22.3% Year over Year Increase in Total Revenue and 37.2% Quarter over Quarter Increase in Subscription Revenue
VANCOUVER, Nov. 27, 2018 /CNW/ - Katipult Technology Corp. ("Katipult" or the "Company"), an industry leading and award winning fintech company, is pleased to announce its third quarter (Q3) financial results for the nine month period ended September 30, 2018.
Katipult continued new customer acquisitions during the quarter and the subscription revenue has continued to grow. Katipult is pleased to report that the revenue recorded during the third quarter represented the Company's highest reported subscription revenue to date. The Company also continued development efforts to ensure the platforms of new clients go live more rapidly and and into decentralized ledger technology.
"This quarter we are delighted to report our highest quarterly subscription revenue in Katipult's history. As a software infrastructure company, we have had a long focus on product development and R&D and we have now begun to implement our sales and marketing strategy which we expect to drive growth in the future" said Brock Murray, CEO of Katipult.
Financial Highlights – Third Quarter 2018
- Total revenue for quarter ended September 30, 2018 increased by 37.8% to $0.3 million, compared to $0.2 million for the quarter ended September 30, 2017.
- Subscription revenue for the quarter ended September 30, 2018 increased by 32.4% to $0.2 million, compared to $0.1 million for the quarter ended September 30, 2017.
- Gross margin percentage for Q3 2018 was 73.9% compared to 62.2% in 2017.
- Total comprehensive loss for the quarter ended September 30, 2018 was $0.5 million.
- As at September 30, 2018, the Company's cash balance was $2.9 million compared to $0.3 million at December 31, 2017.
- Katipult was awarded $120,000 from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) to support the development of an "Investor License" application on a decentralized network. The Investor License is intended to address all mechanisms of investor onboarding and auditability necessary for regulatory compliance.
- In November 2018, the Corporation won an award and secured a cash prize of $100,000 SGD (c $95,000) at the 2018 Singapore FinTech Festival, the world's largest platform for the global FinTech community. 40 finalists were shortlisted from more than 280 global submissions, with entries evaluated based on four criteria: impact, practicality, interoperability, and uniqueness and creativity. The winners were selected by a panel of 17 judges who represented a cross-section of international and local experts from the private and public sectors, including representatives of HSBC, Deloitte, DBS Bank. Accenture and Boston Consulting among others. This award was strong validation of Katipult's technology and the market need it addresses.
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 Company's product, converting existing sales interest and pipeline growth into revenue, expanding the sales force, generating new sales opportunities, effectively and efficiently utilizing proceeds from financings constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including, but not limited to, the Company's anticipated cash needs, that the cash available to the Company is as expected, the Company's product will continue to operate as expected, the industry will continue to see value in the Company's product, the Company will be able to recruit talented and experienced sales, support and other individuals required to execute the Company's plans. Although the Company 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 Company is not as expected, the Company's pricing and product offering is no longer relevant, the Company isn't able to recruit the personnel it requires on terms acceptable to the Company, regulatory changes that may require significant rework of the Company's product. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, 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.
For further information: Katipult Technology Corp., Brock Murray, CEO, [email protected], 587-393-3981