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Yahoo
4 days ago
- Business
- Yahoo
Theratechnologies Reports Financial Results for the Second Quarter 2025
Q2 2025 total revenue of $17.7 million, and $36.8 million for the first six months of Fiscal 2025 Positive Adjusted EBITDA1 for the fifth straight quarter Subsequent to quarter end, Theratechnologies entered into a definitive agreement to be acquired by an affiliate of Future Pak MONTREAL, July 09, 2025 (GLOBE NEWSWIRE) -- Theratechnologies Inc. ('Theratechnologies' or the 'Company') (TSX: TH) (NASDAQ: THTX), a commercial-stage biopharmaceutical company, today reported business highlights and financial results for the second quarter 2025, ended May 31, 2025. All figures are in U.S. dollars unless otherwise stated. 'Demand for EGRIFTA SV® remains very strong and we are witnessing record high patient enrollments. During the first half of our fiscal year, we achieved close to $37 million in revenue despite an estimated negative impact of $10-$12 million from the EGRIFTA SV® shortage in the first quarter, which was subsequently resolved. Unique patients are back to normal levels, and new patient enrollments, another key metric, are at record highs. This, along with Trogarzo® net sales which have now stabilized as expected, indicates a return to our growth trajectory for the top and bottom lines in the coming quarters,' said Paul Lévesque, President and Chief Executive Officer. 'We are on track to bring EGRIFTA WRTM, a new and improved version of this important medication for people with HIV, to the market in the third quarter, capitalizing on the momentum created in the last 12 months.' __________1 This is a non-IFRS measure that is forward looking. The amount indicated diverges significantly from amounts achieved historically. See 'Non-IFRS and Non-US GAAP Measure' below for such historical amounts and a reconciliation thereof to the most directly comparable IFRS measure. Fiscal 2025 Revenue and Adjusted EBITDA GuidanceIn light of the previously announced agreement to be acquired by an affiliate of Future Pak, the Company is withdrawing its Fiscal 2025 revenue and Adjusted EBITDA guidance and will not be providing updated guidance. Summary of Financial ResultsThe financial results presented in this press release are taken from the Company's Management's Discussion and Analysis ('MD&A'), and interim consolidated financial statements ('Interim Financial Statements') for the three- and six- month periods ended May 31, 2025, which have been prepared in accordance with International Financial Reporting Standards ('IFRS'), as issued by the International Accounting Standards Board ('IASB'). The MD&A and the Interim Financial Statements can be found on SEDAR+ at on EDGAR at and at Unless specified otherwise, all capitalized terms have the meaning ascribed thereto in our MD&A. Revenue Summary for Second Quarter and First Half Fiscal 2025 Three monthsended May 31 % change Six monthsended May 31 %change 2025 2024 2025 2024 EGRIFTA SV® net sales 11,131 16,200 (31.3%) 25,011 25,786 (3.0%) Trogarzo® net sales 6,598 5,817 13.4% 11,765 12,478 (5.7%) Revenue 17,729 22,017 (19.5%) 36,776 38,264 (3.9%) RevenueFor the three- and six-month periods ended May 31, 2025, consolidated revenue was $17,729,000 and $36,776,000, compared to $22,017,000 and $38,264,000 for the same periods ended May 31, 2024, representing year-over-year decreases of 19.5% for the second quarter and 3.9% for the first half of Fiscal 2025 versus Fiscal 2024. For the second quarter of Fiscal 2025, net sales of EGRIFTA SV® were $11,131,000 compared to $16,200,000 in the second quarter of fiscal 2024, representing a decrease of 31.3% year-over-year. Lower sales of EGRIFTA SV® were mostly the result of lower unit sales (-24.9%), as a result of the supply disruption announced by the company in late 2024, and higher government chargebacks, rebates and others (-11.4%), mostly related to the Inflation Reduction Act ('IRA'), which includes new rebates enacted in late 2024 related to patients in the Medicare program. The decrease in sales was offset by a higher selling price (+5.0%). Net sales for the six-month period ended May 31, 2025, amounted to $25,011,000 compared to $25,786,000 in the same period in 2024, representing a decrease of 3.0%. Lower sales of EGRIFTA SV® were mostly the result of lower unit sales (-6.2%), as a result of the supply disruption announced by the Company in late 2024, and higher government chargebacks, rebates and others (-2.4%), mostly related to the Inflation Reduction Act ('IRA'), which includes new rebates enacted in late 2024 related to patients in the Medicare program. The decrease in sales was offset by a higher average selling price (+5.6%). Trogarzo® net sales in the second quarter of Fiscal 2025 amounted to $6,598,000 compared to $5,817,000 for the same quarter of 2024, representing an increase of 13.4% year-over-year. Higher sales of Trogarzo® in the quarter were mostly due to higher unit sales (+11.0%) and a higher selling price (+3.0%). Government rebates, chargebacks and others were stable in the quarter compared to Fiscal 2024. For the six-month period ended May 31, 2025, Trogarzo® net sales were $11,765,000 compared to $12,478,000 in the same period in 2024, or a decrease of 5.7%. Lower sales of Trogarzo® in the period were mostly due to lower unit sales (-4.1%) and higher government rebates, chargebacks (-4.7%), which were offset by a higher average selling price (+3.1%). Cost of Goods SoldFor the three- and six-months ended May 31, 2025, cost of goods sold was $4,699,000 and $8,182,000 compared to $4,547,000 and $9,831,000 for the same periods in fiscal 2024. Three monthsended May 31 Six monthsended May 31 2025 2024 2025 2024 ($000s) % ofRevenue ($000s) % ofRevenue ($000s) % ofRevenue ($000s) % ofRevenue EGRIFTA SV® 1,290 11.6% 1,549 9.6% 2,098 8.4% 3,436 9.6% Trogarzo® 3,409 51.7% 2,998 51.5% 6,084 51.7% 6,395 51.5% Total 4,699 26.5% 4,547 20.7% 8,182 22.2% 9,831 20.7% For the six-month period ended May 31, 2025, EGRIFTA SV® cost of goods sold was reduced by the reversal of an inventory provision in the first quarter of 2025 ($713,000), which was recorded in the fourth quarter of 2024, related to the manufacturing of batches of F8 Formulation recorded prior to approval of the F8 Formulation by the FDA. In the six-month period ended May 31, 2024, EGRIFTA SV® cost of goods sold was increased by this inventory provision ($1,088,000). For the three- and six-month periods ended May 31, 2025, the percentage of revenue for the cost of goods sold of EGRIFTA SV® excluding these provision changes has increased, mainly due to higher raw materials prices. Trogarzo® cost of sales is contractually established at 52% of net sales, subject to periodic adjustment for returns or other factors. R&D Expenses R&D expenses in the three- and six-month periods ended May 31, 2025, amounted to $2,614,000 and $5,583,000 compared to $4,725,000 and $8,477,000 in the comparable periods of fiscal 2024. R&D expenses in the three-month period ended May 31, 2024 include the accelerated depreciation ($766,000) of equipment used as part of the preclinical oncology research activities, following the decision to cease early-stage R&D activities. For the three- and six-month periods ended May 31, 2025, the decrease in R&D expenses is mainly explained by the reduction of spending in our oncology program, as well as lower spending on the F8 Formulation, which was approved in March 2025. R&D expenses(in thousands of dollars) Three monthsended May 31 Six monthsended May 31 2025 2024 %change 2025 2024 %change Oncology Laboratory research and personnel 31 1,033* -97% 63 1,366* -95% Pharmaceutical product development 13 44 -70% 61 157 -61% Phase 1 clinical trial 68 588 -88% 153 977 -84% Medical projects and education 242 278 -13% 448 504 -11% Salaries, benefits and expenses 1,284 1,271 1% 2,726 2,614 4% Regulatory activities 417 376 11% 874 807 8% Trogarzo® IM formulation - 6 -100% - 26 -100% Tesamorelin formulation development 260 448 -42% 832 1,052 -21% F8 human factor studies 5 5 -% (5) 7 -171% European activities 46 50 -8% 57 52 10% Travel, consultants, patents, options, others 343 308 11% 663 579 15% Restructuring costs - 318 -100% - 336 -100% Tax Credits (95) (33) 187% (289) (65) 344% Total 2,614 4,725 -45% 5,583 8,477 -34% * Including accelerated depreciation ($766,000) of equipment used in the oncology program, following the decision to cease R&D activities related to the oncology program Selling Expenses Selling expenses increased to $6,840,000 and $13,310,000 for the three- and six-month periods ended May 31, 2025, compared to $6,367,000 and $12,068,000 for the same periods last year. The increase in selling expenses Fiscal 2025, is due in large part to higher compensation expense, due to lower vacancies and hiring related to market preparation for the Ionis in-licensed products. The amortization of the intangible asset value for the EGRIFTA SV® and Trogarzo® commercialization rights is also included in selling expenses. As such, we recorded amortization expense of $361,000 and $722,000 for the three- and six-month periods ended May 31, 2025 compared to $360,000 and $720,000 in the same periods of Fiscal 2024. General and Administrative Expenses General and administrative expenses in the three- and six-month periods ended May 31, 2025, amounted to $5,480,000 and $9,710,000 compared to $3,090,000 and $6,846,000 reported in the comparable periods of fiscal 2024. The increase in General and Administrative expenses in the second quarter of 2025 is largely due to professional fees ($1,359,000) incurred with respect to the sale process announced by the Company on April 15, 2025. The increases for the three- and six- month periods ended May 31, 2025 are also due to higher professional fees and higher stock-based compensation. Adjusted EBITDAAdjusted EBITDA was $906,000 for the second quarter of fiscal 2025 and $3,227,000 for the six-month period ended May 31, 2025, compared to $5,459,000 and $5,212,000 for the same periods of Fiscal 2024. The decrease is mainly explained by higher spending detailed above, and lower revenues attributable to the supply shortage of EGRIFTA SV® which occurred in the first quarter of Fiscal 2025. See 'Non-IFRS and Non-US-GAAP Measure' below and 'Reconciliation of Adjusted EBITDA' below for a reconciliation to Net Loss for the relevant periods. Net Finance Costs Net finance costs for the three- and six-month periods ended May 31, 2025, were $2,312,000 and $3,783,000 compared to $2,183,000 and $4,308,000 for the comparable periods of Fiscal 2024. Net finance costs in the second quarter of Fiscal 2025 included interest of $995,000, versus $2,313,000 in the second quarter of Fiscal 2024 and a $1,074,000 loss on financial instruments carried at fair value. Net finance costs in the six-month period ended May 31, 2025 included interest of $2,001,000 versus $4,587,000 in the six-month period of Fiscal 2024 and a $1,524,000 loss on financial instruments carried at fair value. The decrease in interest expense is the result of the lower interest rates and lower long-term debt outstanding on the Company's new credit facilities. For the three-month and six-month periods ended May 31, 2025, the decrease in interest expense was offset by lower interest income as a result of our overall lower cash balances and by a loss on financial instruments carried at fair value. Net finance costs for the three- and six-month periods ended May 31, 2025, also included accretion expense of $112,000 and $231,000, compared to $382,000 and $756,000 for the comparable periods in 2024. Income Tax Expense Income tax expense amounted to $246,000 and $553,000 in the three- and six-month periods ended May 31, 2025, versus $118,000 and $228,000 in the same periods last year. The increase in the three- and six month periods ended May 31, 2025 over the same periods of 2024 is attributable to the higher net fiscal income generated by our operations. The Company recorded $95,000 in Canadian federal non-refundable tax credits in the three-month period ended May 31, 2025 against research and development expenses, and $289,000 in the six-month period ended May 31, 2025, which largely offsets the Canadian federal income tax payable. Net Loss (Profit) Net loss for the second quarter ended May 31, 2025, amounted to $4,462,000 compared to a net profit of $987,000 in Fiscal 2024. For the six-month periods ended May 31, 2025 and 2024 the Company recorded net losses of $4,345,000 and $3,494,000, respectively. Financial Position, Liquidity and Capital Resources Liquidity and future operations As part of the preparation of the Interim Financial Statements, management is responsible for identifying any event or situation that may cast doubt on the Company's ability to continue as a going concern. As of the issuance date of the Interim Financial Statements, the Company expects that its existing cash and cash equivalents as of May 31, 2025, together with cash generated from its existing operations will be sufficient to fund its operating expenses and debt obligations requirements for at least the next 12 months from the issuance date of these interim financial statements. Considering the recent actions of the Company, material uncertainty that raised substantial doubt about the Company's ability to continue as a going concern was alleviated effective from the first quarter interim financial statements. For the six-month period ended May 31, 2025, the Company generated a net loss of $4,345,000 (2024- $3,494,000) and had positive cash flows from operating activities of $2,659,000 (2024- $(1,998,000)). As at May 31, 2025, cash amounted to $9,459,000 and the accumulated deficit was $421,196,000. The Company's ability to continue as a going concern requires the Company to continue to achieve positive cash flows through revenues generation and managing expenses and meet the covenants of the TD Credit Agreement and the IQ Credit Agreement at all times, which require testing on a quarterly basis. On January 9, 2025, the Company announced a temporary supply disruption for EGRIFTA SV® caused by an unexpected voluntary shutdown of the Company's contract manufacturer's facility in the third quarter of 2024 following an inspection by the US Food and Drug Administration. The manufacturer has resumed manufacturing of EGRIFTA SV®, in November 2024. In order to resume distribution of EGRIFTA SV®, the Company was required to file a Prior Approval Supplement ('PAS') with the FDA describing the changes made by its manufacturer. The Company filed the PAS on December 18, 2024. On April 7, 2025, the FDA approved the PAS, allowing the Company to continue releasing EGRIFTA SV® to the market without further authorization from the FDA. The Company's ability to continue as a going concern for a period of at least, but not limited to, 12 months from May 31, 2025 involves significant judgement and is dependent on continued generation of revenues including a successful transition from EGRIFTA SV® to EGRIFTA WR™ in order to be able to meet the Adjusted EBITDA covenants. The Interim Financial Statements have been prepared assuming the Company will continue as a going concern, which assumes the Company will continue its operations in the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Analysis of cash flows We ended the second quarter of Fiscal 2025 with $10,139,000 in cash, bonds and money market funds. Available cash is invested in highly liquid fixed income instruments including governmental and municipal bonds, and money market funds. For the three-month period ended May 31, 2025, cash used by operating activities before changes in operating assets and liabilities was $1,679,000, compared to cash generated of $2,616,000 in the comparable