Technology
D2L Inc. Announces Second Quarter Fiscal 2025 Financial Results
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2 weeks agoon
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Total revenue increased 11% year-over-year to US$49.2 millionSubscription and support revenue grew 12% year-over-year to US$44.0 millionAnnual Recurring Revenue1 reached US$198.3 million, up 11% over the prior year, and Constant Currency Annual Recurring Revenue1 grew 12%Adjusted EBITDA2 of US$4.2 million (8.6% margin) in the quarterCompany increases revenue guidance to $199 million to $202 million and Adjusted EBITDA guidance to $22 million to $24 million
TORONTO, Sept. 4, 2024 /CNW/ – D2L Inc. (TSX: DTOL) (“D2L” or the “Company”), a leading global learning technology company, today announced financial results for its Fiscal 2025 second quarter ended July 31, 2024. All amounts are in U.S. dollars and all figures are prepared in accordance with International Financial Reporting Standards (“IFRS”) unless otherwise indicated.
“Our second-quarter results demonstrate continued execution on our balanced growth and profitability plan, highlighted by strong growth in Annual Recurring Revenue, subscription revenue, and Free Cash Flow generation,” said John Baker, CEO of D2L. “Our year-to-date performance positions us for continued growth and meaningful Adjusted EBITDA margin expansion in the second half of the year. At the same time, we are reinforcing our commitment to innovation that empowers our customers to create greater impact, achieve better outcomes, and deepen the human connection to learning. In recent months, we have significantly expanded our products and solutions, both through internal development and acquisition, which gives us more opportunity to create even deeper relationships with our growing customer base.”
Second Quarter Fiscal 2025 Financial Highlights
Total revenue was $49.2 million, up 11% from the same period in the prior year.Subscription and support revenue was $44.0 million, an increase of 12% over the same period of the prior year.Annual Recurring Revenue1 as at July 31, 2024 increased by 11% year-over-year, from $178.5 million to $198.3 million. Constant Currency Annual Recurring Revenue1 increased 12% to $200.6 million.Cash flow from operating activities was $31.4 million, up 37% versus $22.9 million in the same period in the prior year, and Free Cash Flow2 was $31.2 million, up 53% from $20.4 million in the same period in the prior year. Cash flows from operations have a seasonal low in the first quarter each year and a seasonal high in the second quarter each year.Cash flow from operating activities for the trailing 12-month period ended July 31, 2024 was $26.4 million, compared with $8.7 million for the trailing 12-month period ended July 31, 2023.Gross profit increased 12% to $33.4 million (67.9% gross profit margin) from $29.7 million (66.7% gross profit margin) in the same period of the prior year.Gross profit margin for subscription and support revenue increased to 72.9%, from 72.5% in the same period of the prior year.Adjusted EBITDA2 increased to $4.2 million from a loss of $0.5 million for the same period in the prior year, and grew to $8.2 million year to date from $2.3 million in the comparative six-month period in the prior year.Loss for the period was $0.3 million, compared with a loss of $4.8 million for the comparative period of the prior year. The Q2 2025 results included approximately $1.2 million in non-recurring expenses and transaction-related costs. These expenses are net of a gain of $0.9 million on the disposal of the Company’s majority ownership stake in SkillsWave.During the quarter, the Company completed the acquisition of H5P Group for an initial total consideration of $31.3 million.Strong balance sheet at quarter end, with cash and cash equivalents of $98.1 million and no debt.During the quarter ended July 31, 2024, the Company repurchased and canceled 106,900 Subordinate Voting Shares under its normal course issuer bid (“NCIB”). The Company has repurchased 279,480 shares since the inception of the NCIB on December 3, 2024.
1 Refer to “Key Performance Indicators” section of this press release.
2 A non-IFRS financial measure or non-IFRS ratio. Refer to “Non IFRS Financial Measures” section of this press release.
Second Quarter Fiscal 2025 Financial Results – Selected Financial Measures
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
Change
Change
2024
2023
Change
Change
$
$
$
%
$
$
$
%
Subscription & Support Revenue
44,017
39,405
4,612
11.7 %
86,971
78,595
8,376
10.7 %
Professional Services & Other Revenue
5,151
5,065
86
1.7 %
10,692
10,103
589
5.8 %
Total Revenue
49,168
44,470
4,698
10.6 %
97,663
88,698
8,965
10.1 %
Constant Currency Revenue1
49,568
44,470
5,098
11.5 %
98,019
88,698
9,321
10.5 %
Gross Profit
33,373
29,681
3,692
12.4 %
66,050
59,561
6,489
10.9 %
Adjusted Gross Profit 1
33,522
29,853
3,669
12.3 %
66,345
59,844
6,501
10.9 %
Adjusted Gross Margin1
68.2 %
67.1 %
67.9 %
67.5 %
Loss for the period
(262)
(4,828)
4,566
94.6 %
310
(3,718)
4,028
108.3 %
Adjusted EBITDA (Loss)1
4,213
(534)
4,747
889.0 %
8,232
2,277
5,955
261.5 %
Cash Flows From Operating Activities
31,443
22,888
8,555
37.4 %
16,617
5,853
10,764
183.9 %
Free Cash Flow1
31,223
20,449
10,774
52.7 %
16,271
1,765
14,506
821.9 %
1 A non-IFRS financial measure or non-IFRS ratio. Refer to the “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures” section of this press release for more details.
