Conference call will be held on Monday
May 2nd at 11:00AM
ET
VANCOUVER, BC, May 2, 2022 /CNW/ -- Zoomd Technologies
Ltd. (TSXV: ZOMD) (OTC: ZMDTF) and its wholly-owned subsidiary
Zoomd Ltd. (collectively, "Zoomd" or the "Company"),
the marketing technology (MarTech) user-acquisition and engagement
platform, today reported its financial results for the fourth
quarter and fiscal year ended December
2021. The Company's audited financial statements and
management discussion and analysis ("MD&A") for the year
ended December 31, 2021, are
available on SEDAR under the Company's profile.
Fiscal 2022 Outlook
Zoomd expects revenues growth in fiscal 2022 to be in a range of
$74M to $80M, representing a year-over-year growth of up
to approximately 50%. The outlook is based on certain assumptions,
each of which management considers to be reasonable which are set
out in the MD&A.
Key Highlights
- 4Q21 revenues increased 183% YOY, to a quarterly record of
$18.7M, being the fifth consecutive
quarter of growth
- FY2021 revenues increased 107% YOY, to a record of $52.6M
- Strong revenue results were driven primarily by the onboarding
of new clients in recent months, growth in spending of legacy
clients and expansion into growth geographies such as Latin America and Asia
- Clients are continuing to increase their budgets with
Zoomd
- Achieved record positive Adjusted EBITDA of $5.8M during FY2021, the highest level as a
public company[1], which leads to $8.4M adjusted EBITDA
increase YOY
- Operating profit was $3M for
FY2021 compared to an operating loss of $5.2M in FY2020, primarily as a result of
increased revenue
- Achieved positive cash flow from operations of $3.8M in FY2021
- Ended FY2021 with a cash balance of $5.2M and no long-term debt
- Apple's iOS14+ privacy changes helped drive new customers to
Zoomd's platforms
Management Commentary
4Q21 was another record quarter for Zoomd, which capped off a
record year in FY2021. During 2021, we continued focusing our
efforts on diversifying our client base, both in sectors and
geographies. We were successful in securing top tier clients in
hypergrowth sectors such as Fintech, Gaming, iGaming, and
Ecommerce. In addition, we are seeing a surge in budgets from our
legacy clients, as the post-pandemic recovery continues. The strong
revenue growth is producing solid positive adjusted EBITDA and cash
flows, demonstrating the leverage in our business model.
The strong momentum from 2021 has sustained in 2022. Our clients
are continuing to succeed and increase their budgets with us, and
we have a strong pipeline of new customers. In addition, in March
of 2022, we announced the acquisition of Albert, a U.S.-based
artificial intelligence marketing platform for advertisers, driving
fully autonomous digital campaigns for some of the world's leading
brands. Adding several Fortune 500 customers that will now be able
to use our products and services. Our visibility into revenues
going forward has a good prospect, and that is why we are
introducing our 2022 revenue guidance range of $74M to $80M, which
represents up to approximately 50% year over year growth.
"We are excited to announce our 2021 achievements and 2022
revenue guidance, as we see continued strong demand for our
user-acquisition activities from both new and existing clients"
said Ofer Eitan, Zoomd's CEO. "Our
talented team and innovative platforms are continuing to provide
strong ROI for our clients all over the globe, resulting increased
allocation of advertising budgets. Zoomd is taking share in the
growing marketing technology space and expects to accelerate that
share gain in 2022".
[1] "Adjusted EBITDA" is a NON-IFRS financial measure. See
"Caution Regarding Non-IFRS Financial Measures".
Fourth Quarter 2021 Highlights (All Figures in Thousands in
USD)
- For the three months ended December 31,
2021, revenues were $18,691,
as compared to $6,609 for the three
months ended December 31, 2020, an
increase of approximately 183% year-over-year. The increase in
revenues is primarily the result of customer acquisitions in the
growth sectors such as fintech and E-gaming as well as expansion in
new geographies such as Latin
America. In addition, our existing customers have allocated
in increasing portion of their user acquisition budgets to Zoomd,
as they have witnessed strong ROI on their
spending.
- Gross profit margin was 30% for the three months ended
December 31, 2021, versus 33% for the
same period last year, reflecting more social media advertising
portion that is known to be with lower profit margins.
- Research and Development (R&D) expenses for the three
months ended December 31, 2021 were $970, a 16% decrease YOY, primarily reflecting
the capitalization of software development costs.
- Selling, General and Administrative (SG&A) expenses for the
three months ended December 31, 2021 were $2,612, a 43% increase YOY, primarily reflecting
increases in sales department bonuses as the result of increased
revenues, and the expenses incurred as a result of new employees
joining the company mainly after the acquisition of Performance
Revenues.
- Adjusted EBITDA for the three months ended December 31, 2021 was $2,739 as compared with Adjusted EBITDA loss of
($144) for the three months ended
December 31, 2020, an increase of
$2,883. The improvement in the
Adjusted EBITDA is primarily attributed to the significant increase
revenue growth.
- Operating profit was $2,060 for
Q4 2021 compared to an operating loss of $806 in Q4 2020, primarily as a result of
increased revenue.
- As of December 31, 2021, the Company's cash and cash
equivalents amounted to $5.2 million,
and no debt.
Fiscal Year 2021 Highlights (All Figures in Thousands in
USD)
- For the fiscal year ended December 31,
2021, revenues were $52,585,
as compared to $25,423 for the fiscal
ended December 31, 2020, an increase
of approximately 107% year-over-year. The increase in revenues is a
result of customer acquisitions in the growth sectors such as
fintech and E-gaming as well as expansion in new geographies such
as Latin America.
