Technology
So-Young Reports Unaudited Third Quarter 2024 Financial Results
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2 hours agoon
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BEIJING, Nov. 20, 2024 /PRNewswire/ — So-Young International Inc. (Nasdaq: SY) (“So-Young” or the “Company”), the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights
Total revenues were RMB371.8 million (US$53.0 million[1]), compared with RMB385.3 million in the corresponding period of 2023, exceeding the high end of guidance.Net income attributable to So-Young International Inc. was RMB20.3 million (US$2.9 million), compared with net income attributable to So-Young International Inc. of RMB18.3 million in the same period of 2023.Non-GAAP net income attributable to So-Young International Inc.[2] was RMB22.2 million (US$3.2 million), compared with non-GAAP net income attributable to So-Young International Inc. of RMB9.5 million in the same period of 2023.
Third Quarter 2024 Operational Highlights
Average mobile MAUs were 1.4 million, compared with 3.1 million in the third quarter of 2023.Number of medical service providers subscribing to information services on So-Young’s platform was 1,322, compared with 1,397 in the third quarter of 2023.Total number of purchasing users through reservation services was 114.9 thousand and the aggregate value of medical aesthetic treatment transactions facilitated by So-Young’s platform was RMB346.0 million.
Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, said, “Our third quarter performance beat the high end of our guidance once again, highlighting the resilience of our business. Sales of medical products and maintenance services grew by 18.7% year-over-year, becoming a key growth driver contributing to a year-over-year increase in net income. This underscores the effectiveness of our strategy to stay at the forefront of industry trends by deepening the synergies from our vertical integration and continuously diversifying our offerings. Our clinic network has experienced significant growth. The number of stores has grown to 16 by the end of this quarter, extending our presence into additional major cities. All stores are situated in central business districts, enhancing our market coverage and competitive position. To further scale our offline presence, we are accelerating the deployment of this proven standardized model in other cities nationwide and are exploring franchising opportunities to engage with a wider audience. The reputational strength of our brand and our deep understanding of evolving consumer behavior uniquely position us to develop products that resonate with consumer needs. Sales momentum remains robust, driven by both our well-established products and exciting new launches in collaboration with our supply chain partners. Looking ahead, we are committed to seizing opportunities across the entire medical aesthetics value chain while deepening the integration of our three core businesses to maximize operational efficiency, customer satisfaction, and sustainable growth.”
Mr. Hui Zhao, Chief Financial Officer of So-Young, added, “Our third-quarter results reflect our ability to strategically adapt to changing market dynamics. Through disciplined cost management and targeted growth initiatives, we are carefully navigating this challenging market environment while building a solid foundation for future expansion. Encouragingly, our net income and non-GAAP net income attributable to So-Young International Inc. improved significantly, with year-over-year growth rates exceeding 8.9% and 133.1% respectively. Looking ahead, we will leverage our expanding network of clinics and meticulously curated product offerings to address the growing demand for high-quality solutions and services. By maintaining operational efficiency and scalability, we are well-positioned to continue leading the medical aesthetics sector, delivering sustainable growth and long-term value for our shareholders.”
[1] This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the reader. Unless otherwise specified, all translations of Renminbi amounts into U.S. dollar amounts in this press release are made at RMB7.0176 to US$1.00, which was the U.S. dollars middle rate announced by the Board of Governors of the Federal Reserve System of the United States on September 30, 2024.
[2] Non-GAAP net income attributable to So-Young International Inc. is defined as net income attributable to So-Young International Inc. excluding share-based compensation expenses attributable to So-Young International Inc. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
Third Quarter 2024 Financial Results
Revenues
Total revenues were RMB371.8 million (US$53.0 million), a decrease of 3.5% from RMB385.3 million in the same period of 2023. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young’s platform.
Information services and other revenues were RMB263.0 million (US$37.5 million), a decrease of 8.0% from RMB285.9 million in the same period of 2023. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young’s platform.Reservation services revenues were RMB19.6 million (US$2.8 million), a decrease of 18.9% from RMB24.1 million in the same period of 2023. The decrease was primarily due to a decrease in consumer spending through our platform.Sales of medical products and maintenance services were RMB89.3 million (US$12.7 million), an increase of 18.7% from RMB75.2 million in the same period of 2023, primarily due to an increase in the order volumes for cosmetic products and medical equipment.
Cost of Revenues
Cost of revenues was RMB142.2 million (US$20.3 million), a decrease of 0.3% from RMB142.6 million in the third quarter of 2023. The decrease was primarily due to a decrease in the cost of services associated with the information services. Cost of revenues included share-based compensation expenses of RMB0.1 million (US$0.0 million), compared with the share-based compensation expenses of RMB0.4 million in the corresponding period of 2023.
