner pursuits.
- Copperleaf was recognized alongside our client, Anglian Water,
for an Innovation Excellence Award in the category of Enterprise
Carbon Management. Anglian Water is the first UK water company to
set targets for reducing capital carbon to achieve net zero by
2030. To support these ambitious targets, Anglian Water uses
Copperleaf's Decision Analytics Solution to model capital and
operational carbon associated with an asset's full lifecycle. The
Copperleaf solution provides visibility of capital baselines in
proposed investments from which performance against targets is
measured.
- Our overall website traffic increased 31% over same quarter
last year.
- We had strong engagement with our Copperleaf Community through
Copperleaf Labs where we collaborated with our clients on nine
separate initiatives spanning machine learning applications, GIS,
dashboards, and investment entry.
- During Q1 2022, we released version 22.1 of our product suite
which included more than a dozen new features, including a new
application for creating candidate projects from predictive
analytics to inform strategy in Copperleaf Portfolio™;
automation of investment capture and cost estimation; new security
features; and the first edition of our dashboard library—creating
more value for our clients throughout the entire planning
process.
Q1 2022 Financial Results Conference Call Details
Judi Hess, Chief Executive
Officer, and Chris Allen, Chief
Financial Officer, will host a conference call followed by a
question-and-answer session today, May 10,
2022, at 5:00 PM ET.
Date:
|
May 10, 2022
|
Time:
|
5:00 PM ET
|
Dial-In
Number:
|
416-764-8659 or
1-888-664-6392
|
Webcast:
|
https://bit.ly/3y9JUvi
|
Replay:
|
416-764-8677 or
1-888-390-0541 (Available until May 17, 2022)
|
Replay Entry
Code:
|
370582#
|
Key Performance Indicators
The Company monitors a number of key performance indicators
(KPIs) to evaluate performance. Some of the KPIs used by management
are recognized under IFRS, whereas others are non-IFRS measures and
are not recognized under IFRS. These non-IFRS measures are included
as additional information to complement the IFRS measures,
providing further understanding of our results of operations from
management's perspective. We believe that non-IFRS financial
measures are useful to investors and others in assessing our
performance; however, these measures should not be considered as a
substitute for reported IFRS measures nor should they be considered
in isolation. As these measures are not recognized measures under
IFRS, they do not have a standardized meaning prescribed by IFRS
and therefore may not be comparable to similar measures presented
by other companies. For a reconciliation of non-IFRS measures to
the most directly comparable measures calculated in accordance with
IFRS, see section "Non-IFRS Measures" below.
1Non-IFRS Measures
Annual Recurring Revenue ("ARR")
We define ARR as the annualized equivalent value of the
subscription revenue of all existing contracts as at the date being
measured, excluding non-recurring SaaS and hosting fees. Our
clients generally enter into three-to-five-year contracts that are
non-cancelable or cancelable with penalty. Our calculation of
Annual Recurring Revenue assumes that clients will renew the
contractual commitments on a periodic basis as those commitments
come up for renewal. Subscription agreements are subject to price
increases upon renewal reflecting both inflationary increases and
the additional value provided by our solutions. In addition to the
expected increase in subscription revenue from price increases over
time, existing clients may subscribe for additional products or
services during the term. We believe that this measure provides a
fair real-time measure of performance in a subscription-based
environment.
Net Revenue Retention Rate
We believe that our Net Revenue Retention Rate is a key measure
to provide insight into the long-term value of our clients and our
ability to retain and expand revenue from our client base over
time. Our Net Revenue Retention Rate is calculated over a trailing
twelve-month period by considering the group of clients on our
platform as of the beginning of the period and dividing our Annual
Recurring Revenue attributable to this same group of clients at the
end of the period by the Annual Recurring Revenue at the beginning
of the period. By implication, this ratio excludes any Annual
Recurring Revenue from new clients acquired during the period but
does include incremental sales added to the cohort base of clients
during the period being measured. This measure provides insight
into client expansions, downgrades, and churn, and illustrates the
growth potential of our client base alone. Our success in
delivering exceptional value and extraordinary experiences to our
clients is fully realized when we can achieve a high Net Revenue
Retention Rate. However, this percentage can vary from period to
period due to the timing of large expansion contracts with our
existing clients. In addition, only the recurring component
of expansions with our perpetual license clients, such as on-going
support & maintenance, is recognized in this calculation.