- Gross profit margin was 31%, same as in 2020.
- Research and Development (R&D) expenses for the fiscal year
ended December 31, 2021 were $4,221, a 29% decrease YOY, primarily reflecting
the capitalization of software development costs.
- Selling, General and Administrative (SG&A) expenses were
$9,066, a 25% increase YOY, primarily
reflecting increases in sales department bonuses as the result of
increased revenues, new employees and the expenses incurred as a
result of the Performance Revenues acquisition.
- Adjusted EBITDA for the fiscal ended December 31, 2021 was $5,767 as compared with Adjusted EBITDA loss of
($2,601) for fiscal year ended
December 31, 2020. The improvement in
the Adjusted EBITDA is primarily attributed to the significant
increase revenue growth.
- Operating profit was $3,004 for
2021 compared to an operating loss of $5,248 in 2020, primarily as a result of
increased revenue.
GENERAL MARKET AND PLATFORMS NOTES:
SaaS and Self Serve products:
During 2021, the company has accomplished the planed milestones
for the launch of its self-serve products. The milestones include
the launch of the beta version, onboarding design partners and soft
launches.
Zoomd's products use various business models based on
performance, transparency and SaaS-based solutions. These products
feature fully self-managed options in different media channels. In
addition, the recent acquisition of Albert by the Company provides
further strengthening for Zoomd's future growth plans.
Apple iOS 14 + and general market privacy changes:
During 2021 and following Apple's privacy changes, user
acquisition costs kept on rising on Facebook, Google and other
global internet leaders. Zoomd's platform and business logic of a
wide range and variety of media integrations using a single
platform drove new customers to try new and different media
channels rather than the common global social media channels. Using
the Zoomd platform, customers can drive customer acquisition in new
media channels to lessen the impact of the recent privacy
change.
Conference Call
Amit Bohensky, Founder and
Chairman, will hold a conference call to discuss the quarter's
financial results at 11:00 a.m. (Eastern
Time) on May 2, 2022.
Interested parties can listen via a live webcast, from the link
available in the Investors section of the Company's website
at https://zoomd.com/investors/ or at
https://app.webinar.net/BQ5o4odDrVP.
A replay will be available after the call, in the Investors
section of the Company's website at https://zoomd.com/investors/
or via https://app.webinar.net/BQ5o4odDrVP.
About Zoomd:
Zoomd (TSXV: ZOMD, OTC: ZMDTF), founded in 2012 and began
trading on the TSX Venture Exchange in September 2019, offers
a site search engine to publishers, and a mobile app
user-acquisition platform, integrated with a majority of
global digital media, to advertisers. The platform unifies more
than 600 media sources into one unified dashboard. Offering
advertisers, a user acquisition control center for managing all new
customer acquisition campaigns using a single platform. By unifying
all these media sources onto a single platform, Zoomd saves
advertisers significant resources that would otherwise be spent
consolidating data sources, thereby maximizing data collection and
data insights while minimizing the resources spent on the exercise.
Further, Zoomd is a performance-based platform that allows
advertisers to advertise to the relevant target audiences using a
key performance indicator-algorithm that is focused on achieving
the advertisers' goals and targets.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to "Adjusted EBITDA" which is a
non-IFRS financial measure that does not have a standardized
meaning prescribed by IFRS. The Company's presentation of this
preliminary financial measure may not be comparable to similarly
titled measures used by other companies. This preliminary financial
measure is intended to provide additional information to investors
concerning the Company's estimated results. Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortization, as adjusted for share-based payments, and is a
measure of a company's operating performance. Essentially, it's a
way to evaluate a company's performance without having to factor in
financing decisions, accounting decisions or tax environments.
Management uses this non-IFRS measure as a key metric in the
evaluation of the Company's performance and the consolidated
financial results. The Company believes Adjusted EBITDA is useful
to investors in their assessment of the operating performance and
the valuation of the Company. However, non-IFRS financial measures
are not prepared in accordance with IFRS, and the information is
not necessarily comparable to other companies and should be
considered as a supplement to, not a substitute for, or superior
to, the corresponding measures calculated in accordance with IFRS.
A reconciliation of Adjusted EBITDA and operating profit is
available in Zoomd's MD&A located on the Company's profile at
www.sedar.com which is incorporated by reference into this press
release.
DISCLAIMER IN REGARD TO FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to Zoomd's 2022 revenue
outlook, its future ability to successfully continue its growth,
its ability to continue to deliver products and services largely
unimpacted by the privacy updates undertaken (or will be undertaken
in the future) by Google and Apple as well as its ability to
continue expanding into new geographies and industries.
Forward-looking statements are based on our current assumptions,
estimates, expectations and projections that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors that may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: general business, economic, competitive, technological,
legal, privacy matters, political and social uncertainties
(including the impacts of the COVID-19 pandemic and the current war
in Ukraine), the extent and
duration of which are uncertain at this time on Zoomd's business
and general economic and business conditions and markets. There can
be no assurance that any of the forward-looking statements 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 statements. The Company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether because of new information, future events or otherwise,
except as required by law.
The reader should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. All forward-looking information contained in this press
release is expressly qualified in its entirety by this cautionary
statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Company Media Contacts:
Amit Bohensky
Chairman
Zoomd
ir@zoomd.com
Website: www.zoomd.com
Investor relations:
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com
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SOURCE Zoomd Technologies Ltd.