Cost of services and others were RMB98.6 million (US$14.1 million), a decrease of 4.7% from RMB103.5 million in the third quarter of 2023. The decrease was primarily due to a decrease in the cost of services associated with the information services.Cost of medical products sold and maintenance services were RMB43.5 million (US$6.2 million), an increase of 11.3% from RMB39.1 million in the third quarter of 2023. The increase was primarily due to an increase in costs associated with the sales of cosmetic products.
Operating Expenses
Total operating expenses were RMB225.0 million (US$32.1 million), a decrease of 8.1% from RMB244.7 million in the third quarter of 2023.
Sales and marketing expenses were RMB114.9 million (US$16.4 million), a decrease of 20.1% from RMB143.8 million in the third quarter of 2023. The decrease was mainly due to a decrease in expenses associated with branding and user acquisition activities. Sales and marketing expenses included share-based compensation expenses of RMB0.2 million (US$0.0 million), compared with RMB0.5 million in the corresponding period of 2023.General and administrative expenses were RMB69.9 million (US$10.0 million), an increase of 39.1% from RMB50.2 million in the third quarter of 2023. The increase was primarily due to an increase in share-based compensation expenses. General and administrative expenses included share-based compensation expenses of RMB1.3 million (US$0.2 million), compared with a reversal of share-based compensation expenses of RMB11.2 million in the corresponding period of 2023.Research and development expenses were RMB40.2 million (US$5.7 million), a decrease of 20.6% from RMB50.6 million in the third quarter of 2023. The decrease was primarily attributable to improvements in staff efficiency. Research and development expenses included share-based compensation expenses of RMB0.3 million (US$0.0 million), compared with RMB1.5 million in the corresponding period of 2023.
Income Tax (Expenses)/Benefits
Income tax expenses were RMB2.1 million (US$0.3 million), compared with income tax benefits of RMB2.2 million in the same period of 2023.
Net Income Attributable to So-Young International Inc.
Net income attributable to So-Young International Inc. was RMB20.3 million (US$2.9 million), compared with a net income attributable to So-Young International Inc. of RMB18.3 million in the third quarter of 2023.
Non-GAAP Net Income Attributable to So-Young International Inc.
Non-GAAP net income attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses attributable to So-Young International Inc., was RMB22.2 million (US$3.2 million), compared with RMB9.5 million non-GAAP net income attributable to So-Young International Inc. in the same period of 2023.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB0.20 (US$0.03) and RMB0.20 (US$0.03), respectively, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of RMB0.18 and RMB0.18, respectively, in the same period of 2023.
Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments
As of September 30, 2024, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB1,252.6 million (US$178.5 million), compared with RMB1,341.6 million as of December 31, 2023.
Business Outlook
For the fourth quarter of 2024, So-Young expects total revenues to be between RMB350.0 million (US$49.9 million) and RMB370.0 million (US$52.7 million), representing a 10.4% to 5.3% decrease from the same period in 2023. The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, as well as customer demand, which are all subject to change.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income/(loss) from operations and non-GAAP net income attributable to So-Young International Inc. by excluding share-based compensation expenses from income/(loss) from operations and net income attributable to So-Young International Inc., respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future. All these are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
Conference Call Information
So-Young’s management will hold an earnings conference call on Wednesday, November 20, 2024, at 7:00 AM U.S. Eastern Time (8:00 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:
International:
+1-412-902-4272
Mainland China:
4001-201203
US:
+1-888-346-8982
Hong Kong:
+852-301-84992
Passcode:
So-Young International Inc.
A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, November 27, 2024. The dial-in details are:
International:
+1-412-317-0088
US:
+1-877-344-7529
Passcode:
2642052
Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com.
About So-Young International Inc.
So-Young International Inc. (Nasdaq: SY) is the largest and most vibrant social community in China for consumers, professionals and service providers in the medical aesthetics industry. The Company presents users with reliable information through offering high quality and trustworthy content together with a multitude of social functions on its platform, as well as by curating medical aesthetic service providers that are carefully selected and vetted. Leveraging So-Young’s strong brand image, extensive audience reach, trust from its users, highly engaging social community and data insights, the Company is well-positioned to expand both along the medical aesthetic industry value chain and into the massive, fast-growing consumption healthcare service market.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young’s strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about So-Young’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: So-Young’s strategies; So-Young’s future business development, financial condition and results of operations; So-Young’s ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law.
