Delivers total revenue growth of 14%, including 15% recurring revenue growth
OTTAWA, Feb. 25, 2016 – Halogen Software Inc. (“Halogen” or the “Company”) (TSX: HGN), a leading provider of cloud-based talent management solutions, today announced its financial results for the three and twelve months ended December 31, 2015. All figures are stated in United States dollars unless otherwise noted.
Fourth Quarter 2015 Financial and Operational Highlights:
- Recurring revenue increased 15% from Q4 2014 to $15.7 million, representing 91% of total revenue in the quarter.
- Total revenue increased 14% from Q4 2014 to $17.2 million.
- Deferred revenue rose 12% year-over-year to $36.9 million.
- Dollar retention continued to be more than 100%1.
- The Company added key customers across all regions and strategic verticals including: healthcare organizations like Exeter Health Resources, Mississippi Baptist Health Systems, and VillageCare of New York; professional services firms such as Synpulse Schweiz in Switzerland, and the British Medical Association in the UK; financial services firms like Texas Regional Bank, and Nexus Insurance Brokers in the UAE; and global wins in manufacturing, construction and transport, with NEC Display solutions, Sydney Airport Authority in Australia, and Gazprom Marketing and Trading in the UK.
- The company launched version 12 of the Halogen TalentSpace suite, featuring an enhanced user experience, improved Talent Profile capabilities, new additions to Halogen’s reporting framework, and additional language support.
- Halogen released a cloud-based service called Halogen TalentSpace Connect™, which is built on the Dell Boomi platform and gives customers a two-way seamless, secure connection between their HRIS systems of record and their Halogen solutions.
- Nucleus Research positioned Halogen as a leader in their Talent Management Technology Value Matrix report.
- End-user review site G2Crowd recognized Halogen as a leader in Talent Management, Performance Management and Learning Management solutions reports.
- The company was a recipient of the Brandon Hall Group Bronze Excellence Award for Innovation in Leadership Development.
Full Year 2015 Financial Highlights
- Recurring revenue increased 17% from 2014 to $59.5 million, representing 91% of total revenue in the year.
- Total revenue increased 16% over 2014 to a record $65.7 million.
- Total cash and investments of $36.1 million at December 31, 2015.
- Under a Normal Course Issuer Bid to purchase up to a maximum of 600,000 common shares, Halogen purchased and cancelled a total of 376,743 common shares for approximately $2.4 million in 2015, including 256,100 shares for approximately $1.5 million in the fourth quarter of 2015.
“I am pleased with our fourth quarter financial performance; our revenue was above our guidance range and we continued improvement to our adjusted EBITDA”, said Les Rechan, Halogen’s CEO. “Looking ahead, in 2016 we will continue to expand our product capabilities, focusing on innovation in next-generation performance management, which is at the core of the Halogen TalentSpace suite. We’ll also continue expanding partnerships and integration capabilities, such as those announced to improve HRIS connectivity, and our strategic talent acquisition partnership with Jobvite. Our strategy focuses on growing our market share and existing customer share of wallet, by delivering solutions that amplify our competitive differentiation while helping our customers drive superior business outcomes. We’ll refine our go-to-market strategy and align our investments in 2016 to improve our execution and productivity. We’ve already made significant progress on these initiatives, which we believe will position us to deliver even greater value to our customers, and drive profitable growth for Halogen.”
Halogen’s recurring revenue in the fourth quarter of 2015 was $15.7 million, a 15% increase over Q4 2014. Total revenue increased 14% over Q4 2014 to $17.2 million, driven by new customer additions, and the expansion of seats and modules to existing customers. In the fourth quarter of 2015, approximately 80% of revenue was generated from customers located in the United States (78% in Q4 2014), 9% in Canada (10% in Q4 2014) and 11% in international markets (12% in Q4 2014).
Gross margin was $12.9 million, or 75% of total revenue, in the fourth quarter of 2015, compared to $10.7 million, or 71% of total revenue, in Q4 2014.
Net loss was $2.6 million in the fourth quarter of 2015 as compared to a loss of $4.9 million in Q4 2014. Adjusted EBITDA2 was $(0.1) million in Q4 2015 compared to $(2.6) million in Q4 2014; Adjusted EBITDA per share was$(0.00) in Q4 2015, compared to $(0.12) per share in Q4 2014.
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