Mr. Doug Vickerson reports

RENOWORKS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2022 FINANCIAL RESULTS AND PROVIDES OUTLOOK

Renoworks Software Inc. has released its financial results for the fourth quarter and fiscal year ended Dec. 31, 2022. The financial statements and related management's discussion and analysis (MD&A) can be viewed on SEDAR. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights for fiscal 2022:

• Annual revenues of $5,941,830, up 7 per cent over the prior year's $5,553,379;
• Deferred revenue of $1,413,786 for the year ended Dec. 31, 2022, compared with $1,389,547 in 2021;
• Gross margin of 64 per cent versus 63 per cent in fiscal 2021;
• Net loss of $1,320,786 compared with a net loss of $608,960 in fiscal 2021, as key investments were made into growth areas such as AI Gen 2, Renoworks Pro solution for contractors and the integration of new features sets, which all should lead to growth in 2023;
• Cash at the end of the year was $704,080, down $485,266 from $1,189,346 at the end of fiscal 2021;
• As at Dec. 31, 2022, the company had 40,662,635 common shares issued and outstanding.

Financial highlights for the fourth quarter of fiscal 2022:

• Quarterly revenue of $1,201,509 for the three months ended Dec. 31, 2022, versus $1,258,956 in 2021;
• Gross margins continue to be strong at 62 per cent and 62 per cent, respectively, for the fourth quarters of 2022 and 2021;
• Net loss of $705,601 for the quarter ended Dec. 31, 2022, compared with a net loss of $360,626 in 2021.

"In 2022 we invested in the areas of our business that we feel will drive future growth for Renoworks, while also significantly improving our customer's outcomes," said Doug Vickerson, chief executive officer of Renoworks. "To address these opportunities, investments in personnel were established early in the year and contributed to technology advancements across our platform. These investments have led to our recently deployed AI Gen 2, CostCertified estimation integration, refreshed Renoworks Pro solution for contractors and several other partnerships that were added in 2022, which should all pay off in 2023 and beyond. In summary, the company made significant investments throughout the year, positioning us well as we move into 2023, all while strategically managing our cash position closely."

Mr. Vickerson added: "Renoworks saw growth in design services and enterprise sales, which grew by 11 per cent and 13 per cent, respectively. Furthermore, the company's Renoworks Pro solution is re-establishing itself as a much-needed tool for contractors and remodellers and has evolved to meet the needs of its customers and the market. Initial results and feedback for Renoworks Pro and its new features has been strong."

Subsequent events to year-end:

• Released Renoworks Pro, the company's newly rebuilt contractor-focused visualizer solution. This on-line subscription service empowers remodellers with advanced artificial-intelligence-based design visualization, lead capture and CRM (customer relationship management) integration capabilities.
• Launched next-generation AI image recognition and visualization technology. Renoworks AI Gen 2 is faster, more accurate and more scalable, which is leading to better outcomes for customers using the Renoworks platform.
• Signed a strategic partnership with CostCertified and mutual reseller agreement. The partnership calls for the companies to sell an all-in-one solution for roofing contractors and exterior remodellers combining Renoworks visualization technology with CostCertified's technology that derisks construction workflows.
• Gunner launches on-line roofing platform using Renoworks technology.
• Announced partnership with Sherwin-Williams' MetalVue program to drive growth in the metal roofing industry.

Furthermore, the company was awarded a grant for over $100,000 through Alberta Innovates' R&D Associates program. The program supports high-potential, high-growth technology and knowledge-based SMEs in Alberta to employ an R&D professional with advanced technical skills required by the SME to make that last leap from research to a marketable product.

Financial results from operations for the fiscal year 2022 with comparatives for 2021 are as shown in the attached table.

Financial results from operations for the fourth quarter 2022 with comparatives for 2021 are as shown in the attached table.

The company's financial position as of Dec. 30, 2022, with comparatives from 2021 is as shown in the attached table.

About Renoworks Software Inc.

Renoworks Software develops and sells unique digital visualization software and integration solutions for the remodelling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders and retailers offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review their product selections in a hyperrealistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales and marketing platform, and generates revenues from five main business lines: Renoworks Enterprise, Renoworks Pro, Renoworks Design Services, Renoworks FastTrack and Renoworks API (application programming interface).

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