For more information, please contact:
So-Young
Investor Relations
Ms. Mona Qiao
Phone: +86-10-8790-2012
E-mail: ir@soyoung.com
Christensen
In China
Ms. Dee Wang
Phone: +86-10-5900-1548
E-mail: dee.wang@christensencomms.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share data)
As of
December 31,
September 30,
September 30,
2023
2024
2024
RMB
RMB
US$
Assets
Current assets:
Cash and cash equivalents
426,119
467,407
66,605
Restricted cash and term deposits
14,695
104,198
14,848
Trade receivables
57,219
106,943
15,239
Inventories
118,924
145,601
20,748
Receivables from online payment platforms
23,158
31,666
4,512
Amounts due from related parties
9,212
10,466
1,491
Term deposits and short-term investments
900,823
681,035
97,047
Prepayment and other current assets
171,774
221,227
31,525
Total current assets
1,721,924
1,768,543
252,015
Non-current assets:
Long-term investments
261,016
287,507
40,969
Intangible assets
145,253
131,641
18,759
Goodwill
540,693
540,693
77,048
Property and equipment, net
116,782
154,572
22,026
Deferred tax assets
78,034
81,057
11,551
Operating lease right-of-use assets
118,408
159,179
22,683
Other non-current assets
232,455
180,628
25,739
Total non-current assets
1,492,641
1,535,277
218,775
Total assets
3,214,565
3,303,820
470,790
Liabilities
Current liabilities:
Short-term borrowings
29,825
89,559
12,762
Taxes payable
56,894
53,639
7,643
Contract liabilities
103,374
94,747
13,501
Salary and welfare payables
86,290
84,927
12,102
Amounts due to related parties
388
146
21
Accrued expenses and other current liabilities
233,913
244,721
34,873
Operating lease liabilities-current
29,739
40,398
5,757
Total current liabilities
540,423
608,137
86,659
Non-current liabilities:
Operating lease liabilities-non current
86,210
124,915
17,800
Deferred tax liabilities
25,082
20,780
2,961
Other non-current liabilities
1,536
1,607
229
Total non-current liabilities
112,828
147,302
20,990
Total liabilities
653,251
755,439
107,649
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(Amounts in thousands, except for share and per share data)
Shareholders’ equity:
Treasury stock
(358,453)
(369,907)
(52,711)
Class A ordinary shares (US$0.0005 par value; 750,000,000
shares authorized as of December 31, 2023 and September
30, 2024; 73,688,044 and 63,422,436 shares issued and
outstanding as of December 31, 2023, 77,634,580 and
66,170,882 shares issued and outstanding as of September
30, 2024, respectively)
238
252
36
Class B ordinary shares (US$ 0.0005 par value; 20,000,000
shares authorized as of December 31, 2023 and September
30, 2024; 12,000,000 shares issued and outstanding as of
December 31, 2023 and September 30, 2024)
37
37
5
Additional paid-in capital
3,080,433
3,067,567
437,125
Statutory reserves
33,855
33,855
4,824
Accumulated deficit
(330,166)
(312,117)
(44,476)
Accumulated other comprehensive income
18,185
8,858
1,262
Total So-Young International Inc. shareholders’ equity
2,444,129
2,428,545
346,065
Non-controlling interests
117,185
119,836
17,076
Total shareholders’ equity
2,561,314
2,548,381
363,141
Total liabilities and shareholders’ equity
3,214,565
3,303,820
470,790
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share data)
For the Three Months Ended
For the Nine Months Ended
September
30, 2023
September
30, 2024
September
30, 2024
September
30, 2023
September
30, 2024
September
30, 2024
RMB
RMB
US$
RMB
RMB
US$
Revenues:
Information services and others
285,937
262,988
37,475
795,100
750,952
107,010
Reservation services
24,140
19,567
2,788
80,724
64,987
9,261
Sales of medical products and maintenance services
75,217
89,270
12,721
231,639
281,548
40,120
Total revenues
385,294
371,825
52,984
1,107,463
1,097,487
156,391
Cost of revenues:
Cost of services and others
(103,484)
(98,620)
(14,053)
(291,503)
(274,695)
(39,144)
Cost of medical products sold and maintenance services
(39,119)
(43,548)
(6,206)
(115,199)
(139,839)
(19,927)
Total cost of revenues
(142,603)
(142,168)
(20,259)
(406,702)
(414,534)
(59,071)
Gross profit
242,691
229,657
32,725
700,761
682,953
97,320
Operating expenses:
Sales and marketing expenses
(143,844)
(114,884)
(16,371)
(394,276)
(360,448)
(51,363)
General and administrative expenses
(50,242)
(69,901)
(9,961)
(204,097)
(225,653)
(32,155)
Research and development expenses
(50,597)
(40,188)
(5,727)
(158,531)
(122,277)
(17,424)
Total operating expenses
(244,683)
(224,973)
(32,059)
(756,904)
(708,378)
(100,942)
(Loss)/Income from operations
(1,992)
4,684
666
(56,143)
(25,425)
(3,622)
Other income/(expenses):
Investment income, net
647
510
73
10,869
3,397
484
Interest income, net
12,130
14,239
2,029
38,023
38,270
5,453
Exchange gains/(losses)
103
465
66
(1,051)
875
125
Share of losses of equity method investee
(3,822)
(3,873)
(552)
(10,692)
(11,602)
(1,653)
Others, net
9,887
6,915
985
18,474
12,234
1,743
Income/(Loss) before tax
16,953
22,940
3,267
(520)
17,749
2,530
Income tax benefits/(expenses)
2,191
(2,097)
(299)
7,240
3,031
432
Net income
19,144
20,843
2,968
6,720
20,780
2,962
Net income attributable to noncontrolling interests
(839)
(495)
(71)
(2,941)
(2,731)
(389)
Net income attributable to So-Young International Inc.
