During the three months ending
“As companies emerge from the impact of the most recent pandemic, supply chain visibility, sustainability and proof of ESG claims have moved near the top of the priority list for many companies,” said
The Company saw a decline in revenue in Q1, 2022, although that decline is largely attributable to a one-time perpetual software license fee realized in three-month period ended
In the quarter, the Company appointed
In Q1, 2022, the Company gained additional validation of its refocused supply chain strategy.
Do Good Foods :TrackX has become the end-to-end supply chain-related system of record forDo Good Foods , a climate forward food company that is working to eliminate supermarket food waste. TrackX’s end-to-end supply chain tracking and environmental monitoring solution enablesDo Good Foods to provide supermarkets with data and analytics they can use to reduce the enormous waste we currently see in grocery retail.TrackX anticipates the solution to be expanded across additional facilities over the next two years.- One of Largest
U.S. National Online Auto Retailers:TrackX has successfully deployed its Keychain to provide an automated, accurate, and up-to-date accounting of vehicle inventory for audit and governance purposes, eliminating costly and time-consuming manual data collection. By tracking pertinent information about every vehicle,TrackX will become the system of record for key metrics such as car dwell time, cycle time, reconditioning performance, inventory turn-over rates and other critical analytics. During the FY2022,TrackX anticipates the implementation to be expanded to additional facilities. - SpotLite360 IoT Solutions: In 2021, SpotLite360 leveraged a software license to utilize the TrackX Keychain platform to deliver proof of origin, chain of custody, regulatory compliance, and proof of ESG to customers in the Cannabis, Healthcare and Pharmaceutical industries. Subsequent to the quarter, SpotLite360 announced that it has engaged with
Control Union to develop an end-to-end supply chain standard for the hemp industry. Under its licensing agreement with SpotLite360,TrackX will be a large contributor to the overall technology solution supporting SpotLite360’s relationship withControl Union . This is anticipated to result in additional SaaS and services revenue forTrackX in FY2022. - Shifflet Brothers Expansion: For this Utility industry logistics provider, the
TrackX solution been expanded to further address the tracing, tracking, inventory management and logistics requirements for one of the largest utility companies inCalifornia . Now that this implementation has been completed,TrackX anticipates that Shifflet will further leverage theTrackX solution to address the logistics requirements of additional customers within the utility industry. - FourKites:
TrackX has continued its relationship with FourKites, an industry leading supply chain company to whichTrackX sold its yard management business to in 2020. During FY2022,TrackX anticipates an increase in software commissions earned on yard implementations completed by FourKites since purchasing the yard management business fromTrackX .TrackX also anticipates that this relationship will generate additional opportunities as the companies evaluate further integrations between their respective solution platforms.
Financial Highlights for the three months ended
- Revenue for Q1 2022 of
$0.529 million vs$0.884 million for the three months endedDecember 31, 2020 (“Q1 2021”). This decline is largely attributable to the completion of transition and implementation services associated with the acquisition of the yard management business by FourKites; - Q1 2022 gross margin of 55%, as compared to 77% in Q1 2021 largely due to:
- Investment in engineering and technical consulting in Q1 2022 to support the Company’s new supply chain focused strategy;
- Decline in high margin revenue associated with the transition services provided to FourKites in Q1 2021, which ended Q2 2021;
- Net loss was
$0.171 million or$(0.00) /share compared to a net income of$0.333 million or$0.00 /share for the three months endedDecember 30, 2021 ; - Adjusted EBITDA loss for the year was
$0.073 million compared to a$0.278 million gain for Q1 2021; - Recurring revenue of
$0.148 million , a 27% decrease over$0.198 million for Q1 2021, largely due to:- A one-time audit adjustment made in Q1, 2021 which resulted in an increase to SaaS revenue for Q1 2021 but was not due to any decline in the SaaS business of the Company.
Annual Revenue Mix
Revenue | Q1 22 | Q1 21 | ||
Recurring and Software License | 27% | 22% | ||
Hardware | -% | 2% | ||
Setup, implementation, and other fees | 56% | 76% | ||
Royalty fees | 17% | -% | ||
TOTAL | 100% | 100% |
Selected Financial Information
C$(000s) (except per share) | Three-month Period Ended | |||||
2022 | 2021 | |||||
Revenue | $529 | $884 | ||||
Gross Margin % | 52% | 77% | ||||
Income (loss) for the period | ( | $333 | ||||
Income (loss) per share | ( | ( | ||||
Adjusted EBITDA (Loss)* | ( |
Business Outlook
The Company will continue its focus on delivering highly configurable, scalable, partner friendly SaaS-based solutions that improve clients’ supply chain processes and drive operational efficiencies. In today’s environment, most all industries have been impacted by disruptions resulting from the most recent pandemic. As
In order to address both new account opportunities and the expansion of implementations within its current accounts, it will be necessary for
- Hardware acquisition, implementation and support
- Expansion of solution value through tight integration with the
TrackX platform - White label licensing of the
TrackX solution platform to leading industry partners - Joint solution marketing with partners
- Strategic investment into
TrackX by a strategic partner
As we emerge from the most recent pandemic, companies across all industries are returning to more normal operations. As this continues to happen,
About
For more information, please contact:
investor@trackx.com
303-325-7300
Neither
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.
Source:
2022 GlobeNewswire, Inc., source