Toronto (May 12, 2022) — NexJ Systems Inc. (TSX: NXJ), delivering intelligent customer management software to the financial services industry, today announced financial results for its first quarter ended March 31, 2022.
First Quarter Summary
- The Company continued its planned transition from a perpetual license model to a more predictable subscription license model generating $691K in license and subscription revenue for the first quarter, an increase of $645K as compared to $43K in the first quarter of the previous year
- Continued to increase the recurring subscription license revenue by delivering new subscription license product to a leading US wealth management firm that supports real-time data streaming for enhanced analytics and reporting
- Unbilled contracted subscription license revenue of $954K will be recognized as revenue in future quarters as compared to zero in the first quarter of the previous year
- $4.03M of revenue for the first quarter as compared to $3.93M in the first quarter of the previous year
- $406K in Adjusted EBITDA loss for the first quarter as compared to $96K profit in the first quarter of the previous year
- $565K of net loss for the first quarter as compared to $283K of net loss in the first quarter of the previous year
- The Company has rationalized its real estate requirements during the quarter which will result in significant cost savings commencing in the second half of 2022
“Our focus on building subscription-based license revenue continued, delivering 17% of total revenue for the quarter and contributing strongly to an overall increase in revenue versus the same period last year. With over 85% recurring revenues and continued prudent expense management, we have established a strong foundation for future growth”, said Paul O’Donnell, CEO. “As the market responds to increasing demand for a more cohesive, data-rich advisor experience, NexJ’s core technology and domain expertise in delivering a truly integrated advisor workstation position us well to further capitalize on that demand.”
Non-IFRS Measures
This news release includes certain measures that have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as Adjusted EBITDA and Adjusted EBITDA margin which are used to evaluate the Company’s operating performance as a complement to results provided in accordance with IFRS. The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed below.
The term “Adjusted EBITDA” refers to net income (loss) before adjusting for share-based payment expense, depreciation and amortization, deferred share unit expense, restructuring costs, foreign exchange gain (loss), finance income, finance costs, and income taxes. “Adjusted EBITDA margin” refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.
The term Adjusted EBITDA and Adjusted EBITDA margin are not measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and Adjusted
EBITDA margin should not be construed as an alternative to net income (loss) as determined in accordance with IFRS.
About NexJ Systems Inc.
NexJ Systems provides Intelligent Customer Management to the financial services industry. Our award-winning CRM is designed to help Wealth Management, Private Banking, Corporate and Commercial Banking, and Insurance firms revolutionize their business. Powered by artificial intelligence, our products help drive productivity, boost client engagement, and increase revenue. With users in over 60 countries, our customers benefit from our deep expertise across financial services verticals, strategic investment in innovation, and commitment to their success.
Based in Toronto, NexJ has clients throughout North America, Asia Pacific and in Europe. For more information about NexJ visit www.nexj.com, e-mail info@nexj.com, or call 416-222-5611. Join us on LinkedIn, follow us on Twitter, subscribe to our YouTube channel, or like us on Facebook.