RIWI Releases Q1 Financials

Toronto, Ontario–(Newsfile Corp. – May 21, 2025) – RIWI Corp. (TSXV: RIWI) (OTC Pink: RWCRF) (the “Company” or “RIWI”), a market research platform, global trend-tracking and prediction technology firm, reported its financial results for the three months ended March 31, 2025. All figures are reported in U.S. dollars unless otherwise indicated. RIWI’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

RIWI Highlights for the quarter ended March 31, 2025 – in US Dollars:

a) RIWI earned $1,568,270 in revenues in the quarter ending March 31, 2025 compared to $1,135,847 for the quarter ended March 31, 2024, an increase of 38%. The Company’s revenue consisted of $808,609 in transaction revenue, $393,936 in recurring revenue and $365,725 in project-based revenue. RIWI also recorded a net loss of $345,766 and an operating loss of $321,260 for the period as compared to a net profit of $27,087 and an operating loss of $2,236 for the quarter ending March 31, 2024. As noted in the Company’s March 6, 2025 news release, the U.S. federal government’s abrupt cancellation of several USAID contracts contributed to lower revenues than management had expected for the quarter ending March 31, 2025. Despite this, the Company achieved record-breaking 12-month trailing revenues of $5,570,521 as of quarter-end, marking the highest such period in RIWI’s history.

b) During the first quarter of 2025, RIWI focused extensively on integrating the TheoremReach business following the acquisition’s completion on October 10, 2024. Throughout Q1, the Company successfully consolidated significant portions of TheoremReach’s infrastructure and personnel with the existing Research on Mobile (ROM) business unit. Subsequent to the quarter end and prior to the publication of this MD&A, the integration process has been fully completed, resulting in monthly cost synergies of $20,000 through infrastructure optimization and workforce rationalization.

c) RIWI signed 24 new client contracts in the three months ended March 31, 2025, including contract signings with 11 new RIWI customers.

d) In the first quarter of 2025, RIWI introduced two strategic platform enhancements that expand its solution portfolio. The Company launched an innovative Premium Packaging Solution that quantitatively evaluates product packaging effectiveness through metrics of consumer attention and purchase intent. Additionally, RIWI implemented an advanced sample management system that seamlessly integrates partner survey respondents with client systems, reducing implementation time from hours to minutes. This technological advancement has significantly improved operational efficiency, decreasing project launch effort by approximately 80% and enabling more responsive client service delivery.

e) RIWI has strategically expanded its European market presence with the appointment of a senior sales executive based in Barcelona, Spain. This represents the Company’s first dedicated senior sales executive in the region and aligns with RIWI’s international growth objectives. The Company anticipates beginning to capture European market share in Q3 2025, accounting for the standard onboarding period and RIWI’s typical six-month sales cycle before new representatives begin generating executed contracts. This investment positions RIWI to establish a stronger competitive foothold in key European markets.

f) RIWI attended SampleCon in the first quarter of 2025 in order to both build the brand and grow its global audience. Based on a successful showing and new supply contracts signed, RIWI expects transactional revenue to grow at least 10% from the first quarter of 2025 to the third quarter of 2025 as it generally takes three months for new supply integrations to come online and start generating revenue.

RIWI CORP.  Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) For the three months ended March 31, 2025 and 2024  (Unaudited and expressed in U.S. dollars)    Three months endedMarch 3120252024  Revenues (Note 8)$ 1,568,270$1,135,847  Operating expenses  General and administrative (Note 9)479,149388,754Operations (Note 9)1,040,884505,486Technology costs (Note 9)174,498106,718Sales and marketing (Note 9)194,999137,125Total operating expenses1,889,5301,138,083  Operating loss before other income(321,260)
(2,236)  Other income/(expense)  Interest income1,32029,323Interest expense(30,740)
-Other expenses (11,053)
-Total other income(40,473)
29,323Net income (loss) before income taxes(361,733)
27,087  Income tax expense/(recovery)(15,967)
-Net income (loss) and comprehensive income (loss) for the period$(345,766)
$27,087    Net income (loss) per share  Basic and diluted$(0.02)
$0.00  Weighted average number of common shares outstanding  Basic and diluted 18,004,42818,004,428

 

RIWI CORP.   Condensed Consolidated Interim Statements of Financial Position  As at March 31, 2025 and December 31, 2024   (Unaudited and expressed in U.S. dollars)       March 31, 2025  December 31, 2024   Assets      Current assets   Cash and cash equivalents (Note 4)
 $ 847,687   $ 1,845,224 Accounts receivable (Note 11(a))
  1,653,783    1,636,810 Unbilled revenue (Note 8(b))
  32,533    112,069 Contract costs
  26,658    38,082 Prepaid expenses and other assets
  98,068    128,921 Total current assets  2,658,729    3,761,106    Property and equipment
  22,801    24,652 Intangible assets (Note 5)
  1,411,229    1,496,485 Goodwill (Note 5)
  1,047,092    1,047,092 Total assets $5,139,851   $ 6,329,335    Liabilities      Current liabilities   Accounts payable and accrued liabilities
 $993,751    $ 1,179,152 Acquisition holdbacks payable
  400,979    775,991 Deferred revenue (Note 8(b))
  801,009    1,092,815 Notes payable (Note 6)
  59,284    58,073 Total current liabilities   2,255,023    3,106,031     Long-term liabilities    Long-term portion of notes payable (Note 6)
  953,125    967,473 Deferred tax liability  199,303    215,270 Total liabilities  3,407,451    4,288,774    Shareholders’ equity      Share capital (Note 7)  4,940,930    4,940,930 Contributed surplus (Note 7)
  3,027,830    2,990,225 Accumulated deficit
  (6,236,360)   (5,890,594)Total shareholders’ equity  1,732,400    2,040,561 Total liabilities and shareholders’ equity $ 5,139,851   $6,329,335

 

“The transformation of RIWI continued in Q1 with the integration and merging of our transactional business units of Research on Mobile and TheoremReach. This work is already driving significant cost synergies,” said Greg Wong, Chief Executive Officer of RIWI. “The laser focus of the Company is growing revenue and controlling costs in order to become consistently profitable and generate positive cash flow on a monthly basis. That means a commitment to excellence in sales and marketing execution and enhanced automation of our platform with a focus on achieving positive operating results,” added Mr. Wong.

About RIWI

RIWI is a market research platform and global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries. https://riwi.com.

Neither the 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.

CAUTION REGARDING FORWARD-LOOKING INFORMATION:
Information and statements contained in this news release that are not historical facts are “forward-looking information” within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and RIWI does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Company’s expectations or beliefs regarding future events. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252954