WeCommerce Holdings Ltd. (“WeCommerce” or “the “Company”) (TSXV: WE), a leading provider of ecommerce enablement software and tools for merchants, today announced its financial results for the three-month period ended March 31, 2022 (“Q1 2022”). Currency amounts are expressed in Canadian dollars unless otherwise noted.
Q1 2022 Highlights
- Revenue in Q1 2022 was $12,093,759, an increase of $6,054,539 or 100% (100% on a constant currency basis(1)) compared to Q1 2021.
- Apps segment revenue in Q1 2022 was $7,354,028, an increase of $5,074,186 or 223% (222% on a constant currency basis) compared to Q1 2021. Apps segment revenue includes the results of Stamped, which contributed revenues of $5,139,325 in Q1 2022 (Q1 2021: $nil). Foursixty contributed revenues of $1,216,429, an increase of $119,018 or 11% (11% on a constant currency basis) compared to Q1 2021.
- Themes segment revenue in Q1 2022 was $3,745,630, an increase of $1,574,082 or 72% (72% on a constant currency basis) compared to Q1 2021. Archetype contributed revenues of $2,187,557 in Q1 2022 (Q1 2021: $nil).
- Agency segment revenue in Q1 2022 was $994,101, a decrease of $593,729 or 37% (37% on a constant currency basis) compared to Q1 2021.
- Net income was $790,114 in Q1 2022 compared to net loss of $1,757,976 in Q1 2021. The net income for Q1 2022 includes fair value adjustments amounting to $2,147,090 which relate to the fair value revaluation of the contingent consideration related to the Stamped and Archetype acquisitions. The net loss for Q1 2021 includes finance fees of $1,045,356 in connection with the early repayment of long-term debt on March 31, 2021, as well as the accelerated amortization of $127,500 of deferred finance fees on the previous facility.
- Unrestricted cash on hand at March 31, 2022 was $26,210,310 compared to $26,122,247 on December 31, 2021. Total debt outstanding at March 31, 2022 was $58,968,158 compared to $60,203,418 on December 31, 2021.
- Adjusted EBITDA for Q1 2022 amounted to $2,831,783 or 23% of revenue, compared to $2,000,974 or 33% of revenue in Q1 2021.
“In the first quarter, we continued to drive healthy year-over-year growth in Apps and Themes and bolstered our leadership in our Agency business to reinvigorate growth in that segment. Our core portfolio companies, including Stamped, Archetype, and Foursixty, continue to perform well, providing stability in an otherwise turbulent ecommerce market. We continue to generate significant cash flow, with over 30% operating cash flow margins once again this quarter. With our favorable liquidity position, supported by more than $26 million in cash on hand, we will continue to be opportunistic in evaluating a highly compelling M&A landscape while reinvesting in the growth and success of our existing portfolio in the meantime.”
WeCommerce management will host a conference call and webcast today, May 26, 2022, at 2:00 pm PT (5:00 pm ET) to discuss its financial results. Company CEO Alex Persson and CFO David Charron will host the call, followed by a question-and-answer period.
Live Call: https://conferencingportals.com/event/DWkvUNLo
Live Webcast: https://events.q4inc.com/attendee/910596798
An archived webcast of the conference call will be accessible on WeCommerce’s Investor Relations page at http://investors.wecommerce.co.
WeCommerce’s consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) for Q1 2022 are available on the Company’s website at https://www.wecommerce.co or on SEDAR at www.sedar.com.