- Total Q1 revenue increased 6% year-over-year to US$44.2 million and Constant Currency
Revenue1 grew 9% year-over-year to US$45.5 million
- Subscription and support revenue increased by 10% over the
prior year
- Annual Recurring Revenue2 reached US$170.9 million, up 7% over the prior year, and
Constant Currency Annual Recurring Revenue2 grew
10%
- Net income for the period was $1.1
million
TORONTO, June 7, 2023
/CNW/ - D2L Inc. (TSX: DTOL) ("D2L" or the
"Company"), a leading global learning technology company, today
announced financial results for its Fiscal 2024 first quarter ended
April 30, 2023. All amounts are in
U.S. dollars and all figures are prepared in accordance with
International Financial Reporting Standards (IFRS) unless otherwise
indicated.
"It was a strong start to the new fiscal year for D2L, as we
reported healthy gains in revenue and annual recurring revenue,
expanded gross margins and improved profitability, demonstrating
continued progress on our balanced growth plan," said John Baker, CEO of D2L. "Despite the
macroeconomic environment, we are seeing an improving new business
environment overall as leaders across education and business
prioritize investments in better learning experiences. Our strong
win rate and momentum in higher education position the company
particularly well for renewed activity in this market. I'm proud of
how our team is accelerating transformation as a trusted partner to
our clients, working closely with them to redefine the future of
learning."
First Quarter Fiscal 2024 Financial Highlights
- Total revenue of $44.2 million,
up 6% from the same period in the prior year. Constant Currency
Revenue1 grew 9% year-over-year to $45.5 million.
- Subscription and support revenue was $39.2 million, an increase of 10% over the prior
year, reflecting growth from new customers and strong revenue
retention and expansion from existing customers.
- Annual Recurring Revenue2 as at April 30, 2023 increased by 7% year-over-year to
$170.9 million and Constant Currency
Annual Recurring Revenue2 reached $174.5 million, a 10% increase over the prior
year.
- Gross profit increased 13% to $29.9
million (67.6% gross profit margin) from $26.4 million (62.9% gross profit margin) in the
same period of the prior year.
- Positive Adjusted EBITDA1 of $2.8 million, compared with an Adjusted EBITDA
loss of $1.5 million for the
comparative period in the prior year.
- Income for the period was $1.1
million, compared with a loss of $4.8
million for the same period of the prior year.
- Cash flow used in operating activities was $17.0 million, versus $15.3 million in the same period in the prior
year, and negative Free Cash Flow1 was $18.7 million, compared to negative Free Cash
flow of $16.2 million in the same
period in the prior year. Cash flows from operations generally have
a seasonal low in the first quarter each year and a seasonal high
in the second quarter each year.
- Strong balance sheet at quarter end, with cash and cash
equivalents of $92.1 million and no
debt.
1 A non-IFRS financial
measure or non-IFRS ratio. Please refer to "Non-IFRS Financial
Measures and Reconciliation of Non-IFRS Financial Measures" section
of this press release.
|
2 Please refer to "Key
Performance Indicators" section of this press
release.
|
First Quarter Fiscal 2024 Financial Results – Selected
Financial Measures
(in thousands of U.S. dollars, except
for percentages)
|
Three months ended
April 30
|
|
2023
|
2022
|
Change
|
Change
|
$
|
$
|
$
|
%
|
Subscription &
Support Revenue
|
39,190
|
35,766
|
3,424
|
9.6 %
|
Professional Services
& Other Revenue
|
5,038
|
6,104
|
(1,066)
|
-17.5 %
|
Total
Revenue
|
44,228
|
41,870
|
2,358
|
5.6 %
|
|
|
|
|
|
Constant Currency
Revenue1
|
45,525
|
41,870
|
3,655
|
8.7 %
|
Gross Profit
|
29,880
|
26,353
|
3,527
|
13.4 %
|
Adjusted Gross
Profit1
|
29,991
|
26,423
|
3,568
|
13.5 %
|
Adjusted Gross
Margin1
|
67.8 %
|
63.1 %
|
|
|
Income (Loss) for the
period
|
1,110
|
(4,763)
|
5,873
|
123.3 %
|
Adjusted EBITDA
(Loss)1
|
2,811
|
(1,505)
|
4,316
|
286.8 %
|
Cash Flows Used in
Operating Activities
|
(17,035)
|
(15,298)
|
(1,737)
|
-11.4 %
|
Free Cash
Flow1
|
(18,684)
|
(16,202)
|
(2,482)
|
-15.3 %
|
1 A non-IFRS financial
measure or non-IFRS ratio. Please refer to the "Non-IFRS
Financial Measures and Reconciliation of Non-IFRS Financial
Measures" section of this press release for more
details.
