Overall revenue increased by nearly 100% from prior period of Q2-21, including an increase of over 450% in professional services revenue
VANCOUVER, BC, Aug. 25, 2022 /CNW/ – HS GovTech Solutions Inc. (the “Company” or “HS GovTech”) (CSE: HS) (OTC: HDSLF) (Frankfurt: 38H) a leading provider of SaaS applications for government, announced its financial results for the three and six months ended June 30, 2022. All financial figures contained herein are expressed in U.S. dollars (“USD”) unless otherwise noted.
Q2 2022 Highlights (all comparisons are to Q2 of 2021, unless otherwise noted)
- Total revenues increased in Q2-22 to $1.83 million, compared to $0.96 million, an increase of 92%.
- Subscription revenues increased to $1.08 million, compared to $0.82.
- Professional Services revenues increased to $0.75 million, compared to $0.13 million.
- Gross Profit of $1.49 million, compared to $0.58 million, an increase of 156%.
- Annual Recurring Revenue (“ARR”) under contract increased to $4.82 million at June 30, 2022, compared to $4.16 million at December 31, 2021.
Chief Executive Officer, Silas Garrison, discussed the financial results.
“The story of Q2-22 is a continuation of momentum built in FY21 and Q1-22. As discussed previously, FY21 revenue was the highest on record for the company and that trend continues through Q2-22. Of note, revenue growth was delivered while holding the line on Data Hosting and Customer Support costs, as we began to realize the benefit of increased productivity and continued maturation of our platform and processes.
As announced on July 12, 2022, Q2-22 was also the strongest quarter on record as it relates to Sales Performance with $6 million in total contract value signed or awarded. We have continued to see a sustained cadence of in person conferences where we can effectively interact with our customer market. This in person interaction, coupled with each successful implementation, strengthens demand. We expect that ongoing sales activity will let us take advantage of the scaling and efficiency improvements made through FY21 and the first half of FY22.
I am immensely proud of our team at HS GovTech and am pleased that we continue to see the benefits of the hard work we all share. Each improvement, both small and large, to both our platform and processes has transformative effects for our customers which, ultimately, translates into more customers joining the fold; each with increasingly improved margins.”Non-IFRS Measures
ARR is a non-IFRS measure that provides an indication of the subscription revenue from customers that is expected from continued usage per the term of contract signed, and as such management believes ARR to be a meaningful measure for assessment of Company performance. Key assumptions related to ARR figures are from continued usage of the services over the life of the agreement, with the calculation based on the annual average of subscription revenues over the life of the agreement.
EBITDA is a non-IFRS measure that is used as a measure of profit and loss. Management believes EBITDA provides a meaningful measure for assessment of Company performance as it removes non-cash and non-operating expenses such as financing costs. EBITDA is defined and calculated as net loss adjusted to remove interest, taxes, depreciation and amortization.HS GovTech Solutions Inc.
HS GovTech™ is an industry leading software as a service company serving the state, provincial and local government market across the United States and Canada. HS GovTech’s™ cutting edge platforms currently provide inspection, information, communication and data management systems that enable government agencies to operate more efficiently. HS GovTech’s™ cloud and mobile based platforms are currently deployed in over 800 state and local government organizations across North America. HS GovTech™ currently offers the only fully integrated inspection, administration and analytics product suite across all platforms in North America. HS GovTech™ also delivers its government grade technologies to private businesses through its My Health Department™ platform, enabling citizens and private businesses to gain visibility and predictability into their own organizations and move from a reactive to a proactive operational status. As HS GovTech™ continues to deliver focused service and innovative solutions to government organizations, the Company entered the FinTech space through its HSPay™ offering which serves as a payment platform that streamlines the intake of government revenue. Further, HS GovTech’s GovCall™ platform offers one of the only teleconferencing and video collaboration platforms tailored exclusively for government agencies.Forward-Looking Statements
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although HS GovTech™ believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. HS GovTech™ expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE HS GovTech Solutions Inc.
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