Mr. Ali Tajskandar reports

WISHPOND REPORTS CONTINUED REVENUE AND ADJUSTED EBITDA GROWTH IN Q2 2023

Wishpond Technologies Ltd. has filed its interim consolidated financial statements, and management's discussion and analysis (MD&A) for Q2 2023, representing the three and six months ended June 30, 2023. Copies of the interim financial statements and MD&A are available on the company's profile on SEDAR.

Ali Tajskandar, Wishpond's founder and chief executive officer, commented: "We are very pleased with our second quarter results in which Wishpond achieved positive adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] for the fourth quarter in a row, demonstrating our commitment to profitable growth. During the first six months of 2023, we generated $400,000 of positive adjusted EBITDA compared with an adjusted EBITDA loss of $600,000 in the first six months of last year -- an outstanding improvement of over $1-million, which we are extremely proud of achieving. Wishpond's cost optimization efforts over the past year have contributed to the company's positive adjusted EBITDA profile. Based on the company's performance and growth momentum in the first half of the year, we expect to deliver strong results for the remainder of 2023. We maintain a positive outlook for the second half of 2023, with continued sales growth and improving cash flows."

Mr. Tajskandar further adds: "During the second quarter, we also completed the acquisition of Essential Studio Manager (ESM), which is the sixth acquisition in the company's history. ESM further expands the breadth of our product offering into invoicing, CRM [customer relationship management] and business management functionality. In addition, we are actively working on developing additional AI [artificial intelligence]-powered marketing tools which we intend to launch in the coming quarters. Finally, our new Propel IQ platform is gaining traction in the market, and early signs are showing higher margins and increased customer retention. We are now accelerating the hiring of new sales resources to drive additional growth in the second half of the year."

Second quarter 2023 financial highlights:

• Wishpond achieved quarterly revenue of $5,639,417 during Q2 2023, compared with $5,007,343 generated in the same period of 2022 (Q2 2022), an increase of 13 per cent. Revenue growth was primarily driven by organic growth resulting from stronger product demand, an increase in sales and marketing activities, and new product introductions.
• Wishpond achieved gross profit of $3,680,391 in Q2 2023 (Q2 2022: $3,360,715), representing a 10-per-cent increase from Q2 2022, driven by an increase in overall revenue.
• Wishpond achieved a gross margin percentage of 65 per cent during Q2 2023 (Q2 2022: 67 per cent).
• During Q2 2023, Wishpond achieved positive adjusted EBITDA of $215,926 (Q2 2022: negative $192,196), an increase of 212 per cent.
• As at June 30, 2023, Wishpond had $1,098,285 in cash and no debt (Dec. 31, 2022: cash of $2,692,644 and no debt). The reduction in cash balances was caused in part by earnout payments for businesses acquired in 2022, investment in the business and changes in working capital.

Second quarter 2023 business highlights:

• On May 3, 2023, the company announced that it completed the acquisition of certain assets of Essential Studio Manager LLC (ESM). ESM is a provider of business management software, including invoicing and customer relationship management (CRM) solutions for small businesses in the services industry. ESM is expected to be integrated with Wishpond's Propel IQ platform this year. Wishpond customers using Propel IQ's sales and marketing platform will then be able to provide contract signing, invoicing and access other CRM functionality from one single platform.
• On June 27, 2023, the company announced that its notice of intention to make a normal course issuer bid (NCIB) was accepted by the exchange. Under the NCIB, the company may, during the 12-month period commencing June 30, 2023, and ending June 29, 2024, purchase up to 2,688,431 shares in total, being 5 per cent of the total number of 53,768,620 shares outstanding as at June 12, 2023. During the three and six months ended June 30, 2023, the company purchased 32,000 common shares under the NCIB, for aggregate consideration of $18,528.

Events subsequent to June 30, 2023:

• On July 27, 2023, the company announced the launch of a new partnership program, introducing a transformative approach to collaboration for affiliates, marketing agencies and other technology companies to collaborate closely with Wishpond's marketing platform.
• On Aug. 16, 2023, the company announced the upcoming launch of SalesCloser AI, an artificial intelligence-powered sales rep that can deliver personalized, round-the-clock sales calls and product demos without the need for human intervention. The AI-powered platform is poised to transform industries across the board, particularly benefiting virtual sales professionals, SaaS (software-as-a-service) companies, consultants and various B2B (business-to-business) enterprises that rely on on-line sales interactions.

Outlook

Wishpond expects to achieve record revenue and cash flows in 2023, driven by organic growth from increasing sales of the company's new Propel IQ bundled product, in addition to ramping up the size of its sales team and launching new AI-powered products. The company continues to have an active pipeline of sales opportunities and robust demand for its products. Management is pleased to reiterate the company's key goals for 2023:

• Increase monthly recurring revenue through both organic and inorganic means.
• Scale the size of the sales team to help achieve the company's organic growth profile.
• Remain adjusted EBITDA positive by balancing growth with increased positive cash flow from operations.
• Invest in research and development so that the company can continue to launch new AI-powered products and services to increase long-term value for its clients.
• Leverage the Propel IQ platform to further accelerate the company's growth, improve margins, and increase customer retention and long-term customer value.

Wishpond has demonstrated a disciplined capital allocation strategy, having successfully completed and integrated six acquisitions since the company's public listing in December of 2020. Given management's successful acquisition record, the company may choose to accelerate its growth in the form of future acquisitions. Management may also choose to reinvest cash flows generated by the company to accelerate organic growth, or in the form of share repurchases.

David Pais, Wishpond's chief financial officer, commented: "I am pleased to report that the company has not felt any material negative impacts due to increasing interest rates, rising inflation or other macroeconomic effects. We have a clean balance sheet and an undrawn line of credit of $6-million, and our cost-reduction strategies will allow us to fund the company's growth through cash from operations. We look forward to reporting higher revenue growth and profitability for the rest of the year."

Webinar conference call details

As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q2 2023 financial results today at 10 a.m. (PT) (1 p.m. ET).

Register for the webinar on-line.

Date:  Aug. 17, 2023

Time:  10 a.m. PT (1 p.m. ET)

Dial-in:  1-778-907-2071 (Vancouver local) or 1-647-374-4685 (Toronto local)

Meeting ID No.:  835 0694 7063

Please connect five minutes prior to the conference call to ensure time for any software download that may be required.

Selected financial highlights

The attached tables set out selected financial information relating to Wishpond, and should be read in conjunction with Wishpond's interim financial statements and MD&A (management's discussion and analysis).

About Wishpond Technologies Ltd.

Based out of Vancouver, B.C., Wishpond is a provider of marketing-focused on-line business solutions. Wishpond is a leading provider of digital marketing solutions that empower entrepreneurs to achieve success on-line. The company's Propel IQ platform offers an all-in-one marketing suite that provides companies with marketing, promotion, lead generation, ad management, referral marketing, sales conversion and outbound sales automation capabilities on one integrated platform. Wishpond replaces disparate marketing solutions with an easy-to-use product, for a fraction of the cost. Wishpond serves over 4,000 customers who are primarily small- and medium-sized businesses (SMBs) in a wide variety of industries. The company has developed cutting-edge marketing technology solutions, including an artificial-intelligence-powered website builder, and continues to add new features and applications. The company employs a software-as-a-service (SaaS) business model, where most of the company's revenue is subscription-based recurring revenue, providing excellent revenue predictability and cash flow visibility.

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