18,305
20,348
2,897
3,779
18,049
2,573
SO-YOUNG INTERNATIONAL INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Amounts in thousands, except for share and per share data)
For the Three Months Ended
For the Nine Months Ended
September
30, 2023
September
30, 2024
September
30, 2024
September
30, 2023
September
30, 2024
September
30, 2024
RMB
RMB
US$
RMB
RMB
US$
Net earnings per ordinary share
Net earnings per ordinary share attributable to ordinary shareholder – basic
0.24
0.26
0.04
0.05
0.23
0.03
Net earnings per ordinary share attributable to ordinary shareholder – diluted
0.24
0.26
0.04
0.05
0.23
0.03
Net earnings per ADS attributable to ordinary shareholders – basic (13 ADS
represents 10 Class A ordinary shares)
0.18
0.20
0.03
0.04
0.18
0.03
Net earnings per ADS attributable to ordinary shareholders – diluted (13 ADS
represents 10 Class A ordinary shares)
0.18
0.20
0.03
0.04
0.18
0.03
Weighted average number of ordinary shares used in computing earnings/(loss)
per share, basic*
76,842,709
79,493,819
79,493,819
78,001,149
79,544,066
79,544,066
Weighted average number of ordinary shares used in computing earnings/(loss)
per share, diluted*
77,210,781
79,708,518
79,708,518
78,402,636
79,810,666
79,810,666
Share-based compensation expenses included in:
Cost of services and others
(418)
(81)
(12)
(1,635)
(255)
(36)
Sales and marketing expenses
(533)
(183)
(26)
(2,850)
(420)
(60)
General and administrative expenses
11,164
(1,328)
(189)
(10,400)
(27,796)
(3,961)
Research and development expenses
(1,454)
(309)
(44)
(3,636)
(1,969)
(281)
* Both Class A and Class B ordinary shares are included in the calculation of the weighted average number of ordinary shares outstanding, basic and diluted.
SO-YOUNG INTERNATIONAL INC.
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands, except for share and per share data)
For the Three Months Ended
For the Nine Months Ended
September
30, 2023
September
30, 2024
September
30, 2024
September
30, 2023
September
30, 2024
September
30, 2024
RMB
RMB
US$
RMB
RMB
US$
GAAP (loss)/income from operations
(1,992)
4,684
666
(56,143)
(25,425)
(3,622)
Add back: Share-based compensation expenses
(8,759)
1,901
271
18,521
30,440
4,338
Non-GAAP (loss)/income from operations
(10,751)
6,585
937
(37,622)
5,015
716
GAAP net income attributable to So-Young International Inc.
18,305
20,348
2,897
3,779
18,049
2,573
Add back: Share-based compensation expenses
(8,759)
1,901
271
18,521
30,440
4,338
Non-GAAP net income attributable to So-Young International Inc.
9,546
22,249
3,168
22,300
48,489
6,911
View original content:https://www.prnewswire.com/news-releases/so-young-reports-unaudited-third-quarter-2024-financial-results-302311180.html
SOURCE So-Young International Inc.
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November 20, 2024By
Wishpond achieved Adjusted EBITDA(1) of $0.6 million in Q3-2024, an increase of 79% compared to Q3-2023 and the best Adjusted EBITDA level since 2022.Wishpond is pleased to report it achieved an Adjusted EBITDA margin of 11% in Q3-2024 as a result of cost optimizations and restructuring of its sales team.
VANCOUVER, BC, Nov. 20, 2024 /PRNewswire/ – Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the “Company” or “Wishpond”), a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements (the “Interim Financial Statements”) and management’s discussion and analysis (the “MD&A”) for Q3-2024, representing the three and nine months ended September 30, 2024. Copies of the Interim Financial Statements and MD&A are available on the Company’s profile on SEDAR+ at www.sedarplus.ca.
