CALGARY, AB / ACCESSWIRE / April 26, 2023 / Ivrnet Inc. (TSXV:IVI) ("Ivrnet" or the "Company") announces that it has filed its audited consolidated financial statements for the years ended December 31, 2022 and 2021 (the "Financial Statements") and the accompanying management's discussion and analysis for the year ended December 31, 2022 (the "MD&A").
The following 2022 financial highlights should be read in conjunction with the Financial Statements and the accompanying MD&A, which can be found on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
2022 Financial Highlights:
- Fixed recurring revenue from Central decreased by $37,868 (approximately 20%) to $152,945 in 2022 as compared to $190,813 in 2021. The decrease was due to the loss of a customer together with a new pricing strategy, implemented in Q1 2022, for homeowner association customers which increased overall central revenue by reducing fixed fees while increasing variable fees. Variable recurring revenue from Central increased by $82,512 (approximately 37%) to $303,396 in 2022 as compared to $220,884 in 2021. This increase is due to the change in pricing strategy of homeowner associations described above together with an increase in sports registrations in 2022 due to the end of COVID-19 restrictions. One-time revenue from Central was not significant during 2022 and 2021.
- Fixed recurring revenue from communications services decreased by $66,888 (approximately 5%) to $1,288,240 in 2022 as compared to $1,355,128 in 2021. The decrease in fixed recurring revenues is primarily due to reduced fees from existing customers. Variable recurring revenue from communications services decreased by $70,450 (approximately 13%) to $491,384 in 2022 as compared to $561,834 in 2021. Due to the increased use of video conferencing products, accelerated by the COVID-19 pandemic, the Corporation has seen a drop in customers in 2022 using its audio conference solutions. One-time revenue from communications services decreased by $12,303 (or approximately 29%) to $29,892 in 2022 as compared to $42,195 in 2021. This was due to fewer setup fees and other one-time projects in 2022.
- Fixed recurring revenue from financial technology services increased by $23,638 (approximately 7%) to $349,365 in 2022 as compared to $325,727 in 2021. The increase was due to the addition of a new customer after the first quarter in 2021 and was partially offset by the loss of one financial technology customer during 2022. Variable recurring revenue from financial technology services increased by $38,406 (approximately 16%) to $274,255 in 2022 as compared to $235,849 in 2021. The increase in variable recurring revenues is related primarily to increased usage of the Corporation's products by existing customers in 2022 and is partially offset by the loss of one financial technology customer during 2022. One-time revenue from financial technology services was $13,100 in 2022 as compared to $66,294 in 2021. This was a decrease of $53,194 (approximately 80%). This was due to fewer initial customer setup fees in 2022.
- Total direct costs increased by $77,367 to $1,007,043 or approximately 34% of revenues in 2022 compared to $929,676 or approximately 30% of revenues in 2021. This overall increase is due to an increase in certain variable communication costs tied to certain fixed recurring customer contracts, an increase in costs for maintaining the Corporation's PCI compliance, the additional allocation of staff resources to the ongoing development and customer support of the Corporation's products and generally higher costs due to sustained inflation. The Corporation continues to work on streamlining its operations to control its direct costs and improve its gross margin.
- Earnings before Interest, Depreciation and Amortization ("EBITDA") in 2022 was a loss of $53,607 compared to a loss of $152,205 in 2021. This represents an increase in EDITDA of $98,598 (approximately 65%). The increase in EBIDTA is primarily a result of certain non-recurring and non-cash items in 2021, including $230,710 of share based compensation from common share purchase options granted to directors, employees and consultants, a $42,298 loss on the settlement of liabilities through the issuance of common shares, a $124,479 impairment loss on the right of use asset, and a $77,434 loss on the disposal of property and equipment, as the Corporation vacated its leased premise because the premise had been made untenable by the landlord; which was partially offset by a decrease in total aggregate revenue in 2022, as compared to 2021, of $125,910 (approximately 4%) as previously described, an increase in direct costs of $77,367 (approximately 8%) as previously described, and an increase in general, administrative and marketing expenses in 2022, as compared to 2021, of $178,690 (approximately 10%) primarily due to expenses incurred in connection with the reverse takeover transaction together with reimbursable expenses submitted by the commercial lender of approximately $495,000, including sales taxes.
About Ivrnet
Ivrnet is a software and communications company that develops, hosts, sells and supports value-added business automation software. The company's products and services are delivered through the Internet and traditional phone network. These applications facilitate automated interaction through personalized communication between people, mass communication for disseminating information to thousands of people concurrently, and personalized communication between people and automated systems.
For further information: please contact Andrew Watts, President and CEO, Ivrnet Inc.; 1700, 10175 - 101 Street NW, Edmonton, Alberta, T5J 0H3; Tel/fax 1.800.351.7227; E-mail: investors@ivrnet.com; www.ivrnet.com.
Neither the 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.
SOURCE: Ivrnet Inc.
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