period of Fiscal 2024. In the second quarter of Fiscal 2025, changes in operating assets and liabilities had a positive impact on cash flow of $14,082,000 (2024-negative impact of $2,906,000). These changes included positive impacts from a decrease in accounts receivable ($10,989,000), an increase in accounts payable ($2,700,000), and higher provisions ($1,013,000). Higher inventories had a negative impact on cash flow of $755,000. During the second quarter of Fiscal 2025, cash used by financing activities totalled $6,885,000 in cash, mostly related to the reimbursement of capital on the TD Bank Credit Facility ($6,786,000), which includes $5,000,000 drawn on the Revolving Credit Facility during the first quarter of 2025. Reconciliation of Adjusted EBITDA(In thousands of dollars) Three-month periods endedMay 31 Six-month periods endedMay 31 2025 2024 2025 2024 Net income (loss) (4,462 ) 987 (4,345 ) (3,494 ) Add : Depreciation and amortization2 473 1,262 964 1,779 Net Finance costs3 2,312 2,183 3,783 4,308 Income taxes 246 118 553 228 Share-based compensation 978 340 1,626 967 Inventory provision4 - 251 (713 ) 1,088 Transaction costs 1,359 - 1,359 - Restructuring costs - 318 - 336 Adjusted EBITDA 906 5,459 3,227 5,212 __________2 Includes depreciation of property and equipment, amortization of intangible, other assets and right-of-use assets.3 Includes all finance income and finance costs consisting of: Foreign exchange, interest income, accretion expense and amortization of deferred financing costs, interest expense, bank charges, gain or loss on financial instruments carried at fair value and loss on debt modification and gain on lease termination. 4 Inventory provision pending marketing approval of the F8 Formulation. About Theratechnologies Theratechnologies (TSX: TH) (NASDAQ: THTX) is a specialty biopharmaceutical company focused on the commercialization of innovative therapies that have the potential to redefine standards of care. Further information about Theratechnologies is available on the Company's website at on SEDAR+ at and on EDGAR at Follow Theratechnologies on Linkedin and X. Non-IFRS and Non-US GAAP The information presented in this press release includes a measure that is not determined in accordance with IFRS or U.S. generally accepted accounting principles ('U.S. GAAP'), being the term 'Adjusted EBITDA'. 'Adjusted EBITDA' is used by the Company as an indicator of financial performance and is obtained by adding to net profit or loss, finance income and costs, depreciation and amortization, impairment loss on intangible assets, income taxes, share-based compensation from stock options, certain transaction costs new this period), certain restructuring costs and certain write-downs (or related reversals) of inventories. 'Adjusted EBITDA' excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions rather than the results of day-to-day operations. The Company believes that this measure can be a useful indicator of its operational performance from one period to another. The Company uses this non-IFRS measure to make financial, strategic and operating decisions. 'Adjusted EBITDA' is not a standardized financial measure under the financial reporting framework used to prepare the financial statements of the Company to which the measure relates and might not be comparable to similar financial measures disclosed by other issuers. A quantitative reconciliation of Adjusted EBITDA is presented above under the table titled 'Reconciliation of Adjusted EBITDA'. Forward-Looking Information This press release contains forward-looking statements and forward-looking information (collectively, 'Forward-Looking Statements'), within the meaning of applicable securities laws, that are based on our management's beliefs and assumptions and on information currently available to our management. You can identify Forward-Looking Statements by terms such as "may", "will", "should", "could", 'would', "outlook", "believe", "plan", "envisage", "anticipate", "expect" and "estimate", or the negatives of these terms, or variations of them. The Forward-Looking Statements contained in this press release include, but are not limited to, statements regarding: (i) our expectations regarding tsales of EGRIFTA SV®, EGRIFTA WRTM and Trogarzo®; and (ii) our ability and capacity to launch EGRIFTA WRTM successfully in the United States in the third quarter of 2025. Although the Forward-Looking Statements contained in this press release are based upon what the Company believes are reasonable assumptions in light of the information currently available, investors are cautioned against placing undue reliance on these statements since actual results may vary from the Forward-Looking Statements. Certain assumptions made in preparing the Forward-Looking Statements include that (i) sales of EGRIFTA SV®, EGRIFTA WRTM and Trogarzo® will grow over time; (ii) we will be successful in obtaining the reimbursement of EGRIFTA WRTM by public and private payors; (iii) we will have the ability to deliver EGRIFTA WRTM to pharmacies in the third quarter of 2025; (iv) our suppliers of EGRIFTA SV® and EGRIFTA WRTM will be able to manufacture these drugs and will be able meet market demands for these products; (v) the announcement of the acquisition of the Company by an affiliate of Future Pack will close (vi) the Company will not be involved in any material litigation; and (vii) we will be in compliance with the covenants, obligations and undertakings contained in the TD Credit Agreement and the IQ Credit Agreement. Forward-Looking Statements assumptions are subject to a number of risks and uncertainties, many of which are beyond Theratechnologies' control that could cause actual results to differ materially from those that are disclosed in or implied by such Forward-Looking Statements. These risks and uncertainties include, but are not limited to: (i) the Company's ability and capacity to grow the sales of EGRIFTA SV®, EGRIFTA WRTM and Trogarzo® successfully in the United States; (ii) the Company's capacity to meet supply and demand for its products; (iii) the market acceptance of EGRIFTA WRTM in the United States; (iv) the Company's ability and capacity to provide pharmacies with EGRIFTA WRTM in the third quarter of 2025; (v) the Company's ability to obtain reimbursement coverage for EGRIFTA WRTM; (vi) the continuation of the Company's collaborations and other significant agreements with its existing commercial partners and third-party suppliers and its ability to establish and maintain additional collaboration agreements; (vii) the Company's success in continuing to seek and maintain reimbursements for EGRIFTA SV® and Trogarzo® by third-party payors in the United States; (viii) the success and pricing of other competing drugs or therapies that are or may become available in the marketplace; (ix) the discovery of a cure for HIV; (x) the Company's failure to meet the terms and conditions set forth in the TD Credit Agreement and the IQ Credit Agreement resulting in an event of default and entitling the lenders to foreclose on all of our assets resulting in a material adverse effect on the Company and impeding the closing of its acquisition by an affiliate of Future Pack under the arrangement agreement; (xi) unknown safety or efficacy issues with our approved drug products causing a decrease in demand for those products or a recall; and (xii) the failure to close the transaction with an affiliate of Future Pack. We refer current and potential investors to the risk factors described under Item 3.D of our annual information form filed under Form 20-F dated February 26, 2025 available on SEDAR+ at and on EDGAR at under Theratechnologies' public filings for additional risks related to the Company. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on Forward-Looking Statements. Forward-Looking Statements reflect current expectations regarding future events and speak only as of the date of this press release and represent our expectations as of that date. We undertake no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise, except as may be required by applicable law. Contacts: Investor inquiries:Investor inquiries:Philippe DubucSenior Vice President and Chief Financial Officerpdubuc@ Media inquiries:Julie SchneidermanSenior Director, Communications & Corporate Affairscommunications@