Ali Tajskandar, Wishpond’s Founder and CEO commented, “I am pleased to report that Wishpond has achieved Adjusted EBITDA of $571,228 and an Adjusted EBITDA margin of over 11% in Q3-2024, marking the Company’s most profitable quarter since 2022. Achieving double-digit EBITDA margin is a rare accomplishment for a software company of our size, and I am incredibly proud of our team for reaching this significant milestone. Our dedication to reducing costs and driving greater efficiencies throughout our business has led to substantial improvements in both profitability and cash flow. Further to this, I am excited to share that Wishpond generated cash flows from operations of positive $0.2 million during Q3-2024. Improving our Adjusted EBITDA and cash flow generation has been a core focus for the Company in 2024 and we reiterate this commitment and mandate as we head into 2025.”
Ali Tajskandar further adds, “Wishpond is making exciting strides with its new flagship product, SalesCloser AI (“SalesCloser”), a revolutionary virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos. We are actively exploring new sales outreach programs and potential channel partnerships to expand SalesCloser’s reach, unlock new customer opportunities, and drive broader adoption of the platform. Recently, we announced a collaboration with Roomvu Technologies Inc. (“Roomvu”), a leading real estate marketing platform used by over 220,000 real estate agents, to leverage SalesCloser in enhancing lead follow-up and boosting sales conversions. Collaborations like these are an excellent example of how a partner can provide us with greater and more efficient access to a potential customer base. Furthermore, we are seeing a steady increase in bookings for SalesCloser demos each day. As we broaden the platform’s rollout, we anticipate that SalesCloser will be a key contributor in driving new growth to our business in 2025.”
Adrian Lim, Wishpond’s Chief Financial Officer commented, “Despite a decline in quarterly revenue, Wishpond was able to achieve very strong margins and cash flows in Q3-2024. Wishpond’s revenue decline in Q3-2024 was attributable to the transition of its sales team driven by cost optimization efforts and the integration of SalesCloser into its sales processes. In the long term, we anticipate using SalesCloser to grow the Company’s own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition, revenue was negatively impacted due to a decrease in spending from Wishpond’s legacy customer for email delivery services. While this customer contributed to Wishpond’s revenue, these sales were not as profitable compared to the newer business generated through our Propel IQ platform (“Propel IQ”). As a result, this offset of less profitable revenue enabled Wishpond to achieve its most profitable quarter in two years, growing Adjusted EBITDA margin to 11% and improving the Company’s gross margin to 69%. Looking ahead, we expect our gross margins to continue trending upwards as adoption of Propel IQ grows, and we begin ramping up sales of our new SalesCloser solution.”
Third Quarter 2024 Financial Highlights:
Wishpond achieved quarterly revenue of $5,055,738 during Q3-2024 (Q3-2023: $5,763,847).Revenue was impacted by a decline in revenue from the Company’s legacy customer of email delivery services which reduced its spending from $338,359 in Q3-2023 to $48,969 in Q3-2024.Wishpond achieved a gross profit of $3,490,107 in Q3-2024 (Q3-2023: $3,825,821).Wishpond achieved a gross margin percentage of 69% during Q3-2024 (Q3-2023: 66%).During Q3-2024, Wishpond achieved positive Adjusted EBITDA(1) of $571,228 (Q3-2023: $319,001), representing an Adjusted EBITDA margin of 11%, and an increase of 79% from Q3-2023.As at September 30, 2024, Wishpond had $1,084,978 in cash and had drawn down $1,300,535 from its credit facility (December 31, 2023: cash of $1,424,585 and $994,658 credit facility balance outstanding). The reduction in net cash was caused in part by earnout payments for businesses acquired in 2022, investment in SalesCloser marketing activities, and changes in working capital.
Third Quarter 2024 Business Highlights:
On July 8, 2024, the Company announced the appointment of Adrian Lim as Chief Financial Officer (CFO). Mr. Lim has responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions.On July 10, 2024, the Company announced that the renewal of its Notice of an Intention it filed to make a Normal Course Issuer Bid (“NCIB”) was approved by the TSX Venture Exchange. Under the renewed NCIB, the Company may, during the 12-month period commencing July 15, 2024, and ending July 14, 2025, purchase up to 2,707,931 Shares in total, being 5% of the total number of 54,158,620 Shares outstanding as at June 26, 2024.On August 1, 2024, the Company successfully renewed its credit facility with a major Canadian bank. The renewed credit facility maintains the secured revolving operating line with a borrowing capacity of up to $6,000,000.On August 8, 2024, the Company announced the launch of a new rewards distribution program through its Viral Loops product platform. The new program launched with successful integrations with the Stripe App Marketplace, Tremendous, and Sendoso allowing Viral Loops customers to use their referral rewards on any of these platforms, which the Company believes will increase Average Order Value(1) and Customer Lifetime Value(1). The program is expected to drive increased customer engagement and strengthen Wishpond’s overall market position and capabilities in the referral marketing space.On August 19, 2024, the Company announced the launch of a new Integrations Marketplace for its AI-powered virtual sales agent, SalesCloser AI. The Integrations Marketplace is designed to seamlessly integrate SalesCloser with a wide range of tools, including CRM systems, email marketing platforms, and task management software, enhancing efficiency and sales effectiveness through advanced workflow automation.
