Renoworks Announces Profitable Third Quarter 2023 Financial Results and Provides Outlook

CALGARY, AB , Nov. 28, 2023 /CNW/ - Renoworks Software Inc. (TSXV: RW) ("Renoworks" or the "Company), an industry leader in visualization and lead generation technology for the home renovation and new construction sector, announces its financial results for the third quarter ended September 30, 2023 ("Q3 2023"). The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights year to date 2023 with comparatives for 2022 are as follows:

• Year to date revenues of $4,789,569, a slight increase from the prior year's $4,740,321.
• Deferred Revenue of $1,489,509 for the nine months ended September 30, 2023 compared to $1,413,786 at December 31, 2022.
• Gross margin of 72% versus 64% in 2022.
• Net loss of $284,664 compared to a net loss of $615,185 in 2022, as key investments were made into growth areas such as AI Gen 2, Renoworks Pro solution for contractors and the integration of new features sets, which all should lead to growth in 2024.
• Cash at September 30, 2023 was $316,850, down $387,230 from $704,080 at the end of fiscal 2022. Subsequent to the quarter end, a significant amount of accounts receivable were collected and cash as at October 31, 2023 increased to $896,625.
• Recurring revenue of $1,632,485 versus $1,396,519 for the same period in 2022, a 17% increase.
• As at September 30, 2023, the Company had 40,664,635 common shares issued and outstanding.

Financial highlights for the third quarter of fiscal 2023 with comparatives for 2022 are as follows:

• Quarterly revenue of $1,716,307 for the three months ended September 30, 2023 versus $1,653,445 in 2022.
• Gross margins continue to be strong at 71% and 63%, respectively for the third quarters of 2023 and 2022.
• Net income of $68,174 for the quarter ended September 30, 2023 compared to a net loss of $225,110 in 2022.
• Recurring revenue of $559,660 versus $476,915 for the same period in 2022, a 17% increase.

Renoworks revenue in the third quarter totaled $1,716,307 an increase of $62,862 compared to the corresponding period in 2022. The Company remains resolute in its pursuit of sustained growth as evident in its net profit of $68,174 compared to a net loss of $225,110 for the same period in 2022.

The Company's continues to focus on expanding the adoption of the Renoworks Pro contractor solution.  For the remaining part of 2023 and into 2024 the Company's two primary go-to market strategies for Renoworks Pro will focus on adding additional strategic partners to resell or co-market the solution and bundling the pro solution with our existing enterprise offering to Building Product Manufacturers.

Doug Vickerson, CEO of Renoworks, commented on the Company's third-quarter performance, stating: "Our continued focus on enhancing our platform with AI technologies and fostering strong strategic partnerships for technological innovation, value delivery and Renoworks Pro adoption is yielding promising outcomes. As the industry evolves, Renoworks remains committed to delivering cutting-edge solutions that empower our customers, driving their success while building upon our wins in 2023."

Renoworks' Adjusted EBITDA for the three-months ended September 30, 2023, reached a positive $92,382, indicating a noteworthy increase of $245,595 compared to a negative Adjusted EBITDA of $$153,213for the corresponding period in 2022. This positive trajectory underscores the Company's ongoing efforts to optimize platform and operational efficiency and performance.

Financial results from operations year to date with comparatives for 2022 are as follows:

Financial results from operations for the third quarter 2023 with comparatives for 2022 are as follows:

The Company's financial position as of September 30, 2023 and December 31, 2022 is as follows:

Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review their product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API (Application Programming Interface). For more information, visit www.renoworks.com and www.renoworkspro.com.

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR (www.sedar.com).

Certain statements in this news release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.