Ottawa-based ProntoForms says it saw a big increase in recurring revenue over the past year, but the company’s losses were up as well.
ProntoForms, which sells a mobile data collection and analytics platform for businesses, reported revenue of $2,879,573 during the three-month period that ended on June 30. That’s a 34 per cent increase from the $2,149,367 in revenue it reported at the same time last year.
Recurring revenue, an important measure due to the company’s subscription-based sales model, was up 38 per cent from the same quarter last year – rising to $2,557,910 from $1,848,881.
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However, it was a smaller increase compared with the previous quarter, when ProntoForms (TSX-V: PFM) reported recurring revenue of $2,567,697.
The company’s gross margin increased to 82 per cent of total revenue from 77 per cent at the same time last year.
However, gross margin on on recurring revenue was 89, down from 90 at this time last year.
ProntoForms’ let loss during the quarter was $864,704, up from a net loss of $709,293 in the second quarter of 2015.
“This quarter saw consistent growth in our direct channel, now the majority of our recurring revenue, but offset by weaker net growth in our operator channel and impacted negatively by the stronger Canadian dollar,” ProntoForms CEO Alvaro Pombo said in a release.
“We continue to make increased investments in direct sales operations while supporting traditional operator channels. We also added new integration partners to drive additional highly qualified leads from our increasingly prominent leadership position in the mobile workflow space.”
