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MediaValet Reports First Quarter Fiscal 2020 Results

Delivers Record Q1 Revenue, up 73%, Grows ARR 67%, Increases Cash to $4.7M

Vancouver, British Columbia--(Newsfile Corp. - May 14, 2020) -  MediaValet Inc. (TSXV: MVP) (the Company), a leading provider of enterprise digital asset management ("DAM") and creative operations software, is pleased to report its results for the three months ended March 31, 2020.

Summary of Quarterly Results


Three months ended March 31


2020

2019
Revenue $1,724,700
$996,076
% Increase
73%

62%
Gross Margin
1,425,169

850,662
Gross Margin %
83%

85%
Operating Expenses1
2,175,662

1,479,636
% Increase
47%

8%
EBITDA Loss2
(750,493)
(628,974)
% Increase / (Decrease)
19%

(28%)
Net loss
(939,748)
(825,665)
% Increase / (Decrease)
14%

(26%)
Loss per share3
(0.04)
(0.05)


At March
31, 2020


At December 31, 2019
Annual Recurring Revenue ("ARR")4$6,891,249
$6,501,074
% Increase over prior year period
67%

85%
Modified Working Capital ex. of Deferred
     
Revenue and Debt

5,538,571

2,800,748
Deferred Revenue
4,394,709

4,407,953
% Increase over prior year period
54%

90%
Total assets
8,927,848

6,486,469
Lease liabilities
1,136,481

1,182,835
Long-term and Convertible Debt
3,000,000

3,283,199
Shareholder Deficiency
(1,232,437)
(4,260,076)

 

"In the midst of the pandemic, facing faltering economies and shuttered industries around the world, we're thankful to be delivering critical infrastructure that organizations need to work remotely," said David MacLaren, Founder and CEO. "Today, we announce another quarter of strong revenue growth, illustrating the increasing role DAM is playing not only in day-to-day operations but also in business continuity plans. COVID-19 has forever changed the way we work. Remote working is now part of our lives, it has to be planned for, both as a necessity and as a way of life going forward. Overnight, SaaS and Cloud have taken center stage; VPNs and other legacy infrastructure can no longer be relied on to support the needs of tomorrow's business operations - let alone today's."

Continued MacLaren, "Coming into 2020, we ramped up our investment in product, sales and marketing, and customer success to fuel our next stage of growth. This investment found us well prepared when COVID-19 was declared a pandemic and organizations moved en masse to remote work environments. This is evident in our customer usage rates which are up over 100% from March last year and up 30% since January."

Mr. MacLaren added, "As distributed workforces become a major component of our new normal and organizations rely more heavily on Cloud-based systems, Cloud DAM will become increasingly important in day-to-day operations and business continuity plans across most industries and geographies. Together with a leading market position and a well differentiated enterprise product offering, we believe MediaValet is in a strong position for the foreseeable future."

Rob Chase, Executive Chair and CFO commented, "We are grateful to have the funding to implement our strategic plan, and to have earned the support of a great investor base. We exited our first quarter with $4.70 million in cash following exercise of $3.83 million of warrants, options and debt conversions in the quarter. Including the warrants exercised after quarter end, our pro-forma March 31 cash balances are $8.01 million. Fiscal 2019 showed the growth potential and the leverage we are capable of unlocking. While still showing solid growth in Q1 2020, the current economic climate resulted in a lower level of net new ARR generated in the quarter. This is a direct result of COVID-19, as some of our Q1 prospects delayed their purchase decisions to allow them time to adapt to their new normal. We are confident that these organizations will complete their purchases in the coming quarters and that we will see a release of pent-up demand as they settle in. In the meantime, we will use this time to invest in a measured expansion through this cycle, and believe this will position us to emerge stronger, retain our high growth and increase our operational leverage and market position for the future. We now have ample capital to fund this expansion, to weather the storms from the current economic downturn, and to grow MediaValet's leadership position in the DAM industry."

Results of Operations

Key Financial Metrics:

Technology and Product:

MediaValet first launched its new V4 platform along with its unique Advanced Search, Multi-Library and CreativeSPACES modules in 2018. Since then it has continued to enhance each of these components, doing incremental releases on a weekly and monthly basis. This continued commitment to product innovation and advancement has led to a number of announcements, including:

Operations and Corporate:

Subsequent Events:

1 Operating Expenses include Sales & Marketing, Research & Development and General & Administrative.

2 EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs.

3 Per share figures have been adjusted to reflect the 15:1 share consolidation completed on September 9, 2019. Note that quarterly loss per share amounts may not aggregate to the annual amount disclosed in the annual financial statements due to rounding.

4 Annual Recurring Revenue (ARR) is a non-IFRS measure that provides an indication of future revenue and billings from customers as of the reporting date. ARR represents the sum of the annual recurring revenue from existing customer contracts or commitments as of the reporting period end date, and as such management believes ARR to be a meaningful measure for assessment of Company performance. ARR is recorded as deferred revenue when it is invoiced and is recognized in revenue evenly on a monthly basis over the contract term.

MediaValet's full financial statements and related MD&A are now available on SEDAR.

About MediaValet, Inc.

MediaValet stands at the forefront of the enterprise cloud-based digital asset management industry. Built exclusively on Microsoft Azure and available in 140 countries, 54 Microsoft data center regions, around the world, MediaValet delivers unparalleled enterprise class security, reliability, redundancy and scalability while offering the largest global footprint of any DAM solution. In addition to providing all core DAM capabilities and local desktop-to-cloud support for creative teams, MediaValet offers industry leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Oracle Marketing Cloud (Eloqua), Drupal 8, WordPress, Hootsuite and many other best-in-class 3rd party applications.

For further information, please contact:

Corporate Office
David MacLaren, CEO | david.maclaren@mediavalet.com | (604) 688-2321
Rob Chase, Executive Chairman and CFO | rob.chase@mediavalet.com | (604) 688-2321

Press Relations
Babak Pedram | babak.pedram@mediavalet.com| (416) 644-5081

"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."

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55834