Business Highlights Subsequent to September 30, 2024:
On October 23, 2024, the Company entered into a collaboration agreement with Roomvu, a leading real estate marketing platform used by over 220,000 real estate agents, to utilize SalesCloser to enhance lead follow-up and sales conversion for Roomvu. This collaboration is anticipated to empower real estate agents to significantly improve the efficiency of managing leads, with aims to ultimately drive sales higher at the same time as improving the client experience.
Outlook:
For 2025, Wishpond’s focus is on profitable growth. The Company expects to improve upon the Adjusted EBITDA levels achieved in 2024. The Company is also expanding the utilization of its SalesCloser virtual sales agent in its sales processes in order to drive new sales of Wishpond products. SalesCloser will be used to help grow Wishpond’s own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition to using SalesCloser to sell Wispond’s own products, the Company is also ramping up its SalesCloser revenue generated from external customers.
Management is pleased to introduce the Company’s key goals for 2025:
Accelerate organic revenue growth and increase Monthly Recurring Revenue (MRR)(1).Achieve positive Adjusted EBITDA in each quarter in 2025.Increase utilization of SalesCloser in internal sales processes to drive sales of Wishpond’s own products.Accelerate revenue growth of SalesCloser to external customers.Improve margins, decrease churn and increase long-term customer value.
Webinar Conference Call Details:
As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q3-2024 financial results today at 10:00 AM (PT) / 1:00 PM (ET).
To register for the webinar, please visit the following URL: https://bit.ly/wp_q3
Date: November 20, 2024
Time: 10:00 AM PT (1:00 PM ET)
Dial-in: +1 778 907 2071 (Vancouver local)
+1 647 374 4685 (Toronto local)
Meeting ID #: 886 0009 0567
Please connect 5 minutes prior to the conference call to ensure time for any software download that may be required.
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with Wishpond’s Interim Financial Statements and MD&A.
Three-months
ended
September 30,
2024
$
Three-months
ended
September 30,
2023
$
Nine-months
ended
September 30,
2024
$
Nine-months
ended
September 30,
2023
$
Revenue
5,055,738
5,763,847
16,934,710
17,027,081
Gross profit
3,490,107
3,825,821
11,561,777
11,195,550
Gross margin
69 %
66 %
68 %
66 %
Adjusted EBITDA(1)
571,228
319,001
1,403,142
744,000
Credit facility – end of period
(1,300,535)
–
(1,300,535)
–
Cash – end of the period
1,084,978
909,796
1,084,978
909,796
Net decrease in cash during the
period net of credit facility
(68,609)
(188,489)
(645,484)
(1,782,848)
Reconciliation to Adjusted EBITDA
Three-months
ended
September 30,
2024
$
Three-months
ended
September 30,
2023
$
Nine-months
ended
September 30,
2024
$
Nine-months
ended
September 30,
2023
$
Income (Loss) before income
taxes
86,180
329,154
(505,046)
(1,106,096)
Depreciation and amortization
411,504
390,353
1,228,151
1,139,504
Interest income
–
–
–
(2,728)
Interest expense
36,557
8,990
115,276
8,990
Remeasurement of contingent
consideration liability
–
–
–
(22,232)
Other expenses
107,019
111,764
259,601
376,009
Stock based compensation
expense
(70,032)
(521,260)
305,160
350,553
Adjusted EBITDA
571,228
319,001
1,403,142
744,000
Footnotes:
(1)
Adjusted EBITDA, MRR, Annualized Revenue Run-Rate(1), Average Order Value, Customer Churn Rate(1) and LTV are not financial measures recognized by International Financial Reporting Standards (“IFRS”), do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. See “Cautionary Statements – Non-GAAP Financial Measures” for more information and definitions of each non-GAAP term used in this press release.
On Behalf of the Board of Wishpond
“Ali Tajskandar”
Chairman and Chief Executive Officer
About Wishpond Technologies Ltd.
