Technology
D2L Inc. Announces Third Quarter 2025 Financial Results
Published
2 years agoon
By
Subscription and support revenue grew 13% year-over-year to US$46.8 millionProfessional services and other revenue in the quarter increased to US$7.5 millionAnnual Recurring Revenue1 reached US$201.7 million, up 12% over the prior yearAdjusted EBITDA2 of US$10.4 million and Adjusted EBITDA margin2 of 19.2% margin in the quarterCompany increases Fiscal 2025 revenue guidance to $204 million to $205 million and increases Adjusted EBITDA guidance to $25.5 million to $26.5M million
TORONTO, Dec. 4, 2024 /CNW/ – D2L Inc. (TSX: DTOL) (“D2L” or the “Company”), a leading global learning technology company, today announced financial results for its Fiscal 2025 third quarter ended October 31, 2024. All amounts are in U.S. dollars and all figures are prepared in accordance with International Financial Reporting Standards (“IFRS”) unless otherwise indicated.
“Our strong third-quarter results were highlighted by healthy growth in subscription revenue and significant margin expansion, driving substantial improvement in our ‘Rule of 40’ performance as we successfully balance growth and market share gains with improving profitability,” said John Baker, CEO of D2L. “We continue to benefit from high win rates in our target markets as we navigate the broader macroeconomic conditions. We’re making disciplined investments that support our goal of long-term market leadership, and have seen strong customer response and pipeline generation from our recently expanded product portfolio, including our AI offering Lumi and Creator+. These new products make learning experiences better and easier to create for our customers, leading to improved learning outcomes and better learner retention.”
Third Quarter Fiscal 2025 Financial Highlights
Total revenue was $54.3 million, up 18% from the same period in the prior year.Subscription and support revenue was $46.8 million, an increase of 13% over the same period of the prior year.Professional services and other revenue was $7.5 million, an increase of $2.8 million from the same period of the prior year. During the current quarter, the Company recognized services revenue of $1.2 million from re-evaluating the completion progress of certain professional services engagements. Excluding this revenue, services revenue increased by $1.6 million over the prior year, and total revenue increased by $7.1 million or 15.2% year over year. Annual Recurring Revenue1 as at October 31, 2024 increased by 12% or $21.6 million year-over-year, from $180.1 million to $201.7 million.Cash flow from operating activities was $11.4 million, compared to $15.3 million in the same period in the prior year, and Free Cash Flow2 was $11.3 million, compared to $14.2 million in the same period in the prior year.Cash flow from operating activities for the 9-month period ended October 31, 2024 was $28.0 million, up 32% compared with $21.2 million for the same period in the prior year. Gross profit increased 22% to $37.4 million (68.9% gross profit margin) from $30.6 million (66.4% gross profit margin) in the same period of the prior year. Gross profit margin for subscription and support revenue increased to 72.7%, up 140 basis points from 71.3% in the same period of the prior year.Adjusted EBITDA2 increased to $10.4 million (19.2% Adjusted EBITDA margin2) from $2.1 million (4.6%) for the same period in the prior year. Excluding the additional services revenue of $1.2 million recognized in the quarter, Adjusted EBITDA and Adjusted EBITDA Margin would have been $9.2 million and 17.4%, respectively, for the three months ended October 31, 2024. Income for the period was $5.5 million, compared with a loss of $0.4 million for the comparative period of the prior year.Strong balance sheet at quarter end, with cash and cash equivalents of $108.3 million and no debt. During the third quarter, the Company repurchased and canceled 68,600 Subordinate Voting Shares under its normal course issuer bid (“NCIB”). The Company has repurchased and cancelled 348,080 shares since the inception of the NCIB on December 8, 2023.On December 4, 2024, the Company announced that the Toronto Stock Exchange (the “TSX”) accepted the Company’s notice to launch a new NCIB, commencing on December 9, 2024.
1 Refer to “Key Performance Indicators” section of this press release.
2 A non-IFRS financial measure or non-IFRS ratio. Refer to “Non IFRS Financial Measures” section of this press release.
Third Quarter Fiscal 2025 Financial Results – Selected Financial Measures
(in thousands of U.S. dollars, except for percentages)
Three months ended October 31
Nine months ended October 31
2024
2023
Change
Change
2024
2023
Change
Change
$
$
$
%
$
$
$
%
Subscription & Support Revenue
46,752
41,450
5,302
12.8 %
133,723
120,045
13,678
11.4 %
Professional Services & Other Revenue
7,547
4,663
2,884
61.8 %
18,240
14,766
3,474
23.5 %
Total Revenue
54,299
46,113
8,186
17.8 %
151,963
134,811
17,152
12.7 %
Constant Currency Revenue1
54,106
46,113
7,993
17.3 %
152,126
134,811
17,315
12.8 %
Gross Profit
37,390
30,600
6,790
22.2 %
103,441
90,161
13,280
14.7 %
Adjusted Gross Profit 1
37,964
30,778
7,186
23.3 %
104,439
90,622
13,817
15.2 %
Adjusted Gross Margin1
69.9 %
66.7 %
68.7 %
67.2 %
Income (Loss) for the period
5,547
(387)
5,934
1,533.3 %
5,857
(4,105)
9,962
242.7 %
Adjusted EBITDA1
10,420
2,122
8,298
391.0 %
18,652
4,399
14,253
324.0 %
Cash Flows From Operating Activities
11,420
15,318
(3,898)
(25.5 %)
28,037
21,171
6,866
32.4 %
Free Cash Flow1
11,296
14,244
(2,948)
(20.7 %)
27,567
16,009
11,558
72.2 %
1 A non-IFRS financial measure or non-IFRS ratio. Refer to the “Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures” section of this press release for more details.