Second Quarter Business & Operating Highlights
D2L continued to grow its customer base in education in North America, including the additions of Stark State College and University of Texas at Rio Grande Valley.D2L continued to expand its international customer base, including Hanze University of Applied Sciences and SteelCorp Construction S.A.Signed new corporate customers, including Ontario Nurses’ Association and a large healthcare non-profit with 50,000 learners.Acquired H5P Group, a leading SaaS learning solution and provider of interactive content creation software with a global user base serving millions of individuals spanning more than 50 countries.Hosted its annual, sold-out user-conference, Fusion 2024, where global edtech leaders had access to inspiring keynotes, engaging discussions on the future of learning, and demonstrations of learning innovation.Launched D2L Lumi, a new artificial intelligence (AI)-powered feature in Brightspace to help build better content, assessments, and activities, saving educators valuable time.Launched D2L Achievement+ for Brightspace, a new add-on package that can help institutions and organizations implement a competency-based learning model, allowing learners to advance and master material at a pace that suits them best.Completed the previously announced transaction to spin-out SkillsWave into a new independent standalone company.Subsequent to quarter end, appointed Marta DeBellis to the Company’s Board of Directors. DeBellis is an executive leader and leadership coach bringing over 30-years of global go-to-market experience focused on technology, for brands such as Adobe, Intel, and Instructure.
Financial Outlook
D2L updated its previously issued financial guidance for the year ended January 31, 2025 (“Fiscal 2025”) as follows:
Subscription and support revenue in the range of $178 million to $181 million, implying growth of 11% at the midpoint over Fiscal 2024, an increase from previously issued guidance of $177 million to $180 million (growth of 10% at the midpoint);Total revenue in the range of $199 million to $202 million, implying growth of 10% at the midpoint over Fiscal 2024, an increase from previously issued guidance of $197 million to $201 million (growth of 9% at the midpoint); andAdjusted EBITDA in the range of $22 million to $24 million, an increase from previously issued guidance of $21 million to $23 million (implying Adjusted EBITDA margin of 11% at the midpoint, consistent with previous guidance).
The Company expects revenue and Adjusted EBITDA to increase as Fiscal 2025 progresses, enabling the Company to exit the year with low-to-mid-teen Adjusted EBITDA Margin.
These guidance revisions reflect the Company’s continued progress in balancing revenue growth with operating efficiency improvements, as well as the partial year contributions in the Company’s third and fourth quarter from the acquisition of H5P on July 9, 2024, inclusive of business combination accounting.
For additional details on the Company’s outlook, including the principal underlying assumptions and risk factors regarding achievement, refer to the “Financial Outlook” section of the Company’s Management’s Discussion and Analysis for the three and 12 months ended January 31, 2024 (the “Annual MD&A”), as well as the “Forward-Looking Information” section therein, below and in the Company’s Management’s Discussion and Analysis for the three months ended July 31, 2024 (the “Interim MD&A”).
Conference Call & Webcast
D2L management will host a conference call on Thursday, September 5, 2024 at 8:30 am ET to discuss its second quarter Fiscal 2025 financial results.
Date:
Thursday, September 5, 2024
Time:
8:30 am (ET)
Dial in number:
Canada/US: 1 (833) 470-1428
International: 1 (404) 975-4839
Access code: 540799
Webcast:
A live webcast will be available at ir.d2l.com/events-and-presentations/events/
The webcast will also be archived
Forward-Looking Information
This press release includes statements containing “forward-looking information” within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “outlook”, “target”, “forecasts”, “projection”, “potential”, “prospects”, “strategy”, “intends”, “anticipates”, “seek”, “believes”, “opportunity”, “guidance”, “aim”, “goal” or variations of such words and phrases or statements that certain future conditions, actions, events or results “may”, “could”, “would”, “should”, “might”, “will”, “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
This forward-looking information relates to the Company’s future financial outlook and anticipated events or results and includes, but is not limited to, statements under the heading “Financial Outlook” and information regarding: the Company’s financial position, financial results, business strategy, performance, achievements, prospects, objectives, opportunities, business plans and growth strategies, including the Company’s balanced growth and profitability plan; the Company’s budgets, operations and taxes; and judgments and estimates impacting on financial statements.