Based out of Vancouver, British Columbia, Wishpond is a provider of marketing-focused online business solutions. Wishpond is a leading provider of digital marketing solutions that empower entrepreneurs to achieve success online. The Company’s Propel IQ platform offers an “all-in-one” marketing suite that provides companies with marketing, promotion, lead generation, ad management, referral marketing, sales conversion and outbound sales automation capabilities in one integrated platform. Wishpond replaces disparate marketing solutions with an easy-to-use product, for a fraction of the cost. Wishpond serves over 4,000 customers who are primarily small and medium-sized businesses (SMBs) in a wide variety of industries. The Company has developed cutting-edge marketing technology solutions, including an AI powered website builder, an AI email automation tool, an AI Sales Agent and continues to add new AI enabled features and applications. The Company employs a Software-as-a-Service (SaaS) business model where most of the Company’s revenue is subscription-based recurring revenue which provides excellent revenue predictability and cash flow visibility. Wishpond is listed on the TSX Venture Exchange under the ticker “WISH”, and on the OTCQX Best Market under the ticker “WPNDF”. For further information, visit: www.wishpond.com.
Cautionary Statements, Summary Information
Information presented in this press release is only a summary and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and MD&A, and not to rely only on the information presented in this press release. In the event of conflict between the information in this press release on the one hand, and the Interim Financial Statements and MD&A on the other hand, the information in the Interim Financial Statements and MD&A shall govern.
Non-GAAP Financial Measures
In this press release, Wishpond has used the following terms (“Non-GAAP Financial Measures”) that are not defined by IFRS, but are used by management to evaluate the performance of Wishpond and its business, including: Adjusted EBITDA, MRR, Annualized Revenue Run-Rate, Average Order Value, Customer Churn Rate, LTV, gross profit, and gross margin. These measures may also be used by investors, financial institutions and credit rating agencies to assess Wishpond’s performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable IFRS financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. See the disclosure under the heading “Additional GAAP and Non-GAAP Measures” in Wishpond’s MD&A for a discussion of Non-GAAP Financial Measures and certain reconciliations to GAAP financial measures. The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:
Adjusted EBITDA: Adjusted EBITDA should not be construed as an alternative to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Company’s performance. The Company defines “Adjusted EBITDA” as Income or Loss before income taxes less interest, depreciation and amortization, remeasurement of contingent consideration liability, filing fees, credit facility setup and renewal fees, earn-out remuneration, foreign currency losses (gains), acquisition related expenses, net other expenditures (income), and stock-based compensation. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.Average Order Value: The Company defines Average Order Value, or AOV, as the aggregate dollar amount of all customer orders over a period of time divided by the aggregate number of orders during that same period. Management believes AOV to be a useful financial measure because it helps to track the impact of sales initiatives and product offerings on customer spending patternsMonthly Recurring Revenue: The Company uses Monthly Recurring Revenue, or MRR, as a directional indicator of subscription revenue going forward assuming customers maintain their subscription plan the following month. MRR is the total of all monthly subscription plan fees paid by customers in effect on the last day of that period. If customers pay for more than one month upfront, the amount is divided by the number of months in the subscription period. Discounts are deducted prior to the calculation and one-time payments and metered based charges are excluded.Annualized Revenue Run-Rate: The Company uses Annualized Revenue Run-Rate as an indicator of financial performance that takes the current revenue in the quarter and converts it to an annual figure to get the full-year equivalent.Customer churn rate: The Company defines Customer Churn Rate as the percentage of customers who have canceled their subscriptions over time. Management believes Customer Churn Rate to be a useful financial measure because it provides further insight as to what products have the ability to generate continuous customer engagement and revenue.Customer Lifetime Value: The Company defines Customer Lifetime Value, or LTV, as the average revenue that a customer generates before they churn. Management believes LTV is useful as a forward looking estimate of the average revenue that a customer will generate throughout its lifespan as a customer with Wishpond.
Forward-Looking Statements
Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, all information contained under the heading “Outlook” herein, references to expected results from future operations, future growth of the Company’s products and platforms, the future development and increased use of products incorporating artificial intelligence, including SalesCloser, improvement in the Company’s cash position and increased revenue generation, references to the growth of the Company’s product portfolio and future profitability, including whether additional products or features may be developed in the future, and the functionality and timing of such products, financial results or operational activities that may be undertaken by the Company, the results of the Company’s cost-savings, research and development and other initiatives, any future acquisitions or other activities done to grow the Company both organically or inorganically, expectations, beliefs, plans, future operations, the impact of broader economic factors including inflation and other general economic risks on the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as “expect”, “anticipate”, “plan”, “continue”, “estimate”, “intend”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targets”, “projects”, “is designed to”, “strategy”, “should”, “believe”, “contemplate” and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable and are based on, among other things, the expectations and analysis of current market trends and opportunities of management of the Company, such forward-looking statements have been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including, but not limited to, risks associated with changes to Propel IQ and SalesCloser’s revenue and profitability, changes to customer preferences, competition, use cases for Propel IQ and SalesCloser, economic uncertainty and instability as a result of the ongoing inflation and supply chain issues, higher interest rate climate, tightening of credit availability and recessionary risks, pandemic related risks, wars, instability in global commodity and securities markets, shifts in consumer and institutional spending and marketing strategies, risks related to data breaches and privacy, the changing global market and competition for the products and services supplied by the Company, and the additional risk factors discussed in the continuous disclosure materials of the Company which are available under the Company’s profile on SEDAR+ at www.sedarplus.ca. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Wishpond Technologies Ltd.