Scoop
05-06-2025
- Business
- Scoop
Interim Financial Statements Of The Government Of New ZealandFor The Ten Months Ended 30 April 2025
Jayne Winfield, Chief Government Accountant The Interim Financial Statements of the Government of New Zealand for the ten months ended 30 April 2025 were released by the Treasury today. The April results are reported against forecasts based on the Budget Economic and Fiscal Update 2025 (BEFU 2025), published on 22 May 2025, and the results for the same period for the previous year. The majority of the key fiscal indicators for the ten months ended 30 April 2025 were slightly better than forecast. The Government's main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit of $7.4 billion. This was $0.1 billion smaller than forecast. While the core Crown results were favourable to forecast, this was largely offset by the results of State-owned Enterprises. Net core Crown debt was in line with forecast at $184.6 billion, or 43.2% of GDP. Core Crown tax revenue, at $100.4 billion, was $0.7 billion (0.7%) higher than forecast. Corporate tax and other individuals' tax contributed $0.4 billion and $0.2 billion respectively to the above forecast result. Core Crown expenses, at $115.8 billion, were $0.1 billion (0.1%) below forecast. This variance is mostly timing in nature and was spread across a range of agencies. The OBEGALx was a deficit of $7.4 billion, $0.1 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $11.7 billion, in line with the forecast deficit. The operating balance deficit of $6.7 billion was $2.8 billion higher than the forecast deficit. This reflected both the OBEGAL result and net unfavourable valuation movements. Net gains on financial instruments were $4.3 billion lower than forecast, driven by New Zealand Superannuation Fund (NZS Fund) and ACC's investment portfolios. This unfavourable variance was partly offset by net gains on non-financial instruments being $1.3 billion higher than the forecast loss. This was largely owing to the New Zealand Emissions Trading Scheme with net gains on the liability being $1.1 billion higher than the forecast loss. The core Crown residual cash deficit of $8.4 billion was $0.1 billion lower than forecast. While net core Crown operating cash outflows were $0.4 billion higher than forecast, net core Crown capital cash outflows were $0.5 billion lower than forecast. Net core Crown debt at $184.6 billion (43.2% of GDP) was in line with forecast. With core Crown residual cash broadly in line with forecast, this and minor movements in non-cash items contributed to the net core Crown debt result. Gross debt at $203.5 billion (47.7% of GDP) was $6.3 billion lower than forecast, largely owing to lower than forecast unsettled trades and issuances of Euro Commercial Paper. Net worth at $181.4 billion (42.5% of GDP) was $3.1 billion lower than forecast largely reflecting the year-to-date operating balance result.
Cision Canada
22-05-2025
- Business
- Cision Canada
Wishpond Reports Q1-2025 Financial Results
SalesCloser AI, Wishpond's AI enabled sales agent, achieved $1 million in Annual Recurring Revenue (" ARR") (1), representing the fastest ARR (1) growth among the Company's products to date. The Company expects revenue growth in the second half of 2025, with such growth primarily driven by the growth of its SalesCloser AI (" SalesCloser") platform, a virtual AI sales agent that can conduct sales calls and demos in multiple languages with minimal human intervention. VANCOUVER, BC, May 22, 2025 /CNW/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the " Company" or " Wishpond"), a provider of AI-enabled 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 Q1-2025, representing the three months ended March 31, 2025. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR+ at Ali Tajskandar, Wishpond's Founder and CEO commented, "We are encouraged by the increasing traction of our SalesCloser AI product in the first quarter of 2025. SalesCloser AI has achieved $1 million in ARR (1) representing the fastest ARR (1) growth among the Company's products to date. With over 150 customers and more than 2,600 AI-powered agents deployed, SalesCloser has established itself as our fastest-growing product, which we believe meets a critical need for AI-driven sales automation. This milestone is a testament to the value our technology brings, helping businesses streamline their sales processes, reduce costs, and increase conversions. We are excited to continue expanding SalesCloser's capabilities and exploring new opportunities for growth." Ali Tajskandar further adds, "Over the past year, Wishpond has made significant strides in transforming into an AI-driven company. We've evolved from offering marketing solutions primarily to SMBs, to developing a fully autonomous, AI-enabled marketing and sales platform designed for businesses of all sizes. This shift included the launch of our AI-integrated platform, the successful integration of SalesCloser into our internal sales processes, a strategic move away from lower-margin legacy customers, and a refocused sales strategy centered on our new AI agentic products. As a result, in our view, we have made meaningful investments in AI by dedicating time, capital, and resources to drive innovation. Furthermore, we've redefined our value proposition, optimized our product lineup, and strengthened our go-to-market strategy. As we continue to innovate, our mission remains clear: to help businesses harness the power of AI to optimize customer acquisition, boost conversions, and achieve sustainable growth." Adrian Lim, Wishpond's Chief Financial Officer commented, "Our Q1-2025 results demonstrate the impact of our strategic shift towards an AI-driven platform. Achieving $1 million in ARR (1) with SalesCloser AI is a clear indication of the demand for our solutions and our ability to deliver value to our clients. While we experienced a year-over-year decline in quarterly revenue due to our strategic shift towards building AI enabled products and our focus on more profitable revenue streams, we are confident in our ability to return to growth in the second half of the year. Our key priorities for 2025 include increasing Monthly Recurring Revenue (1), improving margins, reducing churn, and maximizing long-term customer value. By further investing in AI-driven solutions, optimizing our internal processes, and maintaining disciplined financial management, we are well-positioned to drive sustainable profitability and shareholder value." First Quarter 2025 Financial Highlights: Wishpond achieved quarterly revenue of $4,089,641 during Q1-2025 (Q1-2024: $6,050,263). The decline in revenue can be attributed to the Company's strategic transition of the business from selling digital marketing solutions for SMB's to an AI enabled marketing and sales platform for all businesses. This resulted in a decline in revenues as the Company moved away from its lower margin legacy email delivery customers, reduced the size of its sales team, shifted its focus to AI enabled products such as SalesCloser AI and converted its internal sales processes towards an AI driven sales model. Wishpond achieved Gross Profit of $2,725,725 in Q1-2025 (Q1-2024: $4,128,922). The reduction in Gross Profit is primarily due to lower revenue in the quarter. Wishpond achieved a Gross Margin percentage of 67% during Q1-2025 (Q1-2024: 68%). During Q1-2025, Wishpond achieved negative Adjusted EBITDA (1) of $177,372 (Q1-2024: positive $290,304). The decline in Adjusted EBITDA was due to lower revenues and annual professional accounting, audit and tax fees incurred in the first quarter. First Quarter 2025 Business Highlights: On January 9, 2025, the Company announced that it filed a non-provisional utility patent application, entitled "Enhanced State Manager in a Virtual AI Representative", for the enhanced state manager technology within its SalesCloser virtual AI agents. This technology is expected to improve the ability of AI systems to manage complex, real-world conversations, addressing challenges such as interruptions, tangential topics, and premature conversation endings. This is Wishpond's second patent application related to SalesCloser's virtual AI agents. On February 6, 2025, the Company announced that it filed a non-provisional utility patent application, entitled "Human Takeover in a Virtual AI Representative", for its human takeover technology which allows human operators to seamlessly assume control of a call from an automated AI call agent when necessary. This innovation aims to bridge the gap between AI-driven interactions and human oversight, a smooth and contextually rich customer experience. On February 6, 2025, the Company announced that the ongoing uncertainty surrounding the U.S.-Canada trade relations are expected to have no material impact on the Company's business. On February 25, 2025, the Company announced the launch of its SalesCloser White-Label Reseller Program (the " White-Label Reseller Program"), allowing agencies and businesses to brand and resell the Company's AI-powered sales solution as their own. Under the White-Label Reseller Program, companies are expected to be able to enhance their brand identity, expand sales service offerings, and increase customer loyalty using Wishpond's SalesCloser technology. The White-Label Reseller Program is expected to drive new revenue streams for Wishpond by expanding the market reach of SalesCloser and accelerating its adoption. On March 27, 2025, the Company announced a collaboration agreement with Venops Inc. (" Venops"), a leader in healthcare regulatory compliance and consulting services, to market and sell Wishpond's AI-powered SalesCloser platform. With a network of over 1,000 medical clinics, Venops brings extensive professional and industry reach, combining its deep expertise in healthcare compliance with Wishpond's innovative AI technology. This collaboration aims to revolutionize how businesses in the medical sector engage with prospects and drive sales. Business Highlights Subsequent to March 31, 2025: On May 21, 2025, the Company announced that its SalesCloser platform, an AI-powered sales agent, achieved a key milestone with $1 million in ARR (1). This milestone reflects the growing demand for AI-driven sales automation solutions and the scalability of the Company's platform. SalesCloser has demonstrated exciting growth, with over 150 customers and over 2,600 AI-powered agents deployed to date. It has quickly become Wishpond's fastest-growing product, with the majority of its momentum occurring in 2025. This growth underscores the rising demand for AI-driven sales solutions that streamline operations, reduce costs, and enhance efficiency for businesses. Outlook: For 2025, Wishpond's focus is on profitable growth driven by an increase in the growth of its SalesCloser platform, a virtual AI sales agent that can conduct sales calls and demos in multiple languages with minimal human intervention. The Company is also expanding the utilization of its SalesCloser solution in its internal sales processes in order to grow internal sales capacity, drive new sales of Wishpond products and further increase margins and profitability. In addition to using SalesCloser to sell Wispond's own products, the Company also expects revenue generated from external SalesCloser customers to increase in 2025. Management is pleased to introduce the Company's key goals for 2025: Accelerate organic revenue growth and increase Monthly Recurring Revenue (" MRR") (1). 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 year-end financial results today at 10:00 AM (PT) / 1:00 PM (ET). To register for the webinar, please visit the following URL: Date: May 22, 2025 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 #: 817 0014 9291 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 the Interim Financial Statements and the MD&A, copies of which can be found under Wishpond's profile on SEDAR+ at Reconciliation to Adjusted EBITDA (1) Three months ended March 31, 2025 $ Three months ended March 31, 2024 $ Loss before income taxes (640,450) (467,563) Depreciation and amortization 411,650 406,588 Interest expense 34,718 38,533 Other expenses 46,746 103,674 Stock based compensation expense (30,036) 209,072 Adjusted EBITDA (1) (177,372) 290,304 Footnotes: (1) Adjusted EBITDA, ARR, and MRR 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. Wishpond is a Vancouver-based provider of AI-enabled marketing and sales solutions that help businesses grow more efficiently. The Company's vision is to create a fully autonomous AI-enabled platform that streamlines the entire customer acquisition journey, from lead generation and engagement to deal closure, enabling businesses to scale cost-effectively while driving higher conversions. Wishpond offers an all-in-one marketing suite that integrates AI-driven tools such as an AI Website Builder, AI Email Automation, and SalesCloser AI, a conversational AI-based virtual sales agent that leverages generative AI to conduct personalized sales calls and product demos, increasing efficiency, reducing costs, and enhancing customer satisfaction. With a focus on innovation, Wishpond has filed multiple patent applications in conversational AI, reinforcing its leadership in AI-enabled marketing automation. The Company serves small-to-medium-sized businesses across various industries, providing a powerful yet cost-effective alternative to fragmented marketing solutions. Wishpond employs a Software-as-a-Service (SaaS) business model, generating most of its revenue from subscription-based recurring revenue, which ensures strong revenue predictability and cash flow visibility while continuously expanding its AI capabilities. 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: Cautionary Statements, Summary Information Information presented in this press release may be only a summary of all available information and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and the MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and the MD&A, and to not rely only on the information presented in this press release. In the event of conflict between the provisions of this press release on the one hand, and the Interim Financial Statements and the MD&A on the other hand, the information in the Interim Financial Statements and the 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, ARR, and MRR. 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 the 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 Generally Accepted Accounting Principles 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. Annual Recurring Revenue: The Company uses Annual Recurring Revenue, or ARR, as a directional indicator of subscription revenue going forward assuming customers maintain their subscription plan for a period of 12 months. ARR is calculated by multiplying total MRR by 12. Monthly 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. 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, 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 SalesCloser and other product's revenue and profitability, changes to customer preferences, competition, use cases for SalesCloser and other products, 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 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. SOURCE Wishpond Technologies Ltd.
