CALGARY, AB, Aug. 19, 2021 /CNW/ - Katipult Technology
Corp. (TSXV: FUND) ("Katipult" or the "Corporation"), a leading
Fintech provider of software for powering the exchange of capital
in equity and debt markets, is pleased to announce its financial
results for the three- and six-month period ended June 30, 2021.
"We continue to execute our growth plan to provide innovative
digital solutions to leading financial services firms," said Gord
Breese, Katipult's President and CEO. "Adding Cormark Securities as
a customer, along with key additions to our leadership team in Q2,
are positive contributors to our market traction and momentum"
The following provides a summary of the results for the second
quarter of 2021. The full results and related management discussion
and analysis are available on the Corporation's SEDAR profile
(www.sedar.com).
Q2 2021 Summary and Highlights
|
2021
|
2020
|
2019
|
($ Cdn
thousands)
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Subscription revenue
(1)
|
409
|
378
|
329
|
301
|
329
|
329
|
329
|
365
|
Investment services
revenue (1)
|
4
|
5
|
-
|
-
|
-
|
-
|
-
|
-
|
Integration revenue
(1)
|
10
|
-
|
-
|
-
|
-
|
31
|
53
|
22
|
Total
revenue
|
423
|
383
|
329
|
301
|
329
|
360
|
382
|
387
|
|
|
|
|
|
|
|
|
|
Gross profit
(1)
|
335
|
305
|
253
|
232
|
253
|
295
|
312
|
311
|
Gross profit -
percentage (1)
|
79.2%
|
79.6%
|
76.9%
|
77.1%
|
76.9%
|
81.9%
|
81.7%
|
80.4%
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
609
|
400
|
223
|
494
|
495
|
517
|
509
|
438
|
Research and
development
|
205
|
190
|
195
|
190
|
219
|
182
|
161
|
190
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
(376)
|
(329)
|
(289)
|
(387)
|
(325)
|
(267)
|
(219)
|
(242)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
and
|
|
|
|
|
|
|
|
|
comprehensive income
(loss)
|
(323)
|
(838)
|
239
|
(768)
|
(620)
|
(728)
|
709
|
(353)
|
Cormark Selected Katipult to Digitize its Private Placement
Process
On June 22, 2021, Katipult
announced that Cormark Securities Inc.,a leading independent
investment dealer, would deploy Katipult's Platform as a strategic
initiative to enhance its client experience and optimize internal
workflow efficiencies through increased digitization while ensuring
best in class regulatory compliance. Cormark will work with
Katipult to streamline and digitize account openings, private
placement subscriptions, and other compliance and internal
functions within a fully integrated, secure, single platform.
Additions to Katipult's Executive Leadership Team
On May 19, 2021, Katipult
announced the appointment of James
Church as VP, Product, and Stephen
Donovan, VP, Customer Success to further scale the
Corporation's go-to-market strategy
Mr. Church has extensive experience in product management and a
proven track record of driving growth and building high value SaaS
software products within the financial services industry. Mr.
Church was most recently VP Products at FINCAD, a capital markets
FinTech vendor. Prior to FINCAD, Mr. Church was a key member of the
product leadership team at Crystal Decisions, introducing the
Crystal Analysis product line and helping the company become the
fastest growing Business Intelligence vendor. Crystal Decisions was
sold for $820 million to Business
Objects.
Mr. Donovan is a seasoned client relations leader who played a
key role at Refinitiv (formerly Thomson Reuters Financial &
Risk) tailoring engagement strategies that helped customers
maximize the value derived from Refinitiv solutions. Mr. Donovan
led the Customer Success team for commodity and equity trading in
the Americas, where he helped drive retention rates of 90%. Prior
to his leadership role, Mr. Donovan managed a portfolio of
customers across Canada including
commodity trading, pension funds, and corporates that generated
$550K in monthly recurring
revenues.
Financial Highlights
The Corporation continues to grow its Subscription Revenue
recording quarter-over-quarter growth of 8.2%. When compared to the
second quarter last year, Subscription Revenue grew by 24%.
- The Corporation's new Investment Services revenue stream has
contributed $9K so far in 2021 and is
expected to continue to grow.
- Gross profit percentage was 79.2% in the second quarter of
2021. The Corporation has been able to consistently maintain a
gross profit percentage over 70% since the fourth quarter of
2017.
- Adjusted EBITDA losses increased to $376K in three-months ended June 30, 2021, mostly due to the increased
salaries, subcontractors, and benefits expenditures - as the
Corporation invests in key employees - partially offset by an
increase in revenue.
- The Corporation's net loss and comprehensive loss was
$323K in the second quarter of 2021.
The decreased loss is largely due to the revaluation of the 2018
Convertible Debentures partially offset by a lower EBITDA (for the
reasons mentioned above) and higher finance costs from the
accretion of the 2021 Debenture.
- Cash, cash equivalents and marketable securities balance as at
June 30, 2021 was $3.5 million.
Cautionary Note Regarding Forward Looking Statements
Certain disclosure in this release, including statements
regarding execution on the Corporation's growth plan, the increased
or continued industry interest in the Corporation's product,
converting existing sales interest and installations into revenue,
generating new sales opportunities, effectively and efficiently
utilizing the Corporation's resource and the ability to deal with
business disruptions or opportunities as a result of the Covid-19
pandemic, constitute forward-looking statements. In making the
forward-looking statements in this release, the Corporation has
applied certain factors and assumptions that are based on the
Corporation's current beliefs as well as assumptions made by and
information currently available to the Corporation, including, but
not limited to, the Corporation's anticipated cash needs, that the
cash available to the Corporation is as expected, the Corporation's
product will continue to operate as expected, the industry will
continue to see value in the Corporation's product, the Corporation
will be able to recruit talented and experienced sales, support and
other individuals required to execute the Corporation's plans, and
that the Corporation's employees, consultants, customers, suppliers
and other stakeholders will be able to manage successfully
throughout the Covid-19 pandemic. Although the Corporation
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking statements. Such risk factors may include,
among others, the risk that cash available to the Corporation is
not as expected, failure to manage growth successfully, lengthier
than anticipated sales and implementation cycle, cyber risks, risks
related to cloud based solutions, failure to continue to adapt to
technological change and new product development, dependence on key
personnel, competition, intellectual property risks, economic
conditions, the financial and economic fallout due to the Covid-19
pandemic, privacy concerns and legislation, regulatory environment,
risk associated with a change in the Corporation's pricing model,
risk of defects in the Corporation's solution, dependence on market
growth, operational service risk, dependence on partners and delay
or failure to realize anticipated benefits of key account
installations. Readers are cautioned, especially in these uncertain
times, not to place undue reliance on forward-looking statements.
The Corporation does not intend to, and expressly disclaims any
intention or obligation to, update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by law.
Non-GAAP Financial Measures
This news release refers to certain Non-GAAP financial
measures that are not determined in accordance with International
Financial Reporting Standards ("IFRS"). "Gross profit",
"adjusted EBITDA" and "churn" are not measures recognized under
IFRS and do not have standardized meanings prescribed by IFRS.
Management considers these to be important supplemental measures of
Katipult's performance and believes these measures are frequently
used by securities analysts, investors and other interested parties
in the evaluation of companies in its industry. See "Non-GAAP
Measures and Additional GAAP Measures" in the Corporation's
December 31, 2020 and June 30, 2021 MD&A available on the
Corporation's SEDAR profile at www.sedar.com for a discussion
of non-GAAP measures and their reconciliations.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Katipult Technology Corp.