TORONTO, Dec. 8, 2021 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE" or the "Company"), a leading acquirer and operator of niche e-commerce brands, is pleased to provide the following corporate update based on preliminary results:
EMERGE achieved record Gross Merchandise Sales(1) ("GMS") of approximately $10 million (unaudited), a 236% increase compared to November 2020
GMS(1) for the month of November 2021 exceeded the Company's reported GMS(1) for the full quarter in Q3 2021
WholesalePet.com, EMERGE's most recent acquisition, saw double-digit organic growth year over year, strong profitability, and positive cash flow during November 2021
Based on results to date, the Company anticipates Q4 2021 to be its largest quarter yet in terms of GMS(1), Revenue and Adjusted EBITDA(1)
EMERGE CEO and CFO to host year-end virtual webcast on Tuesday, December 14, at 11:00am ET (REGISTER BELOW)
"In November, we saw a glimpse of the power of the combined portfolio at our new collective scale, as GMS this past month exceeded our entire reported GMS from Q3 2021, and we recorded our first $1M GMS day on Cyber Monday," commented Ghassan Halazon, the Company's Founder and CEO.
WholesalePet.com, EMERGE's most recent acquisition, and its first B2B marketplace platform, is achieving double-digit organic growth, with strong profitability and positive cash flow during its first month-to-date under EMERGE ownership.
"We are pleased to report that WholesalePet.com is having a terrific first month so far under EMERGE. One of our favorite stats from this business is that the average tenure of our top 10 customers is approximately 10 years, a testament to the unprecedented level of loyalty on the platform. Combining strong repeat customer lifetime value ("CLTV") with an average EBITDA margin of nearly 75% is a winning formula that we believe will continue to stand the test of time," continued Halazon.
Since its go-public listing in December 2020, EMERGE has closed three acquisitions, along with four leading niche e-commerce brands, truLOCAL.ca, BattlBox.com, CarnivoreClub.co and WholesalePet.com. In total, the Company currently owns and operates 8 brands across 5 verticals in North America.
EMERGE Founder and CEO, Ghassan Halazon, along with EMERGE CFO, Jonathan Leong, will be hosting a virtual corporate presentation on Tuesday, December 14, at 11:00am ET to discuss the company's strong performance in Q4 to date, as well as provide an M&A pipeline update, and outline key priorities for 2022.
Webinar (Zoom) ID: 844 1837 6025
Non-GAAP Financial Measure. Refer to section "Non-GAAP Financial Measures" below for additional information.
EMERGE (TSXV: ECOM) is a disciplined, diversified, rapidly growing acquirer and operator of profitable niche e-commerce brands. Our subscription and marketplace e-commerce properties provide our members with access to pet products, premium meat & groceries, outdoor gear, golf, and other curated experiences. Our portfolio houses some of North America's most coveted online destinations including WholesalePet.com, trulocal.ca, BattlBox.com, UnderPar.com, JustGolfStuff.ca, CarnivoreClub.co, WagJag.com, and BeRightBack.ca. EMERGE was named one of the fastest growing companies in Canada by the Startup 50, and the Globe and Mail's 2020 Canada's Top Growing Companies.
To learn more visit https://www.emerge-commerce.com/
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Gross Merchandise Sales ("GMS"), EBITDA and Adjusted EBITDA should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. GMS, EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
GMS as defined by management is the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of discounts and refunds. Management believes GMS provides a useful measure for the dollar volume of e-commerce transactions made through our platforms and an indicator for our business performance.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA as defined by management means earnings before interest and financing costs, income taxes, depreciation and amortization, transaction costs, foreign exchange gains/losses, discontinued operations, unrealized gains/losses on contingent consideration and share-based compensation. Management believes that Adjusted EBITDA is a useful measure because it provides information about the operating and financial performance of EMERGE and its ability to generate ongoing operating cash flow to fund future working capital needs and fund future capital expenditures or acquisitions.
Notice regarding forward-looking statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the risk factors discussed in the Company's filing statement which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE EMERGE Commerce Ltd.
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