|
Business & Operating Highlights
- D2L continued to grow its customer base in education globally,
including Charles Sturt University, European Association of
International Education, Universidade São Francisco, Taylor University, University of Niagara Falls, and the Savannah-Chatham County Public School System
in Georgia.
- Signed new corporate customers across multiple regions,
including Year Up, Inc. and Sexuality Education Resource
Centre.
- D2L was named one of Canada's
Best Managed Companies for the 11th consecutive year and earned two
awards for its innovative human resources team.
- D2L released its inaugural Environmental, Social, Governance
("ESG") Report, highlighting the Company's approach to social
impact and sustainability, and its commitment to building products
that help transform the way the world learns.
- In May, D2L acquired Connected Shopping Ltd., a SaaS e-commerce
and course catalog company and makers of Course Merchant. This
acquisition will allow D2L to deliver Course Merchant as a part of
its own suite of products to address the growing needs of higher
education and training organizations worldwide.
- In May, D2L announced the appointment of Jennifer Ogden-Reese as Chief Marketing
Officer.
Financial Outlook
Financial Guidance Fiscal 2024
The Company is updating its previous guidance for Fiscal 2024 to
reflect an improved Adjusted EBITDA outlook. For Fiscal 2024, the
Company is expecting Adjusted EBITDA in the range of $6 million to $8
million, rather than its previous guidance in the range of
$4 million to $6 million. This revision is reflective of D2L's
gross margin expansion, continued cost optimization, and measured
prioritization of expenditures.
Conference Call & Webcast
D2L management will host a conference call on Thursday, June 8, 2023 at 8:30 am ET to discuss its first quarter Fiscal
2024 financial results.
Date:
|
|
Thursday, June 8,
2023
|
Time:
|
|
8:30 am (ET)
|
Dial in
number:
|
|
Canada/US: 1 (833)
470-1428
International: 1 (404)
975-4839
Access code:
752755
|
|
|
|
Webcast:
|
|
A live webcast will be
available
at ir.d2l.com/events-and-presentations/events/
|
|
|
|
Replay:
|
|
Canada/US: 1 (866)
813-9403 or International: (929) 458-6194
(replay code:
542815)
Available until June
15, 2023
|
Forward-Looking Information
This press release includes
statements containing "forward-looking information" within the
meaning of applicable securities laws. In some cases,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", "budget",
"scheduled", "estimates", "outlook", "target", "forecasts",
"projection", "potential", "prospects", "strategy", "intends",
"anticipates", "seek", "believes", "opportunity", "guidance",
"aim", "goal" or variations of such words and phrases or statements
that certain future conditions, actions, events or results "may",
"could", "would", "should", "might", "will", "can", or negative
versions thereof, "be taken", "occur", "continue" or "be achieved",
and other similar expressions. Statements containing
forward-looking information are not historical facts, but instead
represent management's expectations, estimates and projections
regarding future events or circumstances.
This forward-looking information relates to the Company's future
financial outlook and anticipated events or results and includes,
but is not limited to, statements under the heading "Financial
Outlook" and information regarding: the Company's financial
position, financial results, profitability, business strategy,
performance, achievements, prospects, objectives, opportunities,
business plans and growth strategies; and demand outlook.