Third Quarter Business & Operating Highlights
D2L continued to grow its customer base in education in North America, including the additions of the Cincinnati State Technical and Community College, University of the Fraser Valley, and Prairie View A&M University.D2L continued to expand its international customer base, including XP Educação in Brazil and the main statutory body overseeing legal education and training in New Zealand.Signed new corporate customers, including Becoming Institute and the premier academic trauma surgery organization in the United States.Launched Creator+ natively integrated with H5P Group AS (“H5P”), offering an all-in-one solution for creating engaging courses with interactive content, video tools, dynamic analytics, and generative AI. Early adopters include the University of Hawaiʻi System.The Tambellini Group, the leading analyst and advisory firm focused on higher education, ranked D2L Brightspace highest among competitors for usability and innovation in the inaugural Tambellini StarChart™ 2024 for Learning Management Systems (“LMS”) in higher education.Named a winner in the 2024 LMS Top 20 Company by Training Industry and a winner in the 2024 Learning Systems Awards for Best Enterprise LMS by Talented Learning.D2L Lumi was named a winner of the Tech & Learning Awards of Excellence: Back to School 2024 in the Primary and Higher Education categories.Announced a strategic partnership with Seesaw, the leading elementary Learning Experience Platform to enhance the K-12 digital learning experience.
Financial Outlook
D2L updated its previously issued financial guidance for the year ended January 31, 2025 (“Fiscal 2025”) as follows:
Subscription and support revenue in the range of $180 million to $181 million, implying growth of 11% at the midpoint over Fiscal 2024, an increase from previously issued guidance of $178 million to $181 million;Total revenue in the range of $204 million to $205 million, implying growth of 12% at the midpoint over Fiscal 2024, an increase from previously issued guidance of $199 million to $202 million; andAdjusted EBITDA in the range of $25.5 million to $26.5 million, implying Adjusted EBITDA margin of 13% at the midpoint, an increase from previously issued guidance of $22 million to $24 million.
These guidance revisions reflect the Company’s continued progress in balancing revenue growth with operating efficiency improvements.
For additional details on the Company’s outlook, including the principal underlying assumptions and risk factors regarding achievement, refer to the “Financial Outlook” section of the Company’s Management’s Discussion and Analysis for the three and 12 months ended January 31, 2024 (the “Annual MD&A”), as well as the “Forward-Looking Information” section therein, below and in the Company’s Management’s Discussion and Analysis for the three months ended October 31, 2024 (the “Interim MD&A”).
Conference Call & Webcast
D2L management will host a conference call on Thursday, December 5, 2024 at 8:30 am ET to discuss its third quarter Fiscal 2025 financial results.
Date:
Thursday, December 5, 2024
Time:
8:30 am (ET)
Dial in number:
Canada/US: 1 (833) 470-1428
International: 1 (404) 975-4839
Access code: 027545
Webcast:
A live webcast will be available at ir.d2l.com/events-and-presentations/events/
The webcast will also be archived
Forward-Looking Information
This press release includes statements containing “forward-looking information” within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “outlook”, “target”, “forecasts”, “projection”, “potential”, “prospects”, “strategy”, “intends”, “anticipates”, “seek”, “believes”, “opportunity”, “guidance”, “aim”, “goal” or variations of such words and phrases or statements that certain future conditions, actions, events or results “may”, “could”, “would”, “should”, “might”, “will”, “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
This forward-looking information relates to the Company’s future financial outlook and anticipated events or results and includes, but is not limited to, statements under the heading “Financial Outlook” and information regarding: the Company’s financial position, financial results, business strategy, performance, achievements, prospects, objectives, opportunities, business plans and growth strategies, including the Company’s balance growth and profitability plan; the Company’s budgets, operations and taxes; judgments and estimates impacting the financial statements; the markets in which the Company operates; industry trends and the Company’s competitive position; and expansion of the Company’s product offerings, including the impact of AI offerings on the Company’s addressable market and revenue opportunity.
