How are energy investors positioned?
Boardwalktech Software (ETR:SOWGn) Corp. (BWLK), a micro-cap technology company with a market capitalization of $5.45 million, reported a slight increase in revenue for the third quarter of fiscal year 2025, with a total revenue of $1.29 million, marking a 1% sequential rise but a 12% decline year-over-year. The company recorded a net loss of $590,000, translating to a loss of $0.01 per share. Despite these figures, the stock saw a 7.69% increase in its last trading session, closing at $0.14, up from its previous close of $0.13. Year-to-date, the stock has gained an impressive 36.84%, according to InvestingPro data.
Key Takeaways
- Boardwalktech’s revenue grew 1% sequentially but fell 12% year-over-year.
- The company launched the Unity Central product and expanded its partnership with Accenture (NYSE:ACN).
- Operating expenses were reduced, leading to a 21% improvement in EBITDA loss sequentially.
- The stock price increased by 7.69% in the latest trading session.
Company Performance
Boardwalktech’s performance in Q3 FY2025 showed resilience amidst challenging market conditions. The company’s strategic focus on data automation and efficiency, particularly within the banking, financial services, consumer products, and manufacturing sectors, positions it well for future growth. The launch of new products and the expansion of partnerships are expected to drive further revenue increases.
Financial Highlights
- Revenue: $1.29 million (1% sequential increase, 12% year-over-year decrease)
- Net loss: $590,000 ($0.01 per share)
- Gross margin: 88.4%
- Annual Recurring Revenue (ARR): $4.2 million
- Cash on hand: Over $200,000
Outlook & Guidance
Boardwalktech anticipates higher growth rates moving forward, driven by an expanding addressable pipeline and new partnerships. The company is targeting EBITDA-positive quarters and expects significant revenue contributions from license agreements and ARR growth.
Executive Commentary
CEO Andy Duncan highlighted the importance of data management in modern enterprises, stating, "Companies across all sectors need to be able to track and record every change and be able to keep an immutable record of these transactions." He also expressed optimism about the company’s future, noting, "Our pipeline is building which should drive revenue growth."
Risks and Challenges
- Long sales cycles with multinational organizations could delay revenue recognition.
- Market competition in AI-integrated data management solutions is intensifying.
- Economic uncertainties may impact customer spending in targeted industries.
Boardwalktech’s strategic initiatives and product innovations position it for potential future success, although challenges remain in navigating long sales cycles and competitive pressures.
Full transcript - Boardwalktech Software Corp (BWLK) Q3 2025:
Conference Operator: Good afternoon, ladies and gentlemen, and welcome to the Boardwalk Tech Software Corporation Fiscal Third Quarter twenty twenty five Quarterly Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Tuesday, 02/25/2025. I would now like to turn the conference over to Sean Isgood from Sophic Capital.
Please go ahead.
Sean Isgood, Investor Relations Representative, Sophic Capital: Thank you, John. Good afternoon, and welcome, everyone, to Boardwalk Tech’s third quarter of fiscal twenty twenty five conference call for the period ended 12/31/2024. On our call today is Boardwalk Tech’s President and Chief Executive Officer, Andy Duncan and the company’s Chief Financial Officer, Charlie Glavin. Andy will start the call with his opening comments followed by Charlie’s overview of the quarterly financial results. Then Andy will share the company’s outlook.
Following their prepared remarks, we’ll open the conference call to a question and answer session. Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward looking. Forward looking statements may include, but are not limited to, financial projections or other statements of the company’s plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties. The company’s actual results may differ significantly from those projected or suggested and any forward looking statements due to a variety of factors which are discussed in detail in our regulatory filings.
Today, we issued our third quarter of fiscal twenty twenty five financial results, a copy of which is available in the Investor Relations section of our website as well as SEDAR Plus and at Safa Capital’s website. All figures are reported in U. S. Dollars unless otherwise indicated. Boardwalk Tech’s financial statements are prepared in accordance with international financial reporting standards.