Forward-looking information is based on certain assumptions, expectations and projections, and analyses made by the Company in light of management’s experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, including the following: the Company’s ability to win business from new customers and expand business from existing customers; the timing of new customer wins and expansion decisions by existing customers; the Company’s ability to generate revenue and expand its business while controlling costs and expenses; the Company’s ability to manage growth effectively; the Company’s ability to hire and retain personnel effectively; the effects of foreign currency exchange rate fluctuations on our operations; the ability to seek out, enter into and successfully integrate acquisitions, including the acquisition of H5P; business and industry trends, including the success of current and future product development initiatives; positive social development and attitudes toward the pursuit of higher education; the Company’s ability to maintain positive relationships with its customer base and strategic partners; the Company’s ability to adapt and develop solutions that keep pace with continuing changes in technology, education and customer needs; the ability to patent new technologies and protect intellectual property rights; the Company’s ability to comply with security, cybersecurity and accessibility laws, regulations and standards; the assumptions underlying the judgments and estimates impacting on financial statements; and the Company’s ability to retain key personnel; the factors and assumptions discussed under the “Financial Outlook” of the Annual MD&A; and that the list of factors referenced in the following paragraph, collectively, do not have a material impact on the Company.
Although the Company believes that the assumptions underlying such forward-looking information were reasonable when made, they are inherently uncertain and are subject to significant risks and uncertainties and may prove to be incorrect. The Company cautions investors that forward-looking information is not a guarantee of the future and that actual results may differ materially from those made in or suggested by the forward-looking information contained in this press release. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties and other factors, including but not limited to the risks identified herein, or at “Summary of Factors Affecting Our Performance” of the Company’s Interim MD&A or in the “Risk Factors” section of the Company’s most recently filed annual information form, in each case filed under the Company’s profile on SEDAR+ at www.sedarplus.com. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.
Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking information, including any financial outlook. Any forward-looking information that is contained in this press release speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
About D2L Inc. (TSX: DTOL)
D2L is transforming the way the world learns—helping learners of all ages achieve more than they dreamed possible. Working closely with customers all over the world, D2L is supporting millions of people learning online and in person. Our global workforce is dedicated to making the best learning products to leave the world better than they found it. Learn more at www.D2L.com.
D2L Inc.
Condensed Consolidated Interim Statements of Financial Position
(In U.S. dollars)
As at July 31, 2024 and January 31, 2024
(Unaudited)
July 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$ 98,059,870
$ 116,943,499
Trade and other receivables
28,519,428
23,025,690
Uninvoiced revenue
3,542,139
3,971,861
Prepaid expenses
7,643,525
10,517,226
Deferred commissions
5,365,809
5,334,864
143,130,771
159,793,140
Non-current assets:
Other receivables
476,385
537,056
Prepaid expenses
290,583
119,872
Deferred income taxes
544,501
529,674
Right-of-use assets
8,642,646
8,774,960
Property and equipment
7,729,392
8,427,734
Deferred commissions
7,785,682
7,730,724
Investment in associate
341,334
—
Loan receivable from associate
5,031,127
—
Intangible assets
18,416,205
770,707
Goodwill
26,051,803
10,440,091
Total assets
$ 218,440,429
$ 197,123,958
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$ 27,839,548
$ 32,635,926
Deferred revenue
113,252,795
93,727,368
Lease liabilities
1,366,283
1,002,464
Contingent consideration
311,549
271,479
142,770,175
127,637,237
Non-current liabilities:
Deferred income taxes
4,334,057
587,075
Lease liabilities
11,096,375
11,707,534
Contingent consideration
4,529,000
311,839
19,959,432
12,606,448
162,729,607
140,243,685
Shareholders’ equity:
Share capital
367,404,918
364,830,884
Additional paid-in capital
46,517,830
47,485,107
Accumulated other comprehensive loss
(7,471,175)
(4,998,317)
Deficit
(350,740,751)
(350,437,401)
55,710,822
56,880,273
Total liabilities and shareholders’ equity
$ 218,440,429
$ 197,123,958
D2L INC.