Forward-looking information is based on certain assumptions, expectations and projections, and analyses made by the Company in light of management’s experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, including the following: the Company’s ability to win business from new customers and expand business from existing customers; the timing of new customer wins and expansion decisions by existing customers; the Company’s ability to generate revenue and expand its business while controlling costs and expenses; the Company’s ability to manage growth effectively; the Company’s ability to hire and retain personnel effectively; the effects of foreign currency exchange rate fluctuations on our operations; the ability to seek out, enter into and successfully integrate acquisitions, including the acquisition of H5P; business and industry trends, including the success of current and future product development initiatives; positive social development and attitudes toward the pursuit of higher education; the Company’s ability to maintain positive relationships with its customer base and strategic partners; the Company’s ability to adapt and develop solutions that keep pace with continuing changes in technology, education and customer needs; the ability to patent new technologies and protect intellectual property rights; the Company’s ability to comply with security, cybersecurity and accessibility laws, regulations and standards; the assumptions underlying the judgments and estimates impacting on financial statements; and the Company’s ability to retain key personnel; the factors and assumptions discussed under the “Financial Outlook” section of the Annual MD&A, and that the list of factors referenced in the following paragraph, collectively, do not have a material impact on the Company.
Although the Company believes that the assumptions underlying such forward-looking information were reasonable when made, they are inherently uncertain and are subject to significant risks and uncertainties and may prove to be incorrect. The Company cautions investors that forward-looking information is not a guarantee of the future and that actual results may differ materially from those made in or suggested by the forward-looking information contained in this press release. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties and other factors, including but not limited to the risks identified herein, or at “Summary of Factors Affecting Our Performance” of the Company’s Interim MD&A or in the “Risk Factors” section of the Company’s most recently filed annual information form, in each case filed under the Company’s profile on SEDAR+ at www.sedarplus.com. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.
Given these risks and uncertainties, investors are cautioned not to place undue reliance on forward-looking information, including any financial outlook. Any forward-looking information that is contained in this press release speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking information or to publicly announce the results of any revisions to any of those statements to reflect future events or developments, except as required by applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
About D2L Inc. (TSX: DTOL)
D2L is transforming the way the world learns, helping learners achieve more than they dreamed possible. Working closely with customers all over the world, D2L is on a mission to make learning more inspiring, engaging and human. Find out how D2L helps transform lives and delivers outstanding learning outcomes in K-12, higher education and business at www.D2L.com.
D2L Inc.
Condensed Consolidated Interim Statements of Financial Position
(In U.S. dollars)
As at October 31, 2024 and January 31, 2024
(Unaudited)
October 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$ 108,252,331
$ 116,943,499
Trade and other receivables
20,379,489
23,025,690
Uninvoiced revenue
3,896,203
3,971,861
Prepaid expenses
6,559,188
10,517,226
Deferred commissions
5,134,323
5,334,864
144,221,534
159,793,140
Non-current assets:
Other receivables
480,621
537,056
Prepaid expenses
381,939
119,872
Deferred income taxes
573,268
529,674
Right-of-use assets
8,127,082
8,774,960
Property and equipment
7,402,295
8,427,734
Deferred commissions
7,449,801
7,730,724
Investment in associate
21,248
—
Loan receivable from associate
5,120,885
—
Intangible assets
18,073,003
770,707
Goodwill
26,379,860
10,440,091
Total assets
$ 218,231,536
$ 197,123,958
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$ 28,615,437
