Wishpond achieved Adjusted EBITDA(1) of $0.5 million in Q2-2024, an increase of 151% compared to Q2-2023 and the eighth quarter in a row of positive Adjusted EBITDA.
During Q2-2024, Wishpond launched its new flagship product, SalesCloser AI, a virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos.
VANCOUVER, BC, Aug. 21, 2024 /PRNewswire/ - Wishpond Technologies Ltd. (TSXV:WISH) (OTCQX:WPNDF) (the "Company" or "Wishpond"), a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements (the "Interim Financial Statements") and management's discussion and analysis (the "MD&A") for Q2-2024, representing the three and six months ended June 30, 2024. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR+ at www.sedarplus.ca.
Ali Tajskandar, Wishpond's Founder and CEO commented, "I am excited to report that Wishpond achieved its highest ever second quarter Adjusted EBITDA, with a remarkable 151% improvement over the same period last year. Our dedicated efforts in cost reductions, coupled with improvements in various business operations have driven significant efficiencies, resulting in an improvement in our Adjusted EBITDA and cash flows. Furthermore, we expect margins to continue trending upwards as adoption of our Propel IQ platform grows, and we begin ramping up sales of our new SalesCloser solution. Improving Adjusted EBITDA generation and cash flows were a significant focus for Wishpond in the first half of the year and we anticipate further Adjusted EBITDA expansion and improving profitability to continue in the coming quarters of 2024."
Ali Tajskandar further adds, "During the second quarter we launched our new flagship product, SalesCloser AI, a revolutionary virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos. In the short time since launch, we have already seen SalesCloser's impact across multiple industries and use cases. As we roll out the platform more broadly, we expect SalesCloser to be a key contributor in driving new growth to our business in 2025. I am also pleased to announce that Wishpond will begin utilizing SalesCloser for its own purposes in lead generation and sales development within the coming weeks. We are excited with SalesCloser's potential to not only help grow our own internal sales capacity but also reduce our costs, thus further increasing our margins and profitability."
Adrian Lim, Wishpond's newly appointed Chief Financial Officer commented, "We are excited about the positive momentum we are building as we progress through 2024. Our cost structure has improved significantly and our major annual expenses such as audit, professional fees, and tax expenses are now mostly behind us in the first half of the year. Moreover, we no longer have any earn-outs in relation to our previous acquisitions. This positively positions us to see improvement in our cash flows as we continue to expand and optimize our operations."
Second Quarter 2024 Financial Highlights:
Wishpond achieved quarterly revenue of $5,828,709 during Q2-2024, compared to $5,639,417 generated in the same period of 2023 (Q2-2023), representing an increase of 3%. Revenue growth was primarily driven by organic growth resulting from stronger product demand and new product introductions.
Revenue growth was offset by a decline in revenue from the Company's legacy customer of email delivery services which reduced its spending from $419,479 in Q2-2023 to $158,857 in Q2-2024. Excluding the decrease in revenue from this customer, organic revenue growth for the rest of the business was approximately 9%.
Wishpond achieved Gross Profit of $3,942,748 in Q2-2024 (Q2-2023: $3,680,391), representing a 7% increase from Q2-2023, driven by an increase in overall revenue and improved margins.
Wishpond achieved a Gross Margin percentage of 68% during Q2-2024 (Q2-2023: 65%).
During Q2-2024, Wishpond achieved positive Adjusted EBITDA(1) of $541,610 (Q2-2023: $215,926), representing an Adjusted EBITDA margin of 9%, and an increase of 151% from the year prior.
As at June 30, 2024, Wishpond had $1,095,708 in cash and had drawn down $1,242,656 from its credit facility (December 31, 2023: cash of $1,424,585 and $994,658 credit facility balance outstanding). The reduction in net cash was caused in part by earnout payments for businesses acquired in 2022, investment in SalesCloser marketing activities, and changes in working capital.
Second Quarter 2024 Business Highlights:
On April 4, 2024, the Company announced the launch of SalesCloser AI, a next generation virtual sales agent capable of delivering personalized, round-the-clock sales calls and product demos in a similar manner to a live human sales agent. The platform can work 24×7 to engage leads, close deals, and service customers in ten different languages. SalesCloser can also be adapted for use across a diverse range of industries such as software/SaaS, professional services, financial services, education, travel & hospitality, insurance, and more.
Business Highlights Subsequent to June 30, 2024:
On July 8, 2024, the Company announced the appointment of Adrian Lim as Chief Financial Officer (CFO). Mr. Lim has responsibility for all finance, accounting, financial reporting, audit, tax and capital planning functions.
On July 10, 2024, the Company announced that the renewal of its Notice of an Intention it filed to make a Normal Course Issuer Bid ("NCIB") was approved by the TSX Venture Exchange. Under the renewed NCIB, the Company may, during the 12-month period commencing July 15, 2024, and ending July 14, 2025, purchase up to 2,707,931 Shares in total, being 5% of the total number of 54,158,620 Shares outstanding as at June 26, 2024.
On August 1, 2024, the Company successfully renewed its credit facility with a major Canadian bank that was previously renewed on August 11, 2023 and originally entered into on September 21, 2021. The renewed credit facility maintains the secured revolving operating line with a borrowing capacity of up to $6,000,000 based on recurring revenue, an interest rate equal to the Canadian Prime Rate plus 2.0% per annum, and is secured against the Company's assets.
On August 8, 2024, the Company announced the launch of a new rewards distribution program through its Viral Loops product platform. The new program launched with successful integrations with the Stripe App Marketplace, Tremendous, and Sendoso allowing Viral Loops customers to use their referral rewards on any of these platforms, which the Company believes will increase Average Order Value(1) and customer LTV(1). The program is expected to drive increased customer engagement and strengthen Wishpond's overall market position and capabilities in the referral marketing space.
On August 19, 2024, the Company announced the launch of a new Integrations Marketplace for its AI-powered virtual sales agent, SalesCloser AI. The ...