Please refer to the unaudited, condensed, consolidated financial statements and management’s discussion and analysis for the three and nine months period ended 12/31/2024, filed on SEDAR Plus for more information. I’d like to remind everybody that today’s call is being recorded on Tuesday, 02/25/2025. I’ll now turn the call over to Boardwalk Tech’s President and Chief Executive Officer, Andy Duncan. Go ahead, Andy.
Andy Duncan, President and Chief Executive Officer, Boardwalk Tech Software Corporation: Thank you, Sean, and welcome everyone to Boardwalk Tech’s quarterly earnings call to discuss the company’s financial results for the third quarter of fiscal twenty twenty five. Calendar 2024 was a very pivotal year for Boardwalk Tech. We delivered on some very significant milestones including we repositioned our go to market strategy, the Boardwalk intelligent information platform to highlight our products competitive differentiation at solving customer needs, while aligning our offerings to close deals. This involvement of realignment of sales resources netting substantial expense savings in the process, while expanding our channel partner program having signed having now signed 10 channel partners and advisors ranging from TCS to ServiceNow (NYSE:NOW). We look for us to discuss more details about our intelligent information platform in future announcements.
We also saw continued progress with our Unity Central product with several early adopter customers. We successfully executed a coordinated roadmap with three partners on the delivery and implementation of our velocity product at our largest customer in the financial services market, a top five U. S. Bank where our partners have dedicated additional resources to delivering the Boardwalk Velocity product across the bank. And we also executed the launch of our first big process, our business process outsourcing or BPO client for the world’s largest BPO that includes implementation with two of their large customers.
And we also closed a $4,000,000 line of credit facility, which has given us working capital flexibility. So it’s been a very busy calendar 2024. As a reminder for existing shareholders and for any new shareholders joining the call, Boardwalk provides a software platform to enterprise customers with a patented time based database avoiding the need for constant coding or queries to better manage and analyze structured and unstructured data in order to make better business decisions. And yes, AI will play an integral part of our holistic solution as we integrate and augment AI functionality into our existing offerings. Despite the success we have seen in several areas and the new strategy we have put in place, we cannot ignore the past twelve months has been a challenge and our revenue did decline.
This was mainly due to the fact that we lost two customers and roughly $1,000,000 of annual recurring revenue as previously disclosed. This was due not to our products capabilities, but as a but we were effectively a victim of mandated cuts and reorganizations at those customers. We actually anticipate re engagements with these customers once the dust settles. In the meantime, we’ve been adding new professional services revenue and POCs, which is proof of concepts to the company, not just to backfill the revenue gap, but to grow annual recurring revenue. Investors should recall that professional services tends to be a good leading indicator to future licenses.
Despite the revenue impacts and delivering on the new go to market, we were able to make continued progress on improving EBITDA. With the success of our velocity product and financial services, the introduction of our new product Unity Central, the opportunity in front of us to partner with large and leading BPO providers and the new partners we have signed, our pipeline is stronger now than ever for both our velocity and our Unity Central products. Our Velocity product targets Excel spreadsheets and currently is gaining traction in the financial services sector as we help banks not just meet regulatory hurdles, but improve risk management capabilities so banks can expand revenue opportunities and manage costs. With our first banking customer for Velocity, we are officially partnered with three major IT firms at the client’s request to help the bank deploy velocity across their organization. I am pleased to announce that just a few weeks ago, we announced an expansion here and the project with the bank and our partners is going very well.