Revenue Backlog
Revenue Backlog represents the total revenue expected to be
recognized in the future, related to performance obligations that
are unsatisfied or partially unsatisfied at period end. The
recurring nature of our revenue provides high visibility into
future performance, and upfront payments result in cash flow
generation in advance of revenue recognition. Subscription
contracts require annual upfront payments; however, some clients
pay multiple years upfront. Typically, approximately 50% of our
expected annual revenue is recognized from client contracts that
are in place at the beginning of the year; however, we expect this
percentage to increase going forward as our client base continues
to transition toward SaaS and our Q4 seasonality persists.
Agreements with new clients or agreements with existing clients
purchasing incremental product and services in a quarter may not
contribute significantly to revenue in the current quarter. For
example, for SaaS contracts and professional services, a new client
who enters into an agreement late in a quarter will typically have
limited contribution to the revenue recognized in that quarter.
Perpetual licenses, by contrast, are often recognized as revenue
upon delivery of the software which typically occurs immediately
upon contracting, and thus rarely enters Revenue Backlog.
Adjusted EBITDA
Adjusted EBITDA is used by management as a supplemental measure
to review and assess operating performance and to provide a more
complete understanding of factors and trends affecting our
business.
Management believes that Adjusted EBITDA is a useful measure of
operating performance and our ability to generate cash-based
earnings, as it provides a more relevant picture of operating
results by excluding the effects of financing and investing
activities, including removing the effects of interest and other
expenses such as non-cash items and non-recurring expenses that are
not reflective of our underlying business. In addition to interest,
the other non-cash or non-recurring items adjusted for include
depreciation and amortization, share-based payments expense, gain
on lease modification, foreign exchange loss (gain), current income
tax expense, and IPO transaction related expenses. Our management
also uses Adjusted EBITDA in order to facilitate operating
performance comparisons and decision making from period to period
and to prepare annual operating budgets and forecasts. In addition,
it is used to provide securities analysts, investors, and other
interested parties with supplemental measures of our operating
performance and thus highlight trends in our business that may not
otherwise be apparent when relying solely on IFRS measures.
The following table reconciles Adjusted EBITDA to net loss for
the periods indicated:
|
For three months
ended March 31,
|
|
2022
|
2021
|
$
Change
|
%
Change
|
Net
loss
|
$(10,905,702)
|
$(1,775,309)
|
$(9,130,393)
|
(514%)
|
Depreciation and
amortization
|
$435,503
|
$567,981
|
$(132,478)
|
(23%)
|
Share-based payments
expense
|
$739,434
|
$534,661
|
$204,773
|
38%
|
Finance
costs
|
$273,729
|
$213,459
|
$60,270
|
28%
|
Finance
income
|
$(270,312)
|
$(2,786)
|
$(267,526)
|
(9,603%)
|
Gain on lease
modification
|
-
|
$(181,372)
|
$181,372
|
100%
|
Foreign exchange loss
(gain)
|
$737,197
|
$423,273
|
$313,924
|
74%
|
Current income tax
expense
|
$10,965
|
$79,062
|
$(68,097)
|
(86%)
|
Adjusted
EBITDA
|
$(8,979,186)
|
$(141,031)
|
$(8,838,155)
|
(6,267%)
|
Selected Financial
Information