$ 32,635,926
Deferred revenue
105,842,166
93,727,368
Lease liabilities
1,396,079
1,002,464
Contingent consideration
4,893,539
271,479
140,747,221
127,637,237
Non-current liabilities:
Deferred income taxes
4,119,188
587,075
Lease liabilities
10,660,223
11,707,534
Contingent consideration
—
311,839
14,779,411
12,606,448
155,526,632
140,243,685
Shareholders’ equity:
Share capital
367,288,877
364,830,884
Additional paid-in capital
48,190,065
47,485,107
Accumulated other comprehensive loss
(7,333,643)
(4,998,317)
Deficit
(345,440,395)
(350,437,401)
62,704,904
56,880,273
Related party transactions
Subsequent event
Total liabilities and shareholders’ equity
$ 218,231,536
$ 197,123,958
D2L INC.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(In U.S. dollars)
For the three and nine months ended October 31, 2024 and 2023
(Unaudited)
Three months ended October 31
Nine months ended October 31
2024
2023
2024
2023
Revenue:
Subscription and support
$ 46,751,998
$ 41,449,926
$ 133,723,027
$ 120,045,266
Professional service and other
7,547,470
4,662,769
18,239,685
14,765,509
54,299,468
46,112,695
151,962,712
134,810,775
Cost of revenue:
Subscription and support
12,777,133
11,884,640
36,651,859
33,977,839
Professional services and other
4,132,232
3,627,638
11,870,394
10,671,456
16,909,365
15,512,278
48,522,253
44,649,295
Gross profit
37,390,103
30,600,417
103,440,459
90,161,480
Expenses:
Sales and marketing
12,806,266
12,807,855
40,302,476
40,209,601
Research and development
11,139,920
12,351,201
35,294,478
36,015,722
General and administrative
8,651,729
7,102,165
25,231,988
20,603,875
32,597,915
32,261,221
100,828,942
96,829,198
Income (loss) from operations
4,792,188
(1,660,804)
2,611,517
(6,667,718)
Interest and other income (expense):
Interest expense
(235,892)
(157,582)
(550,438)
(456,456)
Interest income
870,355
1,221,704
2,899,093
2,938,216
Other income (expense)
(122,043)
(10,355)
(122,000)
4,897
Gain on SkillsWave disposal transaction
—
—
917,395
—
Foreign exchange gain
224,145
314,938
307,859
380,417
736,565
1,368,705
3,451,909
2,867,074
Income (loss) before income taxes
5,528,753
(292,099)
6,063,426
(3,800,644)
Income taxes (recovery):
Current
246,162
43,883
602,830
435,294
Deferred
(264,457)
51,613
(396,134)
(130,838)
(18,295)
95,496
206,696
304,456
Income (loss) for the period
5,547,048
(387,595)
5,856,730
(4,105,100)
Other comprehensive gain (loss):
Foreign currency translation gain (loss)
137,532
(1,556,171)
(2,335,326)
(1,020,872)
Comprehensive income (loss)
$ 5,684,580
$ (1,943,766)
$ 3,521,404
$ (5,125,972)
Earnings (loss) per share – basic
$ 0.10
$ (0.01)
$ 0.11
$ (0.08)
Earnings (loss) per share – diluted
$ 0.10
$ (0.01)
$ 0.10
$ (0.08)
Weighted average number of common shares
– basic
54,453,244
53,703,768
54,282,281
53,454,498
Weighted average number of common shares
– diluted
56,032,694
53,703,768
55,828,067
53,454,498
D2L INC.
Condensed Consolidated Interim Statements of Shareholders’ Equity
(In U.S. dollars)
For the nine months ended October 31, 2024 and 2023
(Unaudited)
Share Capital
Additional
paid-in
capital
Accumulated
other
comprehensive
loss
Deficit
Total
Shares
Amount
Balance, January 31, 2024
53,978,085
$ 364,830,884
$ 47,485,107
$ (4,998,317)
$ (350,437,401)
$ 56,880,273
Issuance of Subordinate Voting Shares on
exercise of options
410,397
3,443,979
(1,804,429)
—
—
1,639,550
Issuance of Subordinate Voting Shares on
settlement of restricted share units
374,307
1,416,155
(4,602,395)
—
—
(3,186,240)
Stock-based compensation
—
—
7,111,782
—
—
7,111,782
Repurchase of share capital for
cancellation under NCIB
(306,880)
(2,402,141)
—
—
—
(2,402,141)
Change in share repurchase commitment
under ASPP
—
—
—
—
(859,724)
(859,724)
Other comprehensive loss
—
—
—
(2,335,326)
—
(2,335,326)
Income for the period
—
—
—
—
5,856,730
5,856,730
Balance, October 31, 2024
54,455,909
$ 367,288,877
$ 48,190,065
$ (7,333,643)
$ (345,440,395)
$ 62,704,904
Balance, January 31, 2023
53,146,530
357,639,824
46,084,161
(5,001,805)
(344,630,902)
54,091,278
Issuance of Subordinate Voting Shares on
exercise of options
381,794
3,414,019
(1,443,627)
—
—
1,970,392
Issuance of Subordinate Voting Shares on
settlement of restricted share units
218,010
988,410
(2,474,669)
—
—
(1,486,259)
Stock-based compensation
—
—
7,237,274
—
—
7,237,274
Other comprehensive loss
—
—
—
(1,020,872)
—
(1,020,872)
Loss for the period
—
—
—
—
(4,105,100)
(4,105,100)
Balance, October 31, 2023
53,746,334
$ 362,042,253
$ 49,403,139
$ (6,022,677)
$ (348,736,002)
$ 56,686,713
D2L INC.