Yahoo
22-05-2025
- Business
- Yahoo
Wishpond Reports Q1-2025 Financial Results
SalesCloser AI, Wishpond's AI enabled sales agent, achieved $1 million in Annual Recurring Revenue ("ARR")(1), representing the fastest ARR(1) growth among the Company's products to date. The Company expects revenue growth in the second half of 2025, with such growth primarily driven by the growth of its SalesCloser AI ("SalesCloser") platform, a virtual AI sales agent that can conduct sales calls and demos in multiple languages with minimal human intervention. VANCOUVER, BC, May 22, 2025 /CNW/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the "Company" or "Wishpond"), a provider of AI-enabled 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 Q1-2025, representing the three months ended March 31, 2025. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR+ at Ali Tajskandar, Wishpond's Founder and CEO commented, "We are encouraged by the increasing traction of our SalesCloser AI product in the first quarter of 2025. SalesCloser AI has achieved $1 million in ARR(1) representing the fastest ARR(1) growth among the Company's products to date. With over 150 customers and more than 2,600 AI-powered agents deployed, SalesCloser has established itself as our fastest-growing product, which we believe meets a critical need for AI-driven sales automation. This milestone is a testament to the value our technology brings, helping businesses streamline their sales processes, reduce costs, and increase conversions. We are excited to continue expanding SalesCloser's capabilities and exploring new opportunities for growth." Ali Tajskandar further adds, "Over the past year, Wishpond has made significant strides in transforming into an AI-driven company. We've evolved from offering marketing solutions primarily to SMBs, to developing a fully autonomous, AI-enabled marketing and sales platform designed for businesses of all sizes. This shift included the launch of our AI-integrated platform, the successful integration of SalesCloser into our internal sales processes, a strategic move away from lower-margin legacy customers, and a refocused sales strategy centered on our new AI agentic products. As a result, in our view, we have made meaningful investments in AI by dedicating time, capital, and resources to drive innovation. Furthermore, we've redefined our value proposition, optimized our product lineup, and strengthened our go-to-market strategy. As we continue to innovate, our mission remains clear: to help businesses harness the power of AI to optimize customer acquisition, boost conversions, and achieve sustainable growth." Adrian Lim, Wishpond's Chief Financial Officer commented, "Our Q1-2025 results demonstrate the impact of our strategic shift towards an AI-driven platform. Achieving $1 million in ARR(1) with SalesCloser AI is a clear indication of the demand for our solutions and our ability to deliver value to our clients. While we experienced a year-over-year decline in quarterly revenue due to our strategic shift towards building AI enabled products and our focus on more profitable revenue streams, we are confident in our ability to return to growth in the second half of the year. Our key priorities for 2025 include increasing Monthly Recurring Revenue(1), improving margins, reducing churn, and maximizing long-term customer value. By further investing in AI-driven solutions, optimizing our internal processes, and maintaining disciplined financial management, we are well-positioned to drive sustainable profitability and shareholder value." First Quarter 2025 Financial Highlights: Wishpond achieved quarterly revenue of $4,089,641 during Q1-2025 (Q1-2024: $6,050,263). The decline in revenue can be attributed to the Company's strategic transition of the business from selling digital marketing solutions for SMB's to an AI enabled marketing and sales platform for all businesses. This resulted in a decline in revenues as the Company moved away from its lower margin legacy email delivery customers, reduced the size of its sales team, shifted its focus to AI enabled products such as SalesCloser AI and converted its internal sales processes towards an AI driven sales model. Wishpond achieved Gross Profit of $2,725,725 in Q1-2025 (Q1-2024: $4,128,922). The reduction in Gross Profit is primarily due to lower revenue in the quarter. Wishpond achieved a Gross Margin percentage of 67% during Q1-2025 (Q1-2024: 68%). During Q1-2025, Wishpond achieved negative Adjusted EBITDA(1) of $177,372 (Q1-2024: positive $290,304). The decline in Adjusted EBITDA was due to lower revenues and annual professional accounting, audit and tax fees incurred in the first quarter. First Quarter 2025 Business Highlights: On January 9, 2025, the Company announced that it filed a non-provisional utility patent application, entitled "Enhanced State Manager in a Virtual AI Representative", for the enhanced state manager technology within its SalesCloser virtual AI agents. This technology is expected to improve the ability of AI systems to manage complex, real-world conversations, addressing challenges such as interruptions, tangential topics, and premature conversation endings. This is Wishpond's second patent application related to SalesCloser's virtual AI agents. On February 6, 2025, the Company announced that it filed a non-provisional utility patent application, entitled "Human Takeover in a Virtual AI Representative", for its human takeover technology which allows human operators to seamlessly assume control of a call from an automated AI call agent when necessary. This innovation aims to bridge the gap between AI-driven interactions and human oversight, a smooth and contextually rich customer experience. On February 6, 2025, the Company announced that the ongoing uncertainty surrounding the U.S.-Canada trade relations are expected to have no material impact on the Company's business. On February 25, 2025, the Company announced the launch of its SalesCloser White-Label Reseller Program (the "White-Label Reseller Program"), allowing agencies and businesses to brand and resell the Company's AI-powered sales solution as their own. Under the White-Label Reseller Program, companies are expected to be able to enhance their brand identity, expand sales service offerings, and increase customer loyalty using Wishpond's SalesCloser technology. The White-Label Reseller Program is expected to drive new revenue streams for Wishpond by expanding the market reach of SalesCloser and accelerating its adoption. On March 27, 2025, the Company announced a collaboration agreement with Venops Inc. ("Venops"), a leader in healthcare regulatory compliance and consulting services, to market and sell Wishpond's AI-powered SalesCloser platform. With a network of over 1,000 medical clinics, Venops brings extensive professional and industry reach, combining its deep expertise in healthcare compliance with Wishpond's innovative AI technology. This collaboration aims to revolutionize how businesses in the medical sector engage with prospects and drive sales. Business Highlights Subsequent to March 31, 2025: On May 21, 2025, the Company announced that its SalesCloser platform, an AI-powered sales agent, achieved a key milestone with $1 million in ARR(1). This milestone reflects the growing demand for AI-driven sales automation solutions and the scalability of the Company's platform. SalesCloser has demonstrated exciting growth, with over 150 customers and over 2,600 AI-powered agents deployed to date. It has quickly become Wishpond's fastest-growing product, with the majority of its momentum occurring in 2025. This growth underscores the rising demand for AI-driven sales solutions that streamline operations, reduce costs, and enhance efficiency for businesses. Outlook: For 2025, Wishpond's focus is on profitable growth driven by an increase in the growth of its SalesCloser platform, a virtual AI sales agent that can conduct sales calls and demos in multiple languages with minimal human intervention. The Company is also expanding the utilization of its SalesCloser solution in its internal sales processes in order to grow internal sales capacity, drive new sales of Wishpond products and further increase margins and profitability. In addition to using SalesCloser to sell Wispond's own products, the Company also expects revenue generated from external SalesCloser customers to increase in 2025. Management is pleased to introduce the Company's key goals for 2025: Accelerate organic revenue growth and increase Monthly Recurring Revenue ("MRR")(1). 