ProntoForms' momentum continues in Q1 as software firm's revenues grow 9%

Tablet stock image

Coming off a fiscal 2021 that saw it post double-digit revenue growth, ProntoForms continued to gain momentum in the first quarter of 2022.

The Ottawa-based software firm reported total revenues of $5.04 million for the three-month period ending March 31, up nine per cent from $4.61 million a year earlier.

ProntoForms, which generates most of its income from monthly subscription fees for its platform, said its recurring revenues grew 14 per cent in the first quarter to $4.89 million from $4.31 million in the same period in 2021.

The company posted a net loss of $1.54 million, an increase from $1.1 million a year earlier. The company attributed the growing losses to increased spending on sales and marketing as part of its go-to-market strategy as well as a rise in stock-based compensation.

ProntoForms' platform helps customers develop custom mobile apps that allow field workers in industries such as oil and gas and heavy manufacturing complete complex tasks safely and more efficiently.

CEO Alvaro Pombo noted that while the company’s base of annual recurring revenue dipped slightly from a year earlier due to the end of a year-long project and lower bookings in the first quarter, ProntoForms has since expanded its deal with an unnamed enterprise customer, boosting its annual recurring revenue totals by more than $180,000.

The company says it expects its go-to-market strategy – which includes partnerships with resellers in North America, South America and Western Europe – will fuel ongoing growth as demand for big-data analytics spikes and more customers turn to mobile technology such as tablets and smartphones to manage their workflows.

“We’re scaling conversations with our customers on how our platform can help them address pressing business challenges, like inflation and the labour market,” Pombo said in a statement, adding the company is “uncovering more enterprise expansion opportunities.”

The company’s shares were down one cent to 53 cents in late-afternoon trading Thursday on the TSX Venture Exchange. 

Mirroring an overall decline in the tech sector, ProntoForm’s stock has shed nearly 50 per cent of its value over the past six months.