Condensed Consolidated Interim Statements of Comprehensive Loss
(In U.S. dollars)
For the three and six months ended July 31, 2024 and 2023
(Unaudited)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
Revenue:
Subscription and support
$ 44,017,554
$ 39,405,679
$ 86,971,029
$ 78,595,340
Professional service and other
5,150,798
5,064,462
10,692,215
10,102,740
49,168,352
44,470,141
97,663,244
88,698,080
Cost of revenue:
Subscription and support
11,928,116
10,852,459
23,874,726
22,093,199
Professional services and other
3,867,294
3,936,514
7,738,162
7,043,818
15,795,410
14,788,973
31,612,888
29,137,017
Gross profit
33,372,942
29,681,168
66,050,356
59,561,063
Expenses:
Sales and marketing
14,591,271
14,961,079
27,496,210
27,401,746
Research and development
11,863,787
12,519,168
24,154,558
23,664,521
General and administrative
8,480,828
7,312,207
16,580,259
13,501,710
34,935,886
34,792,454
68,231,027
64,567,977
Loss from operations
(1,562,944)
(5,111,286)
(2,180,671)
(5,006,914)
Interest and other income (expense):
Interest expense
(153,886)
(142,866)
(314,546)
(298,874)
Interest income
944,693
840,405
2,028,738
1,716,512
Other income (expense)
(59,433)
(211)
43
15,252
Gain on SkillsWave disposal transaction
917,395
—
917,395
—
Foreign exchange gain (loss)
(147,067)
(364,693)
83,714
65,479
1,501,702
332,635
2,715,344
1,498,369
(Loss) income before income taxes
(61,242)
(4,778,651)
534,673
(3,508,545)
Income taxes (recovery):
Current
305,923
316,769
356,668
391,411
Deferred
(104,581)
(267,464)
(131,677)
(182,451)
201,342
49,305
224,991
208,960
(Loss) income for the period
(262,584)
(4,827,956)
309,682
(3,717,505)
Other comprehensive gain (loss):
Foreign currency translation gain (loss)
(1,677,168)
746,510
(2,472,858)
535,299
Comprehensive loss
$ (1,939,752)
$ (4,081,446)
$ (2,163,176)
$ (3,182,206)
(Loss) earnings per share – basic
$ (0.00)
$ (0.09)
$ 0.01
$ (0.07)
(Loss) earnings share – diluted
$ (0.00)
$ (0.09)
$ 0.01
$ (0.07)
Weighted average number of common shares – basic
54,374,056
53,430,984
54,195,897
53,328,052
Weighted average number of common shares – diluted
54,374,056
53,430,984
55,770,096
53,328,052
D2L INC.
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity
(In U.S. dollars)
For the six months ended July 31, 2024 and 2023
(Unaudited)
Share Capital
Additional paid-in
capital
Accumulated other
comprehensive loss
Deficit
Total
Shares
Amount
Balance, January 31, 2024
53,978,085
$ 364,830,884
$ 47,485,107
$ (4,998,317)
$ (350,437,401)
$ 56,880,273
Issuance of Subordinate Voting Shares on exercise of options
351,007
3,043,827
(1,593,216)
—
—
1,450,611
Issuance of Subordinate Voting Shares on settlement of restricted share units
355,840
1,287,144
(4,290,550)
—
—
(3,003,406)
Stock-based compensation
—
—
4,916,489
—
—
4,916,489
Repurchase of share capital for cancellation under NCIB
(238,280)
(1,756,937)
—
—
—
(1,756,937)
Change in share repurchase commitment under ASPP
—
—
—
—
(613,032)
(613,032)
Other comprehensive loss
—
—
—
(2,472,858)
—
(2,472,858)
Income for the period
—
—
—
—
309,682
309,682
Balance, July 31, 2024
54,446,652
$ 367,404,918
$ 46,517,830
$ (7,471,175)
$ (350,740,751)
$ 55,710,822
Balance, January 31, 2023
53,146,530
357,639,824
46,084,161
(5,001,805)
(344,630,902)
54,091,278
Issuance of Subordinate Voting Shares on exercise of options
301,494
2,702,550
(1,146,774)
—
—
1,555,776
Issuance of Subordinate Voting Shares on settlement of restricted share units
209,695
961,800
(2,405,427)
—
—
(1,443,627)
Stock-based compensation
—
—
5,169,006
—
—
5,169,006
Other comprehensive gain
—
—
—
535,299
—
535,299
Loss for the period
—
—
—
—
(3,717,505)
(3,717,505)
Balance, July 31, 2023
53,657,719
$ 361,304,174
$ 47,700,966
$ (4,466,506)
$ (348,348,407)
$ 56,190,227
D2L INC.
