BOARDWALKTECH REPORTS SECOND QUARTER FISCAL 2024 FINANCIAL RESULTS

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Nov 29, 2023, 07:00 ET

Year-Over-Year EBITDA Growth of 40% and Positive Cash from Operations

CUPERTINO, Calif., Nov. 29, 2023 /PRNewswire/ - (TSXV: BWLK) (OTCQB: BWLKF) - Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a leading digital ledger platform and enterprise software solutions company, is pleased to report its financial results for the three- and six-month period ended September 30, 2023. All figures are reported in U.S. dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

Financial Highlights:

Revenue for Q2- 2024 was $1.53 million, a 3% increase from $1.48 million in Q2-FY23 and versus $1.55 million in Q1-FY23. Revenue from recurring SaaS licenses in Q2-FY24 increased 10% year-over-year from incremental licenses executed with new and existing customers, but was offset by a 21% decline in professional services.
Annual recurring revenue ("ARR"), a non-IFRS metric, at September 30, 2023 was $5.7 million, a 3.6% year-over-year increase versus ARR of $5.5 million at September 30, 2022. The Company defines ARR as the annual recurring revenue expected based on license subscriptions and recurring services recognized in the quarter.
Gross margin for Q2-FY24 was 90.1%, comparable with the 90.3% level in Q2-FY23 and 90.0% in Q1-FY24.
Adjusted EBITDA for Q2-FY24 was a loss of $(0.36) million, a 47% improvement over the $(0.68) million loss in Q2 Fiscal 2023 and a 30% improvement over the $(0.51) million loss in Q1 Fiscal 2024.
Cash inflow from Operating Activities was a positive $0.2 million, the third time over the last six quarters.
Non-IFRS net loss for Q2-FY24 (as defined in the Non-IFRS Financial Measures section) totaled $(0.38) million, or a loss of $(0.01) per basic and diluted share, versus a $(0.7) million non-IFRS loss in Q2-FY23, or a loss of $(0.02) per basic and diluted share, and versus a $(0.52) million non-IFRS loss in Q1-FY24, or a loss of $(0.01) per basic and diluted share.
Net loss for Q2-FY24 was $(0.7) million, or a loss of $(0.02) per basic and diluted share, a 40% improvement from a $(1.2) million loss in Q2-FY23, or $(0.03) per basic and diluted share, and a 22% improvement from $(0.9) million loss in Q1 Fiscal 2024, or $(0.02) per basic and diluted share. The year-over-year improvement was due primarily from higher recurring revenue levels and prudent cost management.

Subsequent Operations Highlights

On November 27, 2023, the Company announced the extension and expansion of its existing engagement with a leading Fortune 50 technology company, including the first annual license. Combined license and services revenue from this expanded plan is expected to exceed US$400,000 over the next 12 months.

"After experiencing a breakout year of growth in Fiscal 2023, Boardwalktech is positioned to return to that level of growth as we enter into our next phase of expansion. While recent market headwinds and customer centric issues means these deals have taken longer to close, we believe the longer-term impact to growth and earnings have, and will be, worth the wait," stated Andrew T. Duncan, President and Chief Executive Officer of Boardwalktech. "As our land and expand strategy for our digital ledger solution continues to deliver consistent growth, additional growth will be driven by our expanded sales efforts through strategic teaming agreements, new complementary product offerings such as Unity Central, and new logos. The holistic Boardwalktech platform is emerging as the go-to, high ROI solution for enterprise data management and supply chain visibility solutions."

Earnings Conference Call Details

Boardwalktech management will be hosting its earnings conference call today (November 29, 2023). Detail:

Time: 4:15PM Eastern Time / 1:15 PM Pacific Time

To join the call, please use the following dial-in information:

North American Participants: Please dial 1-888-664-6383 (Toll Free) or 416-764-8650 (Local – Toronto)
European Participants: 0800 724 0293 (Germany), 0800 312 635 (Switzerland), 0800 652 2435 (UK).
Rapid Connect URL: https://emportal.ink/3tKxxpi (copy & paste to your browser)

A replay of the call will be available until December 6, 2023 and can be accessed by dialing 1-888-390-0541 and entering access code 235054#

About Boardwalktech Software Corp.

Boardwalktech has developed a patented Digital Ledger Technology Platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data is the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital ledger technology-based platforms. Boardwalktech is headquartered in Cupertino, California with offices in India and operations in North America. For more information on Boardwalktech, visit our website at www.boardwalktech.com.

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading "Risk Factors" in the Company's filing statement dated May 30, 2018. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE BoardwalkTech