Enfusion(US:ENFN)2023-05-08 16:00Revenue Performance - Total revenues for the three months ended March 31, 2023, were $41.0 million, an increase of $6.8 million or 20.0% compared to $34.1 million for the same period in 2022[116] - Platform subscriptions revenue increased by $6.4 million or 20.4%, from $31.6 million in Q1 2022 to $38.0 million in Q1 2023, driven by new client revenues of $4.5 million[118] - Managed services revenue rose by $514 thousand or 23.0%, from $2.2 million in Q1 2022 to $2.7 million in Q1 2023, primarily due to upsells and new client revenues[119] - Approximately 99.4% of total revenues for Q1 2023 were recurring subscription-based, consistent with 98.9% in Q1 2022[94] Profitability - Gross profit increased by $4.5 million, from $23.2 million in Q1 2022 to $27.7 million in Q1 2023, with a gross profit margin of 67.5%[123] - Net income for the three months ended March 31, 2023, was $4.7 million, compared to a net loss of $12.5 million for the same period in 2022[96] Expenses - Total cost of revenues increased by $2.3 million or 21.1%, from $10.98 million in Q1 2022 to $13.3 million in Q1 2023, mainly due to increased payroll and hosting costs[122] - General and administrative expenses decreased by $7.8 million or 35.1%, from $22.3 million in Q1 2022 to $14.5 million in Q1 2023[124] - Sales and marketing expenses decreased by $4.3 million or 51.5%, from $8.4 million in Q1 2022 to $4.1 million in Q1 2023[124] - General and administrative expenses decreased by $7.8 million, from $22.3 million in Q1 2022 to $14.5 million in Q1 2023, primarily due to a $9.2 million decrease in stock-based compensation[125] - Sales and marketing expenses decreased by $4.3 million, from $8.4 million in Q1 2022 to $4.1 million in Q1 2023, mainly due to a $3.6 million decrease in stock-based compensation[126] - Technology and development expenses decreased by $371 thousand, from $4.8 million in Q1 2022 to $4.4 million in Q1 2023, primarily due to a $1.0 million decrease in stock-based compensation[127] Cash Flow and Liquidity - Net cash provided by operating activities was $924 thousand in Q1 2023, a $5.0 million increase compared to a cash used of $4.1 million in Q1 2022[136] - Net cash used in investing activities decreased by $621 thousand, from $3.2 million in Q1 2022 to $2.6 million in Q1 2023[139] - Cash flows from financing activities resulted in a cash outflow of $6.4 million in Q1 2023, compared to $805 thousand in Q1 2022, marking a significant increase of 689.2%[140] - As of March 31, 2023, the company had cash and cash equivalents of $54.6 million and $5 million in available borrowing capacity under its Revolving Debt[130] Future Outlook - The company continues to invest in research and development to enhance system functionality and open new revenue opportunities[95] - The company expects to issue approximately 15.8 million shares of Class A common stock between March 31, 2023, and October 20, 2023, which may impact liquidity and capital resources[133] - The company does not anticipate declaring or paying any cash dividends in the foreseeable future, intending to retain all available funds and future earnings[146] - The estimated amount of existing tax basis and basis adjustments acquired in the IPO is approximately $229.3 million, which may result in substantial payments under the Tax Receivable Agreement[147]