Forward-looking information is based on certain assumptions,
expectations and projections, and analyses made by the Company in
light of management's experience and perception of historical
trends, current conditions and expected future developments and
other factors it believes are appropriate, including the following:
the Company's ability to win business from new customers and expand
business from existing customers; the timing of new customer wins
and expansion decisions by existing customers; the Company's
ability to generate revenue and expand its business while
controlling costs and expenses; the Company's ability to manage
growth effectively; the Company's ability to expand margins, grow
Adjusted EBITDA and Free Cash Flow; the effects of foreign currency
exchange rate fluctuations on our operations; the effects of
inflation on our operations; the ability to seek out, enter into
and successfully integrate acquisitions; business and industry
trends, including the success of current and future product
development initiatives; positive social development and attitudes
toward the pursuit of higher education; the Company's ability to
maintain positive relationships with its customer base and
strategic partners; the Company's ability to adapt and develop
solutions that keep pace with continuing changes in technology,
education and customer needs; the ability to patent new
technologies and protect intellectual property rights; the
Company's ability to comply with security, cybersecurity and
accessibility laws, regulations and standards; and the Company's
ability to retain key personnel, collectively, do not have a
material impact on the Company.
Although the Company believes that the assumptions underlying
such forward-looking information were reasonable when made, they
are inherently uncertain and are subject to significant risks and
uncertainties and may prove to be incorrect. The Company cautions
investors that forward-looking information is not a guarantee of
the future and that actual results may differ materially from those
made in or suggested by the forward-looking information contained
in this press release. Whether actual results, performance or
achievements will conform to the Company's expectations and
predictions is subject to a number of known and unknown risks,
uncertainties and other factors, including but not limited to the
risks identified herein, including at "Summary of Factors
Affecting Our Performance" of the Company's Management's
Discussion and Analysis ("MD&A") for the three months
ended April 30, 2023, or in the
"Risk Factors" section of the Company's most recently filed
Annual Information Form. If any of these risks or uncertainties
materialize, or if assumptions underlying the forward-looking
information prove incorrect, actual results might vary materially
from those anticipated in the forward-looking information.
Given these risks and uncertainties, investors are cautioned not
to place undue reliance on forward-looking information, including
any financial outlook. Any forward-looking information that is
contained in this press release speaks only as of the date of such
statement, and the Company undertakes no obligation to update any
forward-looking information or to publicly announce the results of
any revisions to any of those statements to reflect future events
or developments, except as required by applicable securities laws.
Comparisons of results for current and any prior periods are not
intended to express any future trends or indications of future
performance, unless specifically expressed as such, and should only
be viewed as historical data.
About D2L Inc. (TSX: DTOL)
D2L is transforming the way
the world learns—helping learners of all ages achieve more than
they dreamed possible. Working closely with customers all over the
world, D2L is supporting millions of people learning online and in
person. Our global workforce is dedicated to making the best
learning products to leave the world better than they found it.
Learn more at www.D2L.com.
D2L Inc.