Condensed Consolidated Interim Statements of Cash Flows
(In U.S. dollars)
For the nine months ended October 31, 2024 and 2023
(Unaudited)
2024
2023
Operating activities:
Income (loss) for the period
$ 5,856,730
$ (4,105,100)
Items not involving cash:
Depreciation of property and equipment
1,285,970
1,158,782
Depreciation of right-of-use assets
945,223
927,605
Amortization of intangible assets
723,100
60,159
Gain on disposal of property and equipment
(51,476)
(16,194)
Stock-based compensation
7,111,782
7,237,274
Net interest income
(2,348,655)
(2,481,760)
Income tax expense
206,696
304,456
Gain on SkillsWave disposal transaction
(917,395)
—
Loss from equity accounted investee
416,850
—
Fair value gain on loan receivable from associate
(120,885)
—
Changes in operating assets and liabilities:
Trade and other receivables
3,784,969
1,041,252
Uninvoiced revenue
(37,023)
(440,936)
Prepaid expenses
3,503,610
1,073,501
Deferred commissions
296,245
(1,105,606)
Accounts payable and accrued liabilities
(6,410,785)
1,952,832
Deferred revenue
11,573,770
13,243,128
Right-of-use assets and lease liabilities
(44,962)
(57,530)
Interest received
2,878,878
2,938,216
Interest paid
(19,343)
(9,815)
Income taxes paid
(596,646)
(549,475)
Cash flows from operating activities
28,036,653
21,170,789
Financing activities:
Payment of lease liabilities
(1,344,625)
(575,023)
Lease incentive received
103,128
935,025
Proceeds from exercise of stock options
1,639,550
1,970,392
Taxes paid on settlement of restricted share units
(3,186,240)
(1,486,259)
Repurchase of share capital for cancellation under NCIB
(2,402,141)
—
Cash flows (used in) from financing activities
(5,190,328)
844,135
Investing activities:
Purchase of property and equipment
(521,775)
(5,178,461)
Proceeds from disposal of property and equipment
51,476
16,537
Acquisition of business, net of cash acquired
(22,308,927)
(2,793,180)
Payment of contingent consideration
(249,436)
—
Transfer of cash on disposal of SkillsWave
(1,483,357)
—
Proceeds from sale of majority ownership stake in SkillsWave
809,038
—
Issuance of loan to SkillsWave
(5,000,000)
—
Cash flows used in investing activities
(28,702,981)
(7,955,104)
Effect of exchange rate changes on cash and cash equivalents
(2,834,512)
(1,701,358)
(Decrease) increase in cash and cash equivalents
(8,691,168)
12,358,462
Cash and cash equivalents, beginning of period
116,943,499
110,732,236
Cash and cash equivalents, end of period
$ 108,252,331
$ 123,090,698
Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures
The information presented within this press release refers to certain non-IFRS financial measures (including non-IFRS ratios) including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Margin, and Constant Currency Revenue. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Non-IFRS financial measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations, financial performance and liquidity from management’s perspective and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of the Company. The Company’s management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to assess our ability to meet our capital expenditures and working capital requirements.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is defined as net income (loss), excluding interest, taxes, depreciation and amortization (or EBITDA), adjusted for stock-based compensation, foreign exchange gains and losses, non-recurring expenses, transaction-related costs, fair value adjustment of acquired deferred revenue, income (loss) from equity accounted investee, change in fair value on the loan receivable from associate, impairment charges and other income and losses. Adjusted EBITDA Margin is calculated as Adjusted EBITDA expressed as a percentage of total revenue. For an explanation of recent changes to and management’s use of Adjusted EBITDA and Adjusted EBITDA Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Adjusted EBITDA and Adjusted EBITDA Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles Adjusted EBITDA to income (loss) for the period, and discloses Adjusted EBITDA Margin, for the periods indicated:
(in thousands of U.S. dollars, except for percentages)
Three months ended October 31
Nine months ended October 31
2024
2023
2024
2023
Income (loss) for the period
5,547
(387)
5,857
(4,105)
Stock-based compensation
2,195
2,068
7,112
7,237
Foreign exchange gains
(224)
(315)
(308)
(380)
Non-recurring expenses(1)
305
807
2,171
957
Transaction-related costs(2)
1,249
169
2,072
721
Fair value adjustment of acquired deferred revenue
500
—
639
—
Change in fair value on loan receivable from
associate
(121)
—
(121)
—
Loss from equity accounted investee
320
—
417
—
Net interest income
(634)
(1,064)
(2,348)
(2,482)
Income tax (recovery) expense
(18)
95
207
304
Depreciation and amortization
1,301
749
2,954
2,147
Adjusted EBITDA
10,420
2,122
18,652
4,399
Adjusted EBITDA Margin
19.2 %
4.6 %
12.3 %
3.3 %
During the current quarter, the Company recognized services revenue of $1.2 million from re-evaluating the completion progress of certain professional services engagements. Excluding this increase, the Company’s Adjusted EBITDA and Adjusted EBITDA Margin would have been $9.2 million and 17.4%, respectively, for the three months ended October 31, 2024.
Notes:
(1)
These expenses relate to non-recurring activities, such as certain legal fees incurred that are not indicative of continuing operations, and changes of workforce or technology whereby certain functions were realigned to optimize operations.
