Technologies Corp. (TSX-V: MCLD) (OTCQB: MCLDF) ('mCloud' or the 'Company'), a leading provider of asset management solutions combining IoT, cloud computing, and artificial intelligence ('AI'), today announced its financial results for the third quarter ended September 30, 2020 ('Q3 2020').
'Our third quarter results showcase mCloud's success in transitioning our acquired customers to recurring AssetCare subscriptions and expanding our footprint worldwide,' remarked Russ McMeekin, mCloud President and CEO. 'Through our recurring subscription business model, we have grown the value of our customer base as seen through the lenses of total contract value (TCV) and customer lifetime value (CLV).'
The Company saw C$3.6 million in AssetCare Over Time revenues in the third quarter of 2020, up 300% compared to the same period in 2019 and 33% quarter-over-quarter. These Over Time revenues denote the recurring revenues from mCloud's portfolio of 54,770 connected assets. AssetCare Initialization revenues attributable to newly connected assets in the quarter were C$1.6 million. In Q3 2020, mCloud added 3,423 connected assets to its AssetCare portfolio under management, a pickup in pace in quarterly connected growth compared to the 2,675 assets connected in the previous quarter. This was a result of the Company's continued focus on remotely connecting assets and adding new customers under the continued restrictions present in North America and abroad. Total revenues for Q3 2020 were C$6.1 million and up 22% quarter-over-quarter, compared to Q2 2020 revenues of C$5.0 million. Compared to Q3 2019 revenues of C$6.0 million, total revenues were similar - though Q3 2019 revenues included C$5.1 million in Engineering Services, derived from the Company's acquired technical project services business. In Q3 2020, Engineering Services comprised less than C$1.0 million of total revenues. As such, the continued growth in AssetCare Over Time revenues, along with the ongoing addition of newly connected assets as seen in AssetCare Initialization revenues, more than offset the decline in Engineering Services revenues resulting from pandemic access restrictions. As announced earlier this week, the Company recently achieved a sales milestone of over C$10 million in oil and gas TC driven by the delivery of AssetCare solutions to oil and gas customers.
About mCloud Technologies Corp.
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 Vancouver, Canada with offices in twelve locations worldwide, the mCloud family includes an ecosystem of operating subsidiaries that deliver high-performance IoT, AI, 3D, and mobile capabilities to customers, all integrated into AssetCare. With over 100 blue-chip customers and more than 54,000 assets connected in thousands of locations worldwide, mCloud is changing the way energy assets are managed.
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 U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or may contain statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'will continue', 'will occur' or 'will be achieved'. The forward-looking information contained herein may include information related to the initialization of connected assets in Q4 2020, contracts eligible as pull-forward capital, and the Company's prospects in 2021. 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 October 5, 2017. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. 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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