Condensed Consolidated Interim Balance
Sheets
(In U.S. dollars)
As at April 30, 2023 and
January 31, 2023
(Unaudited)
|
April 30,
2023
|
January 31,
2023
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
92,092,008
|
$
110,732,236
|
|
Trade and other
receivables
|
24,637,569
|
20,894,794
|
|
Uninvoiced
revenue
|
2,931,720
|
2,107,015
|
|
Prepaid
expenses
|
7,598,592
|
8,183,390
|
|
Deferred
commissions
|
4,585,332
|
4,487,043
|
|
|
131,845,221
|
146,404,478
|
|
|
|
|
Non-current
assets:
|
|
|
|
Other
receivables
|
—
|
193,036
|
|
Prepaid
expenses
|
219,398
|
122,469
|
|
Deferred income
taxes
|
159,092
|
189,178
|
|
Right-of-use
assets
|
10,909,077
|
11,205,371
|
|
Property and
equipment
|
5,633,554
|
4,287,095
|
|
Deferred
commissions
|
6,999,640
|
6,849,779
|
|
Intangible
assets
|
282,034
|
288,099
|
|
Goodwill
|
7,028,916
|
7,070,432
|
|
|
|
Total assets
|
$
163,076,932
|
$
176,609,937
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
17,836,607
|
$
23,450,767
|
|
Deferred
revenue
|
74,122,367
|
85,662,830
|
|
Lease
liabilities
|
1,221,201
|
1,127,600
|
|
|
93,180,175
|
110,241,197
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Deferred income
taxes
|
455,367
|
398,906
|
|
Lease
liabilities
|
11,815,270
|
11,878,556
|
|
|
12,270,637
|
12,277,462
|
|
|
105,450,812
|
122,518,659
|
Shareholders'
equity:
|
|
|
|
Share
capital
|
359,048,816
|
357,639,824
|
|
Additional paid-in
capital
|
47,310,771
|
46,084,161
|
|
Accumulated other
comprehensive loss
|
(5,213,016)
|
(5,001,805)
|
|
Deficit
|
(343,520,451)
|
(344,630,902)
|
|
57,626,120
|
54,091,278
|
|
Related party
transactions
|
|
|
|
Subsequent
event
|
|
|
Total liabilities and
shareholders' equity
|
$
163,076,932
|
$
176,609,937
|
D2L Inc.
Condensed Consolidated Interim Statements of
Comprehensive Income (Loss)
(In U.S.
dollars)
For the three months ended April 30,
2023 and 2022
(Unaudited)
|
2023
|
2022
|
|
|
|
Revenue:
|
|
|
|
Subscription and
support
|
$
39,189,661
|
$
35,766,503
|
|
Professional services
and other
|
5,038,278
|
6,103,581
|
|
|
44,227,939
|
41,870,084
|
Cost of
revenue:
|
|
|
|
Subscription and
support
|
11,240,740
|
11,438,628
|
|
Professional services
and other
|
3,107,304
|
4,078,365
|
|
|
14,348,044
|
15,516,993
|
|
|
|
|
Gross profit
|
29,879,895
|
26,353,091
|
|
|
|
|
Expenses:
|
|
|
|
Sales and
marketing
|
12,440,667
|
13,057,090
|
|
Research and
development
|
11,145,353
|
11,285,167
|
|
General and
administrative
|
6,189,503
|
6,407,040
|
|
|
29,775,523
|
30,749,297
|
|
|
|
|
Income (loss) from
operations
|
104,372
|
(4,396,206)
|
|
|
|
|
Interest and other
income (expenses):
|
|
|
|
Interest
expense
|
(156,008)
|
(237,600)
|
|
Interest
income
|
876,107
|
18,246
|
|
Other income
|
15,463
|
—
|
|
Foreign exchange gain
(loss)
|
430,172
|
(28,218)
|
|
|
1,165,734
|
(247,572)
|
|
|
|
|
Income (loss) before
income taxes
|
1,270,106
|
(4,643,778)
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
Current
|
74,642
|
189,516
|
|
Deferred
|
85,013
|
(70,631)
|
|
|
159,655
|
118,885
|
|
|
|
|
Income (loss) for the
period
|
1,110,451
|
(4,762,663)
|
|
|
|
|
Other comprehensive
loss:
|
|
|
|
Foreign currency
translation loss
|
(211,211)
|
(53,665)
|
Comprehensive income
(loss)
|
$
899,240
|
$
(4,816,328)
|
|
|
|
|
Earnings (loss) per
share – basic
|
$
0.02
|
$
(0.09)
|
Earnings (loss) per
share – diluted
|
0.02
|
(0.09)
|
|
|
|
Weighted average number
of common shares – basic
|
53,224,007
|
52,987,915
|
Weighted average number
of common shares – diluted
|
54,752,509
|
52,987,915
|
D2L Inc.