(2)
These expenses include certain legal and professional fees that were incurred in connection with acquisition and other strategic transactions, including the disposal of our majority ownership stake in SkillsWave Corporation (“Skillswave”) and our acquisition of H5P. These expenses also include post-combination compensation costs from the acquisition of H5P. These expenses are net of a gain of $0.9 million recognized on the disposal of our majority ownership stake in SkillsWave. These expenses would not have been incurred if not for these transactions and are not considered expenses indicative of the Company’s continuing operations.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit is defined as gross profit excluding related stock-based compensation expenses and amortization from recently acquired intangible assets, specifically acquired technology. Adjusted Gross Margin is calculated as Adjusted Gross Profit expressed as a percentage of total revenue. For an explanation of management’s use of Adjusted Gross Profit and Adjusted Gross Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Adjusted Gross Profit and Adjusted Gross Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles Adjusted Gross Margin to gross profit expressed as a percentage of revenue, for the periods indicated:
(in thousands of U.S. dollars, except for
percentages)
Three months ended October 31
Nine months ended October 31
2024
2023
2024
2023
Gross profit for the period
37,390
30,600
103,441
90,161
Stock-based compensation
147
147
442
430
Acquired intangible asset amortization
427
31
556
31
Adjusted Gross Profit
37,964
30,778
104,439
90,622
Adjusted Gross Margin
69.9 %
66.7 %
68.7 %
67.2 %
During the current quarter, the Company recognized services revenue of $1.2 million from re-evaluating the completion progress of certain professional services engagements. Excluding this revenue, the Company’s Adjusted Gross Profit and Adjusted Gross Margin would have been $36.8 million and 69.2% respectively, for the three months ended October 31, 2024.
Free Cash Flow and Free Cash Flow Margin
Free Cash Flow is defined as cash provided by (used in) operating activities less net additions to property and equipment. Free Cash Flow Margin is calculated as Free Cash Flow expressed as a percentage of total revenue. For an explanation of management’s use of Free Cash Flow and Free Cash Flow Margin see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Free Cash Flow and Free Cash Flow Margin” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles our cash flow from (used in) operating activities to Free Cash Flow, and discloses Free Cash Flow Margin, for the periods indicated:
(in thousands of U.S. dollars, except for
percentages)
Three months ended October 31
Nine months ended October 31
2024
2023
2024
2023
Cash flow from operating activities
11,420
15,318
28,037
21,171
Net addition to property and equipment
(124)
(1,074)
(470)
(5,162)
Free Cash Flow
11,296
14,244
27,567
16,009
Free Cash Flow Margin
20.8 %
30.9 %
18.1 %
11.9 %
Constant Currency Revenue
Constant Currency Revenue is defined as foreign-currency-denominated revenues translated at the historical exchange rates from the comparable prior period into our U.S. dollar functional currency. For an explanation of management’s use of Constant Currency Revenue see “Non-IFRS and Other Financial Measures – Non-IFRS Financial Measures and Non-IFRS Financial Ratios – Constant Currency Revenue” section in the Company’s Interim MD&A, which section is incorporated by reference herein.
The following table reconciles our Constant Currency Revenue to revenue, for the periods indicated:
Three months ended October 31
Nine months ended October 31
(in thousands of U.S. dollars)
2024
2023
2024
2023
$
$
$
$
Total revenue for the period
54,299
46,113
151,963
134,811
(Positive) negative impact of foreign exchange rate
changes over the prior period
(193)
—
163
—
Constant Currency Revenue
54,106
46,113
152,126
134,811
During the current quarter, the Company recognized services revenue of $1.2 million from re-evaluating the completion progress of certain professional services engagements. Excluding this increase, the Company’s constant currency revenue would have been $52.9 million for the three months ended October 31, 2024.
Key Performance Indicators
Management uses a number of metrics, including the key performance indicators identified below, to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other issuers. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance.
Annual Recurring Revenue and Constant Currency Annual Recurring Revenue: We define Annual Recurring Revenue as the annualized equivalent value of subscription revenue from all existing customer contracts as at the date being measured, exclusive of the implementation period. Our calculation of Annual Recurring Revenue assumes that customers will renew their contractual commitments as those commitments come up for renewal. We believe Annual Recurring Revenue provides a reasonable, real-time measure of performance in a subscription-based environment and provides us with visibility for potential growth to our cash flows. We believe that increasing Annual Recurring Revenue indicates the continued strength in the expansion of our business, and will continue to be our focus on a go-forward basis. We define Constant Currency Annual Recurring Revenue as foreign-currency-denominated Annual Recurring Revenue translated at the historical exchange rates from the comparable prior period into our U.S. dollar functional currency.
As at October 31
(in millions of U.S. dollars, except percentages)
2024
2023
Change
$
$
%
Annual Recurring Revenue
201.7
180.1
12.0 %
Constant Currency Annual Recurring Revenue
200.7
180.1
11.4 %
SOURCE D2L Inc.
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Air Products to Expand Integrated Gas Supply Network for Semiconductor Manufacturer in Taiwan
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New investment to support next-generation facility expansion
TAIPEI, July 22, 2026 /PRNewswire/ — Air Products (NYSE:APD), a world-leading industrial gases company, today announced Air Products San Fu has been awarded a long-term agreement to support a semiconductor manufacturer’s expansion in Taiwan. The project will supply multiple new semiconductor fabs and back-end packaging facilities, supporting growing demand driven by artificial intelligence and high-performance computing.
Air Products San Fu will build, own, and operate four large state-of-the-art air separation units and bulk gas supply systems with new underground pipeline systems. The company will supply a range of industrial gases, including nitrogen, oxygen, argon, and helium to support the customer’s semiconductor operations.
