Q1 2024 Revenue up 32% from Q1 2023; Cash up 65% to $8 MM from December 31, 2023
EDMONTON, AB / ACCESSWIRE / May 23, 2024 / OneSoft Solutions Inc. (the "Company" or "OneSoft") (TSXV:OSS)(OTCQB:OSSIF), a North American developer of cloud-based business solutions, announces its financial results for the three months ended March 31, 2024 ("Q1 2024").
Please refer to the Unaudited Condensed Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three-month period ended March 31, 2024, filed on SEDAR+ at www.sedarplus.ca for more information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars.
FINANCIAL RESULTS
FINANCIAL HIGHLIGHTS
BUSINESS UPDATE
The Company continued to develop new functionality modules that integrate with the CIM platform, including External Corrosion Management ("ECM"), Crack Management ("CM"), Probabilistic Risk Management ("RM") and Geohazard Strain Management ("GS"). A product manager for RM was recruited in the quarter and whose employment commenced April 1, 2024. Management believes this addition to staff will accelerate the pace of development of RM. The Company announced commercial availability of its first version of a new Crack Management ("CM") module, wherein input from initial users will be used to iterate deeper functionality into subsequent versions of CM.
Several customers continued to expand their use of CIM by ingesting additional miles and adopting the new functionality offered to them, including the Internal Corrosion ("IC") module that generated new subscription revenue and associated service revenue in the quarter.
Management is optimistic that these modules, after they are completed and fully commercialized, will be embraced by current and future customers. This is based on expressions of interest from customers and input from the formalized steering committee initiated at the October 2023 user group event that is comprised of senior industry personnel whose roles include direct integrity management functions and control of the associated budgets.
The Company encountered several administrative delays by prospective customers which delayed the signing of new CIM contracts in Q1 2024, and which Management believes will occur in Fiscal 2024.
The Company attended the Pipeline Pigging and Integrity Management tradeshow and exhibition event in Houston, TX ("PPIM") in Q1 and prepared to attend the Pipeline Technology Conference in Berlin, Germany in April 2024, concurrent with establishing a sales office in England to target potential customers in the European, Middle East and African Regions ("EMEA"). Company personnel presented white paper research at both events, which garnered interest in our solutions from new prospective customers.
The Company's client services team engaged in numerous customer projects involving integrity management and compliance, geographic information system ("GIS") integrations, loading of ILI assessments into CIM, migrating data from legacy systems into CIM, integrating with various customer software applications and CIM training. This work resulted in services revenue increasing over Q1 2023.
The Company's employee roster increased by 8 new hires since Q1 2023 and employee retention remains high.
CORPORATE UPDATE
Management attended the CEM AlphaNorth Capital Event investor conference in Nassau, Bahamas in January 2024 and hosted numerous one-on-one meetings with current and prospective shareholders of OneSoft during the quarter.
Management and Directors continued to seek and consider business development with potential reseller partners to generate organic revenue growth and M&A strategies that could foster inorganic revenue growth. In Q1 2024, the Company incurred approximately $344,000 in expenses obtaining legal, accounting and taxation advice on several M&A transaction scenarios. While no new opportunities have concluded to date, management believes these initiatives will be beneficial in the future. Developments in this regard will be disclosed as appropriate.
FISCAL 2024 GUIDANCE
The following table reflects the Fiscal 2024 financial guidance published on February 20, 2024 and actual results for Q1. Fiscal 2024 guidance is not being changed at this time.
Notes regarding 2024 Guidance:
OUTLOOK
Fiscal 2023 was a pivotal year for OneSoft, with the Company achieving its key objectives of: (a) exceeding $10 million revenue; (b) achieving near zero adjusted EBITDA for the year; and (c) gaining more traction to become the next generation data management and analytics platform for the O&G pipeline industry. Management believes the Company has securely crossed the new technology adoption chasm wherein its technology and solutions have been strongly validated by industry innovators and visionary early adopters. The Company's 2024 objectives include completing the new functionality modules currently under development, integrating them into the CIM platform and advancing its role as the sole SaaS vendor to fulfill customers' functionality requirements regarding data management and analytics. Q4 Fiscal 2023 customer acquisitions and prospective customer interest confirms that the Company has successfully progressed to attract more pragmatic customers, who are conservative in their adoption of new technology and represent the majority of marketplace opportunities that the Company is pursuing.
