Xybion Digital Investors
Sixth quarter in a row of profitable growth with 38% increase in Cashflow over previous year.
VANCOUVER, B.C. and PRINCETON, N.J., February 15, 2022.,
– Revenue from SaaS s grew by 20% Q3 2022 versus Q3 2021
– ARR exceeded $9.3 million, UP 11.7% year-over-year.
– YTD total revenue grew by over 21.9%
– Adjusted EBITDA margin of 7.1%
VANCOUVER, B.C. and PRINCETON, N.J., xx, 2022 /CNW/ — Xybion Digital Inc. (XYBN:TSXV) (“Xybion” or the “Company”), a global, low-code SaaS company that enables digital transformation in highly regulated industries like Life Sciences, today reported Q3 F2022 financial results for its third quarter ended on December 31, 2021. Financial references are expressed in US dollars unless otherwise indicated. Please refer to the MD&A and Financial Statements posted onto SEDAR (www.sedar.com) for information relating to non-IFRS measures and risk factors.
“I am pleased to report another quarter of profitable growth” stated Pradip Banerjee, CEO of Xybion “We are excited about our SaaS revenue growth this quarter and for year-to-date for our fiscal 2022 showing similar growth momentum that we have managed to over the past two years.”
Summary of Consolidated Results Q3 & YTD Fiscal Year 2022
Financial Highlights for the Quarter:
Total revenue increased in Q3 2022 by 8.0% or $0.3 million to $4.0 million compared to $3.7 million in Q3 2021. The increase is mainly due to increases in SaaS and perpetual licenses.
Recurring software revenues (SaaS and maintenance) increased by 12.7% or $0.3 million to $2.3 million, compared to $2.0 million in Q3 2021.
Revenue from SaaS in Q3 2022 increased by 20.0% or $0.17 million to $1.03 million, compared to $0.86 million in Q3 2021.
Annual Recurring Revenue reached $9.3 million at December 31, 2021, an
increase of 11.7% compared to December 31, 2020.
Gross profit for Q3 2022 totaled $2.6 million, an increase of 5.5% or $0.1 million compared to $2.5 million in Q3 2021.
Adjusted EBITDA of $0.3 million in Q3 2022 compares to $0.5 million in Q3 2021; a decrease of 41.6%. The decline is due primarily to increased one-time expenses relating to the go-public process and a one-time bad-debt expense related to a single customer.
Net loss of $2.1 million or $2.61 per share (basic) for the three-month period ended December 31, 2021, compared to a net income of $0.3 million or $5.04 per share (basic) and $.006 per share (fully diluted) for the three month period ended December 31, 2020. The main reasons for the decrease were the expenses recognized for the merger, reverse takeover and private placement that occurred during Q3 2022, as well as the increased costs for professional fees and insurance costs associated with being a publicly listed company.
Q3 2022 Cash Flow from Operations was $0.7 million, an increase of 38.3% from $0.5 million reported in Q3 2021, overall cash increased by $3.3 million, to $7.9 million or 72.2% at December 31, 2021 as compared to December 31, 2020.
Financial Highlights Year-to-Date:
Total revenue for the nine-month period ended December 31, 2021 reached $12.2 million, an
increase of $2.2 million or 21.9% over the nine-month period ended December 31, 2020. The increase is mainly due to increases in subscriptions and perpetual licenses.
Recurring software revenues for the nine-month period ended December 31, 2021 increased by 23.2% or $1.3 million to $6.8 million, compared to $5.5 million in the nine-month period ended December 31, 2020.
Revenue from SaaS and Software Subscriptions for the nine-month period ended December 31,
2021 increased by 54.6% as compared to the nine-month period ended December 31, 2020.
For the nine-month period ended December 31, 2021 gross profit increased 28.9% to $8.11 million as compared to $6.29 million in the first nine months of the prior fiscal year.
For the nine-month period ended December 31, 2021, Adjusted EBITDA was $1.2 million, as compared to $.96 million for the nine-month period ended December 31, 2020; an increase of 25.5%.
The net loss for the nine-month periods ended December 31, 2021 was $1.5 million or $(4.83)/share basic compared to net income of $0.6 million or $9.62/share (basic) and .012/share (diluted) for the prior year period. The primary reasons for the decrease were expenses recognized for the merger, reverse takeover and private placement that occurred during Q3 2022, as well as the increased costs for professional fees and insurance costs associated with becoming a publicly listed company and the bad debt expense recorded in Q3 2022.
Completed a reverse acquisition and private placement; began trading on TSXV under ticker symbol XYBN
Largest single customer renewed for the next 12 months
Two new clients completed implementation and will add $194,500 in ARR
Subsequent to the close of the quarter, the Company filed a final short form base shelf prospectus with the securities commissions in each of the Provinces of British Columbia, Ontario and Alberta. The Base Shelf Prospectus filings allow Xybion to make offerings of Class A subordinate voting shares, warrants, units, subscription receipts or debt securities, or a combination thereof, up to an aggregate total of CDN$50 million during the 25-month period.
The Company will hold a conference call to discuss these results. Details are as follows:
Date: February 16, 2022
Time: 8:30am Eastern Time
Canada/USA TF: 1-800-319-4610
International Toll: +1-604-638-5340
A transcript of the call will be posted on the Company’s website at www.xybion.com within 72 hours of the call.
Non- IFRS Financial Measures
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS financial measures. EBITDA is defined as net income or loss before net finance expenses, depreciation and amortization expense and income tax expense. Adjusted EBITDA is defined as net income or loss before income taxes, net finance costs, depreciation and amortization, Paycheck Protection Payment (PPP) loan forgiveness, one-time Reverse Takeover (RTO) expenses and stock-based compensation, and Adjusted EBITDA Margin is defined as the percentage of Adjusted EBITDA to revenues. Since the Company capitalizes its operating leases as right of use assets, the amount of amortization related to these right of use (ROU) assets was not added back to earnings in determining Adjusted EBITDA. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful measures of financial performance because they provide an indication of the Company’s ability to seize growth opportunities in a cost-effective manner and finance its ongoing operations. Each of these non-IFRS financial measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. These measures are unlikely to be comparable to similar measures presented by other companies. Rather, non-IFRS measures are provided as additional information to complement financial statements by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
About Xybion Digital Inc.
Xybion is a global SaaS company that helps enterprise life sciences organizations accelerate new drug development into approved medicines that may save lives and keep employees safe. We digitize drug research and development, laboratory testing, regulatory approvals, and pharmaceutical manufacturing on a single, unified cloud platform that is cost-effective, ready to deploy, and easy to use. Xybion has over 160 clients in 29 countries using its low-code software to accelerate timelines, improve compliance, expand capacity, minimize operating risks, and reduce expenses while keeping employees safe.
Learn more about Xybion at https://www.xybion.com/
For further information: For more information regarding Xybion Digital Inc., please contact Pradip Banerjee, Chief Executive Officer, [email protected], 609-512-5790 x122
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Certain statements (“forward-looking statements”) in this news release may contain forward-looking information concerning relating to the release of financial results, plans related to the Company’s business and other matters that may occur in the future, made as of the date of this news release. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including with respect to the timing of such release. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. Such factors include, among others, the risks described in disclosure documents filed by the Company on SEDAR. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
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