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 year-end financial results today at 10:00 AM (PT) / 1:00 PM (ET). To register for the webinar, please visit the following URL: Date: May 22, 2025 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 #: 817 0014 9291 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 the Interim Financial Statements and the MD&A, copies of which can be found under Wishpond's profile on SEDAR+ at Three months ended March 31, 2025$ Three months ended March 31, 2024$ Revenue 4,089,641 6,050,263 Gross profit 2,725,725 4,128,922 Gross margin 67 % 68 % Adjusted EBITDA(1) (177,372) 290,304 Credit facility - end of period 1,752,191 1,959,474 Cash - end of the period 928,125 2,086,823 Net decrease in cash during the period net of credit facility (654,394) (302,578)Reconciliation to Adjusted EBITDA(1)Three months ended March 31, 2025$ Three months ended March 31, 2024$ Loss before income taxes (640,450) (467,563) Depreciation and amortization 411,650 406,588 Interest expense 34,718 38,533 Other expenses 46,746 103,674 Stock based compensation expense (30,036) 209,072 Adjusted EBITDA(1) (177,372) 290,304 Footnotes: (1) Adjusted EBITDA, ARR, and MRR 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. Wishpond is a Vancouver-based provider of AI-enabled marketing and sales solutions that help businesses grow more efficiently. The Company's vision is to create a fully autonomous AI-enabled platform that streamlines the entire customer acquisition journey, from lead generation and engagement to deal closure, enabling businesses to scale cost-effectively while driving higher conversions. Wishpond offers an all-in-one marketing suite that integrates AI-driven tools such as an AI Website Builder, AI Email Automation, and SalesCloser AI, a conversational AI-based virtual sales agent that leverages generative AI to conduct personalized sales calls and product demos, increasing efficiency, reducing costs, and enhancing customer satisfaction. With a focus on innovation, Wishpond has filed multiple patent applications in conversational AI, reinforcing its leadership in AI-enabled marketing automation. The Company serves small-to-medium-sized businesses across various industries, providing a powerful yet cost-effective alternative to fragmented marketing solutions. Wishpond employs a Software-as-a-Service (SaaS) business model, generating most of its revenue from subscription-based recurring revenue, which ensures strong revenue predictability and cash flow visibility while continuously expanding its AI capabilities. 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: Cautionary Statements, Summary Information Information presented in this press release may be only a summary of all available information and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and the MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and the MD&A, and to not rely only on the information presented in this press release. In the event of conflict between the provisions of this press release on the one hand, and the Interim Financial Statements and the MD&A on the other hand, the information in the Interim Financial Statements and the 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, ARR, and MRR. 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 the 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 Generally Accepted Accounting Principles 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. Annual Recurring Revenue: The Company uses Annual Recurring Revenue, or ARR, as a directional indicator of subscription revenue going forward assuming customers maintain their subscription plan for a period of 12 months. ARR is calculated by multiplying total MRR by 12. Monthly 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. 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, 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 SalesCloser and other product's revenue and profitability, changes to customer preferences, competition, use cases for SalesCloser and other products, 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 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. View original content to download multimedia: SOURCE Wishpond Technologies Ltd. View original content to download multimedia:
Yahoo
06-04-2025
- Business
- Yahoo
EXPANDER CORRECTS MISLEADING DISCLOSURE MADE BY OR ON BEHALF OF CIELO
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ CALGARY, AB, April 6, 2025 /CNW/ - Expander Energy Inc. ("Expander"), the largest shareholder of Cielo Waste Solutions Corp. (TSXV: CMC) ("Cielo"), wishes to correct misleading disclosure made by or on behalf of the Cielo board about Expander and its decision to requisition a shareholders' meeting. News Release of Cielo dated April 1, 2025 FICTION: Cielo has notified Expander of its intention to initiate the dispute resolution procedures under the Technologies Licence Agreement dated November 9, 2023 (the "Licence Agreement"). FACT: On March 31, 2025, Cielo sent a notice to Expander purporting to initiate mediation under the Licence Agreement. However, the notice fails to comply with both the dispute resolution procedures set out in the Licence Agreement and the National Arbitration Rules of the ADR Institute of Canada, which govern those dispute resolution procedures. Condensed Interim Consolidated Financial Statements of Cielo for the three and nine months ended January 31, 2025, and 2024 (the "Interim Financial Statements"), Amended Management's Discussion and Analysis of Cielo for the three months ended January 31, 2025, and 2024 (the "Interim MD&A"), and Certifications of Interim Filings FICTION: Neither the Interim Financial Statements nor the Interim MD&A omit to state material facts required to be stated or that are necessary to make disclosure not misleading in light of the circumstances under which the disclosure was made. FACT: The Interim Financial Statements do not contain disclosure concerning certain significant events (more particularly described below) that occurred after January 31, 2025. Although the condensed interim consolidated statements of financial position in the Interim Financial Statements refer to a Subsequent Event note, there is no Subsequent Events note to, or information about subsequent events contained in, the Interim Financial Statements. In several cases, the Interim MD&A fails to identify, or distinguish between, significant events involving Expander that occurred on or before January 31, 2025, and significant events involving Expander that occurred after that date. FICTION: Cielo has initiated the dispute