Condensed Consolidated Interim Statements of Cash Flows
(In U.S. dollars)
For the six months ended July 31, 2024 and 2023
(Unaudited)
2024
2023
Operating activities:
(Loss) income for the period
$309,682
$(3,717,505)
Items not involving cash:
Depreciation of property and equipment
861,831
721,635
Depreciation of right-of-use assets
612,221
643,910
Amortization of intangible assets
179,233
32,572
Gain on disposal of property and equipment
(47,194)
(15,670)
Stock-based compensation
4,916,489
5,169,006
Net interest income
(1,714,192)
(1,417,638)
Income tax expense
224,991
208,960
Gain on SkillsWave disposal transaction
(917,395)
—
Loss from equity accounted investee
96,764
—
Changes in operating assets and liabilities:
Trade and other receivables
(4,478,486)
(7,434,422)
Uninvoiced revenue
325,811
(615,095)
Prepaid expenses
2,528,054
1,573,388
Deferred commissions
(271,090)
(1,331,109)
Accounts payable and accrued liabilities
(6,439,504)
(4,182,827)
Deferred revenue
19,061,544
14,936,043
Right-of-use assets and lease liabilities
(49,476)
—
Interest received
1,984,358
1,717,429
Interest paid
(17,757)
—
Income taxes paid
(548,991)
(435,663)
Cash flows from operating activities
16,616,893
5,853,014
Financing activities:
Payment of lease liabilities
(853,965)
(262,024)
Proceeds from exercise of stock options
1,450,611
1,555,776
Taxes paid on settlement of restricted share units
(3,003,406)
(1,443,627)
Repurchase of share capital for cancellation under NCIB
(1,756,937)
—
Cash flows used in financing activities
(4,163,697)
(149,875)
Investing activities:
Purchase of property and equipment
(393,023)
(4,103,826)
Proceeds from disposal of property and equipment
47,194
15,670
Acquisition of business, net of cash acquired
(22,308,927)
(2,766,284)
Payment of contingent consideration
(249,436)
—
Transfer of cash on disposal of SkillsWave
(1,483,357)
—
Proceeds from sale of majority ownership stake in SkillsWave
809,038
—
Issuance of loan to SkillsWave
(5,000,000)
—
Cash flows used in investing activities
(28,578,511)
(6,854,440)
Effect of exchange rate changes on cash and cash equivalents
(2,758,314)
690,427
Decrease in cash and cash equivalents
(18,883,629)
(460,874)
Cash and cash equivalents, beginning of period
116,943,499
110,732,236
Cash and cash equivalents, end of period
98,059,870
110,271,362
Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures
The information presented within this press release refers to certain non-IFRS financial measures (including non-IFRS ratios) including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Margin, and Constant Currency Revenue. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations, financial performance and liquidity from management’s perspective and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company’s management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to assess our ability to meet our capital expenditures and working capital requirements.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is defined as net income (loss), excluding interest, taxes, depreciation and amortization (or EBITDA), adjusted for stock-based compensation, foreign exchange gains and losses, non-recurring expenses, transaction-related expenses, fair value adjustment of acquired deferred revenue, income (loss) from equity accounted investee, impairment charges and other income and losses. Adjusted EBITDA Margin is calculated as Adjusted EBITDA expressed as a percentage of total revenue. For an explanation of recent changes to and management’s use of Adjusted EBITDA and Adjusted EBITDA Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Adjusted EBITDA and Adjusted EBITDA Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles Adjusted EBITDA to income (loss) for the period, and discloses Adjusted EBITDA Margin, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
(Loss) income for the period
(262)
(4,828)
310
(3,718)
Stock-based compensation
2,584
3,095
4,917
5,169
Foreign exchange loss (gain)
147
365
(84)
(65)
Non-recurring expenses(1)
1,045
150
1,866
150
Transaction-related costs(2)
151
552
823
552
Fair value adjustment of acquired deferred revenue
139
—
139
—
Loss from equity accounted investee
97
—
97
—
Net interest income
(791)
(698)
(1,714)
(1,418)
Income tax expense
201
49
225
209
Depreciation and amortization
902
781
1,653
1,398
Adjusted EBITDA
4,213
(534)
8,232
2,277
Adjusted EBITDA Margin
8.6 %
-1.2 %
8.4 %
2.6 %
Notes:
(1)
These expenses relate to non-recurring activities, such as certain legal fees incurred that are not indicative of continuing operations, and changes of workforce or technology whereby certain functions were realigned to optimize operations.
