Ottawa’s ProntoForms cuts losses as Q1 revenues inch up to $3.1M

Apple partnership will see 900 mobile platforms deployed to Otis Elevator Co.
Tablet
For illustrative purposes only.

First-quarter revenues at ProntoForms jumped eight per cent year-over-over, the Ottawa-based firm reported Thursday, thanks largely to a significant increase in recurring revenues.

ProntoForms (TSX-V: PFM) develops a platform used by field workers, such as safety inspectors, to collect and analyze data with smartphones and tablets. The firm reported total revenue of nearly $3.1 million for the first three months of 2017, up from about $2.9 million in the same period a year earlier.

The company said recurring revenues increased by 12 per cent year-over-year to more than $2.8 million. CEO Alvaro Pombo attributed much of that growth to the firm’s direct sales channel, in which revenues rose 41 per cent.

“We also have strong operating leverage with a 91 per cent gross margin on our recurring revenue, and our strategy is to maintain the rapid growth of our direct channel with additional resources, and increasing lead flow provided by strategic partners,” he said in a release.

The firm’s net loss also inched up slightly from $1.01 million in the fourth quarter of 2016 to $1.15 million in the first three months of this year. ProntoForms said the losses were the result of a “conscious approach to invest more in operational and sales productivity and product development.”

The company also touted a number of new sales and marketing agreements, including a partnership with Apple to supply 900 of its mobile platforms to the Otis Elevator Co. and a deal with field service software firm FieldAware to add ProntoForms advanced data collection systems to its products.