However, the opportunity is not confined here as these partners who are being trained on our products and experienced the high ROI of velocity firsthand are now selling and generating new opportunities for us with their other financial institution clients that they have trusted relationships with. Our second product is Unity Central, which manages all messages, files, documents, workflows and alerts into a single intelligent platform enabling automation and reducing manual work to lower operating costs and increase efficiencies. We have also expanded our partnership with Accenture, a long term customer for our digital ledger, now to deploy the Unity Central extension to several new opportunities associated with their business process outsourcing division. We hope to be able to share new customer wins from this relationship in the coming quarters. I will now pass the call over to our CFO, Charlie Glavin, who will provide an overview of the financial results of our third quarter of fiscal twenty twenty five.
Charlie, please go ahead.
Charlie Glavin, Chief Financial Officer, Boardwalk Tech Software Corporation: Thanks, Andy. Before I begin, I’d like to take a moment to remind our listeners that all figures reported on today’s call are in U. S. Dollars and that our fiscal year ends March 31, which reported figures based on IFRS standards unless otherwise specified. Additional details can be found in our financial statements and MD and A as filed on SEDAR Plus.
Total (EPA:TTEF) revenue for the third quarter of fiscal twenty twenty five was $1,290,000 which was a 1% sequential increase on revenue from the second quarter and a 12% decrease from the $1,470,000 of revenue in the third quarter of last year. Professional services revenue, which was 22% of total revenue in the third quarter, increased 61% sequentially as the company opted to recognize a six month recurring development and maintenance contract paid in arrears at the end of the third quarter and subsequently renewed for another year as professional services then as a recurring license. That final determination will be done at our fiscal year end audit. Staff’s license revenue decreased both sequentially and year over year due to, as Andy mentioned, expired licenses that two customers did not renew given mandated reorganization actions undertaken by those customers. Some of that impact will spill over into the fourth quarter.
What we do know based on direct feedback from these customers is that these actions were not due to our products, but rather as a mandated cost cutting by the customers during the reorganization, also consistent with the market headwinds and internal customer issues that we’ve described and discussed previously this past year. Annual recurring revenue or ARR is a non IFRS measure, which the company calculates as the recurring revenue expected based on annual license subscriptions and recurring services on a trailing three month basis. AR at the December ’30 ’1, ’20 ’20 ’4 was $4,200,000 Gross margin for the third quarter of fiscal twenty twenty five was 88.4% down slightly from the second quarter level of 88.6% due to slightly higher hosting expenses sequentially and down from the 89.1% in the third quarter of fiscal twenty twenty four due to the lower revenue levels. Net loss for the third quarter of fiscal twenty twenty five was $590,000 or $0.01 loss per basic and diluted share and the net loss during the quarter improved over the prior quarters loss of $0,720,000.00 or $0.01 per share. Corda’s net loss also improved over the 780,000 loss or $0.02 per basic diluted shares in the third quarter of last year.
Year over year and sequential improvements were primarily driven by lower operating expenses from the previously announced cost saving and realignment actions. Total adjusted operating expenses, which excludes share based payments and depreciation in the third quarter was $1,430,000 which is down from the $1,500,000 in the second quarter and a $400,000 reduction from the $1,700,000 in the third quarter of last year. The company has already recognized $900,000 in cost savings year to date in fiscal twenty twenty five from our previously announced marketing efforts. This is on the comparable relative to the year to date period versus last year. The $900,000 also exceeds our targeted range of $600,000 to $800,000 which we mentioned in previous calls.
On a non IFRS basis, net loss for third quarter of fiscal twenty twenty five was $400,000 or $0.01 per basic and diluted share versus the $500,000 non IFRS loss or $0.01 per basic and diluted share in the second quarter and the $400,000 or $0.01 loss in the third quarter a year ago. Despite the revenue headwinds, as Andy alluded to, adjusted EBITDA loss for the third quarter was less than $290,000 which is a 21% sequential improvement over the $370,000 loss in the second quarter and a 26% year over year improvement versus the $390,000 loss in the third quarter of fiscal twenty twenty four. Turning to the balance sheet, as of December 31, Boardwalk had over $200,000 of cash plus $500,000 of collectible receivables versus $2,300,000 of debt on our $4,000,000 credit facility. As of January 31, which is the most recent monthly certification on that credit facility, the company had approximately $600,000 of its credit facility available. This concludes my prepared remarks and I’ll now turn it back over to Andy.
