VersaPay Announces Q2 2019 Financial Results
– Revenues grow 88% year over year to $2.18 million in quarter –
Toronto, ON – August 7, 2019 – VersaPay Corporation (TSXV: VPY) (“VersaPay” or the “Company”), a leading provider of cloud-based invoice-to-cash solutions including electronic invoice presentment and payment, automated collections and cash application, today announced its financial results for the three and six-month periods ended June 30, 2019.
“I’m pleased to announce that VersaPay continued its strong growth for a third consecutive quarter, with total revenues increasing 88% year-over-year to $2.18 million,” said Craig O’Neill, CEO of VersaPay. “ARCTM continues to be our primary growth driver with growth of 156% year-over-year to $1.66 million. Our recurring business (ARR) is approximately $7.50 million at the end of the quarter with ARCTM representing approximately 73% of this figure. As a result, our gross margins were positively impacted, growing to 81% this quarter, up from 75% in Q2 2018.”
Mr. O’Neill continued, “Our new ARCTM sales of $0.92 million and professional services sales of $0.42 million in the quarter resulted in an increase to the subscription and professional services backlog to $1.18 million and $0.83 million, respectively. We expect the bulk of this backlog will translate to revenue in the coming one to two quarters.”
The following is a reconciliation of Adjusted EBITDA to total comprehensive (loss) income:
The term Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is a non-IFRS financial measure which does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted EBITDA provides useful information to users as it reflects the net earnings before interest, taxes, depreciation and amortization and adjusted for the effect of non-operating expenses (including M&A and non-recurring restructuring activities), share-based compensation (which includes share-based payments, restricted share units, performance share units, and deferred share units), and unusual items such as discontinued
operations and sales tax accrual. Management uses Adjusted EBITDA in measuring the financial performance of the Company as this measure reflects results that are controllable by management in day-to-day operations. Management monitors Adjusted EBITDA against budget and past results on a regular basis.
The term Annualized Recurring Revenue (“ARR”) is a non-IFRS measure and refers to multiplying the MRR value defined above by 12 to represent management’s best estimate of forward looking 12 months of recurring revenues that the Company would earn based on the current Monthly Recurring Revenue
The term Operating Expense is the aggregation of general and administrative expenses, research and development expenses, and sales and marketing expenses.
The term Backlog for ARCTM Subscriptions represents the annual recurring amount that customers have contractually committed to but have not yet been billed. The term Backlog for ARCTM Professional Services represents revenue expected to be recognized in the future related to contracted non-recurring implementation services that are yet to be performed.
VersaPay is a Fintech company and leading provider of cloud-based invoice-to-cash solutions, enabling businesses to provide a superior customer experience, get paid faster, streamline financial operations, and dramatically reduce DSO and costs. VersaPay ARC is the new standard in accounts receivable and collections management with a customer self-service environment to view invoices online, collaborate on inquiries and disputes, and facilitate secure online payments (EFT/ACH and credit card). Businesses gain access to a suite of powerful tools that enable efficient collections, cash application and real-time insight into accounts receivable. VersaPay ARC automatically reconciles payments and account information through integrations with a wide range of ERPs and accounting software providers.
More information about VersaPay is available at www.versapay.com or under the Company’s profile on SEDAR at www.sedar.com.
For additional information, please contact:
Vice President, Marketing
Virtus Advisory Group Inc.
Forward Looking and Other Cautionary Statements
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Such forward-looking information is often, but not always, identified by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved.
These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to the speculative nature of the Company’s business, the Company’s formative stage of development and the Company’s financial position.
Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the 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.
Katie Canton has been helping companies develop and implement successful social media, content marketing, and marketing communications strategies for more than 10 years. Since joining VersaPay in 2018, she writes on topics such accounts receivables automation, Customer-Centric AR, collections management, and fintech.
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