On Wednesday, ProntoForms reported its third quarter, 2015 results. The company lost $560,737 on revenue of $2.41-million, a topline that was 42 per cent higher than the $1.69-million the company posted in last year’s Q3.
“In our third quarter, recurring revenue grew by 72 per cent over the comparable 2014 third quarter, representing 19 quarters of consecutive growth,” said CEO Alvaro Pombo. “This revenue growth demonstrates the success of our strategy of investment in direct and channel sales which is delivering balanced and predictable results. Strong relationships with Apple, AT&T and others continue to contribute to a leading position in our ecosystem.”
Grigo says ProntoForms beat his top line, something he attributes largely to the company’s recurring revenue growth. PFM’s EBITA was slightly worse than his expectation, however, and the analyst points to a ramp up of its internal sales team and increased R&D spending as the culprit. Grigo explained why he remains bullish on the company.
“We like PFM because of the secular trend towards digitisation of the mobile work force and move towards enterprise apps coupled with the changing demographic profile of the workforce,” says Grigo, adding: “We believe that ProntoForms will be able to grow its market share by leveraging its relationship with AT&T, from the increased penetration of smartphones and tablets into the workplace, the growth in cloud-based computing, and the increasing awareness of how business apps can improve productivity.”
In a research update to clients today, Grigo maintained his “Buy” rating and one-year price target of $0.85 on ProntoForms.