Xybion Digital Reports Financial Results for the Third Quarter of Fiscal 2023
– Positive EBITDA and Income from Operations. Adjusted EBITDA was 5.7% in Q3 vs. -37.1% in Q2 ending on September 30, 2022, a 117% turnaround. Gross margin improved to 64.8% in Q3 vs. 54.9% in Q2, a 31.6% improvement. Operating expenses in Q3 were lower by 30.2% compared to Q2.
– SaaS revenue grew by 23.6%; year-over-year
– ARR exceeded US$10.5 million, UP 12.8% year-over-year.
– Revenue for the quarter was US$4.36 million
VANCOUVER, B.C. and PRINCETON, NJ / ACCESSWIRE / February 27, 2023 — Xybion Digital Inc. (XYBN:TSXV) (“Xybion” or the “Company”), a global, low-code SaaS company that enables digital transformation in highly regulated industries like Life Sciences, today reported Q3 F2023 financial results for its third quarter ended on December 31, 2022. Financial references are expressed in US dollars unless otherwise indicated. Please refer to the MD&A and Financial Statements posted onto SEDAR (www.sedar.com) for information relating to non-IFRS measures and risk factors.
“I am pleased to report that our management team took focused actions to right size the operations and return to profitability. We continue to execute our core strategy of helping our clients in their digital transformation journey, growing our SaaS revenue and moving away from legacy perpetual license sales,” said Dr. Pradip K. Banerjee, Chairman and CEO.
Financial Summary for the Quarter:
Recurring software revenues – which include revenue from SaaS and maintenance – increased by 13.8% to $2.6 million, as compared to $2.28 million in Q3 of fiscal 2022.
Recurring revenue as a percentage of total revenue for the third quarter was 60% for Q3 2023, as compared to 57% in Q3 2022.
Revenue from SaaS increased by 23.6% to $1.277 million.
Annual Recurring Revenue from Software reached $10.5 million at December 31, 2022, an increase of 12.8%, as compared to $9.3 million at December 31, 2021.
Overall Q3 2023 Revenues were higher than Q3 2022 by 8.6% at $4.36 million. Except for a slight negative variance in license revenue, all other categories of revenue were higher.
Gross profit for Q3 2023 totaled $2.83 million, an increase of 7.4% or $.20 million compared to $2.63 million in Q3 of fiscal 2022. Quarter-over-quarter gross margin is affected by the mix of quarterly revenue for licenses, SaaS and Services. On a comparative basis, total operating expenses grew by 16.8% over the prior year’s third quarter.
We recorded a Net Loss of $(14,887) in Q3 2023, as compared to a Net Loss of $(2.14) million for Q3 2022. The primary reason for the decrease in the amount of the Net Loss was that in Q3 2022, the Company incurred $2.3 million of reverse acquisition expenses.
The profit, on an adjusted EBITDA basis, a non-IFRS measure, was $ .248 million in Q3 2023 and that compares to an adjusted EBITDA of $.366 million in Q3 2022; a decrease of $.118 million.
Adjusted EBITDA margin was 5.7% in Q3 vs. -37.1% in Q2 ending on September 30, 2022, a 117% turnaround. Gross margin improved to 64.8% in Q3 vs. 54.9% in Q2, a 31.6% improvement. Operating expenses in Q3 were lower by 30.2% compared to Q2.
As of December 31, 2022, the Company had $3.39 million in cash on the balance sheet and zero debt.
The Company will hold a conference call to discuss these results. Details are as follows:
Date: February 28, 2023
Time: 8:30am Eastern Time
Canada/USA TF: 1-800-319-4610
International Toll: +1-604-638-5340
A transcript of the call will be posted on the Company’s website at www.xybion.com within 72 hours of the call.
Non- IFRS Financial Measures
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS financial measures. EBITDA is defined as net income or loss before net finance expenses, depreciation and amortization expense and income tax expense. Adjusted EBITDA is defined as net income or loss before income taxes, net finance costs, depreciation and amortization, Paycheck Protection Payment (PPP) loan forgiveness, one-time Reverse Takeover (RTO) expenses and stock-based compensation, and Adjusted EBITDA Margin is defined as the percentage of Adjusted EBITDA to revenues. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful measures of financial performance because they provide an indication of the Company’s ability to seize growth opportunities in a cost-effective manner and finance its ongoing operations. Each of these non-IFRS financial measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. These measures are unlikely to be comparable to similar measures presented by other companies. Rather, non-IFRS measures are provided as additional information to complement financial statements by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
About Xybion Digital Inc.
Xybion is a global SaaS company that helps enterprise life sciences organizations accelerate new drug development into approved medicines that may save lives and keep employees safe. We digitize drug research and development, laboratory testing, regulatory approvals, and pharmaceutical manufacturing on a single, unified cloud platform that is cost-effective, ready to deploy, and easy to use. Xybion has over 160 clients in 29 countries using its low-code software to accelerate timelines, improve compliance, expand capacity, minimize operating risks, and reduce expenses while keeping employees safe.
Learn more about Xybion at https://www.xybion.com/
For further information: For more information regarding Xybion Digital Inc., please contact Pradip Banerjee, Chief Executive Officer, PBanerjee@xybion.com, 609-512-5790 x122
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Certain statements (“forward-looking statements”) in this news release may contain forward-looking information concerning relating to the release of financial results, plans related to the Company’s business and other matters that may occur in the future, made as of the date of this news release. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including with respect to the timing of such release. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect.
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