Showing resilience in the face of the COVID-19 pandemic, exactEarth has turned to profit with $11.2 million in revenue year-to-date, up 32% compared to the same period last year.
The company is bullish on its prospects for the rest of the year and has increased guidance for their Subscription Services. The company now says Subscription Services revenue growth in 2021 is expected to be 21-26% from their previous target of 15-20% growth.
“We continued to execute on our growth plan in Q2, which led to significant increases in revenue and Adjusted EBITDA and to high levels of recurring revenue and customer retention,” said Peter Mabson, CEO at exactEarth. “In addition, strong New Order Bookings led to an increase in Order Backlog at quarter-end giving us good visibility on revenue for the second half of the year. As a result of our solid performance in the first half of the year and our positive outlook for the remainder of 2021, we are pleased to increase our guidance for Subscription Services revenue growth in 2021 to 21-26% from our previous target of 15-20% growth. Our strong year over year Adjusted EBITDA growth is a reflection of the high contribution margin we derive from revenue growth in this data services business.”
Mr. Mabson continued: “Going forward, we remain focused on expanding our customer base and increasing the level of services provided to those customers. We believe we have the world’s largest database of vessel movements with more than 40 billion data records spanning over ten years, and, together with our partners, we are only beginning to scratch the surface on using analytics and artificial intelligence to derive additional value from this dataset. To achieve our goals, we are investing this year in both our direct salesforce as well as our channel partner relationships and we are also looking to expand our application partner base while increasing our own internal analytics capabilities.”
Sean Maybee, CFO at exactEarth added: “We strengthened our balance sheet and improved our financial flexibility in Q2 with the redemption of our convertible debentures and the addition of a new $6.0 million credit facility with National Bank. With these achievements in place, we are well positioned to maintain our momentum, invest in the business and explore new growth opportunities.”
The company which went through turbulent times in 2017 and 2018, and had considered a sale or merger, had seen its stock price reach a low of $0.20 in December of 2018. However, In the last year the share price has steadily climbed to $1.40 in conjunction with steady increases in revenue and a more favourable outlook.
exactEarth Q2 and Year-to-Date Fiscal 2021 Highlights:
- Revenue was $5.9 million, up 33% compared to $4.4 million in Q2 2020; revenue Year-to-Date (“YTD”) was $11.2 million, up 32% compared to $8.5 million in the same period last year.
- Subscription Services1 revenue was $5.2 million, up 34% compared to Q2 2020; subscription Services revenue YTD was $10.1 million, up 30% compared to $7.7 million in the same period last year.
- New Order Bookings were $6.5 million compared to $3.5 million in Q2 2020; New Order Bookings YTD were $10.8 million compared to $10.6 million in the same period last year.
- Order Bookings backlog at the end of Q2 2021 was $27.1 million compared to $24.9 million at the end of Q2 2020.
- Adjusted EBITDA2 was a gain of $840 thousand compared to a loss of ($548) thousand in Q2 2020; Adjusted EBITDA YTD was a gain of $1.7 million compared to a loss of ($299) thousand in the same period last year.
- Cash used in operations was ($1.1) million compared to cash used in operations of ($1.3) million in Q2 2020; Cash used in operations YTD was ($325) thousand compared to cash used in operations of ($3.2) million in the same period last year.
- Cash, cash equivalents and short-term investments were $6.7 million at the end of Q2 2021 compared to $7.5 million at the end of Fiscal 2020.
- Completed the redemption of the convertible unsecured subordinated debentures due 2023.
- Announced participation in MDA’s Dark Vessel Detection program, which is supporting the Canadian Government’s fight against illegal, unreported and unregulated (“IUU”) fishing.
- Launched exactAIS Platinum Plus to enhance vessel detection in ports and regions of high vessel density.
- Announced a $6.0 million Revolving Credit Facility from National Bank of Canada, which remains undrawn as of the date of this press release.
You can access the fullย Q2 fiscal quarter 2022 results here.