CALGARY, April 22, 2020 /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 twelve months ended December 31, 2019.
Highlights for Q4 and the Year Ended December 31, 2019
- Subscription revenue increased 85.8% in 2019 to $1,304K compared to $702K in the prior year.
- Subscription revenue increased 31.1% in the fourth quarter of 2019 to $329 compared to $251K for the same period in 2018.
- Gross profit as a percentage of sales ("Gross Margin") improved to 80.8% during 2019 compared to 73.7% recorded in 2018. Similarly, for Q4 2019, the Corporation achieved a Gross Margin of 81.7% compared to 73.1% achieved during the same period in 2018
- Adjusted EBITDA in 2019 improved to a loss of $923K compared to a loss of $1,611K in 2018.
- Cash balance as at December 31, 2019 was $1.9 million compared to $2.5 million as at December 31, 2018.
"Katipult demonstrated solid performance across the board in Q4, ending 2019 very strong," said Katipult President and CEO, Gord Breese. "In Q4, we saw new deals and expanded adoption of the Katipult Platform. Katipult is orchestrating what every financial services organization wants ‐ frictionless and automated workflow. Digital transformation is driving our momentum as customers embrace the simplicity Katipult enables in powering the movement and exchange of capital. We are excited to be an innovator in this market."
Subsequent to the year end, on January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a "Public Health Emergency of International Concern" and, on March 11, 2020, declared COVID-19 a pandemic. While COVID-19 has not had an adverse effect on Katipult's operations to date, the Corporation is closely monitoring its impact on customers and stakeholders.
About Katipult Katipult (www.katipult.com) is a provider of industry leading and award-winning software infrastructure for powering the exchange of capital in equity and debt markets. Our cloud-based platform and solutions digitize investment workflow by eliminating transaction redundancy, strengthening compliance, delighting investors, and accelerating deal flow. Katipult provides unparalleled adaptability for regulatory compliance, asset structure, business model, and localization requirements.
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.
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, 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.
SOURCE Katipult Technology Corp.