The new underground pipeline systems will be connected to Air Products’ existing pipeline network in Taiwan, further enhancing supply reliability, operational efficiency, and resilience.
“Air Products is honored to be selected by our strategic customer to support their continued growth, building on our proven track record and strong long-term partnership,” said Paul Yang, President, Air Products San Fu. “This project further reinforces our role as a trusted supplier in Taiwan and reflects our long-term commitment to grow with our customers. It also underscores our world-class performance in safety, reliability and operational excellence, which are critical to meeting the increasingly demanding requirements of the electronics industry.”
Air Products has been serving the Taiwan market through Air Products San Fu for more than 70 years and has established leading supply positions across key science parks with extensive pipeline networks. The company operates one of the world’s largest ultra-high purity nitrogen pipeline systems in Southern Taiwan and is the first gas company in Taiwan awarded ISO9002 and ISO14000 certifications.
This latest project further strengthens Air Products’ integrated supply footprint across both front-end semiconductor manufacturing and back-end advanced packaging, reinforcing its position as a key supplier to the electronics industry in Taiwan.
Air Products has served the global electronics industry for more than 40 years, supplying industrial gases safely and reliably to many of the world’s leading technology companies.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 85 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global hydrogen supplier, Air Products develops, engineers, builds, owns and operates some of the world’s largest hydrogen projects. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally.
Air Products had fiscal 2025 sales of $12 billion from operations in approximately 50 countries. For more information, visit airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.
This release contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/air-products-to-expand-integrated-gas-supply-network-for-semiconductor-manufacturer-in-taiwan-302831489.html
SOURCE Air Products and Chemicals, Inc.
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Air Products to Expand Integrated Gas Supply Network for Semiconductor Manufacturer in Taiwan
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TAIPEI, July 22, 2026 /PRNewswire/ — Air Products (NYSE:APD), a world-leading industrial gases company, today announced Air Products San Fu has been awarded a long-term agreement to support a semiconductor manufacturer’s expansion in Taiwan. The project will supply multiple new semiconductor fabs and back-end packaging facilities, supporting growing demand driven by artificial intelligence and high-performance computing.
Air Products San Fu will build, own, and operate four large state-of-the-art air separation units and bulk gas supply systems with new underground pipeline systems. The company will supply a range of industrial gases, including nitrogen, oxygen, argon, and helium to support the customer’s semiconductor operations.
The new underground pipeline systems will be connected to Air Products’ existing pipeline network in Taiwan, further enhancing supply reliability, operational efficiency, and resilience.
“Air Products is honored to be selected by our strategic customer to support their continued growth, building on our proven track record and strong long-term partnership,” said Paul Yang, President, Air Products San Fu. “This project further reinforces our role as a trusted supplier in Taiwan and reflects our long-term commitment to grow with our customers. It also underscores our world-class performance in safety, reliability and operational excellence, which are critical to meeting the increasingly demanding requirements of the electronics industry.”
Air Products has been serving the Taiwan market through Air Products San Fu for more than 70 years and has established leading supply positions across key science parks with extensive pipeline networks. The company operates one of the world’s largest ultra-high purity nitrogen pipeline systems in Southern Taiwan and is the first gas company in Taiwan awarded ISO9002 and ISO14000 certifications.
This latest project further strengthens Air Products’ integrated supply footprint across both front-end semiconductor manufacturing and back-end advanced packaging, reinforcing its position as a key supplier to the electronics industry in Taiwan.
Air Products has served the global electronics industry for more than 40 years, supplying industrial gases safely and reliably to many of the world’s leading technology companies.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 85 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global hydrogen supplier, Air Products develops, engineers, builds, owns and operates some of the world’s largest hydrogen projects. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally.
Air Products had fiscal 2025 sales of $12 billion from operations in approximately 50 countries. For more information, visit airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.
This release contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/air-products-to-expand-integrated-gas-supply-network-for-semiconductor-manufacturer-in-taiwan-302831489.html
SOURCE Air Products and Chemicals, Inc.
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UOB partners Visa to launch new Visa Infinite tiers across ASEAN in landmark multi-market launch of such scale
Published
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July 22, 2026By
More than 300,000 cardholders will enjoy expanded suite of premium benefits as UOB strengthens its regional leadership in premium payment solutions.
SINGAPORE, July 22, 2026 /PRNewswire/ — UOB has partnered with Visa, a global leader in digital payments, to relaunch several card products across its five key markets (Singapore, Malaysia, Thailand, Indonesia and Vietnam) under Visa’s newly introduced premium card tiers, Visa Infinite Privilege and Visa Infinite Private.
UOB is progressively upgrading its suite of affluent and high-net-worth (HNW) card solutions to the new Visa Infinite tiers, reinforcing the Bank’s leadership in premium card innovation. With the relaunch, more than 300,000 UOB Visa Infinite cardholders across ASEAN will be upgraded to higher card tiers, giving them access to an expanded suite of premium benefits. All other cardholders will continue to enjoy their existing privileges, with no downgrades across the portfolio. Eligible UOB Visa Infinite cardholders will be notified of their new card tiers via UOB’s official channels from September onwards, with no action required from them.
