Universal mCloud Announces Second Quarter 2019 Financial Results

  • Quarter over quarter organic revenue growth of 36% to C$3.0 million
  • Year over year revenue growth of 443%
  • Year over year normalized income losses reduced to C$132,368 from C$2.6 million 


VANCOUVERAug. 15, 2019 /CNW/ – Universal mCloud Corp.  (TSX-V:MCLD)(OTCQB:MCLDF) (“mCloud” or the “Company”), a leading provider of asset management solutions combining IoT, cloud computing, artificial intelligence (“AI”) and analytics, today announced its financial results for the second quarter ended June 30, 2019.

“In the second quarter of 2019, mCloud achieved many major milestones that will further position us for ongoing rapid organic growth,” said Russ McMeekin, mCloud President, and CEO. “The completion of the Autopro acquisition, closing of an oversubscribed debenture offering totaling near C$23.5 million and our recently announced full repayment of secured obligations to Flow Capital, have allowed mCloud to enter into a new growth phase centered on aggressively connecting new assets across all our lines of business.”

“Our increase in revenue quarter over quarter can be attributed to our solid expansion strategy,” McMeekin added. “The success we are having in getting AssetCare™️ and our new assets and customers connected to our AI-powered solutions at buildings, wind farms and oil and gas facilities around the world will continue to lay the foundation in our development of an industry-standard integrated offering.”

Q2 2019 Financial Highlights

Revenue for the second quarter grew by 36% to C$3.0 million, compared to C$2.2 million in the first quarter of 2019. In comparison to the second quarter of fiscal 2018, revenue has grown 443%.

mCloud Standalone Q2 2019 Summary (all figures in Canadian dollars)



Gross Margin                                                                                                             


Selling, General and Administrative Expenses (SG&A)                                          


Research and Development (R&D)                                                                      


Sales and Marketing (S&M)                                                                                        


Normalized Income                                                                                                        


Acquisitions, Technology Integration and New Market Expansion                  


Other Items                                                                                                                      




The tables below summarize the second quarter 2019 standalone operating performance of CSA Inc. (“CSA”) and the standalone operating performance of Autopro Automation Consultants Ltd. (“Autopro”). The Company completed its acquisition of Autopro in the third quarter as announced on July 11, 2019. The Company has received conditional TSXV approval and expects to sign a definitive agreement to acquire CSA by September 2019, at which time it will seek to obtain final approval.

CSA Standalone Q2 2019 Summary (all figures in Canadian dollars)



Normalized Income


Note: CSA’s fiscal year ended June 30, 2019. The year-end cut off and adjustments are reflected in these results.

Autopro Standalone Q2 2019 Summary (all figures in Canadian dollars)



Normalized Income


Note: Autopro’s fiscal year ended July 11, 2019. The above summary represents results based on an arbitrary cut-off ended on June 30, 2019.

Q2 2019 Operating Highlights

In the second quarter of 2019, the Company made advances across all of its lines of business, in addition to substantial progress in advancing its AssetCare technology stack.

The mCloud Smart Facilities segment closed a six-year agreement with TELUS Commercial Real Estate to improve the energy efficiency of their flagship office tower at Consilium Place in Ontario, Canada, as announced on April 11, 2019. In April 2019, the team completed its AssetCare deployment for the Heiwado Shopping Center in ChangshaHunan ProvinceChina, as part of a nine-year AssetCare contract which closed in the first quarter of 2019 and was originally announced on January 8, 2019. Since completion, the Heiwado Shopping Center has seen daily energy savings of 10% or more. Throughout the quarter, the Smart Facilities team also continued to connect to numerous new quick-service restaurant and retail customers.

The mCloud Smart Energy segment completed two wind analytics projects, one based in continental Europe and another based in China, using AssetCare to optimize wind turbine performance improving availability and energy production. Following the announcement made on March 26, 2019, mCloud and partner Britwind are working with a variety of UK customers on Endurance E-series wind turbine upgrades that include AssetCare connectivity.

The mCloud Smart Process segment saw rapid progress in delivering AssetCare to oil and gas customers across Western Canada with the announcement of six facilities connected to AssetCare within the first week of the Company’s acquisition of Autopro, as announced on July 22, 2019. These six facilities represent C$1 million in annual recurring revenue through the AssetCare Software-as-a-Service (“SaaS”) business model. The Company expects to reach over 14,000 similar upstream, midstream, and downstream facilities at oil and gas centers worldwide.

In AssetCare and technology development, the Company announced the delivery of head-worn mobile AssetCare solutions for oil and gas customers in partnership with RealWear on April 4, 2019, combining the features of an AI-powered digital assistant with advanced 3D and mixed reality capabilities to assist asset operators and maintainers in the field. These capabilities have been positively received by customers. Further AI advances were made in the second quarter, including innovative AI-based approaches to curb energy waste and offset peak surcharges at utility-defined periods of the day in commercial spaces through the use of real-time occupancy and performance data, taking advantage of the scalable computing capabilities provided through mCloud’s use of the Microsoft Azure cloud.

Go-Forward Highlights

With the mCloud and Autopro teams combined, work is underway to develop and deliver new AssetCare solutions capable of targeting multiple asset classes at oil and gas facilities with rapid customer uptake, expected to come from Autopro’s existing customer base. The Smart Energy team is continuing to seize opportunities to connect wind turbines, with engagements in the works for turbines based at wind farms in Canada and the Inner Mongolia region of China. The Smart Facilities team is expanding its early success in China with SCN to bring AssetCare to over 1,000 shopping centers and 40,000 connectable assets similar to the Heiwado retail space in Changsha. The Company also expects to announce new AssetCare solutions and capabilities later this year.

Conference Call

The Company is hosting a conference call to discuss the financial results for the second quarter today at 5:30 pm ET. The conference call will include prepared remarks from Russ McMeekin, Chief Executive Officer, and Chantal Schutz, Chief Financial Officer. After the prepared remarks, the Company will accept questions.

To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay by telephone until Thursday, August 22, 2019, at midnight (ET). To access the archived conference call, dial 1-855-859-2056 and enter the reservation number 1055348.

A live audio webcast of the conference call will be available at https://bit.ly/2L4voxp. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.  The webcast will be archived at the above website for one year.

About Universal mCloud Corp.

Universal mCloud Corp.  (TSX-V:MCLD)(OTCQB:MCLDF) is creating a more efficient future with the use of AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Through mCloud’s AI-powered AssetCare™ platform, mCloud offers complete asset management solutions to three distinct segments: smart buildings, wind energy, and oil and gas. IoT sensors bring data from connected assets into the cloud, where AI and analytics are applied to maximize their performance. Headquartered in Vancouver, Canada, the mCloud family includes an ecosystem of operating subsidiaries that delivers high-performance IoT, AI, 3D, and mobile capabilities to customers, all integrated into AssetCare. With over 100 blue-chip customers and more than 28,000 assets connected in thousands of locations worldwide, mCloud is changing the way energy assets are managed. 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 may include but is not limited to, the completion of the Transaction, the future business prospects of the Company and the potential revenue of the Company.

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 several risks as 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 are 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) accept responsibility for the adequacy or accuracy of this release.

SOURCE Universal mCloud Corp.

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