Andy Duncan, President and Chief Executive Officer, Boardwalk Tech Software Corporation: Thank you, Charlie. For some time now, I’ve highlighted the company’s land and expand strategy as a key growth driver. And for the last three months recurring revenue from new SaaS licenses has grown at a 39% compounded annual growth rate on a trailing twelve month basis. I’d like to point out that even though we’ve grown the company with limited resources, we expect higher growth rates going forward. The reason I say this is because our addressable pipeline has also scaled and has a number of engagements which are in later stages.
We admit that many of these opportunities haven’t closed as quickly as we’d like, large enterprises move at their own speed and have their own processes of evaluating external solutions, while our prior sales resources lacked the deep industry knowledge. Not enough to sell a superior product you need to address and resolve customer needs, but broadly speaking enterprises are looking at data and automation to drive efficiencies and reduce costs, leaving us much more optimistic exiting fiscal twenty twenty five and heading into fiscal twenty twenty six given a pickup of license agreements in process of execution. A great example of automation comes from a proof of concept we did with a large consumer food company where we compared our digital ledger versus the existing manual batch and merge. This traditional process used by many companies involves ingesting daily data like feedstock data in this case and inputting it into a master spreadsheet, which is time consuming and prone to errors and outdated inputs. Based on this POC, the ROI was in the range of five to 10 X.
Companies across all sectors need to be able to track and record every change and be able to keep an immutable record of these transactions in a much easier and auditable manner. With the movement toward more automation and AI, our potential customers are now recognizing Boardwalk’s technology as a key tool to drive efficiencies and accuracy. This example illustrates why large enterprise companies are using our products, validating our solutions as well as our business strategy. Although investors ask for specific customer names, we typically do not provide them not because we don’t want to, but because many customers don’t want to disclose that they need solutions to address regulatory and even privacy issues, thereby admitting that they have issues. What I can say is that our customers brands have global recognition and include the top five global bank I mentioned, as well as the previously mentioned Fortune one hundred Food Company.
Over the past three quarters, we’ve signed several new teaming and partnership agreements with leading IT consultancy and service firms that have existing business relationships with targeted customers in the banking, financial services, consumer products group and manufacturing markets. Our new partners have already or are currently identifying opportunities to leverage our offerings across their customer base, which should lead to new licenses for us. Recent engagements indicate that prior headwinds have or are in the process of dissipating, while the lead times to close transactions with large multi national organizations and financial institutions remain long, these have already been factored into our pipeline and projections. Overall, the future is bright for Boardwalk Tech. Our strategy and go to market are now set correctly.
We are seeing significant new revenue opportunities and they are advancing every day. Our pipeline is building which should drive revenue growth. We also have major strides we also have made major strides in improving EBITDA and we will see sustainable EBITDA positive quarters ahead. And we are close with a few more customers and modest growth in ARR. We continue to focus on EBITDA positive and with strong margins going forward, we should certainly see improving operating leverage in the business.
This concludes my remarks. Operator, we are now ready to take any questions.
Sean Isgood, Investor Relations Representative, Sophic Capital: Thank you.
Conference Operator: Session.
Andy Duncan, President and Chief Executive Officer, Boardwalk Tech Software Corporation: Okay, operator. Well, it looks like we don’t have any questions. So, I will then go ahead and move forward to closing remarks. I would like to thank everyone for taking the time to join us here today and we truly appreciate your support. We look forward to giving you additional updates and announcements regarding our progress in the near future.
If you have any further questions, please reach out to our Investor Relations team at any time and we look forward to providing you with more news and more updates. Once again, thank you for joining our call. Have a pleasant afternoon and evening. Thank you, operator. This concludes the call.
Conference Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
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