Ecommerce

WeCommerce Reports Third Quarter 2022 Results

WeCommerce

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- and nine-months ended September 30, 2022 (“Q3 2022” and “YTD Q3 2022”, respectively). Currency amounts are expressed in Canadian dollars unless otherwise noted.

Q3 2022 Financial Results

For the three-months ended
September 30,

For the nine-months

ended September 30,

2022

2021

2022

2021

Revenue

Recurring subscription revenue

7,915,065

6,825,881

22,788,844

15,037,414

Digital goods revenue

2,810,725

2,888,589

9,788,905

7,023,420

Agency service revenue

731,882

1,228,814

2,593,830

4,271,487

11,457,672

10,943,284

35,171,579

26,332,321

Operating loss

(2,352,624)

(338,501)

(6,876,567)

(1,151,942)

Net loss

(6,462,813)

(2,986,971)

(10,202,180)

(4,968,950)

EBITDA (1)

(2,450,982)

843,687

1,272,567

4,354,452

EBITDA % (1)

(21%)

8%

4%

17%

Adjusted EBITDA (1)

1,905,344

3,394,242

6,220,583

8,095,297

Adjusted EBITDA % (1)

17%

31%

18%

31%

Cash provided by operating activities

2,381,730

2,668,878

7,277,189

4,349,893

Notes:

  • Revenue in Q3 2022 was $11,457,672, an increase of 5% (1% on a constant currency basis(1)) compared to Q3 2021.
  • Net loss was $6,462,813 in Q3 2022 compared to net loss of $2,986,971 in Q3 2021. The net loss for Q3 2022 includes a foreign exchange loss of $3,173,110; whereas in Q3 2021 includes a foreign exchange loss of $1,593,524.
  • Adjusted EBITDA for Q3 2022 amounted to $1,905,344 or 17% of revenue, compared to $3,394,242 or 31% of revenue in Q3 2021.
  • Unrestricted cash on hand at September 30, 2022 was $10,504,657 compared to $26,122,247 on December 31, 2021. Total debt outstanding at September 30, 2022 was $50,581,141 compared to $60,203,418 on December 31, 2021.

“I want to thank our employees and partners for their hard work during the third quarter,” said Alex Persson, CEO. “In our Apps segment, we continue to drive profitable growth and track well against our product roadmap for several innovative new launches early next year. However, we have work to do to ensure strong organic growth in all of our segments. Our Themes segment continues to generate significant operating profit despite lower new merchant adds compared to prior years, and our Agency segment continues to build its sales pipeline, which is seeing slower conversion than prior years due in part to economic uncertainty and seasonality. We believe our continued focus on cost optimization, following actions already taken at the end of the second quarter, will drive operating leverage going forward. We strongly believe in the opportunity for WeCommerce to be the leading provider of ecommerce enablement software and tools for the years to come.”

Q3 2022 Business Highlights
Apps segment revenue in Q3 2022 was $7,915,065, an increase of 16% (11% on a constant currency basis) compared to Q3 2021, with the following business highlights:

  • Stamped contributed revenues of $5,580,063, an increase of 22% (18% on a constant currency basis) compared to Q3 2021. During Q3 2022, Stamped launched an integration with Attentive, which is seeing significant adoption among larger merchants, as well as an integration with Meta to syndicate reviews to Facebook and Instagram Shops.
  • Foursixty contributed revenues of $1,220,055, an increase of 3% (0% on a constant currency basis) compared to Q3 2021.
  • KnoCommerce had a record quarter in number of survey responses with over 4.6 million questions answered, an increase of over 50% from the prior quarter.
  • Apps segment profit margin in Q3 2022 was $2,241,607, representing 28% of Apps segment revenue.

Themes segment revenue in Q3 2022 was $2,810,725, a decrease of 3% (6% on a constant currency basis) compared to Q3 2021, with the following business highlights:

  • Archetype contributed revenues of $1,696,665, an increase of 46% (40% on a constant currency basis) compared to Q3 2021. During Q3 2022, Archetype continued to release innovative new features driving performance, flexibility, and value for Shopify merchants. Its Impulse theme remains the most popular premium theme in the Shopify Theme Store.
  • Themes segment profit margin in Q3 2022 was $1,382,644, representing 49% of Themes segment revenue.

Agency segment revenue was $731,822, a decrease of 40% (41% on a constant currency basis) compared to Q3 2021.

Conference Call
WeCommerce management will host a conference call and webcast today, November 10, 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/300999004

An archived webcast of the conference call will be accessible on WeCommerce’s Investor Relations page at http://investors.wecommerce.co.

Financial Statements
WeCommerce’s consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) for Q3 2022 are available on the Company’s website at https://www.wecommerce.co or on SEDAR at www.sedar.com.

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