SOURCE: MediaValet, Inc.


May 30, 2016 06:00 ET

MediaValet Reports 2016 First Quarter Results

Annual Recurring Revenue up 65% to $1.07M as Sales and Marketing Momentum Begins to Build

VANCOUVER, BC--(Marketwired - May 30, 2016) - MediaValet Inc. (TSX VENTURE: MVP) (the Company), a leading provider ofcloud-based digital asset management software, is pleased to report its first quarter for 2016.

Summary of Quarterly Results (Unaudited)  
    3 months ended Mar. 31'16     3 months ended Mar. 31'15  
Annualized Recurring Revenue (ARR)   $ 1,069,165     $ 647,159  
  % Increase     65 %        
Revenue   $ 253,407     $ 215,289  
  % Increase     18 %        
Cost of Revenue   $ 1,463,036     $ 791,407  
  % Increase     85 %        
EBITDA     (1,277,480 )     (657,308 )
Net loss   $ (1,407,612 )   $ (732,743 )
Loss per share   $ (0.02 )   $ (0.01 )
Total assets   $ 816,418     $ 1,618,643  

"We're extremely excited by the momentum we've built in the first five months of 2016," commented David MacLaren, founder & CEO of MediaValet. "Most importantly, our sales and marketing teams are showing their tremendous potential, having nearly doubled their net adds to ARR in the first quarter, and as of today they've already exceeded those results for our current quarter. Since the beginning of the year, our sales pipeline has continued to grow at an impressive rate and we've significantly improved our win-rate against industry heavy weights. This gives me great confidence that our investment in sales and marketing will deliver increasing results, quarter over quarter, for the foreseeable future. We doubled our Annual Recurring Revenue in Fiscal 2015, and I believe our first quarter has shown that we can more than double again in 2016."

Continued Mr. MacLaren, "In addition to sales and marketing, our technology and corporate development teams have delivered exciting new features and partnerships that have further differentiated MediaValet in the DAM industry and increased the effectiveness of our sales team. We expect this to continue with our recently announced Microsoft Office 365 and Hootsuite integrations, which squarely set us apart from all other DAMS. 

Continued Mr. MacLaren, "Our efforts to democratize content across organizations, making their brand assets and marketing material easily accessible by their entire staff through their existing productivity software, are the first step towards what we believe is the future of digital asset management. We fundamentally believe this evolution is critical to the success of all organizations, across all industries and geographies, and will be a major factor that propels the DAM industry to $7.5 billion in 20241."

During the first quarter of fiscal 2016, the Company achieved the following as it continues to execute on its strategic and operational objectives:

  • The Company increased annualized recurring revenue ("ARR") to $1,069,165, an increase of 65% compared to $647,159 at March 31, 2015;
  • Increased gross margins to 73% from 62% in the prior year as a result of increasing sales volume and improved operating efficiencies from product enhancements;
  • Grew its sales and marketing team to 17 to drive lead generation and increase brand awareness, and began to see early momentum with net adds to ARR increasing 67% from $60,000 in Q4'15 to $100,000 in Q1'16;
  • Increased overall headcount to 41 to accelerate the product roadmap and accelerate revenue growth;
  • Announced customer wins such as the Pancreatic Cancer Action Network, the Portland Japanese Garden, Canadian Blood Services and the National Ballet of Canada;
  • Announced full support for 4K video files up to 200GB in size; and
  • Added integration with Microsoft Azure Active Directory enabling customers to quickly reset and delete passwords, update user account information, manage security settings, and enable group permissions in MediaValet through their central Active Directory console. Users will enjoy an enterprise-scale single sign-on (SSO) environment that will allow them to login to MediaValet using the same username and password that they use for all corporately approved and Active Directory supported applications across their organization.

Subsequent to the quarter-end:

  • The Company completed a broker-led private placement for gross proceeds of $1.5 million;
  • Launched the first ever DAM integration with Microsoft Office 365 which will allow staff, partners and vendors of an organization to quickly and easily access, search and attach or insert the latest versions of corporately approved brand assets and marketing material directly within Microsoft Outlook, PowerPoint, Word and Excel;
  • Signed a global partnership with Hootsuite to provide Hootsuite's enterprise customers quick and easy in-app access to a robust, enterprise wide media library. As part of the partnership, MediaValet has developed a robust integration into Hootsuite Enterprise that allows organizations to access and share all their brand assets right from within their Hootsuite Enterprise dashboard, whereas access and usage rights will be managed by organizations directly from their MediaValet portal. With more than 13 million users around the world, including more than 800 of the Fortune 1000, Hootsuite is the most widely used platform for managing social media; and
  • Signed a global partnership with Silicon Publishing to develop the first Adobe Creative Cloud Connector on Microsoft Azure.

MediaValet's full financial statements and related MD&A are now available on SEDAR.

About MediaValet, Inc.
MediaValet stands at the forefront of the emerging cloud-based digital asset management industry. Focused on enterprise cloud software, with an in-depth understanding of media production, and built exclusively on Microsoft cloud platform Azure, MediaValet is uniquely equipped to meet the digital asset management needs of any organization, no matter its size, its industry or its location. Cutting edge technology, exceptional product design, and unlimited customer service are at the core of MediaValet's DNA -- ensuring exceptional customer and user experiences are delivered at all times.

"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."

1 Transparency Market Research forecasts the digital asset management industry will increase from US$1.44B in 2015 to US$7.48B by 2024.

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