Recurring revenue on the rise for ProntoForms in 2015 Q1

Accolades, high-profile relationships and increased revenue were some highlights of the first quarter for Ottawa-based ProntoForms, CEO Alvaro Pombo said Thursday.

Mr. Pombo said international market research firm Frost & Sullivan has recognized mobile forms as a breakout category and ProntoForms as a leader, naming the company its Competitive Strategy, Innovation and Leadership Award winner in that division.

The first quarter also saw the mobile data solutions provider establish a relationship with Apple that will enhance the ProntoForm solution on Apple platforms and distribute it throughout Apple’s various channels, Mr. Pombo said.

First-quarter total revenue of $1.9 million was up 15 per cent from the previous quarter and 37 per cent from the first quarter of last year. Recurring revenue for the quarter was $1.6 million, up 17 per cent from last quarter and 51 per cent from the same period last year.

“Recurring revenue provides lasting value through significant and predictable revenue and cash flows for future periods,” Mr. Pombo said in a statement. “Our operational focus and additional investments have delivered an upward trend in our growth rate over the last two quarters.”

Loss from operations for the quarter was $724,892, up from $672,185 in the previous quarter and $124,056 for the three months ending March 31, 2014. The company said this was due to a “conscious approach” to spend more on operational and sales productivity as well as an increase in share-based compensation.

As of March 31, ProntoForms (TSX VENTURE: PFM) had cash and cash equivalents of $2,351,283 and net working capital of $2,473,643.