Mr. Doug Vickerson reports

RENOWORKS ANNOUNCES PROFITABLE SECOND QUARTER 2023 FINANCIAL RESULTS

Renoworks Software Inc. has released its financial results for the second quarter ended June 30, 2023 (Q2 2023). The financial statements and related management's discussion and analysis (MD&A) can be viewed on SEDAR+. Unless otherwise stated, all dollar amounts are in Canadian dollars.

Financial highlights for the second quarter of fiscal 2023:

• Quarterly revenue of $1,719,087, down 3 per cent from the prior year's $1,770,960;
• Deferred revenue of $1,375,094 for the quarter ended June 30, 2023, versus $1,413,786 for the year ended Dec. 31, 2022;
• Recurring revenue of $557,491 versus $458,822 for the same period in 2022, a 12-per-cent increase;
• Gross margin of 71 per cent versus 67 per cent in the second quarter of 2022;
• Net income of $30,442 compared with a net loss of $57,529 in the second quarter of 2022;
• At June 30, 2023, the company had 40,664,635 common shares issued and outstanding.

Renoworks revenue in the second quarter totalled $1,719,087. While this figure represents a decrease of $51,873 compared with the corresponding period in 2022, the company remains focused on sustained growth and reported positive net income of $30,442 compared with a loss of $57,529 for the same period in 2022.

The company's strategic focus on enriching its offerings with artificial intelligence-driven solutions reflects its enduring commitment to enhancing its customer experience. The company continues to make steady progress in expanding the adoption of its Renoworks Pro contractor solutions through direct sales and, more importantly, a network of strategic partners. In the quarter further advancements were made in broadening market reach and establishing strong collaborations that can impact the industry.

Doug Vickerson, chief executive officer of Renoworks, commented on the company's second quarter performance, stating: "Our continued focus on enhancing our platform with AI technologies and fostering strong strategic partnerships for technological innovation, value delivery and Renoworks Pro adoption is yielding promising outcomes. As the industry evolves, Renoworks remains committed to delivering cutting-edge solutions that empower our customers and drive their success while building upon our wins in 2023. While revenue declined slightly year-over-year, our focus on maintaining strong gross margins was a factor that led to positive net income this quarter."

The company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended June 30, 2023, was $53,895, indicating a noteworthy increase of $43,713 compared with adjusted EBITDA of $10,182 for the corresponding period in 2022. This positive trajectory underscores the company's continuing efforts to optimize platform and operational efficiency and performance.

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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