Toronto (March 8, 2022) — NexJ Systems Inc. (TSX: NXJ), delivering intelligent customer management software to the financial services industry, today announced financial results for its fourth quarter ended December 31, 2021.
Fourth Quarter Summary
- The Company continued its planned transition from a perpetual license model to a more predictable subscription license model generating $551K in license and subscription revenue for the fourth quarter, an increase of $505K as compared to $46K in the fourth quarter of the previous year
- Unbilled contracted subscription license revenue of $964K will be recognized as revenue in future quarters as compared to zero in the previous year
- $3.6M of revenue for the fourth quarter as compared to $4.2M in the fourth quarter of the previous year
- $225K in Adjusted EBITDA for the fourth quarter as compared to $836K in the fourth quarter of the previous year
- $186K of net loss for the fourth quarter as compared to $417K of net income in the fourth quarter of the previous year
- $1.5M in license and subscription revenue for the year, an increase of $1.3M as compared to $156K in the previous year
- $15.3M in revenue for the year as compared to $16.9M in the previous year
- $821K in Adjusted EBITDA for the year as compared to $985K in the previous year
- $468K in net loss for the year is a $1.0M improvement over $1.5M of net loss in the previous year
- Continued to increase the recurring subscription license revenue by delivering two new subscription license products to a leading bank based in Australia and New Zealand that support multiple cloud deployment options and real-time data streaming for enhanced analytics and reporting
“In 2021 our subscription-based license model continued to grow with subscription software licenses making up approximately 15% of total revenue in Q4 and 10% for 2021,” said Paul O’Donnell, CEO. “The new software pricing model introduced in January 2021 resulted in the deferral of revenue recognition on new software contracts which would otherwise have been recognized as revenue under the previous perpetual license model. Our strategic partnerships in globally recognizable financial services firms, growing subscription license opportunities, and prudent management of expenses have established a strong foundation for 2022.”
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 financial services productivity software is designed to help Wealth Management, Private Banking, Corporate and Commercial Banking firms revolutionize their business. Powered by artificial intelligence, our products help drive productivity, boost client engagement, and help drive increased revenues. With users in over 60 countries, our customers benefit from our deep expertise across financial services sub-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.