UOB is currently Visa’s largest card issuer in ASEAN[1] and brings an unparalleled regional footprint and customer base, serving over 8.5 million customers across the region. As the first Visa issuer across ASEAN to execute a launch of this scale across multiple markets, UOB and Visa are setting a new benchmark for regional card offerings, delivering elevated privileges and experiences to affluent cardmembers in the region. This collaboration is timely as affluent spending in ASEAN experiences strong growth. The number of new UOB affluent cardholders[2] grew over 10 per cent year-on-year in 2025, while card billings for this segment surged more than 25 per cent in the same year.
Visa unveiled its refreshed Visa Infinite offering in Asia Pacific on 16 July 2026, reimagined for the evolving needs of today’s affluent consumers. Anchored in a three-tier card suite, the enhanced platform introduces greater flexibility, personalisation and differentiated benefits across the affluent spectrum. In addition to Visa Infinite, the portfolio now includes the newly launched Visa Infinite Privilege and Visa Infinite Private, enabling issuers to deliver more tailored value propositions, experiences and rewards to distinct customer segments within a unified premium framework.
Selected top-tier UOB cardholders across the region will enjoy access to enhanced platform privileges and UOB-exclusive curated experiences, tailored to their respective Visa Infinite tiers. This aligns with UOB’s sharpened customer segmentation approach and enhanced card value propositions, aimed at serving the unique needs of customers by offering exclusive privileges tailored to their lifestyle preferences.
Mr Pratik Bhattacharjee, Head of Group Cards and Payment Products, UOB, said, “As UOB continues to sharpen our customer-centric operating model, we are focused on serving our customers more holistically across the wealth spectrum. Our partnership with Visa marks a significant milestone in this journey, allowing us to deepen our engagement with affluent customers by curating exclusive experiences that money cannot buy. As we continue strengthening our offerings to cater to each customer’s aspirations and lifestyle, our goal is to connect with them through life moments and opportunities that truly matter.”
Mr. T.R. Ramachandran, Head of Products & Solutions for Asia Pacific, Visa, said, “The affluent segment is one of the fastest-growing consumer segments in Asia Pacific, with expectations evolving alongside it. Today’s affluent consumers are seeking experiences that are more personalised, seamless and relevant to their lifestyles. The refreshed Visa Infinite portfolio is designed to meet these changing expectations, and through our partnership with UOB, we are extending these enhanced experiences to affluent customers across Southeast Asia.”
Greater personalisation through tiered privileges
With Visa’s enhanced Infinite tier segmentation, selected cardholders will benefit from more tailored services, differentiated privileges and elevated experiences that reflect their evolving lifestyle needs. This includes access to curated regional and global lifestyle offers as well as premium destination-based travel and dining privileges worldwide as part of the base membership. In addition, selected cardholders will get exclusive access to top-tier concerts and global sporting events like FIFA World Cup™, and reserved entitlements to key lifestyle offerings under Visa Infinite Privilege. At the highest tier, Visa Infinite Private offers bespoke invitation-only experiences highly personalised for ultra-high-net-worth individuals.
Leveraging its deep understanding of affluent customers across the region, UOB will complement Visa’s refreshed benefits with exclusive privileges, curated experiences and value-added offerings tailored to the unique preferences of its cardmembers. For example, selected cardholders will be able to enjoy specially-customised luxury travel experiences and privileged access to curated series of rare timepieces.
Paired with the Bank’s unparalleled regional connectivity, advisory excellence and One Bank ecosystem, this partnership with Visa aligns with UOB’s aim to bring together banking, wealth and lifestyle holistically to all customers. This also furthers the Bank’s ambition to become the Bank of Choice for aspiring customers across ASEAN.
-END-
About UOB
UOB is a leading Asian bank with a global network in Southeast Asia, Asia Pacific, Europe and North America. Operating through our head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, we have a global network of more than 470 branches and offices in 19 markets. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. Today, UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings.
For more than nine decades, UOB has adopted a customer-centric approach to create long-term value by staying relevant through its enterprising spirit and doing right by its customers. UOB is focused on building the future of ASEAN – for the people and businesses within, and connecting with, ASEAN.
The Bank connects businesses to opportunities in the region with its unparalleled regional footprint and leverages data and insights to innovate and create personalised banking experiences and solutions catering to each customer’s unique needs and evolving preferences. UOB is also committed to help businesses forge a sustainable future, by fostering social inclusiveness, creating positive environmental impact and pursuing economic progress. UOB believes in being a responsible financial services provider and is steadfast in its support of art, social development of children and education, doing right by its communities and stakeholders.
About Visa
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at www.visa.com.sg
[1] Largest card issuer by total billings
[2] Includes UOB Reserve Card, UOB Zenith Card and UOB Visa Infinite cards
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