- Total revenues grew 383% to
C$11.6 million in the first six months of 2020 compared toC$2.4 million in the same period for 2019 - Q2 2020 total revenues increased 144% to
C$5.0 million compared toC$2.05 million in Q2 2019 - 2,675 new connected assets were added to reach a new high of 51,347 in Q2 2020, a year-over-year increase of 52%
- AssetCare™ over time revenues increased 440% to
C$2.7 million in Q2 2020 compared toC$0.5 million in Q2 2019, boosted by the higher monthly recurring revenues of oil and gas connected assets
"Our over 51,000 connected assets generated recurring revenue that buoyed results for the quarter, a clear message that our focus on adding new connected assets to our AssetCare platform is paying off," said
"Throughout July and early August, we have seen businesses cautiously return to work while we have incrementally added new connected assets," McMeekin continued. "As a result, we continue to have a line of sight to achieving our goal of connecting 70,000 assets by end of year."
"Deferrals in our technical project services business, a result of limited customer access, and back-end loading of new connections make it unlikely we will achieve our previously projected
"Until we are able to onboard and deliver to customers on a regular basis, it will be difficult to accurately forecast revenues, though we will be able to provide regular updates on the addition of new connected assets as our primary measure of growth," McMeekin concluded. "The new normal for most of our customers has revealed opportunities that are well suited to AssetCare and therefore we continue to be optimistic that our AssetCare platform will drive recurring revenue growth, achieve robust gross margins, generate sustainable positive cash flow for the business, and ultimately create value for all stakeholders."
Comparing 2020 vs 2019 Revenues
(All figures are in Canadian dollars) | ||||||||
Three Months Ended | Six Months Ended | |||||||
2020 | 2019 | 2020 | 2019 | |||||
AssetCare initialization | $ | 1,352,021 | $ | 1,499,656 | $ | 3,424,874 | $ | 1,610,630 |
AssetCare over time | 2,683,670 | 548,614 | 3,676,215 | 765,297 | ||||
Engineering services | 974,391 | -- | 4,467,197 | -- | ||||
Total | $ | 5,010,082 | $ | 2,048,270 | $ | 11,568,286 | $ | 2,375,927 |
Total revenues for Q2 2020 were
AssetCare over time revenues reached
In Q2 2020, revenues from newly initialized assets in the quarter were
Comparing 2020 vs 2019 Adjusted EBITDA
Note: Adjusted EBITDA is the net income or loss excluding certain expenses incurred for various M&A, acquisition integration financings, and other capital markets efforts. See "Non-GAAP Measure" below. |
(All figures are in Canadian dollars) | ||
1H 2020 | 1H 2019 | |
Revenue | 11,568,286 | 2,375,927 |
Cost of sales | 4,432,415 | 681,098 |
Gross profit | 7,135,871 | 1,694,829 |
Operating Expenses | 23,429,808 | 7,878,898 |
Net loss for the period | (17,230,663) | (5,188,570) |
Add: Current tax expense | (71,549) | 34,228 |
Less: Deferred income recovery | (959,044) | (1,376,370) |
Less: Other income | (980,231) | - |
Add: Depreciation and amortization | 3,181,154 | 995,597 |
Add: Share-based compensation | 689,640 | 545,351 |
Add: Finance costs | 2,833,288 | 170,371 |
Less: Finance income | (12,436) | (164,523) |
Add: Foreign exchange loss | (897,598) | 164,607 |
Add: Business acquisition costs and other expenses | 1,024,296 | 176,188 |
Add: Salaries, wages, and benefits | 4,449,154 | 1,216,985 |
Add: Professional and consulting fees | 3,672,471 | 1,691,831 |
Adjusted EBITDA | (4,301,518) | (1,734,305) |
On
On
As previously announced on
Also announced on
Q2 2020 Earnings Conference Call
The Company is hosting a conference call to discuss the financial results for the second quarter at
To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay by telephone until
A live audio webcast of the conference call will be available at https://bit.ly/2XfeHUg. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for one year.
About
mCloud is creating a more efficient future with the use of AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Through mCloud's AI-powered AssetCare™ platform, mCloud offers complete asset management solutions in five distinct segments: commercial buildings, renewable energy, healthcare, heavy industry, and connected workers. IoT sensors bring data from connected assets into the cloud, where AI and analytics are applied to maximize their performance.
Headquartered in
mCloud's common shares trade on the
Non-GAAP Measure
Selected financial information for the three-month period ended
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks as discussed under the heading "Risk Factors" on pages 29 to 46 of the Company's filing statement dated
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
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