Universal mCloud Announces Operating Results and Strategic Update for the First Half of 2018

2018-11-28T16:51:56+00:00August 23rd, 2018|Press Release|
  • Revenues Increased 26% Sequentially Q2 2018 vs. Q1 2018
  • Adjusted EBITDA tracking to Break Even with improvement vs Q1 2018
  • Significant improvement in working capital

VANCOUVERAug. 23, 2018 – Universal mCloud Corp. (TSX-V: MCLD) (“mCloud” or the “Company”), a leading provider of Artificial Intelligence and Analytics (“AI&A”) and IoT-connected asset care technology, has provided an update on its operations and strategic activities for the first half of 2018.

Operating Results and Improvements

Consolidated revenues increased 26% sequentially in Q2 2018 from $2.4M in Q1 2018 to $3M. Gross margins remained strong at 64%, largely driven by the execution of the Company’s strategy to acquire high-margin innovative technology companies. Recurring operating expenses were strategically managed to drive Adjusted EBITDA towards break-even, with improvement over Q1 2018.

The Company has provided first and second quarter 2018 operating results on a sequential, pro forma basis assuming the acquisitions of NGRAIN and CSA and the transaction with Flow Capital were in effect for the full duration of these periods for comparability purposes.

The Company continued to strengthen its balance sheet, closing its third equity round in 2018, further diversifying its investor base and enabling the Company to aggressively pursue its growth strategy and capitalize on acquisition opportunities in the market.

Please follow the link below to view CEO Russ McMeekin’s interview with Proactive Investors.

Strategic Acquisitions and Customer Wins

mCloud announced its transaction with Flow Capital in late June 2018, for the acquisition of the Agnity Global (“Agnity”) royalty arrangement. During the second quarter of 2018, the Company also continued steps towards closing the CSA transaction. Both acquisitions are expected to close before year end with the cash components of the transactions to be funded via the exercise of the Company’s warrants, which commenced in July 2018. These acquisitions will enhance the AssetCare™ platform, further enabling the Asset-Circle-of-Care™.

mCloud also continued to bolster its business pipeline in Q2 2018, signing large contracts with new customers, securing key contract renewals and connecting Smart Building customers under its Master Reseller Agreement with TELUS for Smart Building Solutions in Canada.

AssetCare™ Technology Progress

In Q2 2018, mCloud began to further integrate Agnity’s technology into the AssetCare™ platform, extending its reach to new markets and furthering mCloud’s capabilities to securely deploy innovative IoT technologies to its growing customer base. During the second quarter of 2018, mCloud remotely monitored and inspected several wind farms and collecting additional blade data and insights. mCloud’s continued enhancements to the AssetCare™ platform  have received positive feedback from asset owners in the USACanada and China. The AssetCare™ offering is built in the cloud and allows the Company to connect to an ever-increasing number of IoT devices. These remote IoT devices capture and store data in the cloud where learning algorithms and AI output the information required to better operate and maintain the assets under care. The Company expects major progress to continue to be made on the platform throughout 2018 and 2019.

Progress and Outlook

Revenues in the second quarter began to diversify from its previously highly concentrated US-based customers with traction now in Canada and Asia. During the quarter the Company experienced significant demand and connected assets from existing customers and locations where mCloud is very well established. New contracts were signed and early deployments started via the TELUS Master Reseller Agreement.

“Q2 was another quarter of robust growth in the aggregate of the technology segments we have been combining to form mCloud’s AssetCare™ Platform.” said Russel McMeekin, mCloud President and CEO. “We remain focused on improving our balance sheet, ensuring we continue to build the high-margin recurring revenue base that is driving us towards profitability. Our continued improvement of working capital via capital from the exercise of warrants supports our acquisitions plan. We continue to build solid momentum in all aspects of our business and expect a robust second half of 2018 which will position us well for continued growth into 2019.”

Supplemental Information:

Pro Forma Statements of Operations


in Canadian dollars

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Note:  The above financial information is presented on a pro forma, unaudited basis, and includes the revenues and expenses of NGRAIN, CSA and the Flow Capital transaction as though these acquisitions had been completed and in effect for the periods presented for comparability purposes. This information also excludes certain expenses that are non-recurring in nature and are not reflective of the ongoing operation of the Company.

About Universal mCloud Corp.
Universal mCloud is headquartered in Vancouver, BC with technology and operations centers in San Francisco, CA and Bristol, PA. mCloud is an Artificial Intelligence and Analytics, IoT connected asset care cloud solution company utilizing connected IoT devices, AI, deep energy analytics, secure mobile and 3D technologies that rally all asset stakeholders around an Asset-Circle-of-Care™, providing complete real-time and historical data coupled with guidance and advice based on deep analytics and diagnostics resulting in optimal performance and care of critical equipment. It’s all about the asset. The powerful and secure AssetCare™ environment is accessible everywhere, 24/7 through standard mobile devices, ruggedized headsets, and web browsers. For more information, visit www.mCloudCorp.com.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein includes, but is not limited to, prospective financial results and business prospects of the Company and the completion of proposed transactions with CSA and Flow Capital.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, the risks discussed under the heading “Risk Factors” on pages 29 to 46 of the Company’s filing statement dated October 5, 2017. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Universal-mCloud Corp

For further information: Madelin Daviau, NATIONAL | Equicom, T: 416-848-9833, mdaviau@national.ca; Russ McMeekin, Chief Executive Officer, Universal mCloud Corp., T: 415-635-3500