SOURCE: MediaValet, Inc.

MediaValet

May 30, 2017 17:00 ET

MediaValet Reports 2017 First Quarter Results

Annual Recurring Revenue up 90% to $2.0M

VANCOUVER, BC--(Marketwired - May 30, 2017) - MediaValet Inc. (TSX VENTURE: MVP) (the Company), a leading provider of cloud‐based digital asset management software, is pleased to report its first quarter results for 2017.

Summary of Quarterly Results

  3 months ended
Mar 31'17
 3 months ended
Mar 31'16
 
Annual Recurring Revenue $2,033,045  $1,069,165  
 % Increase  90 %    
Revenue $465,958  $253,407  
 % Increase  84 %    
Gross Margin $383,098  $185,556  
Gross Margin %  82 % 73 %
Operating Expenses $1,504,433  $1,463,036  
 % Increase  3 %    
EBITDA Loss $(1,121,335 )$(1,277,480 )
 % Decrease  12 %    
Net loss $(1,377,199 )$(1,407,612 )
Loss per share $(0.02 )$(0.02 )
Total assets $1,135,779  $816,418  
Deferred Revenue $1,339,476  $567,965  
Long-term Debt $3,370,000  $118,720  

"We're off to a great start to fiscal 2017 with another strong quarter," commented David MacLaren, founder and CEO of MediaValet. "While we delivered on many fronts, net new additions to ARR, an increase in gross margin, and improvement in EBITDA stood out. With net new ARR increasing 132% over Q1 last year, our ARR now stands at $2.03 million; Thanks to product and process improvements, gross margin increased to 82% from 73% in Q1'16; And, with operating expenses at planned levels and expected to remain there, Q1 EBITDA improved 12%. These results give us a highly visible and predictable base to grow from."

"In addition to improving our overall financial performance, we continued to strengthen our competitive advantage with innovative new features and enhancements to our core offering," continued Mr. MacLaren. "Adding the ability to view and interact with 2D and 3D models within MediaValet, as well as in our web galleries and in Microsoft SharePoint, took everyone by surprise. The ease of use, speed and sheer power of our CAD viewer is astounding. Throughout 2017 and beyond, we'll continue pushing the boundaries of DAM and raising the bar of customer expectations."

Continued Mr. MacLaren, "With our list of customers, across industries and geographies, continuing to grow each month, our strong quarter-over-quarter growth in revenue from both new and existing customers, and the momentum of our sales, marketing and channel teams, we believe we're well positioned to deliver an exciting fiscal 2017."

First Quarter Fiscal 2017 Highlights:

  • Achieved highest quarterly Revenue to date of $465,958, up 84% from Q1 last year, and up 19% sequentially from Q4'16. Revenue includes both recurring revenue and one-time service and set up fees.
  • Grew Annual Recurring Revenue ("ARR") to $2,033,045, an increase of 90% compared to $1,069,165 at March 31, 2016, and 13% sequential increase from $1,799,724 at December 31, 2016.
  • Closed quarterly net new ARR adds of $233,321 in Q1'17, up 132% from $100,391 in Q1'16.
  • Increased Deferred Revenue at March 31, 2017 by 136% to $1,339,476 from $567,965 at March 31, 2016, and up 11% sequentially from $1,203,687 at December 31, 2016.
  • Increased Gross Margin to 82% in Q1'17 up from 73% in Q1 last year as a result of increasing sales volume, new add-on features and 3rd party connectors, and improved operating efficiencies from R&D investments in core product enhancements and tools.
  • Reported an EBITDA loss of $1,121,335 in Q1'17, down 12% from Q1'16, and down 19% sequentially from Q4'16 as the Company increasing sales volume offsets the stabilized level of infrastructure costs. EBITDA loss in Q1'17 was the Company's lowest since Q4'15.
  • Operating Expenses were $1,504,433 for Q1'17, up 3% from Q1'16 and down 11% sequentially from Q4'16. The Company intends to keep cash operating expenses relatively stable as it seeks to unlock additional operating leverage in its existing infrastructure.
  • Launched the first DAM integration of an AutoCAD viewer for viewing, sharing and publishing 2D and 3D rendered models in a highly secure, centralized, cloud-based, enterprise-wide asset library. MediaValet's AutoCAD viewer paves the way for those organizations that create and work with 2D and 3D rendered models to embrace the cloud and share their work with a broader audience.
  • Announced the development of mobile applications for iOS, Android and Windows devices. Extending DAM functionality to all major mobile platforms takes DAM beyond the walls of organizations, driving brand consistency, increasing individual, team and corporate wide productivity, and enabling deeper collaboration across organizations and their corporate ecosystems.
  • Landed a variety of new customers that included Margaritaville and the City of Eagan.

Highlights subsequent to quarter end:

  • Completed integration into the world's leading document management and storage system, Microsoft SharePoint. MediaValet's integration enables SharePoint users -- for the first time -- to view, manipulate and share all popular formats and sizes of photos, videos, audio files, graphics, animations, and 2D and 3D CAD files within the platform.
  • Completed integration into the world's most popular website content management system (CMS), WordPress. This integration enables creative and administrative web teams to access the latest, approved media assets directly from within WordPress, saving organizations valuable time and resources and ensuring brand consistency across all digital platforms.
  • Announced full integration with Microsoft Office 365 and the release of a full-screen, multi-page Microsoft Office and PDF viewer. MediaValet users now enjoy the unrivalled ability to view, edit and save Microsoft Word, Excel and PowerPoint documents directly within MediaValet -- an industry first that will further help expand the reach of DAM beyond marketing departments, increasing productivity across organizations.
  • Announced a European based FTSE-100 company, with over 15,000 staff, selected MediaValet and an S&P 100 company expanded its MediaValet implementation to provide global marketing libraries for several more of its various global divisions.

Outlook

With the increasing productivity of the sales and marketing teams, the impactful milestones being achieved by the product development team, and the Company's strong customer retention rate, management intends to maintain its current level of investment and continue implementing its growth strategy with a focus on optimizing excess capacity in the Company's current operating structure. While some variable costs such as cost of revenue and sales commissions will increase with revenue, management believes it has sufficient infrastructure and staff to continue growing revenues throughout 2017 without materially increasing operating costs.

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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