Condensed Consolidated Interim Statements of
Shareholders' Equity
(In U.S. dollars)
For the three months ended April 30,
2023 and 2022
(Unaudited)
|
Share
Capital
|
Additional
paid-in
|
Accumulated
other
|
Deficit
|
Total
|
|
Shares
|
Amount
|
capital
|
comprehensive
loss
|
|
|
|
|
|
|
|
|
|
Balance, January 31,
2023
|
53,146,530
|
$
357,639,824
|
$
46,084,161
|
$
(5,001,805)
|
$
(344,630,902)
|
$
54,091,278
|
Issuance of Subordinate
Voting Shares on exercise of options
|
128,073
|
1,111,373
|
(450,449)
|
—
|
—
|
660,924
|
Issuance of Subordinate
Voting Shares on settlement of restricted share units
|
24,097
|
297,619
|
(397,164)
|
—
|
—
|
(99,545)
|
Stock-based
compensation
|
—
|
—
|
2,074,223
|
—
|
—
|
2,074,223
|
Other comprehensive
loss
|
—
|
—
|
—
|
(211,211)
|
—
|
(211,211)
|
Income for the
period
|
—
|
—
|
—
|
—
|
1,110,451
|
1,110,451
|
Balance, April 30,
2023
|
53,298,700
|
$
359,048,816
|
$
47,310,771
|
$
(5,213,016)
|
$
(343,520,451)
|
$
57,626,120
|
|
|
|
|
|
|
|
Balance, January 31,
2022
|
52,912,502
|
$
354,277,986
|
$
41,686,794
|
$
(3,330,708)
|
$
(326,254,177)
|
$
66,379,895
|
Issuance of Subordinate
Voting Shares on exercise of options
|
85,774
|
667,033
|
(218,526)
|
—
|
—
|
448,507
|
Stock-based
compensation
|
—
|
—
|
1,650,053
|
—
|
—
|
1,650,053
|
Other comprehensive
loss
|
—
|
—
|
—
|
(53,665)
|
—
|
(53,665)
|
Loss for the
period
|
—
|
—
|
—
|
—
|
(4,762,663)
|
(4,762,663)
|
Balance, April 30,
2022
|
52,998,276
|
$
354,945,019
|
$
43,118,321
|
$
(3,384,373)
|
$
(331,016,840)
|
$
63,662,127
|
D2L Inc.
Condensed Consolidated Interim Statements of
Cash Flows
(In U.S. dollars)
For the three months ended April 30,
2023 and 2022
(Unaudited)
|
|
|
2023
|
2022
|
Operating
activities:
|
|
|
|
Income (loss) for the
period
|
$
1,110,451
|
$
(4,762,663)
|
|
Items not involving
cash:
|
|
|
|
|
Depreciation of
property and equipment
|
291,732
|
557,254
|
|
|
Depreciation of
right-of-use assets
|
321,071
|
629,323
|
|
|
Amortization of
intangible assets
|
4,376
|
55,645
|
|
|
Gain on disposal of
property and equipment
|
(15,463)
|
—
|
|
|
Stock-based
compensation
|
2,074,223
|
1,650,053
|
|
|
Net interest expense
(income)
|
(720,099)
|
219,354
|
|
|
Income tax
expense
|
159,655
|
118,885
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade and other
receivables
|
(3,582,301)
|
3,214,425
|
|
|
Uninvoiced
revenue
|
(807,077)
|
(372,689)
|
|
|
Prepaid
expenses
|
448,517
|
452,896
|
|
|
Deferred
commissions
|
(231,019)
|
(214,492)
|
|
|
Accounts payable and
accrued liabilities
|
(5,551,696)
|
(4,965,676)
|
|
|
Deferred
revenue
|
(11,383,125)
|
(11,953,677)
|
|
|
Right-of-use assets and
lease liabilities
|
—
|
129,413
|
|
Interest
received
|
876,107
|
18,246
|
|
Interest
paid
|
(7,522)
|
(74,299)
|
|
Income taxes
paid
|
(22,509)
|
—
|
|
Cash flows used in
operating activities
|
(17,034,679)
|
(15,298,002)
|
Financing
activities:
|
|
|
|
Payment of lease
liabilities
|
(132,994)
|
(547,484)
|
|
Proceeds from exercise
of stock options
|
660,924
|
448,507
|
|
Taxes paid on
settlement of restricted share units
|
(99,545)
|
—
|
|
Cash flows from (used
in) financing activities
|
428,385
|
(98,977)
|
Investing
activities:
|
|
|
|
Purchase of property
and equipment
|
(1,664,474)
|
(904,353)
|
|
Proceeds from disposal
of property and equipment
|
15,463
|
—
|
|
Cash flows used in
investing activities
|
(1,649,011)
