CUPERTINO, Calif., June 27, 2024 /PRNewswire/ - (TSXV: BWLK) (OTCQB: BWLKF) - Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a leading digital ledger platform and enterprise software solutions company, is pleased to report its financial results for fiscal year 2024 ended March 31, 2024. All figures are reported in U.S. dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
Financial Highlights:
- Revenue for Fiscal 2024 totaled $6.0 million compared to $6.5 million for Fiscal 2023, representing an 8% decrease in annual revenue. The portion of revenue from new and recurring SaaS licenses in Fiscal 2024 increased by 12% year-over-year but was offset by a 60% decline in professional services revenue.
- Annual recurring revenue ("ARR"), a non-IFRS metric, at March 31, 2024 was $5.6 million, a 3% year-over-year increase versus ARR of $5.5 million at March 31, 2023. The Company defines ARR, a non-IFRS metric, as the annual recurring revenue expected based on trailing quarterly revenue from license subscriptions and recurring services.
- Gross margin for Fiscal 2024 was 89.6%, comparable with 90.6% in Fiscal 2023.
- Adjusted EBITDA for Fiscal 2024 was a loss of $(1.6) million, comparable with $(1.6) million loss for Fiscal 2023. However, these annual figures do not show the quarterly progress as the Adjusted EBITDA loss for Q4 Fiscal 2024 was $(0.3) million, a 20% improvement over the $(0.4) million Adjusted EBITDA for Q4 Fiscal 2023 and a 10% sequential improvement over Adjusted EBITDA for Q3 Fiscal 2024.
- Non-IFRS net loss for Fiscal 2024 (as defined in the Non-IFRS Financial Measures section) totaling $(1.6) million, or a loss of $(0.03) per basic and diluted share, versus a $(1.7) million non-IFRS loss in Fiscal 2023, or a loss of $(0.04) per basic and diluted share. Non-IFRS net loss for Q4 Fiscal 2024 was $(0.4) million, a 13% improvement over the $(0.5) million Non-IFRS net loss for Q4 Fiscal 2023
- Reported IFRS loss was $(3.1) million in Fiscal 2024, or $(0.6) per basic and diluted share, a 13% improvement versus a $(3.6) million loss in Fiscal 2023, or $(0.08) per basic and diluted share. The improvement was due to a $0.5 million decrease in adjusted operating expenses, with the full impact of the Company's realignment and cost efforts announced in January 2024 expected to be realized during the upcoming fiscal year.
- The ending cash balance for as of March 31, 2024 was $2.2 million, plus $0.4 million of trade receivables.
- Outstanding debt as of March 31, 2024 was 2.25 million which was drawn against the previously announced $4 million line of credit from Celtic Bank.
Operations Highlights Exiting Fiscal 2024
- On October 2, 2023, the Company announced a teaming agreement with Hexaware, a global technology and business process services company, specializes in empowering enterprises to realize the potential of digital transformation at scale and speed by helping them build, transform, run, and optimize technology and business processes.
- On October 26, 2023, the Company announced a teaming agreement with LTIMindtree, a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies.
- On November 27, 2023, the Company announced it had extended and expanded its commercial engagement with a Fortune 50 technology company for supply chain management, including the execution of its first long-term license with Boardwalk, following an ROI analysis by the customer. This is expected to be the first of several phases/licenses to improve the customer's supply chain execution.
- On December 28, 2023, the Company closed the initial tranche of its Listed Issuer Financing Exemption ("LIFE") offering and concurrent non-brokered private placement, for 7,015,353 Units at CAD $0.30 per Unit for gross proceeds of $1,590,738 (CAD$2,104,606), pursuant to the National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"). Each Unit included one common share purchase warrant at a price of CAD$0.50 per common share for a period of 36 months from the closing date. Insiders of the Company participated in the Offering for approximately CAD$53,000.
- On January 16, 2024, the Company announced it had expanded commercial agreements with three existing customers, including existing Digital Ledger customer Sekisui Chemical who signed a license for Boardwalk's new Unity Central application for supply chain solution.
- Also on January 16, 2024, the Company announced it had executed steps to realign its internal resources with a focus on achieving overall profitability, without compromising sales growth, to generate approximately US$1,000,000 in annual cost savings.
- On February 26, 2024, the Company closed the second tranche of its upsized LIFE offering and non-brokered private placement, of which 473,400 Units were subscribed at CAD $0.30 per Unit and 32,825 Units were subscribed by an Insider of the Company at US$0.22 per Unit, for aggregate gross proceeds of $112,303 (CAD $151,868).
- On March 28, 2024, Boardwalktech secured a US$4.0 Million Credit Facility with Celtic Bank to provide available growth funds.
- On April 8, 2024, Boardwalktech announced it had signed a strategic agreement with Tata Consultancy Services (TCS), one of the world's largest IT services and consulting companies with operations in 46 countries and over 615,000 employees, to teaming with Boardwalktech to engage customers in financial services market for the Boardwalk Velocity product, used to rapidly remediate and transform Excel and Access based End User Computing ("EUC") environments into a compliant, auditable, and scalable solution.
- On May 9, 2024 the Company announced it had added Jay Cherrie to its corporate Advisory Board and as a business development asset. Mr. Cherrie's career has included senior executive roles including Global Industry Lead (Financial Services) for Appian Corporation, Chief Technology Officer for First Republic Bank, and led the technology strategy department for Charles Schwab Bank. As the Company continues to expand its presence in the financial services sector, Mr. Cherrie's expertise and vast relationships will prove to be highly valuable for the Company and its shareholders.
Boardwalktech CEO Andrew T. Duncan stated, "Fiscal 2024 was a pivotal and demanding year for Boardwalktech and certainly wasn't without its challenges. We had to make some difficult decisions around the rationalization of our sales and marketing teams with a focus on getting the right people in place with a priority on new customers and growth. We saw increased adoption of our Velocity product at a top 5 US bank, due to a 10X ROI versus other software solutions, which bodes well for other financial services opportunities in the next year. We also introduced our Unity Central product with its focus on improving enterprise supply chain visibility and order execution, through our proprietary predictive insights and document/information management technology currently in use by customers including a Fortune 30 company. We also added a number of new partnerships with large well known IT services companies who will continue to source new opportunities and deliver new incremental license contracts. Boardwalktech is now better positioned and is on stronger footing to see improved levels of customer and revenue growth."
Earnings Conference Call Details
Boardwalktech management will be hosting its earnings conference call today (June 27, 2024). Detail:
Time: 5:00PM Eastern Time / 2:00 PM Pacific Time
To join the call, please use the following dial-in information:
North American Participants: Please dial 1-888-664-6383 (Toll Free) or 416-764-8650 (Local - Toronto)
European Participants: 0800 724 0293 (Germany), 0800 312 635 (Switzerland), 0800 652 2435 (UK).
Rapid Connect URL: https://emportal.ink/3V6nnJL (copy & paste to your browser)
Webcast URL: https://app.webinar.net/gYDaOJrOoK3 (copy & paste to your browser)
A replay of the call will be available until July 4, 2024 and can be accessed by dialing 1-888-390-0541 and entering access code 731068#
About Boardwalktech Software Corp.
Boardwalktech has developed a patented Digital Ledger Technology Platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data is the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital ledger technology-based platforms. Boardwalktech is headquartered in Cupertino, California with offices in India and operations in North America. For more information on Boardwalktech, visit our website at www.boardwalktech.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading "Risk Factors" in the Company's filing statement dated May 30, 2018. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
Neither 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 BoardwalkTech
