Boardwalktech Software (BWLK) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue was $6 million, down 8% year-over-year, with SaaS license revenue up 12% and professional services revenue down 60% as part of a strategic shift.

• The company maintained a strong base of Fortune 50 clients and expanded new business via partner channels, especially in financial services.

• Key leadership additions, including a new CMO and an industry veteran advisor, are expected to further boost sales efforts.

• Strategic partnerships and expanded agreements with major IT and consulting firms, such as TCS, Hexaware, and LTIMindtree, were established to accelerate deal flow and market reach.

• Annual recurring revenue reached $5.6 million, a 3% increase from the prior year.

Financial highlights

• Total revenue for fiscal 2024 was $6 million, down from $6.5 million in fiscal 2023.

• Recurring SaaS license revenue increased 12% year-over-year, now comprising roughly 90% of total revenue and growing at a 22% compounded rate over two years.

• Professional services revenue declined 60%, impacting total revenue, but this was a strategic shift.

• Gross margin was 89.6%, slightly down from 90.6% the prior year.

• Adjusted EBITDA loss for fiscal 2024 was $1.6 million, with Q4 showing a 20% year-over-year and 10% sequential improvement.

• IFRS net loss was $3.1 million ($0.06/share), a 13% improvement from $3.6 million ($0.08/share) in 2023.

Outlook and guidance

• The company expects a rebound in professional services revenue but will continue prioritizing recurring revenue growth.

• Profitability is targeted by year-end, with cost realignment and resource optimization expected to generate $1 million in annual savings.

• ARR as of March 31, 2024, was $5.6 million, flat sequentially and up 3% year-over-year.

• Cash and AR balances are expected to grow as new and renewal licenses are closed.

• Increased adoption of the Velocity product at a top 5 US bank and new partnerships are expected to drive customer and revenue growth.