|
(904,353)
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(384,923)
|
(258,681)
|
Decrease in cash and
cash equivalents
|
(18,640,228)
|
(16,560,013)
|
Cash and cash
equivalents, beginning of period
|
110,732,236
|
114,675,495
|
Cash and cash
equivalents, end of period
|
92,092,008
|
98,115,482
|
Non-IFRS Financial Measures and Reconciliation of Non-IFRS
Financial Measures
The information presented within this
press release refers to certain non-IFRS financial measures
(including non-IFRS ratios) including Adjusted EBITDA, Adjusted
Gross Profit, Adjusted Gross Margin, Free Cash Flow, and Constant
Currency Revenue. These measures are not recognized measures under
IFRS and do not have a standardized meaning prescribed by IFRS.
Non-IFRS financial measures should not be considered in isolation
nor as a substitute for analysis of the Company's financial
information reported under IFRS and are unlikely to be comparable
to similar measures presented by other issuers. Rather, these
measures are provided as additional information to complement those
IFRS measures by providing further understanding of the Company's
results of operations, financial performance and liquidity from
management's perspective and thus highlight trends in its core
business that may not otherwise be apparent when relying solely on
IFRS measures. The Company believes that securities analysts,
investors and other interested parties frequently use non-IFRS
financial measures in the evaluation of the Company. The Company's
management also uses non-IFRS financial measures to facilitate
operating performance comparisons from period to period, to prepare
annual operating budgets and forecasts, and to assess our ability
to meet our capital expenditures and working capital
requirements.
Adjusted EBITDA and Adjusted EBITDA
Margin
Adjusted EBITDA is defined as net income (loss),
excluding interest, taxes, depreciation and amortization (or
EBITDA), adjusted for stock-based compensation, foreign exchange
gains and losses, transaction-related expenses, non-recurring
activities, impairment charges and other income and losses.
Adjusted EBITDA Margin is calculated as Adjusted EBITDA expressed
as a percentage of total revenue. For an explanation of
management's use of Adjusted EBITDA and Adjusted EBITDA Margin see
"Non-IFRS and Other Financial Measures" section in the
Company's MD&A.
The following table reconciles Adjusted EBITDA to income (loss)
for the period, and discloses Adjusted EBITDA Margin, for the
periods indicated:
(in thousands of
U.S. dollars, except for percentages)
|
Three months ended
April 30
|
2023
|
2022
|
Income (loss) for
the period
|
1,110
|
(4,763)
|
Stock-based
compensation
|
2,074
|
1,650
|
Foreign exchange loss
(gain)
|
(430)
|
28
|
Net interest expense
(income)
|
(720)
|
219
|
Income tax
expense
|
160
|
119
|
Depreciation and
amortization
|
617
|
1,242
|
Adjusted
EBITDA
|
2,811
|
(1,505)
|
Adjusted EBITDA
Margin
|
6.4 %
|
-3.6 %
|
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit is defined as gross profit excluding
related stock-based compensation expenses. Adjusted Gross Margin is
calculated as Adjusted Gross Profit expressed as a percentage of
total revenue. For an explanation of management's use of Adjusted
Gross Profit and Adjusted Gross Margin see "Non-IFRS and Other
Financial Measures" section in the Company's MD&A.
