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Wecommerce Holdings Ltd
Symbol WE
Shares Issued 39,807,235
Close 2021-11-22 C$ 11.495
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Wecommerce loses $2.98-million in Q3

2021-11-22 16:18 ET - News Release

Mr. Chris Sparling reports

WECOMMERCE REPORTS THIRD QUARTER 2021 RESULTS

Wecommerce Holdings Ltd. has released its financial results for the three-month and nine-month periods ended Sept. 30, 2021.

Q3 2021 highlights:

  • Revenue in Q3 2021 was $10,943,284, an increase of $5,117,693, or 88 per cent (101 per cent on a constant-currency basis), compared with Q3 2020.
  • Apps segment revenue in Q3 2021 was $6,825,881, an increase of $4,743,613, or 228 per cent (248 per cent on a constant-currency basis), compared with Q3 2020. Q3 2021 apps segment revenue includes the full-quarter operating results of Stamped (acquired on April 6, 2021), which contributed revenues of $4,576,870 in Q3 2021. Foursixty contributed revenues of $1,181,544 in Q3 2021, an increase of 37 per cent (44 per cent on a constant-currency basis), compared with Q3 2020. Excluding purchase accounting adjustments, Foursixty's revenue increased 17 per cent (23 per cent on a constant-currency basis), compared with Q3 2020.
  • Themes segment revenue in Q3 2021 was $2,888,589, an increase of $451,511, or 19 per cent (30 per cent on a constant-currency basis), compared with Q3 2020. Q3 2021 themes segment revenue includes the results of Archetype (acquired on Aug. 24, 2021), which contributed revenues of $1,164,568 in the quarter.
  • Agency segment revenue in Q3 2021 was $1,228,814, a decrease of $77,431, or 6 per cent (3 per cent on a constant-currency basis), compared with Q3 2020.
  • Net loss was $2,986,971 in Q3 2021, compared with net income of $405,605 in Q3 2020. The net loss for Q3 2021 includes depreciation and amortization costs of $3,131,209 (Q3 2020: $961,606), mostly attributable to intangible assets acquired, as well as foreign exchange losses of $1,593,524 (Q3 2020: $112,636).
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for Q3 2021 amounted to $3,394,242, or 31 per cent of revenue, compared with $1,994,711, or 34 per cent of revenue in Q3 2020.
  • Cash on hand at Sept. 30, 2021, amounted to $24,569,822 and total debt outstanding was $61,229,149.

Management commentary

"We're pleased with our results for the third quarter and first nine months of 2021. Apps continued to show strength with double-digit organic growth, and our themes business continued to be highly cash generative and highly strategic given its top-of-funnel relationship with Shopify merchants," said Chris Sparling, chief executive officer. "Our portfolio of companies is well positioned to continue providing critical tools and services to help merchants this holiday session and beyond by providing best-in-class storefronts, increasing customer engagement, leveraging social media and improving conversion rates. More recently, we appointed David Charron as our new chief financial officer. Dave brings three decades of relevant experience and has already become an integral part of our leadership team. We're thrilled to have him on board."

"We're continuing to execute on our growth strategy and proud of our collective accomplishments in an increasingly uncertain environment for merchants, characterized by supply chain bottlenecks, higher input costs and recent advertising infrastructure changes," added Alex Persson, president. "Our cash on hand, available liquidity and strong cash flow generation remains a critical advantage, particularly as the valuation environment for attractive portfolio additions continues to normalize. As always, we continue to invest for the long term across our portfolio companies and at Wecommerce."

Conference call

Management will host a conference call and webcast on Nov. 22, 2021, at 2 p.m. PT (5 p.m. ET), to discuss its financial results. Chief executive officer Chris Sparling, president Alex Persson and chief financial officer David Charron will host the call, followed by a question-and-answer period.

An archived webcast of the conference call will be accessible on Wecommerce's investor relations page.

Financial statements

Wecommerce's unaudited interim consolidated financial statements and management discussion and analysis for Q3 2021 are available on the company's website or on SEDAR.

About Wecommerce Holdings Ltd.

Wecommerce provides merchants with a suite of e-commerce software tools to start and grow their on-line stores. The company's family of companies and brands include Pixel Union, Out of the Sandbox, Archetype, Yopify, SuppleApps, Rehash, Foursixty and Stamped. As one of Shopify's first partners since 2010, Wecommerce is focused on building, acquiring and investing in leading technology businesses operating in the Shopify partner ecosystem.

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