Edge Total Intelligence Inc. Reports Third Quarter 2022 Results and Provides Operational Outlook
ARLINGTON, Va., Nov. 30, 2022 (GLOBE NEWSWIRE) -- Edge Total Intelligence Inc. (TSXV: CTRL, OTC: UNFYF, FSE: Q5i )(“edgeTI”, “we”, “our” or the “Company”), a leader in real-time digital operations, announces operating and consolidated results for the third quarter 2022 (“Q3-2022”). Financial information is expressed in United States (US) dollars unless otherwise indicated. The Company’s related financials and management discussion and analysis for the third quarter, 2022 are posted on its profiles on SEDAR (www.sedar.com) and OTCMarkets (www.otcmarkets.com).
Selected Financial Details for Q3-2022
Total revenue decreased 10% to $908,064 versus $1,013,403 the quarter ending September 30, 2021 (“Q3-2021”) largely due to intended shift in contracted professional services.
Subscription revenue grew slightly to $795,698 versus $793,859 in Q3-2021.
Gross margin decreased 1% as a result of direct costs incurred associated with a Business Process Outsourcing (BPO) project that commenced in Q3 2022 (discussed below).
Quarter ended monthly recurring revenue (MRR) grew 4.5% over the previous quarter’s performance.
Operational Highlights for Q3-2022
On July 1, the Company was one of 27 companies awarded an indefinite delivery/ indefinite-quantity (IDIQ) contract by the U.S. Air Force with a ceiling of $950 million through May 2025 to enable Joint All Domain Command and Control (JADC2) for U. S. Armed Forces and Allies.
Early in the third quarter, the Company commenced a one-year Business Process Outsourcing (BPO) pilot with a global professional services firm. Using edgeTI’s newly developed low code and intelligent automation capabilities, the service provider’s objectives of the pilot are to produce significant cost savings and time efficiency across its customers.
On August 17th, Jim Barrett, CEO was accepted into Forbes Technology Council, an invitation-only community for world-class CIOs, CTOs, and technology executives. Since the appointment, Jim has provided perspective on five topics and shared his thought leadership to Forbes readers on ways to increase success in digital transformation.
On August 25th, edgeTI and OnSolve formed a strategic partnership to deliver OnSolve’s AI-driven risk intelligence and critical communications via edgeTI’s platform — providing full operational visibility and control for smart cities and enterprises looking to achieve resilience in their operations, logistics, and supply chain. Integration of the OnSolve services was complete by September and the results have been well received by prospects with new opportunities leading into 2023.
On September 7th, edgeTI was awarded a Basic Ordering Agreement from NATO Communications and Information Agency (NCIA) which enables member nations to procure and deploy edgeTI’s products in a variety of environments and use cases.
On September 21st, edgeTI received Defense TechConnect Innovator Award and later presented to Defense TechConnect attendees its unique approach to managing real-time data and producing faster returns with minimal disruption — enabling the military to move at the speed of relevance.
On September 29th, edgeTI received one of five prizes in response to the Security Innovation Challenge sponsored by Homeland Security Technology Consortium (“HSTech”), Advanced Technology International (ATI) and TechConnect among a field of more than 30 finalists. Management believes this will open further Federal opportunities in 2023.
“Q3 was a difficult time to secure new decisions as customers and prospects took more time to select and activate their initiatives,” said Jim Barrett, Chief Executive Officer. “In contrast, I am proud of the awards and coverage we have been able to garner in multiple business and technical audiences to seed new growth. Similarly, our focus on strategic partnerships is providing opportunities to demonstrate our ability to accelerate digital transformation and activate value for our current and future customers.”
Ongoing global business challenges and uncertainty, now marked by rising interest rates, are expected to continue to elongate customer decisions cycles and delay new projects as these conditions negatively impacted growth these last two quarters. The Company is actively working to restructure its debt, achieve cash flow positive operations, and reestablish growth by taking an even sharper focus on U.S. Government and Service Provider Operations.
edgeTI™ helps customers achieve the impossible with its real-time digital operations software, edgeCore™. Global enterprises, service providers, and governments are more profitable when insight and action are united to deliver fluid experiences via the platform’s low-code development capability. With edgeTI, customers improve their margins and agility by rapidly transforming siloed systems and data across evolving situations in business, technology, and cross-domain operations.
Traded on: TSXV: CTRL, OTC: UNFYF and FSE: Q5i . Learn more at www.edgeti.com.
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Forward-Looking Information and Statements
Certain statements in this news release are forward-looking statements or information for the purposes of applicable Canadian and US securities law, including statements regarding market projections, customer impacts of product deployment, the execution of the Company's growth and marketing strategies, the Company's expectations for its 2022 and 2023 MRR and revenues, the Company's ability to enter into strategic partnerships and continue to develop easy to use products, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions.
Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, the continued availability of capital and financing, the impact of COVID-19 or other viruses and diseases on the Company's ability to operate, competition and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.