Intellinetics, Inc. Reports First Quarter Results

COLUMBUS, OH, May 16, 2022 (GLOBE NEWSWIRE) — Intellinetics, Inc., a digital transformation solutions provider, announced financial results for the three months ended March 31, 2022.

2022 First Quarter Financial Highlights

• Total Revenue increased 3% from the same period in 2021.
• Software as a Service Revenue increased 33% from the same period in 2021.
• Net Loss of $20,126, compared to Net Income of $842,772 from the same period in 2021.
  • Q1 2021 included other income of $845,083 for forgiveness of the PPP loan and interest.
  • Q1 2022 included $70,051 of transaction costs.
• Adjusted EBITDA increased 18% to $421,300, compared to $356,165 from the same period in 2021.

Summary – 2022 First Quarter Results
Revenues for the three months ended March 31, 2022 were $2,703,512 as compared with $2,635,219 for the same period in 2021. The increase in our software and software-as-a-service revenues more than offset a decrease in professional services, primarily COVID driven, and a decrease in storage and retrieval revenues, due to unfavorable comparisons to one-time shredding projects in 2021. Intellinetics reported a net loss of $20,126 for the three months ended March 31, 2022 compared to a net income of $842,772 for the same period in 2021. The net loss was the result of transaction costs of $70,051 in 2022 (none in 2021), expended in support of our acquisition on April 1, 2022. In addition, the difference in first quarter year-over-year results was primarily because of the gain on extinguishment of debt of $845,083 from the full forgiveness of our PPP loan during the three months ended March 31, 2021. Correspondingly, net loss per basic and diluted share were both $0.01 for the three months ended March 31, 2022, compared to $0.30 and $0.27, respectively, for the three months ended March 31, 2021.

2022 Other Highlights

• On April 1, 2022 we completed the acquisition of Yellow Folder, LLC. This acquisition more than doubles our SAAS revenues, adds positive cash flow, and approximately doubles our customer count in the K-12 education market.
• Simultaneously, we completed $8.7 million in equity and debt
  financing.

James F. DeSocio, President & CEO of Intellinetics, stated, “We achieved our goal of improved revenue numbers from Q1 of 2021 to Q1 of 2022, despite the renewed COVID headwinds we faced in the fourth quarter of 2021 and first quarter of 2022. For the first quarter of 2022 we beat our software as a service goal. For the ninth straight quarter we showed positive Adjusted EBITDA and have surpassed $300,000 of positive Adjusted EBITDA for the seventh straight quarter. This has been a very good quarter for Intellinetics despite the many challenges we have faced with COVID, hiring employees and the onset of inflationary pressures.

“Our teams continue to perform at a high level. Year-to-date, our sales team and partner program have delivered record order entry levels. We have built
the largest backlog in future contract value in company history. At the time of this press release, we have signed 154 new contracts since the beginning of the year, with an estimated Total Contract Value of approximately $3.9 million, recognizable in revenue over one year or less. Twenty-six percent of these contracts were new customer logos. Last year at this time we had closed 131 contracts with an estimated Total Contract Value of approximately $2.6 million. Our success validates both our go-to-market strategy and our M&A strategy.

“After our acquisition of Yellow Folder, we now have a very strong position in the K-12 education market with over 500 customers using our Enterprise Content Management solutions. I’m excited for all our other target markets as well. Further, we’ve already begun cross-selling initiatives, where we’ve secured a document conversion scanning project from a Yellow Folder hosted customer. We are positioned for 2022 better than ever in our history. Given our recent acquisition and our strong order entry year to date, we expect to continue to grow our revenues and Adjusted EBITDA.