Pivotree Announces Fourth Quarter 2024 Results

Pivotree delivers record Adjusted EBITDA of $1.7 million in Q4 2024 since going public in 2020

TORONTO, ONTARIO / ACCESS Newswire / March 27, 2025 / Pivotree Inc. (TSXV:PVT) ("Pivotree" or the "Company"), a leader in frictionless commerce solutions, today reported financial results for the three and twelve month period ended December 31, 2024. All amounts are expressed in Canadian dollars unless otherwise stated.

"Adjusted EBITDA improved $2.5 million over Q3 2024 to reach $1.7 million for the quarter-our best in recent history. This is thanks in large part to the Pivotree team's hard work implementing organizational changes and I am thankful for how all of our Pivoters adapted to this transformation so quickly." said Bill Di Nardo, CEO of Pivotree. "These changes also reduced management layers, brought senior leaders closer to clients, and improved operating efficiencies beyond basic cost savings."

Pivotree also announced today that it has released a letter to shareholders from Bill Di Nardo, CEO. The letter can be accessed from the Company's website at investor.pivotree.com and filed on SEDAR at www.sedar.com.

Fourth Quarter 2024 Financial Highlights

(All figures are in Canadian dollars and all comparisons are relative to the three-month period ended December 31, 2023 unless otherwise stated):

• Total Revenue of $18.2 million, a decrease of 13.3% or a decrease of 15.2% in constant currency.

  • Total Managed & IP Solutions + Legacy Managed Services (MIPS + LMS) of $7.9 million, a decrease of 26.4%, or 28.0% in constant currency.

    • Managed & IP Solutions (MIPS) Revenue declined 26.2% to $3.4M in Q4 2024, due to one time SKU Build volume benefit in the prior year and within the range company has been expecting

    • Legacy Managed Services (LMS) Revenue declined 26.6% to $4.5M in Q4 2024, from $6.1M in Q4 2023, related to churn and melt of Legacy Oracle customers

  • Professional Services Revenue of $10.4 million, an increase of 0.3% or a decrease of 1.9% in constant currency. The year-over-year increase was primarily due to new product information systems' implementations and migrations to new ecommerce platforms which contributed to offsetting completed projects from the prior year.

• Gross profit of $8.0 million, a decrease of 18.5% and representing 44.0% of total revenue compared to $9.8 million or 46.7% of revenue for the prior year period.

  • The decrease is primarily due to the mentioned decline of LMS revenues.

• Net loss of $0.2 million compared to net loss of $1.4 million for the prior year period, primarily due to reduced operating expenses as a result of restructure efforts, as well as foreign exchange impact.

• Adjusted EBITDA¹ of $1.7 million compared to an adjusted EBITDA¹ of $0.6 million for the prior year period.

¹Please refer to "Key Performance Indicators" section of this press release.
² Please refer to "Non-IFRS Measures and Reconciliation of Non-IFRS Measures" section of this press release.

Fourth Quarter 2024 Business Highlights

• Commerce won extensions of Professional Services projects across multiple platforms including, Shopify, Spryker, and VTEX. Oracle ATG renewals continued within the Legacy Managed Services segment, extending the term of these contracts. Additionally, the team cross-sold a trial of Pivotree Control Tower to a customer transitioning from Oracle ATG to VTEX, creating potential for new MIPS revenue in the future.

• Data achieved its strongest quarter of TCV Bookings in the trailing 24 months, driven primarily by longer-term SKU Build deals. The team secured two seven-figure SKU Build deals and two new POCs, further contributing to MIPS TCV Bookings. Beyond SKU Build success, Professional Service projects across Informatica, Stibo, and Precisely continued to expand in scope. Renewals in our FAS category will provide added visibility into 12 months of recurring revenue within the MIPS category.

• Supply Chain continued to secure Managed Services renewals for Fluent OMS with customers who are leveraging Pivotree Connect and Pivotree Control Tower. Additionally, the Professional Services business benefited from extensions of Fluent OMS and Sterling OMS project extensions.

Fourth Quarter 2024 Results

Selected Financial Measures

Results of Operations

The following table outlines our consolidated statements of loss and comprehensive loss for the three and twelve months ended December 31, 2024 and 2023.