Once finalized, deals for Q1 represent over
The Company is seeing a significant uptick in market demand when compared to the prior three years, which were distorted by the effects of the pandemic. This demand is reflected by both the number of new contracts awarded and signed in the quarter, as well as the number of negotiations that are rapidly approaching final award and contracted status for Q2.
At the end of Q1 2023 the Total Contract Value ("TCV") for agreements that were either fully executed contracts ("Fully Executed") or agreed to, awarded and out for execution ("Awarded") was just over
$1.2 million in new professional services revenue$0.84 in net new ARR (Annual Recurring Revenue)- As at
March 31, 2023 ARR stood at$6.15 million - Once all of Q1's Awarded activity is Fully Executed, the Company's ARR will stand at
$6.8 million
- Three new US states were added to the Company's geographic footprint:
Montana ,New Jersey , andNevada . - The Company's first contract in the Code Enforcement space with an agency in
Texas . Code Enforcement, which includes building licensing and construction inspections, represents a new market vertical. The agency is implementing a fully integrated platform encompassing both the environment health and the code enforcement departments. Having multiple agencies in a jurisdiction on one platform is a model numerous other jurisdictions are likely to follow in the future. - An additional agency in
California , which continues to be a state with ever increasing demand for HSCloud Suite.
Since the last update
- As referenced in the
March 2nd updated, Total Processed Volume ("TPV") in Q1 2023 exceeded all of 2022 total processing volume - The average TPV has increased from
$75,000 per week to$87,000 per week exiting Q1 - a$12,000 per week increase from the beginning of March - These averages do not fully reflect new agencies that onboarded towards the end of the quarter
- 10 new HSPay customers are slated for Q2 go-live as of the start of the quarter, the largest number of known scheduled go-lives at the onset of a quarter since HSPay's inception
In the Company's year-end update dated
Chief Executive Officer,
The Company also announces that it will issue 292,500 incentive stock options and 2,207,500 RSU's to Employees, Officers, Directors and an IR representative of the Company. The options will have a strike price of CA$0.40 and expire three years from the date of grant.
ARR is a non-IFRS measure that provides an indication of the subscription revenue from customers that is expected from continued usage per the term of contract signed, and as such management believes ARR to be a meaningful measure for assessment of Company performance. Key assumptions related to ARR figures are from continued usage of the services over the life of the agreement, with the calculation based on the annual average of subscription revenues over the life of the agreement.
HS GovTech™ is an industry leading software as a service company serving the state, provincial and local government market across
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although HS GovTech™ believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. HS GovTech™ expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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