Mr. Ali Tajskandar reports

WISHPOND REPORTS CONTINUED REVENUE AND ADJUSTED EBITDA GROWTH IN Q3 2023

Wishpond Technologies Ltd. has filed its interim consolidated financial statements, and management's discussion and analysis (MD&A) for Q3 2023, representing the three and nine months ended Sept. 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: "The first nine months have been a period of transition in which we launched Propel IQ, the company's next-generation marketing platform, and then retrained and restructured our sales team to sell this new bundled product offering. This has resulted in slower growth in 2023, however, we are now experiencing an acceleration of Propel IQ sales and have thus resumed the expansion of our sales team. Over the past two months, we averaged over 3-per-cent month-over-month growth in MRR [monthly recurring revenue], driven by increased sales of Propel IQ, which is also having an impact on increasing gross margins and lowering customer churn."

Mr. Tajskandar further adds: "In the third quarter, we continued our streak of achieving positive adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] for the fifth quarter in a row. Wishpond's cost optimization efforts over the past year have contributed to the company's continued positive adjusted EBITDA profile. We maintain a positive outlook for the remainder of 2023, and look forward to next year with renewed optimism based on continued sales growth and improving cash flows. In addition, Wishpond is leading the innovation and development of AI [artificial intelligence]-powered marketing tools. We are garnering significant interest for our AI products, including AI Website Builder, Braxy AI Ad Manager, Sales Email AI and the soon to be launched SalesCloser AI."

Third quarter 2023 financial highlights:

• Wishpond achieved quarterly revenue of $5,763,847 during Q3 2023, compared with $5,483,256 generated in the same period of 2022 (Q3 2022). 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 $3,825,821 in Q3 2023 (Q3 2022: $3,629,111), driven by an increase in overall revenue.
• Wishpond achieved a gross margin percentage of 66 per cent during Q3 2023 (Q3 2022: 66 per cent).
• During Q3 2023, Wishpond achieved positive adjusted EBITDA of $319,001 (Q3 2022: $593,047).
• Wishpond generated positive cash flow from operations of $225,367 in Q3 2023 (Q3 2022: negative $208,054).
• As at Sept. 30, 2023, Wishpond had $909,796 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 earn-out payments for businesses acquired in 2022, investment in the business and changes in working capital.

Third quarter 2023 business highlights:

• 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. 11, 2023, the company successfully renewed its credit facility with a major Canadian bank that was originally entered into on Sept. 21, 2021. The renewed credit facility maintains the secured revolving operating line with a borrowing capacity of up to $6-million, based on recurring revenue, an interest rate equal to the Canadian prime rate plus 2 per cent per annum and is secured against the company's assets.
• On Aug. 16, 2023, the company announced the upcoming launch of SalesCloser AI, an AI-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.
• On Sept. 5, 2023, the company announced a partnership with Fiverr International Ltd. to be part of its Fiverr certified program, and create a unique and certified freelance marketplace for the Propel IQ platform. The Fiverr certified team will selectively scout skilled professionals and agencies, both internally and from Wishpond's existing partner network. Fiverr will then onboard qualified professionals onto the co-branded marketplace, primed to provide exceptional services to Wishpond's small- and medium-sized business (SMB) customers. Wishpond plans to leverage this marketplace to better service its SMB customers and broaden its market presence in regions where the company does not service users.
• On Sept. 26, 2023, the company announced the launch of Sales Email AI. Engineered to deliver tailored responses to e-mails from potential clients, Wishpond anticipates that Sales Email AI will provide its users a level of personalization that sets it apart from traditional automated responses. Designed to elevate and streamline sales communications, Sales Email AI will be a new feature of PersistIQ, Wishpond's outbound sales solution.

Business highlights subsequent to Sept. 30, 2023:

• On Oct. 3, 2023, the company announced the integration of Brax with Facebook, a strategic enhancement in the way that businesses manage their advertising campaigns on the world's largest social media platform. This new integration paves the way for advertisers to harness the power of Brax's advanced ad creation tools and robust rules engine, enhancing their return on investment while streamlining their ad management processes.

Outlook

Wishpond expects to achieve record revenue and adjusted EBITDA 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: "Our cash balance at the end of Q3 2023 experienced a small decline compared with the prior quarter (Q2 2023), partly due to a cash earn-out of approximately $100,000 in the quarter. I am pleased to report that the company's last cash earn-out payment will be in Q4 2023 and we expect our cash balance to improve in 2024. We feel confident in our ability to fund the company's future growth through cash flow from operations. We look forward to reporting higher revenue growth and profitability in 2024."

Webinar conference call details

As previously announced, Wishpond will be hosting a webinar conference call to discuss its Q3 2023 financial results today at 10 a.m. (PT)/1 p.m. (ET).

Register for the webinar on-line.

Date:  Nov. 16, 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:  851 3340 7536

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.

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 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 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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