VANCOUVER, BC–(Marketwired – April 27, 2017) – MediaValet Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloud‐based digital asset management software, is pleased to report its fourth quarter and annual results for the period ended December 31, 2016.
Summary of Quarterly Results
| 3 months ended Dec 31’16 |
3 months ended Dec 31’15 |
Year ended Dec 31’16 |
Year ended Dec 31’15 |
||
| Annual Recurring Revenue | $ 1,799,722 | $ 968,773 | |||
| % Increase | 86% | ||||
| Revenue | $ 392,240 | $ 237,359 | $ 1,349,501 | $ 942,684 | |
| % Increase | 112% | 43% | |||
| Gross Margin | $ 310,830 | $ 146,774 | $ 1,041,850 | $ 613,850 | |
| Gross Margin % | 79% | 62% | 77% | 65% | |
| Operating Expenses | $ 1,698,969 | $ 1,232,319 | $ 6,098,735 | $ 3,769,553 | |
| % Increase | 38% | 62% | |||
| EBITDA | $ (1,388,139) | $ (1,085,545) | $ (5,056,885) | $ (3,155,703) | |
| Net loss | $ (1,655,946) | $ (1,210,674) | $ (5,838,367) | $ (3,559,232) | |
| Loss per share | $ (0.02) | $ (0.02) | $ (0.07) | $ (0.05) | |
| Total assets | $ 1,505,088 | $ 1,018,219 | |||
| Deferred Revenue | $ 1,203,687 | $ 492,164 | |||
| Long-term Debt | $ 3,370,000 | $ 117,668 | |||
“Q4’16 marked another record quarter with net adds to ARR reaching $318,000, up 426% over the prior year, increasing ARR by 86% to $1.8 million at year end,” commented David MacLaren, founder & CEO of MediaValet. “This growth is a direct result of our ongoing investment in sales and marketing and product development, as the DAM market and the DAM needs of organizations continue to grow at a rapid pace.”
“We’re extremely proud of the new features, integrations and enhancements delivered by our R&D team this year. These new capabilities have continued to set us apart from the competition, broaden our target market and increase our average deal size. It is these innovations that have enabled our sales and marketing teams to win an exciting list of new customers in 2016. With each new feature and product integration, MediaValet meets the DAM needs of more industries, organizations, departments and users around the world.”
Continued Mr. MacLaren, “Our fiscal 2016 operating expenses of $6.1 million were in line with our internal budget as we sought to increase our operational infrastructure and product features to enable us to capitalize on the market opportunity ahead of us. We were able to finance this investment through sales growth and a combination of equity and debt financing in order to achieve a balanced cost of capital. We intend to keep our fiscal 2017 operational expenses at a similar level as we continue to build sales momentum and increase our operating leverage.”
“With ARR ending 2016 at $1.8 million, operational expenses leveling out, and our sales, marketing and R&D teams entering 2017 with strong momentum, we’re poised to deliver an exciting year of growth and financial performance.”
Fourth Quarter Fiscal 2016 Highlights:
- Grew Annual Recurring Revenue (“ARR”) for the 12th consecutive quarter, to $1,799,722, an increase of 86% compared to $968,773 at December 31, 2015.
- Increased quarterly net new ARR adds to $318,000 in Q4’16, up 25% sequentially from $255,000 in Q3’16 (the fourth consecutive quarter of sequential increase), and up 426% from $60,474 in Q4’15.
- Achieved highest quarterly Revenue to date of $392,240, up 65% from Q4 last year, and up 8% sequentially from Q3’16. Year-to-date revenue of $1,349,501 is up 43% from the prior year. Revenue includes both recurring revenue and one-time service and set up fees. Recurring revenue growth for Q4’16 was 54% compared to Q4 last year, and was 18% sequentially. For the year, recurring revenue growth was 56%.
- Increased Deferred Revenue at December 31, 2016 by 145% to $1,203,687 from $492,164 at December 31, 2015.
- Increased Gross Margin to 79% in Q4’16 from 62% last year, and to 77% year-to-date from 65% in the prior year as a result of increasing sales volume and improved operating efficiencies from R&D investments in product enhancements and tools.
- Reported an EBITDA loss of $1,388,139 in Q4’16, up 28% from Q4’15, and up 15% sequentially from Q3’16 as the Company continued its investment in building a market leading DAM solution. Year-to-date, the EBITDA loss was $5,056,885, up 60% from the prior year.
- Operating Expenses were $1,698,969 for Q4’16, up 38% from Q4’15. For the year, Operating Expenses were $6,098,735, up 62% from last year. The Company intends to keep cash operating expenses relatively stable as it seeks to unlock its operating leverage through increases in sales team productivity and delivering product enhancement milestones.
- Issued a 3 year, $2,000,000 senior secured debenture with a 10% coupon.