(2)
These expenses include certain legal and professional fees that were incurred in connection with acquisition and other strategic transactions, including the disposal of our majority ownership stake in SkillsWave and our acquisition of H5P. These expenses also include post-combination compensation costs from the acquisition of H5P. These expenses are net of a gain of $0.9 million recognized on the disposal of our majority ownership stake in SkillsWave. These expenses would not have been incurred if not for these transactions and are not considered expenses indicative of the Company’s continuing operations.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit is defined as gross profit excluding related stock-based compensation expenses. Adjusted Gross Margin is calculated as Adjusted Gross Profit expressed as a percentage of total revenue. For an explanation of management’s use of Adjusted Gross Profit and Adjusted Gross Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Adjusted Gross Profit and Adjusted Gross Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles Adjusted Gross Margin to gross profit expressed as a percentage of revenue, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
Gross profit for the period
33,373
29,681
66,050
59,561
Stock based compensation
149
172
295
283
Adjusted Gross Profit
33,522
29,853
66,345
59,844
Adjusted Gross Margin
68.2 %
67.1 %
67.9 %
67.5 %
Free Cash Flow and Free Cash Flow Margin
Free Cash Flow is defined as cash provided by (used in) operating activities less net additions to property and equipment. Free Cash Flow Margin is calculated as Free Cash Flow expressed as a percentage of total revenue. For an explanation of management’s use of Free Cash Flow and Free Cash Flow Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Free Cash Flow and Free Cash Flow Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles our cash flow from (used in) operating activities to Free Cash Flow, and discloses Free Cash Flow Margin, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended July 31
Six months ended July 31
2024
2023
2024
2023
Cash flow from operating activities
31,443
22,888
16,617
5,853
Net addition to property and equipment
(220)
(2,439)
(346)
(4,088)
Free Cash Flow
31,223
20,449
16,271
1,765
Free Cash Flow Margin
63.5 %
46.0 %
16.7 %
2.0 %
Constant Currency Revenue
Constant Currency Revenue is defined as foreign-currency-denominated revenues translated at the historical exchange rates from the comparable prior period into our U.S. dollar functional currency. For an explanation of management’s use of Constant Currency Revenue see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Constant Currency Revenue” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles our Constant Currency Revenue to revenue, for the periods indicated:
Three months ended July 31
Six months ended July 31
(in thousands of U.S. dollars)
2024
2023
2024
2023
$
$
$
$
Total revenue for the period
49,168
44,470
97,663
88,698
Negative impact of foreign exchange rate changes over the prior period
400
—
356
—
Constant Currency Revenue
49,568
44,470
98,019
88,698
Key Performance Indicators
Management uses a number of metrics, including the key performance indicators identified below, to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other issuers. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance.
Annual Recurring Revenue and Constant Currency Annual Recurring Revenue: We define Annual Recurring Revenue as the annualized equivalent value of subscription revenue from all existing customer contracts as at the date being measured, exclusive of the implementation period. Our calculation of Annual Recurring Revenue assumes that customers will renew their contractual commitments as those commitments come up for renewal. We believe Annual Recurring Revenue provides a reasonable, real-time measure of performance in a subscription-based environment and provides us with visibility for potential growth to our cash flows. We believe that increasing Annual Recurring Revenue indicates the continued strength in the expansion of our business, and will continue to be our focus on a go-forward basis. We define Constant Currency Annual Recurring Revenue as foreign-currency-denominated Annual Recurring Revenue translated at the historical exchange rates from the comparable prior period into our U.S. dollar functional currency.
As at July 31
(in millions of U.S. dollars, except percentages)
2024
2023
Change
$
$
%
Annual Recurring Revenue
198.3
178.5
11.1 %
Constant Currency Annual Recurring Revenue
200.6
178.5
12.4 %
For further information, please contact:
Craig Armitage, Investor Relations
ir@d2l.com
(416) 347-8954
SOURCE D2L Inc.
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Kawasaki and CB&I Sign Strategic Collaborative Agreement for Promoting Commercial-Use Liquefied Hydrogen Supply Chain
Published
24 mins agoon
September 20, 2024By
HOUSTON, Sept. 19, 2024 /PRNewswire/ — Kawasaki Heavy Industries, Ltd. (Kawasaki) and CB&I, a wholly owned unrestricted subsidiary of McDermott, announced today their signing of a strategic agreement for promoting a commercial-use liquefied hydrogen (LH2) supply chain and realizing a zero-carbon-emission society. The signing ceremony took place at Gastech Exhibition & Conference in Houston on September 18, 2024.
“We are very pleased for this opportunity to build and launch a commercial liquefied hydrogen supply chain in cooperation with CB&I,” said Motohiko Nishimura, President, Energy Solutions & Marine Engineering Company, Kawasaki Heavy Industries, Ltd. “By taking advantage of both companies’ strengths and specialized know-how, we aim to cost down hydrogen, strengthen hydrogen supply chain competitiveness, and accelerate the transition to a zero-carbon society.”
Both companies will use their specialized know-how to provide infrastructure that will enable commercial-scale international LH2 supply chains in order to help achieve carbon-neutrality. By leveraging our combined expertise to deliver large-scale LH2 infrastructure solutions, CB&I and Kawasaki are removing barriers, driving down costs and enhancing scalability across the entire supply chain.
“This strategic partnership represents a significant advancement in liquid hydrogen storage capabilities,” said Mark Butts, Senior Vice President of CB&I. “Our technical expertise and extensive experience in liquid hydrogen storage position us at the forefront of the energy transition, delivering reliable storage solutions and executing projects worldwide with proven success.”