resolution process under the Amended and Restated Asset Purchase Agreement dated November 9, 2023 (the "Asset Purchase Agreement"). FACT: On March 31, 2025, Cielo sent a notice to Expander purporting to initiate mediation under the Licence Agreement, not the Asset Purchase Agreement. The Asset Purchase Agreement does not contain dispute resolution procedures, other than those contemplated in an indemnification clause. FICTION: Cielo initiated the dispute resolution process due to differences between Cielo and Expander in their strategic visions. FACT: In its notice dated March 31, 2025, Cielo failed to identify any matters in dispute. However, it would clearly be inappropriate of Cielo to use the dispute resolution procedures in the License Agreement to adjudicate differences in strategic vision. News Release of Cielo dated April 2, 2025 FICTION: Expander chose to requisition a shareholders' meeting, rather than engage in constructive dialogue with Cielo. FACT: Expander or its legal counsel has written to Cielo or its counsel nine times since August 14, 2024, seeking a resolution of disputes between Expander and Cielo. FICTION: Expander chose to requisition a shareholders' meeting, rather than engage in constructive dialogue with Cielo. FACT: Expander chose to requisition a shareholders' meeting because the Cielo board has a recent track record of disenfranchising shareholders: On August 23, 2024, the Cielo board scheduled a virtual-only shareholders' meeting to be held on October 29, 2024 (the "October Shareholders' Meeting"). Between October 21, 2024, and October 29, 2024, Expander sought from Cielo assurances that the ability of shareholders to participate in the October Shareholders' Meeting would be comparable to that which shareholders could reasonably expect if they were attending an in-person shareholders' meeting. Cielo was unable to provide any such assurances. On October 29, 2024, the Cielo board cancelled the October Meeting, approximately ten minutes after it was scheduled to begin, citing unspecified "technical difficulties". On November 1, 2024, the Cielo board called a shareholders' meeting to be held on December 19, 2024 (the "December Shareholders' Meeting"). On November 22, 2024, the Cielo board cancelled the December Shareholders' Meeting, citing the strike action against Canada Post and its inability to mail meeting materials to shareholders. Cielo has failed to reschedule the December Shareholders' Meeting, despite the fact that Canadian Securities Administrators granted relief from the requirements to mail meeting materials on November 28, 2024, and the strike action was suspended on December 17, 2024. FICTION: Expander attributed the decline in the market price of the Cielo shares solely to the Cielo board. FACT: Expander noted that the market price of the Cielo shares has declined approximately 88% during the past 18 months; it did not attribute the decline to any single person or group of persons or to any particular circumstance or event. However, the Cielo board is responsible for supervising the management of the business and affairs of Cielo and, therefore, bears at least partial responsibility for its abysmal operational and financial performance. allAlberta Articles dated April 2, 2025, and April 3, 2025 FICTION: The standoff between Expander and Cielo was ignited by the announcement that Cielo terminated its proposed acquisition of the Carseland Facility. FACT: The current standoff between Expander and Cielo was ignited by the following factors, among others: The material misstatements made by Cielo in its Unaudited Condensed Consolidated Financial Statements for the three and six months ended October 31 2023, and 2022, and the year ended April 30, 2023; The inability of Cielo to raise capital to finance the development of the projects contemplated by the Asset Purchase Agreement and the Licence Agreement; The refusal of the Cielo board and senior management to constructively engage with Expander and other shareholders; The decision by the Cielo board to call a virtual-only shareholders' meeting that failed to comply with the guidelines published by Canadian Securities Administrators; The cancellation of the October Shareholders' Meeting; The cancellation of the December Shareholders' Meeting; The abysmal operational and financial performance of Cielo and the tendency of the Cielo board to blame that operational and financial performance solely on market conditions; Material breaches by Cielo of the Asset Purchase Agreement, the Licence Agreement, and the Management Services Agreement dated November 9, 2024; Spurious claims by Cielo, which were later retracted, that Cielo possesses ownership rights in Expander technologies that are unrelated to the Asset Purchase Agreement and the Licence Agreement; and Poor public disclosure, including a lack of publicly-disclosed information about the status of the proposed transaction between Cielo and Rocky Mountain Clean Fuels Inc. FICTION: James H. Ross is the Executive Chairman of Expander. FACT: James H. Ross is neither a director nor an officer of Expander. FICTION: John G. F. McLeod is the Chief Executive Officer of Blacksteel Energy Inc. and is a former director of Expander. FACT: James G. F. McLeod is the Chief Operating Officer of Blacksteel Energy Inc., which he joined in 2024 for the sole purpose of executing a corporate turnaround, and a current director of Expander. FICTION: The Asset Purchase Agreement entitled Expander to nominate Nick Lenstra, G. Steven Price, and James H. Ross to the Cielo board. FACT: The Asset Purchase Agreement entitles Expander to nominate John G. F. McLeod, G. Steven Price, and James H. Ross to the Cielo board. Finally, if Ryan Jackson, the President and Chief Executive Officer of Cielo, wishes to make statements about Expander and its requisition, then Expander encourages him to do so in accordance with the disclosure standards established by Canadian Securities Administrators and the TSX Venture Exchange, rather than selectively making statements to "pay-to-play" or subscription-based news services, such as allAlberta. About ExpanderExpander Energy Inc. is a Calgary, Alberta-based energy technology company that has developed a patented suite of transportation fuel production technologies to convert biomass, captured carbon and low Carbon Intensity electricity into "fossil free" low life cycle carbon intensity synthetic diesel fuel (Bio-SynDiesel®) and synthetic kerosene jet fuel (Bio-SynJet®). Expander's Bio-Energy Carbon Capture and Sequestration (BECCS) solution utilizes cellulosic biomass to produce next generation low CI synthetic fuels while efficiently capturing bio-carbon for geologic sequestration. Bio-SynDiesel®, Bio-SynJet®, BGTL™, EBTL™, BETL™, and CETL™ are trademarks of Expander Energy Inc. Additional InformationThe information contained in this news release does not and is not meant to constitute the solicitation of proxies within the meaning of corporate law or securities legislation. Although Expander has requisitioned a shareholders' meeting, there is currently no record or meeting date set for the shareholders' meeting and shareholders are not being asked at this time to execute a proxy in favour of any resolution set out in the requisition. For additional information, see the news release of Expander dated April 1, 2025. A copy of this news release is available on the SEDAR+ profile of Cielo at Contact InformationGord N. Crawford, and CEOExpander Energy Inc.(780) 966-4673 SOURCE Expander Energy Inc. View original content: Sign in to access your portfolio