The following table reconciles Adjusted Gross Margin to gross
profit expressed as a percentage of revenue, for the periods
indicated:
(in thousands of
U.S. dollars, except for percentages)
|
Three months ended
April 30
|
2023
|
2022
|
Gross profit for the
period
|
29,880
|
26,353
|
Stock based
compensation
|
111
|
70
|
Adjusted Gross
Profit
|
29,991
|
26,423
|
Adjusted Gross
Margin
|
67.8 %
|
63.1 %
|
Free Cash Flow and Free Cash Flow Margin
Free Cash Flow is defined as cash provided by (used in)
operating activities less net additions to property and equipment.
Free Cash Flow Margin is calculated as Free Cash Flow expressed as
a percentage of total revenue. For an explanation of management's
use of Free Cash Flow and Free Cash Flow Margin see
"Non-IFRS and Other Financial Measures" section
in the Company's MD&A.
The following table reconciles our cash flow from (used in)
operating activities to Free Cash Flow, and discloses Free Cash
Flow Margin, for the periods indicated:
(in thousands of
U.S. dollars, except for percentages)
|
Three months ended
April 30
|
2023
|
2022
|
Cash flow from (used
in) operating activities
|
(17,035)
|
(15,298)
|
Net purchases of
property and equipment
|
(1,649)
|
(904)
|
Free Cash
Flow
|
(18,684)
|
(16,202)
|
Free Cash Flow
Margin
|
-42.2 %
|
-38.7 %
|
Constant Currency Revenue
Constant Currency Revenue is defined as
foreign-currency-denominated revenues translated at the historical
exchange rates from the comparable prior period into our U.S.
dollar functional currency. For an explanation of management's use
of Constant Currency Revenue see "Non-IFRS and Other Financial
Measures" section in the Company's MD&A.
The following table reconciles our Constant Currency Revenue to
revenue, for the periods indicated:
(in thousands of
U.S. dollars)
|
Three months ended
April 30
|
2023
|
2022
|
Total revenue for the
period
|
44,228
|
41,870
|
Negative impact of
foreign exchange rate changes over the prior period
|
1,297
|
—
|
Constant Currency
Revenue
|
45,525
|
41,870
|
Key Performance Indicators
Management uses a number of metrics, including the key
performance indicators identified below, to help us evaluate our
business, measure our performance, identify trends affecting our
business, formulate business plans and make strategic decisions.
Our key performance indicators may be calculated in a manner
different than similar key performance indicators used by other
issuers. These metrics are estimated operating metrics and not
projections, nor actual financial results, and are not indicative
of current or future performance.
· Annual Recurring Revenue and Constant Currency Annual
Recurring Revenue: We define Annual Recurring Revenue as
the annualized equivalent value of subscription revenue from all
existing customer contracts as at the date being measured,
exclusive of the implementation period. Our calculation of Annual
Recurring Revenue assumes that customers will renew their
contractual commitments as those commitments come up for renewal.
We believe Annual Recurring Revenue provides a reasonable,
real-time measure of performance in a subscription-based
environment and provides us with visibility for potential growth to
our cash flows. We believe that increasing Annual Recurring Revenue
indicates the continued strength in the expansion of our business,
and will continue to be our focus on a go-forward basis. We define
Constant Currency Annual Recurring Revenue as
foreign-currency-denominated Annual Recurring Revenue translated at
the historical exchange rates from the comparable prior period into
our U.S. dollar functional currency.
|
As at April
30
|
(in millions
of U.S. dollars, except percentages)
|
2023
|
2022
|
Change
|
$
|
$
|
%
|
Annual Recurring
Revenue
|
170.9
|
159.3
|
7.3 %
|
Constant Currency
Annual Recurring Revenue
|
174.5
|
159.3
|
9.5 %
|
SOURCE D2L Inc.