- Selected by China Southern Airlines, the world’s 4th largest airline, to manage their global library of brand and marketing assets.
- Selected by A&W to manage their marketing assets across 863 franchise locations.
Highlights Fiscal 2016:
- Announced a variety of the new customers that included China Southern Airlines (Nov 2016); Kenosha Area Convention and Visitors Bureau (Oct 2016); Nomad Hill (Oct 2016); A&W Food Services (Oct 2016); U.S. Naval Institute (Sep 2016); Susquehanna University (June 2016); National Ballet of Canada (April 2016); Canadian Blood Services (Mar 2016); KAUST University (Mar 2016); Portland Japanese Gardens (Feb 2016); and Pancreatic Cancer Action Network (Feb 2016).
- Completed a broker-led private placement for gross proceeds of $1.5 million and secured a 3-year $3.25 million long-term debt facility.
- Launched the first ever DAM integration with Microsoft Office 365 which allows staff, partners and vendors of an organization to quickly and easily access, search and attach or insert the latest versions of corporately approved brand assets and marketing material directly within Microsoft Outlook, PowerPoint, Word and Excel.
- Signed a global partnership with Hootsuite to provide Hootsuite’s customers quick and easy in-app access to a robust, enterprise wide media library.
- Signed a global partnership with Silicon Publishing to develop the first Adobe Creative Cloud Connector on Microsoft Azure.
- Launched the first integration with Drupal 8, the lastest version of the leading open source content management system (CMS). Drupal is used by many of the governments, public institutions and other large organizations to securely manage their websites.
- Completed first ever integration of a cloud-base DAM system with Oracle’s Marketing Cloud (Eloqua).
- Signed a global partnership with Wave2 Media to bring dynamic publishing to the Azure Cloud.
- Named ‘Solution Provider of the Year’ at 2016 CDN Channel Elite Awards.
- Won Microsoft’s 2016 ‘Modern Marketing Innovation Partner of the Year’ Award.
- Increased data center region availability to 34 countries, enabling data sovereignty compliance for businesses that must operate solely within their national boundaries. MediaValet can now meet the strict Data Sovereignty requirements of markets such as Canada, China, Germany, and Australia.
Highlights subsequent to quarter-end:
- Launched the first DAM integration of an AutoCAD viewer for viewing, sharing and publishing 2D and 3D rendered models in a highly secure, centralized, cloud-based, enterprise-wide asset library. MediaValet’s AutoCAD viewer paves the way for those organizations that create and work with 2D and 3D rendered models to embrace the cloud and share their work with a broader audience.
- Announced the development of mobile applications for iOS, Android and Windows devices. MediaValet’s mobile applications extend the benefits of digital asset management to all users across organizations, enabling them to access and share approved marketing and brand assets while on the go. Extending DAM functionality to all major mobile platforms takes DAM beyond the walls of organizations, driving brand consistency, increasing individual, team and corporate wide productivity, and enabling deeper collaboration across organizations and their corporate ecosystems.
- Completed integration into the world’s leading document management and storage system, Microsoft SharePoint. MediaValet’s integration enables SharePoint users — for the first time — to view, manipulate and share all popular formats and sizes of photos, videos, audio files, graphics, animations and 2D and 3D CAD files within the platform.
- Completed integration into the world’s most popular website content management system (CMS), WordPress. This integration enables creative and administrative web teams to access the latest, approved media assets directly from within WordPress, which saves organizations valuable time and resources and ensures brand consistency across all digital platforms.
- Announced a variety of the new customers that included a European based FTSE-100 company with over 15,000 staff (April 2017), Margaritaville (January 2017), City of Eagan (January 2017).
Outlook
With continued quarter-over-quarter growth in ARR and increasing gross margin, win rate and deal size, management intends to maintain its current level of investment in sales and marketing, and research and development. For the remainder of 2017 and into 2018, management will focus on utilizing the excess capacity currently available in the company’s operating structure. While some variable costs will increase with revenue, management believes it has sufficient infrastructure and staff to continue growing revenues throughout 2017 without materially increasing operating costs.
MediaValet’s full financial statements and related MD&A are now available on SEDAR.
About MediaValet, Inc.
MediaValet stands at the forefront of the cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available on 34 highly secure and hyper scalable data centers around the world, MediaValet is uniquely equipped to meet the digital asset management needs of any organization, no matter its size, its industry or its location. Cutting-edge technology, exceptional product design, and unlimited friendly customer service are at the core of MediaValet’s DNA — ensuring exceptional customer and user experiences are delivered at all times.
“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.”
For further information, please contact:
Corporate Office
David MacLaren
CEO
david.maclaren@mediavalet.com
(604) 688-2321
Press Relations
Babak Pedram
babak.pedram@mediavalet.com
(416) 644-5081