Pineapple Financial Inc. Announces Fiscal 2023 Financial Results: Projects Profitability in Fiscal 2024

TORONTO, Dec. 14, 2023 /PRNewswire/ - Pineapple Financial Inc. (NYSE American: PAPL), a leading tech-focused mortgage firm with an integrated network of partner brokerages and agents across Canada, today announced its fiscal year 2023 ended August 31 results. The company reported a net loss of $2,809,036, or $(0.45) per share, on revenue of $16,434,100. This compares to a net loss of $2,810,061, or $(0.45) per share, on revenue of $20,380,984 for the fiscal year ended August 31, 2022. The 19 percent decrease in fiscal year revenue was primarily due to The Bank of Canada's interest rate increase from 2.5% as of September 1, 2022, to 5.00% as of August 31, 2023.

This measure, aimed at curbing inflation, and economic uncertainties led to a 26 percent decline in mortgage originations in Canada during the year ended August 31, 2023, impacting the mortgage business nationwide. In contrast, Pineapple Financial, by strategically expanding its national footprint and adding more users than in previous years, experienced only a 19 percent decline in revenue during this period.

The company also marginally reduced its net loss, primarily due to an 18 percent decrease in expenses during fiscal 2023 as compared to the previous fiscal year.

Cash on hand on August 31, 2023, was $720,365 compared to $3,896,840 on August 31, 2022. This reduction was primarily the result of the company's working capital and capital expenditures during fiscal 2023, specifically those associated with technological enhancements, investments in skilled personnel, and marketing services.

Pineapple's current cash position, however, includes the receipt of IPO gross proceeds of approximately $3.5 million on November 3, 2023.

The total shares outstanding on August 31, 2023, and August 31, 2022, was 6,306,978.

In fiscal 2024, Pineapple said it expects to increase market share by deploying strategies aimed at achieving both technological innovation and strategic expansion. Among these measures are the leveraging of optimized borrower data analytics, introducing a comprehensive suite of insurance products, and expanding into new provinces and regions across Canada. The company will also continue the use of a recently announced streamlined online mortgage application providing potential homebuyers with quick and efficient insights into their borrowing capacity.

Chief executive officer Shubha Dasgupta added, "The company's growth in 2024 will also likely be buoyed by the industry forecast that, during the next 24 months, 60 percent – or $1.5 trillion – in the Canadian mortgage market is up for renewal. Couple that with the growth in population, need for housing starts, and the short-term cyclical nature of our market, and we are poised and ready for an exciting future."

Mr. Dasgupta continued, "We project profitability in fiscal 2024 and anticipate even stronger bottom-line performance in fiscal 2025.

"Additionally, to enhance shareholder value, we are actively exploring the initiation of a stock buy-back program in the next six to twelve months."

The company will host a conference call on Friday, December 15, 2023, at 8:00 AM Eastern time to discuss Pineapple's fiscal 2023 financial results. To participate in the call, please dial 877-407-0784 or 201-689-8560 approximately 5 to 10 minutes before the beginning of the call. Participants can also click the following link to obtain instant access to the event: https://callme.viavid.com/viavid/?callme=true&passcode=13743189&h=true&info=company&r=true&B=6

The call will also be broadcast live over the Internet and can be accessed at: https://viavid.webcasts.com/starthere.jsp?ei=1648285&tp_key=6b45aa1cf4

The teleconference replay will be available by dialing 844-512-2921 or 412-317-6671, referencing conference ID 13743189, three hours after the end of the event, until Friday, December 29, 2023, at 11:59 PM ET.

Pineapple is a leader in the Canadian mortgage industry, breaking the mould by focusing on both the long-term success of agents and brokerages, as well as the overall experience of homeowners. With approximately 600 brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their ultimate dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians. 

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

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Description of business (note 1)
Contingencies and commitments (note 18)
Subsequent events (note 19)

Approved on behalf of Board of Directors

The accompanying notes are an integral part of these consolidated financial statements.

SOURCE Pineapple Financial Inc.