CALGARY, AB, Nov. 18, 2021 /CNW/ - Katipult Technology Corp.
(TSXV: FUND) ("Katipult" or the "Corporation"), provider of an
industry leading and award-winning cloud-based software
infrastructure for powering the exchange of capital in equity and
debt markets, is pleased to announce its financial results for the
three and nine-month period ended September
30, 2021.
"We continue to execute our strategy to digitize and streamline
private capital markets", said Gord Breese, Katipult CEO, "Our
recently announced addition of Echelon Wealth Partners to
Katipult's growing roster of customers along with Federal
Government R&D funding support, are clear proof points of our
progress and momentum in our vision to build a connected private
capital ecosystem."
The following provides a summary of the results for the third
quarter of 2021. The full results and related management discussion
and analysis are available on the Corporation's SEDAR profile
(www.sedar.com).
Q3 2021 Summary
Revenue
- Subscription revenue increased 41.9% - from $301K booked in Q3 2020 to $427 in Q3 2021. On a year-to-date basis, revenue
increased from $959K in 2020 to
$1,214K in the nine months of 2021.
Over the last several quarters, the Corporation has been focusing
on the enterprise market and has made significant progress in
capturing well-established, well reputed companies that can be used
as references to spur and support additional sales.
Gross Profit
- Gross profit percentage was 79.6% in the third quarter of 2021.
The Corporation has been able to consistently maintain a gross
profit percentage of close to 80%.
Adjusted EBITDA (1)
- Adjusted EBITDA losses increased to $415 in three-month ended September 30, 2021, due mostly to the increased
salaries, subcontractors, and benefits expenditures - as the
Corporation invests in key employees - partially offset by an
increase in subscription revenue.
Net loss and comprehensive loss
- Net loss and comprehensive loss increased to $648 in the third quarter of 2021. The increased
loss is due to the above noted higher expenditures in addition to a
change in the non-cash fair value the Corporation's outstanding
2018 Debentures, and higher finance costs from the accretion of the
2021 Debenture.
Cash and cash equivalents
- Cash and cash equivalents and marketable securities balance as
at September 30, 2021 was
$3.1 million.
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.
Forward-Looking Statement
Cautionary Note Regarding
Forward Looking Statements: Certain disclosure in this release,
including statements regarding the increased or continued industry
interest in the Corporation's product, converting existing sales
interest and installations into revenue, generating new sales
opportunities, building an ecosystem that will be acceptable,
effectively and efficiently utilizing the Corporation's resource
and the ability to deal with business disruptions or opportunities
as a result of the Covid-19 pandemic constitute forward-looking
statements. In making the forward- looking statements in this
release, the Corporation has applied certain factors and
assumptions that are based on the Corporation's current beliefs as
well as assumptions made by and information currently available to
the Corporation, including, but not limited to, the Corporation's
anticipated cash needs, that the cash available to the Corporation
is as expected, the Corporation's product will continue to operate
as expected, the industry will continue to see value in the
Corporation's product, the Corporation will be able to recruit
talented and experienced sales, support and other individuals
required to execute the Corporation's plans, and that the
Corporation's employees, consultants, customers, suppliers and
other stakeholders will be able to manage successfully throughout
the Covid- 19 pandemic. Although the Corporation considers these
assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking statements. Such risk factors may include,
among others, the risk that cash available to the Corporation is
not as expected, failure to manage growth successfully, lengthier
than anticipated sales and implementation cycle, cyber risks, risks
related to cloud based solutions, failure to continue to adapt to
technological change and new product development, dependence on key
personnel, competition, intellectual property risks, economic
conditions, the financial and economic fallout due to the Covid-19
pandemic, privacy concerns and legislation, regulatory environment,
risk associated with a change in the Corporation's pricing model,
risk of defects in the Corporation's solution, dependence on market
growth, operational service risk, dependence on partners and delay
or failure to realize anticipated benefits of key account
installations. Readers are cautioned, especially in these uncertain
times, not to place undue reliance on forward-looking statements.
The Corporation does not intend to, and expressly disclaims any
intention or obligation to, update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by law.
1 Non-GAAP Financial Measures
This news release refers to certain Non-GAAP financial
measures that are not determined in accordance with International
Financial Reporting Standards ("IFRS"). "Gross profit",
"adjusted EBITDA" and "churn" are not measures recognized under
IFRS and do not have standardized meanings prescribed by IFRS.
Management considers these to be important supplemental measures of
Katipult's performance and believes these measures are frequently
used by securities analysts, investors and other interested parties
in the evaluation of companies in its industry. See "Non-GAAP
Measures and Additional GAAP Measures" in the Corporation's
December 31, 2020 and September 30, 2021 MD&A available on the
Corporation's SEDAR profile at www.sedar.com for
a discussion of non-GAAP measures and their
reconciliations.
SOURCE Katipult Technology Corp.