Mr. Andrew Duncan reports

BOARDWALKTECH REPORTS SECOND QUARTER FISCAL 2024 FINANCIAL RESULTS

Boardwalktech Software Corp. has released its financial results for the three-and-six-month period ended Sept. 30, 2023. All figures are reported in U.S. dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with international financial reporting standards (IFRS).

Financial highlights

Revenue for the second quarter of 2024 was $1.53-million, a 3-per-cent increase from $1.48-million in Q2 fiscal year 2023 and versus $1.55-million in the first quarter of fiscal year 2023. Revenue from recurring software-as-a-service licences in Q2 fiscal year 2024 increased 10 per cent year-over-year from incremental licences executed with new and existing customers, but was offset by a 21-per-cent decline in professional services.

Annual recurring revenue (ARR), a non-IFRS metric, at Sept. 30, 2023, was $5.7-million, a 3.6-per-cent year-over-year increase versus ARR of $5.5-million at Sept. 30, 2022. The company defines ARR as the annual recurring revenue expected based on licence subscriptions and recurring services recognized in the quarter.

Gross margin for Q2 fiscal year 2024 was 90.1 per cent, comparable with the 90.3-per-cent level in Q2 fiscal year 2023 and 90.0 per cent in Q1 fiscal year 2024. Adjusted EBITDA for Q2 fiscal year 2024 was a loss of $360,000, a 47-per-cent improvement over the $680,000 loss in Q2 fiscal 2023 and a 30-per-cent improvement over the $510,000 loss in Q1 fiscal 2024.

Cash inflow from operating activities was a positive $200,000, the third time over the last six quarters.

Non-IFRS net loss for Q2 fiscal year 2024 (as defined in the non-IFRS financial measures section) totalled $380,000, or a loss of one cent per basic and diluted share, versus a $700,000 non-IFRS loss in Q2 fiscal year 2023, or a loss of two cents per basic and diluted share, and versus a $520,000 non-IFRS loss in Q1 fiscal year 2024, or a loss of one cent per basic and diluted share.

Net loss for Q2 fiscal year 2024 was $700,000, or a loss of two cents per basic and diluted share, a 40 per-cent improvement from a $1.2-million loss in Q2 fiscal year 2023, or three cents per basic and diluted share, and a 22-per-cent improvement from a $900,000 loss in Q1 fiscal 2024, or two cents per basic and diluted share. The year-over-year improvement was due primarily from higher recurring revenue levels and prudent cost management.

Subsequent operations highlights

On Nov. 27, 2023, the company announced the extension and expansion of its existing engagement with a leading Fortune 50 technology company, including the first annual licence. Combined licence and services revenue from this expanded plan is expected to exceed $400,000 (U.S.) over the next 12 months.

"After experiencing a breakout year of growth in fiscal 2023, Boardwalktech is positioned to return to that level of growth as we enter into our next phase of expansion. While recent market headwinds and customer centric issues means these deals have taken longer to close, we believe the longer-term impact to growth and earnings have, and will be, worth the wait," stated Andrew T. Duncan, president and chief executive officer of Boardwalktech. "As our land and expand strategy for our digital ledger solution continues to deliver consistent growth, additional growth will be driven by our expanded sales efforts through strategic teaming agreements, new complementary product offerings such as Unity Central and new logos. The holistic Boardwalktech platform is emerging as the go-to, high ROI (return-on-investment) solution for enterprise data management and supply chain visibility solutions."

Earnings conference call details

Boardwalktech management will be hosting its earnings conference call today (Nov. 29, 2023).

Detail:

Time:  4:15 p.m. Eastern Time/1:15 p.m. Pacific Time

To join the call, please use the following dial-in information:

North American participants:  Please dial 1-888-664-6383 (toll-free) or 416-764-8650 (local -- Toronto)

European participants:  0800 724 0293 (Germany), 0800 312 635 (Switzerland), 0800 652 2435 (United Kingdom)

A replay of the call will be available until Dec. 6, 2023, and can be accessed by dialling 1-888-390-0541 and entering access code 235054 followed by the pound key.

About Boardwalktech Software Corp.

Boardwalktech has developed a patented digital ledger technology platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data is the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital ledger technology-based platforms. Boardwalktech is headquartered in Cupertino, Calif., with offices in India and operations in North America.

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