MCLOUD TECHNOLOGIES CORP. - AssetCare™️ Over Time recurring revenues were
C$3.6 million in Q3 2020, up 300% over the same period in 2019 and 33% quarter-over-quarter - Total revenue for Q3 2020 was
C$6.1 million compared toC$5.0 million in Q2 2020, up 22% quarter-over-quarter - Total revenue for the nine months ended
September 2020 wasC$17.7 million , up 113% over the same period in 2019 - Added 3,423 connected assets in the quarter to reach a total of 54,770
- Continued progress on "pull-forward" capital arrangements associated with long-term contracts
"Our third quarter results showcase mCloud's success in transitioning our acquired customers to recurring AssetCare subscriptions and expanding our footprint worldwide," remarked
Q3 2020 Revenue Highlights
All figures in Canadian dollars
Three Months Ended | Nine Months Ended | |||
2020 | 2019 | 2020 | 2019 | |
AssetCare initialization | $ 1,591,899 | $ -- | $ 5,016,773 | $ 1,610,689 |
AssetCare over time | 3,586,751 | 898,855 | 7,262,966 | 1,663,892 |
Engineering services | 958,345 | 5,056,604 | 5,425,542 | 5,056,804 |
Total | $ 6,136,995 | $ 5,955,459 | $ 17,705,281 | $ 8,331,386 |
The Company saw
In Q3 2020, mCloud added 3,423 connected assets to its AssetCare portfolio under management, a pickup in pace in quarterly connected growth compared to the 2,675 assets connected in the previous quarter. This was a result of the Company's continued focus on remotely connecting assets and adding new customers under the continued restrictions present in
Total revenues for Q3 2020 were
As such, the continued growth in AssetCare Over Time revenues, along with the ongoing addition of newly connected assets as seen in AssetCare Initialization revenues, more than offset the decline in Engineering Services revenues resulting from pandemic access restrictions. As announced earlier this week, the Company recently achieved a sales milestone of over
On a nine-month basis, total revenues grew 113% to
Q3 2020 Achievements
mCloud saw considerable growth in demand from new and existing customers in Q3 2020, including a record number of inquiries for the AssetCare solution segment for Connected Buildings. The Company's introduction of an AssetCare solution to drive indoor air quality, originally announced in May of this year, in response to the airborne threat posed by COVID-19 has been well-received as facility managers and building operators are being challenged to meet new stringent air quality standards from health and safety authorities.
The Company announced on
The kanepi acquisition has created new business opportunities currently being pursued in the southern hemisphere with oil and gas, offshore FPSOs, LNG, and mining customers. Opportunities to connect workers in
mCloud Connect 2020, the Company's annual user conference, took place virtually in
Comparing Q3 2020 vs Q3 2019 Adjusted EBITDA
All figures in millions of Canadian dollars
Q3 2020 | Q3 2019 | |||
Revenue | $ | 6.137 | $ | 5.955 |
Cost of sales | 2.271 | 3.208 | ||
Gross profit | 3.866 | 2.748 | ||
Operating expenses | 11.459 | 10.610 | ||
Net loss for the period | (8.713) | (18.493) | ||
Add: Current tax expense | 0.173 | 0.072 | ||
Less: Deferred income recovery | (0.391) | (0.665) | ||
Add: Depreciation and amortization | 1.680 | 1.986 | ||
Add: Finance costs | 1.506 | 1.462 | ||
EBITDA | $ | (5.745) | $ | (15.638) |
Less: Other income | (0.969) | -- | ||
Add: Share based compensation | 0.338 | 0.347 | ||
Add: Foreign exchange loss | 0.513 | 0.132 | ||
Add: Business acquisition costs and other expenses | 0.287 | 9.122 | ||
Add: Salaries, wages, and benefits | 2.110 | 1.347 | ||
Add: Professional and consulting fees | 1.765 | 1.179 | ||
Adjusted EBITDA | $ | (1.701) | $ | (3.511) |
Looking Ahead to Q4 2020
The Company continues to work with customers through the business conditions and restrictions created by COVID-19. Throughout the fourth quarter to end
mCloud is working to drive these recurring revenues into a critical mass capable of providing ongoing sustainable operating capital and positive cash flow for the business.
At the start of Q4 2020, the Company established terms to "pull-forward" capital from multi-year AssetCare contracts in partnership with a strategic supplier of IoT edge devices and customers who elect to pay a greater proportion of their AssetCare subscriptions upfront. mCloud anticipates contracts eligible for this arrangement to grow throughout Q4 2020 and into 2021.
With more than 30% of revenue growth coming from existing customers and a combined sales pipeline and backlog of contracts greater than
Q3 2020 Earnings Conference Call
The Company is hosting a conference call to discuss the financial results for the third quarter at
To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay by telephone until
A live audio webcast of the conference call will be available at https://bit.ly/2ILaNOB. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for one year.
About
mCloud is creating a more efficient future with the use of AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Through mCloud's AI-powered AssetCare™ platform, mCloud offers complete asset management solutions in five distinct segments: commercial buildings, renewable energy, healthcare, heavy industry, and connected workers. IoT sensors bring data from connected assets into the cloud, where AI and analytics are applied to maximize their performance.
Headquartered in
mCloud's common shares trade on the
Non-GAAP Measure
Selected financial information for the three-month period ended
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks as discussed under the heading "Risk Factors" on pages 29 to 46 of the Company's filing statement dated
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
Neither
SOURCE
© Canada Newswire, source
