• Total revenue for Q4 2023 of $51.2 million.

  • Cash from operations in Q4 2023 of $9.9 million.

  • Recurring revenue(1) in 2023 was $29.5 million. Recurring revenue does not include the Q1 2023 recurring revenue from WeCommerce of $8.4 million.

  • Q4 2023 was the first quarter of consolidated results of Clean Canvas, which was acquired by Tiny's subsidiary, WeCommerce at the end of Q3 2023.

Victoria, British Columbia--(Newsfile Corp. - April 11, 2024) - Tiny Ltd. (TSXV: TINY) (formerly, WeCommerce Holdings Ltd.) ("Tiny" or "the "Company"), a technology holding company with a strategy of acquiring majority stakes in businesses, today announced the financial results for Tiny Ltd. for the year ended December 31, 2023. Currency amounts are expressed in Canadian dollars unless otherwise noted.

Management Commentary

"This was a landmark year for Tiny. In 2023, we completed the merger with WeCommerce, made substantial efficiency improvements across the organization reducing cost, and ended the year with strong fourth quarter results.

With an established foundation of operating businesses and leaders at Tiny, we are excited to continue building and growing this coming year, and more importantly, for the decades to come."

2023 Annual Financial Results



For the years ended
December 31,		 


2023

2022 
 






Revenue
185,502,613

153,663,188
Operating (loss)/income
(19,173,692)
22,247,031
Net income
14,754,930

5,405,789
EBITDA (1)
46,406,427

20,169,761
EBITDA % (1)
25 %

13 %
Recurring revenue (1)
29,514,301

8,864,540
Recurring revenue % (1)
16 %

6 %
Cash provided by operating activities
3,385,040

21,578,854
Basic earnings per share
0.08

0.04
Diluted earnings per share
0.08

0.04 
(1) Refer to Non-IFRS Measures for further information

 

  • Revenue for the year ended December 31, 2023 was $185.5 million, an increase of $31.8 million or 21% compared to prior year. Had the acquisitions of Wecommerce and Clean Canvas occurred on January 1, 2023, management estimates that the acquisitions would have contributed $21.1 million of revenue. On a consolidated basis, revenue would have totaled $206.6 million.

  • Recurring revenue(1) in 2023 was $29.5 million and made up 16% of total revenue, an increase from 6% of total revenue in 2022. This was due to the merger with WeCommerce in the Software and Apps segment of which 66% of its revenue is recurring.

  • Net income in 2023 was $14.8 million compared to net income of $5.4 million in 2022. The change to net income is due to higher expenses incurred from the merger and slightly offset from higher revenue contributed from the 2023 acquisitions. Had the acquisitions of WeCommerce and Clean Canvas occurred on January 1, 2023, management estimates that the acquisitions would have contributed net loss of $3.0 million. On a consolidated basis, net income would have totaled $11.8 million.

  • The Company incurred $11.8 million of one-time costs relating to the merger and subsequent restructuring.

  • Unrestricted cash on hand on December 31, 2023 was $26.9 million compared to $31.2 million on December 31, 2022. Total debt outstanding on December 31, 2023 was $131.2 million compared to $69.8 million on December 31, 2022. The increase in debt of $61.4 million is mainly due to the merger with WeCommerce.

  • Total assets on December 31, 2023 were $392.6 million compared to $168.7 million on December 31, 2022. Total intangibles and goodwill increased by $89.2 million and $126.4 million, respectively, for the year, as a result of the acquisition of WeCommerce in Q2 and subsequently in Q3, WeCommerce's acquisitions of Clean Canvas and Jagged Pixel. This was offset by impairments and disposals in the year.

  • EBITDA in 2023 was $46.4 million compared to $20.2 million in 2022. The increase was a result of the acquisitions made during the year. EBITDA does not include the Q1 2023 EBITDA results from WeCommerce of $0.5 million.

Financial Statements

Tiny Ltd's consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the 2023 year are available on SEDAR+ at https://www.sedarplus.ca/.

About Tiny

Tiny is a Canadian-based investment company focused primarily on acquiring majority stakes in businesses that it expects to hold over the long-term. The Company is structured to give maximum flexibility to operating management teams by maintaining a focus at the parent company level on only three areas: capital allocation, management, and incentives. This structure enables each company to run independently and focus on what they do best, within an incentive structure that is designed to drive results for both the operating business and ultimately for Tiny and its shareholders.​

Tiny currently has three principle reporting segments: Digital Services, which provides design, engineering, brand positioning and marketing services to help companies of all sizes deliver premium web and mobile products​; Software and Apps, which is home to a complementary portfolio of recurring revenue software businesses that support merchants, as well as digital themes businesses that sell templates to Shopify merchants​; and Creative Platform, which is comprised primarily of Dribbble, the social network for designers and digital creatives, as well as a premier online marketplace for digital assets such as fonts and templates.​

For more about Tiny, please visit www.tiny.com or refer to the public disclosure documents available under Tiny's SEDAR profile on SEDAR at www.sedar.com.

