Mr. David MacLaren reports

MEDIAVALET REPORTS THIRD QUARTER 2022 RESULTS

MediaValet Inc. has released its results for the three and nine months ended Sept. 30, 2022. All figures in Canadian dollars unless otherwise stated for figures in U.S. dollars.

"We continue to deliver record levels of [annual recurring revenue] growth despite the uncertain economic environment and lengthening enterprise sales cycles," commented David MacLaren, founder and chief executive officer of MediaValet. "We believe our consistent growth is the result of four main factors: (1) our innovative vision for DAM; (2) our unique go-to-market strategy; (3) consistent and precise quarter-over-quarter execution of our strategic plan; and (4) the resilience of the DAM market due to long-term and accelerating digital transformation and content trends across all industries and geographies."

Dave Miller, chief financial officer, also commented: "At the same time as delivering continued high-growth rates in ARR and billings, we have held our operating costs in check. This reflects our continued effort to invest strategically in our growth while maintaining an intense focus on operational excellence and discipline. This gives us confidence that our available cash resources, including our working capital and our unused operating facility, are sufficient to fund our strategic and operational growth plan."

Key financial metrics:

• Increased ARR to $13.65-million, a year-on-year increase of 36 per cent (35 per cent in U.S. dollars) and a 7-per-cent sequential increase (6 per cent in U.S. dollars); net new ARR (NNARR) of $890,000 increased 53 per cent from third quarter 2021 and increased 16 per cent sequentially; for the year-to-date period, NNARR of $2.81-million is up 106 per cent from last YTD; the increases reflect the company's operational expansion completed in 2021, net dollar retention of 100 per cent and continuing market demand for enterprise DAM solutions despite the current macroeconomic environment; as organizations continue to implement their necessary digital strategies, an effective DAM becomes critical to reducing costs, requiring less people to manage media workflows and ensuring continuity in difficult times;
• Revenue grew to $3.28-million, up 39 per cent from third quarter 2021 and up 5 per cent sequentially; revenue YTD grew to $9.23-million, up 36 per cent from last YTD;
• Gross margins remained strong at 81 per cent compared with 83 per cent in third quarter 2021 and 82 per cent in second quarter 2022; YTD gross margins were 82 per cent compared with 82 per cent last YTD;
• Incurred operating costs of $4.94-million, a 21-per-cent increase from third quarter 2021 and a sequential decrease of 2 per cent; YTD operating costs were $14.94-million, a 33-per-cent increase from last YTD; the company has not expanded its operational infrastructure in fiscal 2022; as such, the increases in reported operating costs reflect the normalized impact of the operational expansion completed in fiscal 2021, variable cost increases with revenue growth and inflationary adjustments to payroll;
• Reported a Q3 2022 EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $2.28-million, a 7-per-cent increase from third quarter 2021 and an improvement of 8 per cent sequentially; YTD EBITDA loss was $7.39-million, an increase of 29 per cent from last YTD; the increased annual loss was planned and is primarily due to the step increase in operating costs completed in 2021 in line with the company's long-term growth strategy; management believes this growth investment is aligned with the company's growth strategy and available capital resources;
• Ended the period with modified working capital (excluding deferred revenue, lease liabilities and debt) of $2.89-million, total lease liabilities of $630,000 and no debt; YTD 2022, the company repaid $1.00-million of long-term debt, collected proceeds of $2.06-million from warrant exercises and secured a $7.00-million revolving credit facility, which remains undrawn.

MediaValet's full financial statements and related management's discussion and analysis are now available on SEDAR.

About MediaValet Inc.

MediaValet stands at the forefront of the enterprise, cloud-native, software-as-a-service digital asset management and creative operations industries. Built exclusively on Microsoft Azure and available across 61 Microsoft data centre regions in 140 countries around the world, MediaValet delivers unparalleled enterprise-class security, reliability, redundancy, compliance and scalability while offering the largest global footprint of any DAM solution. In addition to providing enterprise cloud-native DAM capabilities at a global scale, desktop-to-server-to-cloud support for creative teams, and overall cloud redundancy and management for all sources, WIP and final assets, MediaValet offers industry-leading integrations into Slack, Adobe Creative Suite, Microsoft Office 365, Workfront, Wrike, the Monday website, Drupal, WordPress and many other best-in-class third party applications.