Under this agreement, the companies will provide infrastructure to advance the global realization of a sustainable energy economy and meet decarbonization targets. This collaboration will reduce LH2 infrastructure costs and contribute to more widespread use of this clean and efficient energy source.
About CB&I
CB&I is the world’s leading designer and builder of storage facilities, tanks, and terminals. With more than 60,000 structures completed throughout its 130-year history, CB&I has the global expertise and strategically located operations to provide its customers world-class storage solutions for even the most complex energy infrastructure projects. CB&I is a wholly owned unrestricted subsidiary of McDermott. To learn more, visit www.cbi.com.
About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott’s innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott’s locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Kawasaki Heavy Industries, Ltd.
Kawasaki Heavy Industries, Ltd. is general engineering manufacturer with over 125 years of experience manufacturing products spanning land, sea and air. Kawasaki established the Kawasaki Group’s new vision statement, “Group Vision 2030: Trustworthy Solutions for the Future,” and is focusing on three fields, “A Safe and Secure Remotely-Connected Society,” “Near-Future Mobility,” and “Energy and Environmental Solutions” in order to provide solutions for social issues. For “Energy and Environmental Solutions” in particular, by securing the technology necessary for the entire supply chain (for production, transportation, storage and utilization) ahead of the rest of the world, Kawasaki aims to bring about a society that utilizes hydrogen, the ultimate clean energy that emits no carbon dioxide when used. To learn more, visit https://global.kawasaki.com/en.
Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about the expected benefits from the collaboration agreement discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customers and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott’s management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
For media inquiries, please use the contact information below:
Reba Reid
Global Media Relations
+1 281 588 5636
RReid@McDermott.com
Kristi Krupala-Grove
CB&I Media Relations
+1 346 313 9636
KKrupala2@mcdermott.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/kawasaki-and-cbi-sign-strategic-collaborative-agreement-for-promoting-commercial-use-liquefied-hydrogen-supply-chain-302253698.html
SOURCE McDermott International, Ltd
Technology
Halal Route Application – Eat, Travel around Thailand, Safe and Sound Halal Style
Published
24 mins agoon
September 20, 2024By
BANGKOK, Thailand, Sept. 20, 2024 /PRNewswire/ — The Halal Science Center, Chulalongkorn University has developed Halal Route, an application that lists restaurants, lodging, mosques, prayer directions, and tourist attractions in Thailand under Islamic tourism principles. It hopes to help Muslim tourists travel in Thailand with peace of mind, and supports tourism industry operators to grow and welcome a growing number of Muslim tourists.
The Tourism Authority of Thailand (TAT) predicts that in 2024 there will be around 168 million Islamic tourists worldwide. According to the Mastercard-Crescent Rating Global Muslim Travel Index (GMTI 2024), Thailand is the 32nd most popular destination for Muslim tourists. However, the major problem Muslim tourists encounter in Thailand is finding Halal-accredited restaurants, hotels, accommodations, or tourist attractions with service areas (such as prayer rooms) that are compliant with the Islamic way.
“Halal Route” is a travel aggregator app that collects searchable information on Halal restaurants, mosques, prayer locations, times, and directions for prayers (the qibla), tourist attractions, Muslim villages or communities, hotels, accommodations, etc. This app is linked to Google Maps for navigation with precision. It also supports 3 languages, Thai, English, and Arabic, so that Muslim tourists can live and travel more comfortably and with peace of mind,” said Mr.Erfun Weahama, Science Service Officer, Halal Route App development team.
Dr. Anat Denyingyot, Assistant Director of the Halal Science Center, emphasized that the Halal Route application has the most reliable and comprehensive information on halal tourism in Thailand today. “All restaurants and locations have had on-site visits and are audited according to standards approved by a trusted authority or organization, such as certifications from religious organizations or halal food-related entities, as well as management systems to guarantee and be responsible for halal conditions (the HAL-Q system),” Dr. Anat assured.
Currently, the application has more than 1,100 restaurants in its database, and new locations and services are being updated, covering more than 40 provinces from north to south of Thailand that are popular among tourists.
“Halal Route is not only for navigation, but a platform that connects Muslim communities from around the world who have the opportunity to visit Thailand,” Associate Professor Dr.Winai Dahlan, Director of the Halal Science Center concluded.
The Halal Route application is free to download on both iOS and Android systems.
