VANCOUVER, BC–(Marketwired – November 29, 2016) – MediaValet, Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloud‐based digital asset management software, is pleased to report its third quarter results for 2016.

“Q3’16 marked another record quarter for MediaValet as our sales, marketing and product development teams continued to deliver on our go-to-market strategy,” commented David MacLaren, founder & CEO of MediaValet. “Throughout the quarter we deepened our reach into specific geographic markets, we expanded our industry direct campaigns, and we continued to invest in product development, innovation and third party integrations.”

“Over the last 4 quarters, since adding sales and marketing and launching our ‘best-of-breed’ product integration strategy, we’ve seen an average of 62% growth, quarter-over-quarter, in the net new adds to our annual recurring revenue,” added Mr. MacLaren. “Our sales and marketing teams are doing an exceptional job of identifying and closing opportunities, while our product development team is consistently increasing our win rate with each new product innovation and third party integration.”

Continued Mr. MacLaren, “We have a tremendous amount of momentum today and it keeps building month-over-month. Before year end we’ll launch several new product innovations that we feel will further set us apart from existing DAM systems and bring us closer to the expectations of tomorrow’s DAM users.”

Third Quarter Fiscal 2016 Highlights:

• Achieved highest quarterly Revenue to date of $364,244, up 19% from Q3 last year, and up 7% sequentially from Q2’16. Year-to-date revenue of $957,261 is up 36% from the prior year. Revenue includes both recurring revenue and one-time service and set up fees.
• Grew Annual recurring Revenue (“ARR”) to $1,481,764, an increase of 63% compared to $908,299 at September 30, 2015.
• Increased quarterly net new ARR adds to $255,000 in Q3’16, up 62% sequentially from $157,000 in Q2’16, and up from $100,000 in Q1’16 and $60,000 in Q4’15. On average, quarterly net new adds to ARR have increased 62% sequentially since starting to build the sales team in Q4’15.
• Increased Deferred Revenue at September 30, 2016 by 91% to $942,072 from $492,164 at December 31, 2015.
• Increased Gross Margin to 80% in Q3’16 from 73% last year, and to 76% year-to-date from 66% in the prior year as a result of increasing sales volume and improved operating efficiencies from product enhancements.
• Reported an EBITDA loss of $1,202,187 in Q3’16, up 60% from Q3’15, and up 1% sequentially from Q2’16. Year-to-date, the EBITDA loss was $3,668,746, up 77% from the prior year.
• Operating Expenses were $1,494,992 for Q3’16, up 54% from Q3’15. For the year-to-date period, Operating Expenses were $4,399,766, up 73% 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.
• Increased long-term debt facility to $1.25 million.
• Selected by US Naval Institute to manage 150 years of US Naval history.
• Completed first ever integration of a cloud-base DAM system with Oracle’s Marketing Cloud.
• 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.

Highlights subsequent to quarter-end:

• Issued a 3 year, $2,000,000 senior secured debenture with a 10% coupon.
• Selected by China Southern Airlines, the world’s 4^th largest airline, to manage their global library of brand and marketing assets.

Outlook

With the increasing productivity of the sales and marketing team, the impactful milestones being achieved by the product development team, and the Company’s strong customer retention rate, management intends to maintain its current level of investment and continue implementing its growth strategy with a focus on optimizing excess capacity in the Company’s current operating structure. While some variable costs such as cost of revenue and sales commissions 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
[email protected]
(604) 688-2321

Press Relations
Babak Pedram
[email protected]
(416) 644-5081