|
|
Consolidated Statements
of Loss and Comprehensive Loss
(expressed in Canadian
Dollars)
(unaudited)
|
|
|
|
For the three months ended March
31,
|
|
|
2022
|
|
2021
|
|
|
$
|
|
$
|
Revenue
|
|
15,569,383
|
|
13,981,695
|
|
|
|
|
|
Cost of revenue
|
|
4,391,707
|
|
2,941,024
|
|
|
|
|
|
Gross profit
|
|
11,177,676
|
|
11,040,671
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
Sales and
marketing
|
|
8,565,687
|
|
4,594,300
|
Research and
development
|
|
6,649,075
|
|
4,438,160
|
General and
administrative
|
|
6,117,037
|
|
3,251,884
|
|
|
21,331,799
|
|
12,284,344
|
|
|
|
|
|
Loss from operations
|
|
(10,154,123)
|
|
(1,243,673)
|
|
|
|
|
|
Other expenses (income)
|
|
|
|
|
Finance
costs
|
|
273,729
|
|
213,459
|
Finance
income
|
|
(270,312)
|
|
(2,786)
|
Gain on lease
modification
|
|
-
|
|
(181,372)
|
Foreign exchange
loss
|
|
737,197
|
|
423,273
|
|
|
740,614
|
|
452,574
|
|
|
|
|
|
Loss before income taxes
|
|
(10,894,737)
|
|
(1,696,247)
|
|
|
|
|
|
Income taxes
|
|
|
|
|
Current income tax
expense
|
|
10,965
|
|
79,062
|
Deferred income tax
expense
|
|
-
|
|
-
|
|
|
10,965
|
|
79,062
|
Net loss and comprehensive loss for the
period
|
|
(10,905,702)
|
|
(1,775,309)
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
Basic
|
|
(0.16)
|
|
(0.11)
|
Diluted
|
|
(0.16)
|
|
(0.11)
|
Weighted average number
of common shares outstanding,
basic
|
|
68,425,389
|
|
16,014,520
|
Weighted average number
of common shares outstanding,
diluted
|
|
68,425,389
|
|
16,014,520
|
Consolidated Statements
of Financial Position
(expressed in Canadian
Dollars)
(unaudited)
|
|
|
|
March 31,
2022 $
|
December 31,
2021 $
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
|
162,897,783
|
161,432,039
|
Accounts
receivable
|
|
13,064,349
|
32,251,577
|
Investment tax credits
receivable
|
|
1,407,539
|
1,407,539
|
Contract
costs
|
|
748,621
|
719,263
|
Contract
assets
|
|
4,618,154
|
2,199,394
|
Prepaid
expenses
|
|
3,080,274
|
2,250,216
|
|
|
185,816,720
|
200,260,028
|
Non-current assets
|
|
|
|
Deposit
|
|
65,307
|
81,455
|
Prepaid
expenses
|
|
201,777
|
-
|
Contract
costs
|
|
1,312,329
|
1,261,877
|
Property and
equipment
|
|
2,018,464
|
2,009,533
|
Intangible
assets
|
|
1,739,245
|
1,105,736
|
Right-of-use
assets
|
|
1,175,232
|
1,323,751
|
|
|
6,512,354
|
5,782,352
|
|
|
|
|
Total
assets
|
|
192,329,074
|
206,042,380
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
|
12,464,774
|
13,182,045
|
Contract
liabilities
|
|
18,927,256
|
20,849,117
|
Lease
liabilities
|
|
1,055,690
|
1,031,531
|
|
|
32,447,720
|
35,062,693
|
Non-current
liabilities
|
|
|
|
Contract
liabilities
|
|
14,002,263
|
14,727,655
|
Lease
liabilities
|
|
988,765
|
1,234,024
|
|
|
14,991,028
|
15,961,679
|
|
|
|
|
Total
liabilities
|
|
47,438,748
|
51,024,372
|
|
|
|
|
Equity
|
|
|
|
Share
capital
|
|
181,335,093
|
181,279,367
|
Share-based payments
reserve
|
|
5,634,812
|
4,912,518
|
Deficit
|
|
(42,079,579)
|
(31,173,877)
|
Total
equity
|
|
144,890,326
|
155,018,008
|
Total liabilities
and equity
|
|
192,329,074
|
206,042,380
|
Disaggregation of
revenue
|
|
|
Three months ended
March 31,
|
|
Change
|
|
|
2022
|
2021
|
|
$
|
%
|
Subscription
|
|
$9,082,110
|
$6,770,431
|
|
$
2,311,679
|
34%
|
Professional
services and other
|
|
$5,998,066
|
$5,463,788
|
|
$
534,278
|
10%
|
Perpetual
software licenses
|
|
$489,207
|
$1,747,476
|
|
$
(1,258,269)
|
(72%)
|
|
|
$15,569,383
|
$13,981,695
|
|
$
1,587,688
|
11%
|
Forward-Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities laws in
Canada.
