Wishpond Reports Q3-2024 Financial Results With A 79 Year-over-year Improvement In Adjusted Ebitda
Wishpond Technologies Ltd. TSXV WISH OTCQX WPNDF the Company or Wishpond , a provider of marketing-focused online business solutions, announces it has filed its interim consolidated financial statements the Interim Financial Statements and managements discussion and analysis the MD A for Q3-2024, representing the three and nine months ended September 30, 2024 . Copies of the Interim Financial Statements and MD A are available on the Companys profile on SEDAR at www.sedarplus.ca .
Ali Tajskandar, Wishponds Founder and CEO commented, I am pleased to report that Wishpond has achieved Adjusted EBITDA of 571,228 and an Adjusted EBITDA margin of over 11 in Q3-2024, marking the Companys most profitable quarter since 2022. Achieving double-digit EBITDA margin is a rare accomplishment for a software company of our size, and I am incredibly proud of our team for reaching this significant milestone. Our dedication to reducing costs and driving greater efficiencies throughout our business has led to substantial improvements in both profitability and cash flow. Further to this, I am excited to share that Wishpond generated cash flows from operations of positive 0.2 million during Q3-2024. Improving our Adjusted EBITDA and cash flow generation has been a core focus for the Company in 2024 and we reiterate this commitment and mandate as we head into 2025.
Ali Tajskandar further adds, Wishpond is making exciting strides with its new flagship product, SalesCloser AI SalesCloser , a revolutionary virtual sales agent which leverages artificial intelligence to conduct sales calls and product demos. We are actively exploring new sales outreach programs and potential channel partnerships to expand SalesClosers reach, unlock new customer opportunities, and drive broader adoption of the platform. Recently, we announced a collaboration with Roomvu Technologies Inc. Roomvu , a leading real estate marketing platform used by over 220,000 real estate agents, to leverage SalesCloser in enhancing lead follow-up and boosting sales conversions. Collaborations like these are an excellent example of how a partner can provide us with greater and more efficient access to a potential customer base. Furthermore, we are seeing a steady increase in bookings for SalesCloser demos each day. As we broaden the platforms rollout, we anticipate that SalesCloser will be a key contributor in driving new growth to our business in 2025.
Adrian Lim , Wishponds Chief Financial Officer commented, Despite a decline in quarterly revenue, Wishpond was able to achieve very strong margins and cash flows in Q3-2024. Wishponds revenue decline in Q3-2024 was attributable to the transition of its sales team driven by cost optimization efforts and the integration of SalesCloser into its sales processes. In the long term, we anticipate using SalesCloser to grow the Companys own internal sales capacity, reduce hiring costs, and further increase margins and profitability. In addition, revenue was negatively impacted due to a decrease in spending from Wishponds legacy customer for email delivery services. While this customer contributed to Wishponds revenue, these sales were not as profitable compared to the newer business generated through our Propel IQ platform Propel IQ . As a result, this offset of less profitable revenue enabled Wishpond to achieve its most profitable quarter in two years, growing Adjusted EBITDA margin to 11 and improving the Companys gross margin to 69. Looking ahead, we expect our gross margins to continue trending upwards as adoption of Propel IQ grows, and we begin ramping up sales of our new SalesCloser solution.
Third Quarter 2024 Financial Highlights