Mr. Doug Vickerson reports

RENOWORKS ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS AND PROVIDES OUTLOOK

Renoworks Software Inc. has provided its financial results for the first quarter of fiscal 2023 ended March 31, 2023 (Q1 2023). The financial statements and related management's discussion and analysis (MD&A) can be viewed on SEDAR.

Financial highlights for the first quarter of 2023:

• Revenues of $1,354,175, up 3 per cent over the prior year's $1,315,917.
• Deferred revenue of $1,594,697 for the quarter ended March 31, 2023, versus $1,413,786 for the year ended Dec. 31, 2022.
• Recurring revenue of $515,333 versus $460,784 for the same period in 2022, a 12-per-cent increase.
• Gross margin of 73 per cent versus 63 per cent in the first quarter of 2022.
• Net loss of $384,653 compared with a net loss of $332,546 in the first quarter of 2022.
• At March 31, 2023, the company had 40,664,635 common shares issued and outstanding.

Renoworks experienced a 3-per-cent increase in revenue in Q1 2023 compared with the same period in 2022. Growth was primarily driven by a 44-per-cent increase in libraries revenue and a 12-per-cent increase in hosting and licensing revenues.

"We see significant opportunities to transform the industry with our innovative solutions, which includes our extensive product library catalogue," explained Doug Vickerson, chief executive officer of Renoworks. "This database of product information is the largest collection of building product information and enables Renoworks and its partners, like our recent partnership with CostCertified, to capture immense customer design intent data to inform business decisions and create user experiences."

The company recognizes the importance of technological advancements and aims to accelerate customer acceptance and adoption of its digital visualization products through continuing investment in research and development, artificial intelligence, contractor solutions, data science, and platform functionality.

Mr. Vickerson emphasized the growth opportunities that its contractor solutions, Renoworks Pro, brings to the company. He stated: "Renoworks Pro is a powerful tool that enables contractors and remodellers to enhance their sales process and generate higher project revenue. This quarter, we secured additional strategic sales and marketing partnerships with industry leaders such as Angi Leads, marketing agencies, channel partners and technology integrations, to build upon our initial positive results last quarter and further the growth of our contractor solution for 2023."

Financial results from operations for the first quarter 2023 with comparatives for 2022 are as displayed in the attached table.

  
                                 Three months ended March 31,
                                         2023           2022         

Revenue                            $1,354,175     $1,315,917   
Gross profit                         $993,922       $823,044     
Expenses                           $1,370,260     $1,145,410   
Net (loss)                           $384,653       $332,546     
(Loss) per share                        $0.01          $0.01        
Adjusted EBITDA                     $(362,156)     $(263,387)   



  

About Renoworks Software Inc.

Renoworks 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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