mCloud Technologies Corp (CVE:MCLD) (OTCMKTS:MCLDF) on Thursday reported increases in third-quarter revenue and normalized income.
In a statement, the company also said it expects revenue to double in 2020.
For the 3Q, mCloud said revenue grew 207% to C$9.2 million, compared to C$3 million in the second quarter of 2019, representing a July 10 cut-off for the acquisition of Autopro. Year-to-date revenues came in at C$14.4 million, compared to C$1.8 million for full-year 2018.
mCloud, whose 3Q ended September 30, noted that in the last 90 days, revenue from its AI-powered AssetCare energy efficiency solutions platform grew organically by 36% to C$4.1 million, up from C$3 million in the second quarter of 2019.
Also, the Vancouver-based company said normalized income grew to over C$1.2 million, compared to a C$132,368 loss in 2Q.
"In the third quarter of 2019, we saw strong and persistent organic growth in recurring revenues across all business segments, resulting in positive C$1.2 million in normalized income," said CEO Russ McMeekin. "As we announced in early October, we are now on track to exceed over 40,000 connected assets by year-end, enabled by our strong business performance in getting assets connected in three continents across our Smart Facilities, Smart Energy, and Smart Process lines of business."
McMeekin added that “the bottom line is that our AssetCare platform is now the primary driver for mCloud's growth through the rapid addition of new customers, connected assets, and recurring revenues.”
He said mCloud now anticipates revenue in the range of C$70 million to C$80 million, with normalized income between C$11.5 million to C$14 million in 2020.
"We estimate that no less than 50% of our 2020 revenues will be derived from high-margin AssetCare contracts, with 65% to 70% of these from implementations with multi-year recurring revenues,” McMeekin said. "We expect to grow AssetCare revenues by approximately 70% in 2020 and to have at least 70,000 connected assets or 75% growth on an asset basis in the next fiscal year."
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