Forward-looking information may relate to our future business,
financial outlook, and anticipated events or results, and may
include information regarding our financial position, business
strategy, growth strategies, addressable markets, budgets,
operations, financial results, taxes, dividend policy, plans and
objectives. Particularly, information regarding our expectations of
future results, performance, achievements, prospects, or
opportunities, or the markets in which we operate, is
forward-looking information. In some cases, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "targets", "expects" or "does not
expect", "is expected", "an opportunity exists", "budget",
"scheduled", "estimates", "outlook", "financial outlook",
"forecasts", "projection", "prospects", "strategy", "intends",
"anticipates", "does not anticipate", "believes", or variations of
such words and phrases, or statements that certain actions, events,
or results "may", "could", "would", "might", "will", "will be
taken", "occur" or "be achieved". In addition, any statements that
refer to expectations, intentions, projections, or other
characterizations of future events or circumstances contain
forward-looking information. Statements containing forward-looking
information are not historical facts but instead represent
management's expectations, estimates and projections regarding
possible future events or circumstances.
Forward-looking information may include, among other things: (i)
the Company's expectations regarding its financial performance,
including among others, revenue, gross profit, expenses, Adjusted
EBITDA; (ii) the Company's expectations regarding industry trends,
addressable market growth, overall market growth rates, and growth
rates and growth strategies; (iii) our business plans and
strategies; (iv) the continued success of our commercial model; (v)
our expectations regarding growth in our customer base, our ability
to retain customers and increase margin per customer; (vi)
acceleration in the growth and adoption of new technologies; (vii)
relationships with our technology partners; (viii) our ability to
continue to attract and retain talent; (ix) our competitive
position in our industry; and (xi) and the long-term impact of
COVID-19 on our business, financial position, results of operations
and/or cash flows.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that we considered appropriate
and reasonable as at the date such statements are made, and are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the risk factors described in our 2021 Annual
Information Form ("AIF") under "Risk Factors". A copy of the 2021
AIF can be accessed under our profile on the System for Electronic
Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
There can be no assurance that such forward-looking information
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information, which speaks only as at the date
made.
In addition, forward-looking financial information with respect
to potential outlook and future financial results contained in this
press release are based on assumptions about future events
including economic conditions, the assumptions noted above and
proposed courses of action, based on management's reasonable
assessment of the relevant information available as at the date of
such forward-looking information. Readers are cautioned that any
such forward-looking financial information should not be used for
purposes other than for which it is disclosed.
About Copperleaf:
Copperleaf provides enterprise decision analytics software
solutions to companies managing critical infrastructure. We
leverage operational and financial data to empower our clients to
make investment decisions that deliver the highest business value.
What sets us apart is our commitment to providing extraordinary
experiences, shaped by people who care deeply, products that
deliver exceptional value, and partnerships that stand the test of
time. Copperleaf is a patron of The Institute of Asset Management
and actively participates in shaping the future of asset management
standards, including ISO 55000. Headquartered in Vancouver, Canada, our solutions are
distributed and supported by regional staff and partners worldwide.
Together, we are transforming how the world sees value.
For more details, visit https://www.copperleaf.com/
Source: Copperleaf Technologies
Inc. CPLF-IR
SOURCE Copperleaf Technologies Inc. CPLF-IR