Revenue grows 48% Y/Y, Adjusted EBITDA Improves 53% Y/Y, and Positive Cash Inflow from Operations

CUPERTINO, Calif., Aug. 18, 2022 /PRNewswire/ - (TSXV: BWLK) (OTCQB: BWLKF) – Boardwalktech Software Corp. ("Boardwalktech" or the "Company"), a leading digital ledger platform and enterprise software solutions company, is pleased to report its financial results for the three-month period ended June 30, 2022. All figures are reported in U.S. dollars, unless otherwise indicated. Boardwalktech's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

• Revenue for Q1-FY23 was $1.51 million, a 48% increase from $1.02 million in Q1-FY22, and a 26% sequential increase from $1.20 million in Q4-FY22. Revenue from recurring SaaS licenses in Q1 Fiscal 2023 increased 89% year-over-year from higher incremental licenses executed with both new and existing customers.
• Annual recurring revenue ("ARR"), at June 30, 2022 was $5.1 million, a 56% year-over-year increase versus ARR of $3.2 million at June 30, 2021. ARR is a non-IFRS measure, and the Company defines ARR as the recurring revenue expected based on annual license subscriptions and recurring services.
• Since the Company implemented its SaaS business model in 2018, total revenue from new contracts signed since 2018 comprised approximately 86% of total revenue in Q1-FY23, compared to 71% in the prior year, expanding at a 45% compound annual growth rate ("CAGR").
• Gross margin for Q1-FY23 was 90.2%, a 3.4%-point increase from the previous year's level of 86.8%, and a 2.6% point increase from Q4-FY22 gross margin of 87.9%.
• Adjusted EBITDA for Q1-F23 was a loss of $(0.26) million, a 53% improvement from the $(0.54) million loss in Q1 -FY22, and 44% sequential improvement from the $(0.45) million loss in Q4-FY22. Cash inflow from Operations was a positive $0.9 million, with a cash balance of $1.7 million as of June 30, 2022.
• Non-IFRS loss for Q1-FY23 (as defined in the Non-IFRS Financial Measures section) was a loss of $(0.27) million, or $(0.01) per basic and diluted share, a 52% improvement versus a $(0.56) million non-IFRS loss in Q1-FY22, or $(0.01) per basic and diluted share, and a 45% improvement versus $(0.49) million non-IFRS loss in Q4-FY22, or $(0.01) per basic and diluted share; as revenue growth outpaced selective opex spending.
• Net loss for Q1-FY23 was $(0.8) million, or a loss of $(0.02) per basic and diluted share, versus a $(0.7) million loss in Q1-FY22, or $(0.2) per basic and diluted share, and a $(1.1) million loss in Q4-FY22, or $(0.03) per basic and diluted share, a 23% sequential improvement.

• The Company is tracking at the high end of its previously announced revenue guidance of $6.5 million to $7.0 million for FY 2023 (60% year-over-year growth at top of range).
• The Company still believes it has sufficient funds and current receivables that it neither needs to, nor plans to raise additional equity to achieve its guidance.

• On June 30, 2022, the Company executed another expansion of its license and services contract, first started in 2018, with an existing customer (one of the world's top accounting and consulting firms), increasing the annual recurring revenue by an additional $500,000.
• On June 2, 2022, the Company announced results of its Annual and Special Meeting, where shareholders elected all proposed Directors, appointed MNP LLP as auditors of the Company and approved an amendment to the Equity Incentive Plan.
• On April 25, 2022, the Company announced it had signed its second banking client via a new license contract with a major India bank, with initial revenue beginning at the end of Q4-FY22.

"Momentum exiting Fiscal Year 2022 continued into the first quarter of this year, as the Company saw an increase of recurring revenue licenses both from new and existing customers, further demonstrating our 'land and expand' strategy. Our ARR is in excess of $5 million and continues to grow each month." Chief Executive Officer Andrew T. Duncan commented, "With our sequential and year-over-year growth in revenue, improvement in EBITDA, and positive cash flow from operations, we believe our reported results reflect that ongoing progress. Our June outlook was the Company's first guidance, but it did not include the conversion of deals in our pipeline, so any such success should be incremental to that guidance. In addition to this organic growth, following the success of the addition of two global banking institutions, we are experiencing good traction in this new business channel – both with new partners and end customers - and we expect to close new deals with other enterprises in the months ahead. The Boardwalktech low code digital ledger platform continues to gain traction with these enterprises as it seamlessly solves the many problems associated with structured and unstructured data delivering improved visibility and decision making along with outstanding results and ROI."

As part of the Company's annual ongoing retention program and as allowed under the 2019 Equity Incentive Plan, as amended and approved by shareholders on June 2, 2022, the Company has granted an aggregate of 1,994,000 Restricted Stock Units ("RSU's") to officers, directors and employees of the Company. 50,000 of the RSUs vest over a two-year period, and 1,944,000 of the RSUs vest over a three year period. These grants will be deemed effective as of August 31, 2022.

Boardwalktech has developed a patented Digital Ledger Technology Platform currently used by Fortune 500 companies running mission-critical applications worldwide. Boardwalktech's digital ledger technology and its unique method of managing vast amounts of structured and unstructured data is the only platform on the market today where multiple parties can effectively work on the same data simultaneously while preserving the fidelity and provenance of the data. Boardwalktech can deliver collaborative, purpose-built enterprise information management applications on any device or user interface with full integration with enterprise systems of record in a fraction of the time it takes other non-digital ledger technology-based platforms. Boardwalktech is headquartered in Cupertino, California with offices in India and operations in North America. For more information on Boardwalktech, visit our website at www.boardwalktech.com.

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 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 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".

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 including, without limitation, the risks discussed under the heading "Risk Factors" in the Company's filing statement dated May 30, 2018. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE BoardwalkTech