Fiscal year 2021 represented a significant shift for the Company as it evolved its IoT-enabled solution platform from delivering efficiencies within a singular enterprise account to tracing and tracking products from source material, through manufacturing all the way to retail across the entire supply chain partner ecosystem. With this refined focus came a significant investment in the development of new features and functions to not only provide improved tracing, tracking and operational efficiencies, but to also help companies meet their sustainability and ESG (Environmental, Social and Governance) initiatives.
“The most recent pandemic has brought with it many challenges,” said
TrackX’s expanded supply chain and sustainability solutions have increased configurability, require less customization and are less hardware intensive, thereby allowing
- Companies are still dealing with the impact of supply chain disruptions on their business and need to invest in technologies that provide improved visibility, transparency and trust throughout their entire supply chains;
- Consumers are insisting that companies they purchase products from provide proof of Environment, Social and Governance (ESG) compliance initiatives and practices;
- Increased reporting, regulatory and ESG compliance mandates are forcing companies to implement better tracing, tracking and sustainability solutions to ensure compliance; and
- Companies are seeking real-time, reliable, granular data, feeding predictive analytics and AI in order to gain efficiencies and remain competitive in today’s world.
Financial Highlights for the Year Ended
- In Q3 2021 the Company completed a non-brokered private placement of 40,000,000 units of the Company (the "Units") at a price of
$0.05 per Unit for gross proceeds of$2,000,000 . Each Unit consists of one common share of theCompany (a "Share") and one common share purchase warrant (a "Warrant”) at an exercise price of$0.075 . The proceeds of this private placement were primarily devoted to onboarding additional resources in order to execute the Company’s supply chain focused strategy and to further expand the technology solution in response to demand for proof of sustainability and ESG initiatives. - Revenue for FY21 of
$3.493 million vs$3.995 million in FY20, largely due to a decline in revenue resulting from the sale of the yard business to FourKites and the impact that the most recent pandemic has had on hardware availability and access to customer facilities to complete implementations. - FY21 gross margin of 51%, as compared to 56% in FY20 largely due to:
- Hiring of engineering resources in Q1 21 to support the new business strategy
- Decline in high margin revenue associated with the transition services provided to FourKites in 2020, but which ended Q2 21;
- In FY21,
TrackX expanded its partner network and did enter into a software licensing agreement resulting in perpetual software license revenue of$1.518 million for FY21 which is anticipated to generated future SaaS and services revenue. - Net loss was
$0.759 million or$(0.01) /share compared to a net income of$0.185 million or$0.01 /share for the year endedSeptember 30, 2020 (“FY20”); - Adjusted EBITDA loss for the year was
$0.537 million compared to a$0.333 million loss for the FY20; - Recurring revenue of
$0.673 million , a 67% decrease over$2.037 million for the FY20, largely due to:- The sale of the yard management business to FourKites was completed in Q3 2020 and resulted in the loss of legacy SaaS customers that were a part of that sale;
- The shift in business strategy to focus on supply chain tracing, tracking, sustainability and proof of ESG (environmental, social, governance) required the Company to onboard additional resources and complete additional software development prior to implementing new customer accounts.
Annual Revenue Mix
Revenue | FY21 | FY20 | ||
Perpetual software license fees | 43% | -% | ||
Recurring and Software License | 19% | 52% | ||
Hardware | 3% | 7% | ||
Setup, implementation, and other fees | 35% | 41% | ||
TOTAL | 100% | 100% |
Financial Highlights for the 3-Months Ended
- Adjusted EBITDA of
$0.599 million compared to($0.064) million in Q4 20; - Revenue of
$1.453 million versus$0.818 million in the fourth quarter of FY20 (“Q4 20”); - Net income of
$0.736 million ($0.01 /share) versus$0.307 million loss ($0.01 /share) in Q4 20; and - Gross margin of 52%, down from 68% in Q4 20.
Fourth Quarter Revenue Mix
Revenue | Q421 | Q420 | ||
Perpetual software license fees | 78% | -% | ||
Recurring and Software License | 11% | 18% | ||
Hardware | 4% | 10% | ||
Setup, implementation, and other fees | 7% | 72% | ||
TOTAL | 100% | 100% |
Highlights Subsequent to the Fourth Quarter
- Appointed
Kirk Ball to TrackX Board of Directors.Mr. Ball is currently the EVP and Chief Information Officer atGiant Eagle, Inc. where he has responsibility for delivering all information technology solutions for the company. Previously,Mr. Ball served as CTO at The Kroger Company, America’s largest supermarket chain by revenue and third largest retailer (behind Walmart and Amazon). - Renewed the annual SaaS subscription agreement with one of largest online insurance companies in the industry.
- Expansion of the Shifflet solution implementation within the utility industry to support additional yard storage locations.
- Further expansion of the solution implementation for a global powersports leader to track additional vehicles, capture additional data and improve business analytics.
- Expansion of solution implementation for one of the largest online used car retailers in the industry.
Selected Financial Information
C$(000s) (except per share) | Twelve-month Period Ended | Three-month Period Ended | ||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenue | ||||||||
Gross Margin % | 51% | 56% | 52% | 68% | ||||
Income (loss) for the period | ( | |||||||
Income (loss) per share | ( | ( | ||||||
Adjusted EBITDA (Loss)* | ( | ( | ( | |||||
* Adjusted EBITDA is a non-IFRS (international financial reporting standards) measure and excludes stock-based compensation |
Business Outlook
In 2022,
- Consumer demand for proof of origin, chain of custody and authenticity
- Compliance reporting for regulatory mandates and sustainability claims
- Collaboration across the entire supply chain ecosystem
- Control tower analytics to aggregate enterprise data and drive efficiency
- Comprehensive end-to-end supply chain visibility
The Company continued to expand its solution implementation across all major customer accounts and implemented its enhanced supply chain focused solutions to meet the needs of new customers like
The
About
For more information, please contact:
investor@trackx.com
303-325-7300
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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.
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