mCloud Technologies Corp (CVE:MCLD) (OTCQB:MCLDF) revealed first-quarter 2020 revenues of C$6.6 million and a strong jump in full-year 2019 revenues, especially in the fourth quarter, driven by the strength of its AssetCare division.
The technology solutions group posted 2019 revenues of C$18.3 million, a tenfold rise from 2018's C$1.8 million, with fourth-quarter 2019 revenues coming in at C$10.0 million, more than 60% of which came from AssetCare solutions.
The company also noted that around two-thirds, or 63%, of first quarter 2020 revenues resulted from the AssetCare platform, a solution that combines IoT, artificial intelligence and cloud computing to ensure assets operate continuously at peak performance. The company reported a backlog of further AssetCare implementations to come as coronavirus restrictions ease.
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In a statement, mCloud CEO Russ McMeeking said that 2019 was a “solid year of growth” for the Vancouver-based company as organic growth remained strong with over 12,000 new connected assets throughout the year. mCloud added an additional 7,584 connected assets in 1Q 2020.
"These new AssetCare connections and the performance of our acquisitions have built a solid base for ongoing recurring revenue," McMeekin said. "Additionally, our ability to continually attract top business development talent and tap into a large serviceable obtainable market lets us scale our recurring revenues in a way that makes mCloud directly comparable with peer Software-as-a-Service ("SaaS") technology companies."
mCloud said it expects to connect at least 70,000 total assets in 2020 for full-year revenues of between C$70 to 72 million. Revenues will likely accelerate in the second half of the year based on growth from the firm’s 3D Digital Twin and Connected Worker solution segments, the CEO added.
mCloud's organic growth in recurring revenues are expected to outpace the company's non-recurring expenses related to corporate development, including market up-listing activities and recent acquisitions, McMeekin said.
While the headwinds caused by the coronavirus (COVID-19) outbreak impacted the firm’s project services revenue in the first quarter of 2020, mCloud said that the influence of the pandemic on heavy industry operations worldwide is creating new revenue growth opportunities.
"There is no doubt the current COVID-19 pandemic and economic shocks worldwide have changed the way businesses assess risk, especially as it relates to the disruptions organizations have seen across the board," McMeekin told investors.
"Our entire team is very excited about the opportunities we have to help businesses everywhere acclimate to a new normal through our remote connectivity and asset management capabilities."
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