Company Contact:
David Charron
Chief Financial Officer
Phone: 416-418-3881
Email: david@tiny.com

Non-IFRS Financial Measures

This news release makes to reference to certain non-IFRS measures and ratios, hereafter, referred to as "non-IFRS measures". These measures are not recognised measures under IFRS, and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. The Company uses non-IFRS measures including "EBITDA", "EBITDA %", and "recurring revenue". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. As required by Canadian securities laws, the Company defines and reconciles these non-IFRS measures below:

EBITDA and EBITDA %

EBITDA is defined as earnings (net income or loss) before finance costs, income taxes, depreciation and amortization. EBITDA is reconciled to net income (loss) from the financial statements.

EBITDA % ratio is determined by dividing EBITDA by total revenue for the year.

EBITDA and EBITDA % is frequently used to assess profitability before the impact of finance costs, income taxes, depreciation and amortization. Management uses non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare annual operating budgets. EBITDA and EBITDA % are measures commonly reported and widely used as a valuation metric.

Recurring Revenue

Recurring Revenue consists of revenues generated through subscriptions that grant access to products and services with recurring billing cycles. The subscriptions are recognized on an overtime basis in accordance with IFRS 15.

Recurring Revenue is a part of total revenue disclosed in the financial statements, as determined in accordance with IFRS 15.

Recurring Revenue represents revenues that are stable and the Company expects to earn continuously. Recurring Revenue % is determined by dividing Recurring Revenue by total revenue for the year. Recurring Revenue is frequently used to determine any indicators of future revenue growth and revenue trends. Recurring Revenue and Recurring Revenue % are measures commonly reported and widely used as a valuation metric.

NON-IFRS MEASURES RECONCILIATIONS

EBITDA and EBITDA %



For the years ended December 31, 


2023(1)

2022 
Net income$14,754,930
$5,405,789
Income tax (expense)/recover
(4,439,637)
7,578,714
Depreciation and amortization
27,119,931

4,881,837
Interest expense
8,971,203

2,303,421 
EBITDA
46,406,427

20,169,761
Revenue
185,502,613

153,663,188 
EBITDA %
25 %

13 % 
(1) EBITDA does not include the Q1 2023 EBITDA results from WeCommerce of $0.5 million.

 

Recurring Revenue



For the years ended December 31, 


2023

2022 
Recurring revenues$29,514,301
$8,864,540
Non-recurring revenues
155,988,312

144,798,648 
Total revenue
185,502,613

153,663,188


 

   
Recurring revenue % of total revenue
16 %

6 % 

 

Cautionary Note Regarding Forward-Looking Information

This news release contains certain forward-looking statements and forward-looking information within the meaning of Canadian securities law. Such forward-looking statements and information include, but are not limited to, statements or information with respect to: our strategies, objectives and financial plans.

Forward-looking statements and information are frequently characterized by words such as "plan", "project", "intend", "believe", "anticipate", "estimate", "expect" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company's management believes that the assumptions made and the expectations represented by such statement or information are reasonable, there can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include risks relating to reliance on the Shopify platform; the Company's limited operating history; reliance on management and key employees; conflicts of interest in relation to the Company's officers, directors, and consultants; additional financing requirements; resale of Common Shares in the publicly- traded market; market price fluctuations for the Common Shares; global financial conditions; management of growth; risks associated with the Company's strategy of growth through acquisitions; tax risks; currency fluctuations; competitive markets; uncertainty and adverse changes in the economy; unsustainability of the Company's rapid growth and inability to attract new customers, retain revenue from existing merchants, and increase sales to both new and existing customers; adverse effects on the Company's revenue growth and profitability due to the inability to attract new customers or sell additional products to existing customers; the successful integration of the Company with Tiny Capital; future results of operations being harmed due to declines in recurring revenue or contracts not being renewed; security and privacy breaches; changes in client demand; challenges to the protection of intellectual property; infringement of intellectual property; ineffective operations through mobile devices, which are increasingly being used to conduct commerce; and risks associated with internal controls over financial reporting. The Company undertakes no obligation to update forward-looking statements and information if circumstances or management's estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements and information. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Company.

For a more detailed discussion of certain of these risk factors, see the list of risk factors in the Company's MD&A dated April 11, 2024 and the management information circular dated March 6, 2023 available on SEDAR at www.sedar.com under the Company's profile.

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.

SOURCE: TINY LTD.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/205220