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Press release content from Business Wire. The AP news staff was not involved in its creation.

WeCommerce Reports First Quarter 2021 Results

May 28, 2021 GMT

VICTORIA, British Columbia--(BUSINESS WIRE)--May 28, 2021--

WeCommerce Holdings Ltd. (“WeCommerce” or “the “Company”) (TSXV: WE) today announced its financial results for the three-month period ended March 31, 2021 (“Q1 2021”). Currency amounts are in Canadian dollars unless otherwise noted.

Q1 2021 Highlights

  • Revenue in Q1 2021 was $6,039,220, an increase of $1,876,827 or 45% compared to the first quarter of 2020 (“Q1 2020”).
  • Net loss was $1,757,976 in Q1 2021 compared to net income of $139,327 in Q1 2020.
  • The net loss for Q1 2021 includes finance fees of $1,045,356 in connection with the early repayment of long-term debt on March 31, 2021 as well as the accelerated amortization of $127,500 of deferred finance fees on this facility. The early repayment was made as part of the finalization of our new debt facility with a new lender as part of our financing strategy for the acquisition of Stamped in April 2021. Q1 2021 net loss also includes acquisition costs of $777,684 (Q1 2020: $nil). Excluding these expenses, net income for Q1 2021 would have been $192,564 (Q1 2020: net income of $139,327).
  • Cash on hand on March 31, 2021 amounted to $48,286,282 compared to $61,193,367 on December 31, 2020.
  • Adjusted EBITDA 1 for Q1 2021 amounted to $2,000,974 or 33% of revenue, compared to $912,018 or 22% of revenue in Q1 2020.

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Q1 2021 Financial Results:

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For the three-month
periods ended March 31,

 

 

 

2021

2020

Revenue

 

 

Recurring subscription revenue

 

 

2,279,842

1,155,569

Digital goods revenue

 

 

2,171,548

1,746,376

Agency service revenue

 

 

1,587,830

1,260,448

 

 

 

6,039,220

4,162,393

Operating income/(loss)

 

 

(136,116)

190,353

Net income/(loss)

 

 

(1,757,976)

139,327

EBITDA (1)

 

 

492,668

927,442

EBITDA %

 

 

8%

22%

Adjusted EBITDA (1)

 

 

2,000,974

912,018

Adjusted EBITDA %

 

 

33%

22%

 

Notes:

1. See “Non-IFRS financial measures” for further information.

“Our first quarter results reflect strong business momentum and continued progress toward becoming the acquirer of choice for entrepreneurs in the Shopify partner ecosystem,” said Chris Sparling, CEO of WeCommerce. “Over the past few weeks, we’ve continued to integrate Stamped into the WeCommerce family and as highlighted previously, we see lots of potential to further invest in growth and product innovation. WeCommerce’s founder-friendly approach, simple transaction structure and focus on the long-term continues to resonate with founders in the ecosystem.”

Management will host a conference call and webcast on May 28, 2021 at 2:00 pm PT (5:00 pm ET) to discuss the financial results

Live Call:

http://www.directeventreg.com/registration/event/5152389

Live Webcast:

https://event.on24.com/wcc/r/3161396/91C7AAE80F71C72178ACB43DA6ACCDDF

Financial Statements

WeCommerce’s unaudited interim consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) for Q1 2021 are available on the Company’s Website at https://www.wecommerce.co or on SEDAR at www.sedar.com.

About WeCommerce Holdings Ltd

WeCommerce is a holding company that owns a family of companies and brands in the Shopify partner ecosystem, including Pixel Union, Out of the Sandbox, Yopify, SuppleApps, WeCommerce Operations Ltd (formerly “Rehash”), Stamped and Foursixty. The Company’s primary focus is to build, grow and acquire businesses that serve the Shopify Partner ecosystem. These businesses consist largely of Software as a Service, Digital Goods and Services businesses. Generally, these businesses build Apps and Themes and run Agencies that support Shopify merchants.

WeCommerce is focused on acquiring businesses with growth potential, a sustainable competitive advantage and that are, or have the potential to become, a leader within their particular market. The Company targets businesses within the Shopify ecosystem due to its confidence in the Shopify platform, the fragmented nature of the ecosystem and the attractive economics that the businesses generally exhibit. As one of Shopify’s first partners since 2010, WeCommerce believes it is well positioned to continue to identify acquisition opportunities in the Shopify Partner ecosystem.

Non-IFRS financial measures

This news release makes reference to certain 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 our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including “EBITDA” and “Adjusted EBITDA”. Management uses these non-IFRS measures in order 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, we reconcile these non-IFRS measures to the most comparable IFRS measures in our MD&A for Q1 2021.

Forward looking Information

This news release contains certain forward-looking statements and forward-looking information within the meaning of applicable securities law. Such forward-looking statements and information include, but are not limited to, statements or information with respect to: the Company’s future business and strategies; it’s ability to identify and acquire targets in the Shopify partner; funds available, and uses of funds, and future capital expenditures and other expenses for specific operations.

Forward-looking information is frequently characterized by words such as “plan”, “project”, “intend”, “believe”, “anticipate”, “estimate” 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 sale to both new and existing customers; adverse effects on the Company’s revenue growth and profitability due to inability to attract new customers or sell additional products to existing customers; 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 Company’s most recent Management’s discussion and Analysis (“MD&A”) described in “Risk Factors” as well as the list of risk factors in the Company’s Annual Information Form 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210528005464/en/

CONTACT: Evan Brown, Chief Financial Officer

evan@wecommerce.co

250-888-9424

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES TECHNOLOGY OTHER PROFESSIONAL SERVICES FINANCE SOFTWARE CONSULTING

SOURCE: WeCommerce Holdings Ltd.

Copyright Business Wire 2021.

PUB: 05/28/2021 04:00 PM/DISC: 05/28/2021 04:02 PM

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