Technology
Appcast Xtend Launches to Tackle Candidate Drop-Off and Boost Hiring Efficiency
Published
19 seconds agoon
November 20, 2024By
Appcast Xtend enables employers to maximize the effectiveness of their recruiting budget while improving the candidate experience
LEBANON, N.H., Nov. 20, 2024 /PRNewswire-PRWeb/ — Appcast, the leading recruitment marketing platform powered by programmatic, today announced the launch of Appcast Xtend, a new offering designed to empower employers to tackle candidate drop-off, enhance the candidate experience and drive more hires.
Appcast Xtend is one of the many innovative solutions that has emerged from Appcast Labs, Appcast’s internal incubator with a mission of building the next generation of recruitment technology for employers.
“Appcast Xtend is the solution to a significant problem that most employers face, which is: on average, 95% of visitors to an employer’s career site or applicant tracking system abandon the process and don’t apply to an open role,” said Tom Chevalier, general manager of Appcast Labs. “I’m extremely proud of the team for building a solution that leverages the effectiveness of remarketing to engage more of the qualified career site and ATS visitors who would ordinarily disappear without a trace.”
Appcast Xtend creates better job seeker experiences within an employer’s existing HR tech stack. By employing a novel and easy-to-deploy “overlay” approach, Xtend’s experiences can:
Anticipate abandonment – Invites job seekers to engage as they’re about to leave the site and then promotes relevant job opportunities through a multi-channel remarketing approach, including email, SMS, and search and social media advertising.Recommend similar jobs – Helps job seekers discover positions with optimal commutes, flexible shift options, or similar roles that might be a better fit.Promote the employer’s brand – Timely and relevant distribution of employer brand content, such as videos, at the optimal moment when potential candidates are considering an employer’s job opportunities.Pre-qualify and expand the talent pool – Efficiently identifying the right candidates for the hardest-to-fill roles.Boost hiring event RSVPs – Real-time promotion to visitors in the employer’s ATS to maximize hiring event success.
“The results we’ve seen from our beta release have exceeded all expectations with some employers seeing a 20% lift in applications,” said Chevalier. “Customers love that it’s so simple – no work on their part, reduces burden on recruiter time and squeezes more results from the budget they’re already investing in recruitment advertising. And since it works with the employer’s existing career site and ATS, employers we’ve talked to about it say Xtend is a ‘no brainer.'”
“Within three months, DICK’S Sporting Goods has gained over 7,500 applications utilizing Appcast Xtend, worth over $60,000 in value,” said Rebecca Pulaski, recruitment marketing and operations manager at DICK’s Sporting Goods. “Implementing Xtend has allowed us to diversify our advertising sources to attract candidates in unique ways, while still producing completed applications in our ATS.”
Appcast Xtend is now available for general release and complements Appcast’s existing suite of solutions: AppcastOne, a candidate acquisition platform that harnesses the power of programmatic, search, social and traditional media into a single omni-channel enterprise solution, and Appcast Brand & Creative, a full suite of professional services from employer brand and strategy development to award-winning, cross-channel creatives.
For more information, visit: https://www.appcast.io/appcast-xtend
About Appcast
Appcast is the leading recruitment marketing platform powered by programmatic. With advanced technology, unmatched market data and a team of the industry’s best recruitment marketers, Appcast’s technology and services drive hiring outcomes for more than one thousand clients. Appcast is headquartered in Lebanon, N.H. with offices throughout North America and Europe. Appcast is a subsidiary of The Stepstone Group, a leading digital recruitment platform that connects companies with the right talent and helps people find the right job. To learn more, visit http://www.appcast.io.
Media Contact
Alexa Kalechofsky, Gabriel Marketing Group (for Appcast), 9784607013, alexak@gabrielmarketing.com
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SOURCE Appcast
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Appcast Xtend Launches to Tackle Candidate Drop-Off and Boost Hiring Efficiency
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