Read the full article at https://www.chula.ac.th/en/highlight/185916/
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/halal-route-application—eat-travel-around-thailand-safe-and-sound-halal-style-302251312.html
SOURCE Chulalongkorn University
Technology
QR Code Labels Market Size to Grow USD 1339.1 Million by 2030 at a CAGR of 5.6% | Valuates Reports
Published
24 mins agoon
September 20, 2024By
BANGALORE, India, Sept. 19, 2024 /PRNewswire/ — QR Code Labels Market is Segmented by Type (Flexographic Printing, Digital Printing, Offset Gravure), by Application (Inventory Management, Marketing & Advertisement, Mobile Payments, Personal Use): Global Opportunity Analysis and Industry Forecast, 2024-2030.
The Global QR Code Labels Market was valued at US$ 889.2 million in 2023 and is anticipated to reach US$ 1339.1 million by 2030, witnessing a CAGR of 5.6% during the forecast period 2024-2030.
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Major Factors Driving the Growth of QR Code Labels Market:
The QR code labels market is experiencing robust growth due to the increasing adoption across sectors like retail, logistics, marketing, and payments. The convenience, versatility, and cost-effectiveness of QR code labels, combined with the rise in mobile phone usage and the shift toward contactless technologies, are key drivers of this growth. Industries are leveraging QR codes for diverse applications such as inventory management, mobile payments, and marketing campaigns. However, concerns about data privacy and security may limit widespread adoption in certain regions.
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TRENDS INFLUENCING THE GROWTH OF THE QR CODE LABELS MARKET:
Flexographic printing holds the largest share in the QR code labels market due to its high-speed production capabilities and cost-effectiveness for large print runs. Flexographic printing is particularly popular in sectors like retail and logistics, where large quantities of QR code labels are required for packaging and inventory management. Its ability to print on a wide range of substrates, including paper, plastic, and metallic foils, makes flexographic printing the preferred choice for high-volume, cost-efficient QR code label production, driving its dominance in the market.
Digital printing is the second-largest segment, known for its flexibility, quick turnaround times, and ability to produce short print runs cost-effectively. This technology is widely adopted in the marketing and advertising sectors where businesses need customized QR code labels for targeted campaigns and promotions. Digital printing offers high-quality, precise printing for small batches, allowing companies to personalize QR codes for specific audiences or events. The growing trend of personalization in marketing is significantly driving the demand for digital printing in the QR code labels market.
Inventory management is the largest application segment, as QR code labels simplify tracking and monitoring products in warehouses, retail stores, and logistics chains. QR codes allow for real-time updates and easy access to product details, making inventory management more efficient. Businesses, especially in e-commerce and logistics, rely on QR codes to reduce human errors, improve accuracy, and streamline operations. As global trade and e-commerce continue to grow, inventory management remains the largest driver of the QR code labels market.
QR codes in marketing and advertising are increasingly popular as brands use them to engage customers directly through digital content. By scanning a QR code, consumers can access websites, videos, promotions, and other interactive media, enhancing brand interaction. This trend is particularly strong in retail and consumer goods sectors, where QR codes are used in packaging, billboards, and digital campaigns. With more consumers using smartphones, QR codes have become a key tool in marketing strategies, driving growth in this application.
The use of QR code labels for mobile payments is rapidly expanding, especially in regions like Asia-Pacific, where cashless transactions are becoming the norm. QR codes provide a secure, contactless payment solution, and their integration with mobile wallets makes them convenient for both consumers and businesses. The pandemic accelerated the shift to contactless payments, and the trend is expected to continue as more businesses adopt QR code-enabled payment systems. This rising trend is a significant factor contributing to the growth of the QR code labels market.
QR code labels are also being increasingly adopted for personal use, particularly in the context of social networking, personal branding, and event management. Individuals are using QR codes to share contact information, social media profiles, or event details. The ease of generating and sharing QR codes through mobile apps has made this technology accessible for personal use. As digital interaction becomes more integrated into daily life, personal use of QR code labels is expected to grow, further expanding the market.
The production of QR code labels, particularly in large quantities, is increasingly being scrutinized for its environmental impact. Companies are looking for sustainable printing solutions, such as eco-friendly inks and biodegradable materials, to reduce the environmental footprint of label production. Flexographic and digital printing technologies are evolving to meet these demands, with manufacturers investing in greener alternatives. The shift towards sustainability in label production is expected to shape the future of the QR code labels market.
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QR CODE LABELS MARKET SHARE
The Asia-Pacific region dominates the QR code labels market, driven by the widespread use of QR codes for mobile payments and inventory management, particularly in China and Japan. North America follows, with increasing adoption in retail, marketing, and healthcare. Europe is also a key market, driven by the rising demand for contactless payment solutions and digital marketing initiatives. The Middle East and Africa are emerging markets, especially in mobile payments and product traceability applications.
Key Companies:
Lintec CorporationCCL IndustriesPacktica SDNLabel LogicHibiscusData LabelAdvanced LabelsCoast Label CompanyLabel ImpressionsConsolidated LabelAvery
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