SOURCE: MediaValet, Inc.

MediaValet

August 29, 2016 08:00 ET

MediaValet Reports 2016 Second Quarter Results

Annual Recurring Revenue up 64% to $1.22M as Sales and Marketing Momentum Continues to Build

VANCOUVER, BC--(Marketwired - August 29, 2016) - MediaValet, Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloud‐based digital asset management software, is pleased to report its second quarter results for 2016.

Summary of Quarterly Results (Unaudited)
   3 months ended June 30'16  3 months ended June 30'15  6 months ended June 30'16  6 months ended June 30'15
Annualized Recurring Revenue          $1,226,455  $747,622
 % Increase           64%    
Revenue  $339,610  $185,123  $593,017  $400,412
 % Increase   83%       48%    
Cost of Revenue  $1,528,689  $846,674  $3,059,576  $1,719,271
 % Increase   81%       78%    
EBITDA  $(1,189,079)  $(661,551)  $(2,466,559)  $(1,318,859)
Net loss  $(1,381,718)  $(764,520)  $(2,789,330)  $(1,497,263)
Loss per share  $(0.02)  $(0.01)  $(0.03)  $(0.02)
Total assets          $914,750  $3,016,735
Deferred Revenue          $751,335  $492,164
Debt          $620,000  $117,668

"We had another strong quarter with our sales team continuing to establish their territories, driving net new ARR adds and Revenue to their highest levels yet," commented David MacLaren, founder & CEO of MediaValet. "In parallel with our territory sales development efforts, our velocity of feature development continues to increase with each new quarter, further driving sales wins across all industries and regions."

"We achieved a number of significant milestones in the second quarter that mark further progress toward our strategic objectives," added Mr. MacLaren. "In particular, we completed major product integrations with industry leaders including Microsoft, Hootsuite, Adobe and Wave2. These integrations significantly increase our target market and open up several new sales channels sooner than we expected. On the Corporate side, we completed a $1.5 million equity financing and established a $1.0 million credit facility, minimizing our cost of capital and ultimately maximizing shareholder value over time."

Continued Mr. MacLaren, "As we look to the future, we can't help but be excited. Our sales and marketing teams continue to deliver better results each quarter, our customer retention and satisfaction rates remain strong, and our R&D team continues to deliver new and exciting features that further differentiate us from would be competitors with each release. I'm extremely proud of our team and their ability to continually outperform their prior successes in each subsequent quarter. With the advancements we've made thus far, we are continuing to invest in our future and believe we can accelerate our sales growth to achieve cash positive operations in fiscal 2017."

Second Quarter Fiscal 2016 Highlights:

  • Achieved highest total quarterly revenue of $339,610 in Company history, up 83% from Q2 last year and year to date achieved $593,017, up 48% from the prior year;
  • Grew annualized recurring revenue ("ARR") to $1,226,455, an increase of 64% compared to $747,622 at June 30, 2015;
  • Increased deferred revenue 53% to $751,335 from $492,164 at December 31, 2015 and 209% from $242,978 at June 30, 2015;
  • Grew sales and marketing team to 17 to drive lead generation and increase brand awareness. Saw early momentum with sequential quarterly net new adds to ARR in Q4'15 of $60,000, in Q1'16 of $100,000, and in Q2'16 of $157,000;
  • Increased gross margins to 74% from 60% in the prior year as a result of increasing sales volume and improved operating efficiencies from product enhancements;
  • Completed a broker-led private placement for gross proceeds of $1.5 million and established a 3-year $1.0 million long-term debt facility;
  • Launched the first ever DAM integration with Microsoft Office 365 allowing staff, franchisees, partners and vendors of an organization to quickly and easily access, search and attach/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 and Pro customers quick and easy in-app access to a robust, enterprise wide media library. 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;
  • Signed a global partnership with Silicon Publishing to develop the first Adobe Creative Cloud Connector on Microsoft Azure;
  • Added integration with Drupal, a leading open source content management system (CMS). Drupal is used by many of the governments, public institutions and other large organizations to securely manage their websites;
  • Selected as a Finalist for 3 separate Microsoft Partner Awards: "Modern Marketing Innovation Award," "Winning Together Award" and "Modern Marketing Partner of the Year." There were more than 2,500 nominations from 119 countries for 37 Partner of the Year awards;
  • Won Microsoft's "Modern Marketing Partner of the Year Award," a testament to the skill, experience and execution excellence of our Marketing team; and
  • Increased our Data Sovereignty compliance to provide DAM solutions to businesses that must operate solely within their national boundaries. Built exclusively on Microsoft Azure and available on 34 highly secure and hyper scalable Microsoft data centers around the world, MediaValet can now meet the strict Data Sovereignty requirements of markets such as Canada, China, Germany, and Australia.

Highlights subsequent to quarter-end:

  • Increased overall headcount to 41 with 93% of staff dedicated to accelerating the product roadmap and driving sales growth;
  • Increased effectiveness of marketing programs resulting in higher rates of opportunity generation and scalability;
  • Increased pipeline of opportunities due to marketing campaigns around integrations with Microsoft Office 365, Hootsuite, and Adobe Creative Cloud;
  • Won Microsoft's 2016 Modern Marketing Innovation Partner of the Year award; and
  • Signed a global partnership with Wave2 Media to bring Dynamic Publishing to the Azure Cloud.

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

About MediaValet, Inc.

MediaValet stands at the forefront of the cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available on 34 highly secure and hyper scalable data centers around the world, 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 friendly customer service are at the core of MediaValet's DNA -- ensuring exceptional customer and user experiences are delivered at all times.

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