The Company's sales pipeline continues to strengthen, irrespective that closing of sales for certain prospective customers has encountered delays. Management is optimistic that these expected customer additions are only delayed rather than lost and that OneSoft is well positioned to capitalize on its first mover technology advantage to deliver enhanced benefits to customers and increase value for shareholders.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
Q1 2024 EARNINGS WEBCAST / CONFERENCE CALL
OneSoft's CEO Dwayne Kushniruk and CFO Paul Johnston will host a live webcast on Friday, May 24, 2024 at 11:00 am ET to review the results, provide Company updates, and answer investor questions following the presentation. Webcast / Conference call details are as follows:
DATE: Friday, May 24, 2024
TIME: 11:00am ET (8:00am PT)
WEBCAST: Webcast Link
OPTIONAL PARTICIPANT TELEPHONE NUMBERS:
Callers should dial in 5 - 10 min prior to the scheduled start time and simply ask to join the OneSoft Solutions call.
REPLAY: Available at: https://www.onesoft.ca/
ANNUAL GENERAL AND SPECIAL MEETING OF THE SHAREHOLDERS MAY 28, 2024
The Annual General and Special Meeting of the Shareholders will be held May 28, 2024 at 1:00 pm Mountain time and may be attended by clicking this link https://agm.issuerdirect.com/oss or by telephone access at 1-888-506-0062 or 1-973-528-0011 using access code 808507. After the formal portion of the Meeting, Management will answer shareholder questions.
ABOUT ONESOFT AND ONEBRIDGE
OneSoft has developed software technology and products that have capability to transition legacy, on-premises licensed software applications to operate on the Microsoft Azure Cloud Platform. Our business strategy is to seek opportunities to incorporate Data Science and Machine Learning, business intelligence and predictive analytics to create cost-efficient, subscription-based software-as-a-service solutions. Visit www.onesoft.ca for more information.
OneSoft's wholly owned OneBridge subsidiaries develop and market revolutionary new SaaS solutions that use advanced Data Sciences and Machine Learning to analyze big data using predictive analytics to assist Oil & Gas pipeline operators to predict pipeline failures and thereby save lives, protect the environment, reduce operational costs, and address regulatory compliance requirements. Visit www.onebridgesolutions.com for more information.
For more information, please contact.
OneSoft Solutions Inc.
Dwayne Kushniruk, CEO
dkushniruk@onesoft.ca
587-416-6787
Sean Peasgood, Investor Relations
Sean@SophicCapital.com
647-494-7710
Forward-looking Statements
This news release contains forward-looking statements relating to the future operations and profitability of OneSoft Solutions Inc. (the "Company") and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects", "believe", "will", "intends", "plans" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking information is provided to deliver information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.
In respect of the forward-looking information and statements the Company has placed reliance on certain assumptions that it believes are reasonable at this time, including expectations and assumptions concerning, among other things: the impact of Covid-19 on the business operations of the Company and its current and prospective customers; the availability and cost of labor and services; the efficacy of its software; our interpretation based on various industry information sources regarding the total miles of pipeline in the USA and globally and which segments are piggable; our understanding of metrics, activities and costs regarding evaluation, inspection and maintenance is in alignment with various industry information sources and is reasonably accurate; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; that there are no unforeseen material development or other costs related to current growth projects or current operations; the success of growth projects; future operating costs; interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; the sufficiency of budgeted capital expenditures in carrying out planned activities; and no changes in applicable tax laws. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to many factors and risks. These include but are not limited to the risks associated with the industries in which the Company operates in general such as: costs and expenses; interest rate and exchange rate fluctuations; competition; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws.
Readers are cautioned that the foregoing list of factors is not exhaustive. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether because of new information, future events or otherwise, except as expressly required by Canadian securities law.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act or other laws.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: OneSoft Solutions Inc.
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