Corcentric Reports First Quarter 2022 Financial Results

NEW YORK, NY, and CHERRY HILL, NJ, July 21, 2022 – Corcentric, a leading global provider of payments, procurement, accounts payable, and accounts receivable solutions to enterprise and middle-market companies, today reported financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Financial Highlights:

• Total revenues increased 12.0% year-over-year to $40.8 million, compared to $36.5 million in the prior year period.
• Payments, software, and advisory revenue (excluding equipment sales) increased 20.5% year-over-year to $30.1 million, compared to $25.0 million in the prior year period.
• Gross profit increased 44.0% year-over-year to $17.6 million, compared to $12.2 million in the prior year period. Gross margin improved to 43.1% compared to 33.5% in the prior year period.
• Gross profit on payments, software, and advisory revenue (excluding equipment sales) increased 32.8% to $15.4 million, compared to $11.6 million in the prior year period. Gross margin improved to 51.0% compared to 46.2% in the prior year period.
• Non-GAAP adjusted gross profit increased 35.3% year-over-year to $22.4 million, compared to $16.6 million in the prior year period. Non-GAAP adjusted gross margin improved to 54.9% compared to 45.4% in the prior year period.
• Non-GAAP adjusted gross profit on payments, software, and advisory revenue (excluding equipment sales) increased 26.9% to $20.2 million, compared to $15.9 million in the prior year period. Related Non-GAAP adjusted gross margin improved to 66.9% compared to 63.6% in the prior year period.
• Net loss decreased to $1.3 million from a net loss of $6.8 million in the prior year period.
• Non-GAAP adjusted EBITDA increased 68.5% to $8.4 million, compared to $5.0 million in the prior year period.
• Year-to-date monetized transaction volume (MTV) increased 25.8% to $755.7 million, compared to $600.7 million in the prior year period.
• Dollar-based net revenue retention was 109.0% for the trailing twelve months (TTM) ended March 31, 2022 compared to 95.3% for the TTM ended March 31, 2021.

Reconciliations of the Non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of the measures, why we believe they are meaningful, and how they are defined is also included under the heading “Non-GAAP Financial Measures and Certain Key Operating Metrics” below.

First Quarter 2022 Business Highlights:

• Signed a new multi-year agreement to provide order-to-cash solutions to a leading group purchasing organization with multi-billion dollars of purchasing volume.
• Completed integration and rebranding of 2020 acquisition of Vendorin to Corcentric Payments.
• Presented at numerous payments, procurement, and supply chain events in North America and Europe.

Corcentric’s Founder, CEO, and Chairman Douglas W. Clark, commented, “We are pleased with our first quarter results, as we continue to deliver consistent, sustainable, and profitable growth at scale. We believe our new order-to-cash contract will represent a major win for Corcentric once the customer is fully ramped, and we are excited by the positive momentum in our business. This strong first quarter solidifies our confidence in our full year 2022 outlook.”

Clark continued, “We look forward to our entrance into the public markets, targeted for the third quarter of 2022, through our pending merger with North Mountain Merger Corp. and executing upon our shared vision to grow and scale the business to transform how companies purchase, pay, and get paid.”

As a reminder, in December 2021 Corcentric announced its plans to become a publicly-listed company through a business combination with North Mountain Merger Corp. (NASDAQ: NMMC) (“NMMC” or “North Mountain”), a publicly traded special purpose acquisition company.

2022 Business Outlook

Corcentric’s 2022 outlook consists of $145 million of payments, software and advisory revenue and adjusted EBITDA of $42 million (excluding estimated public company costs of $4.8 million).

Transaction Overview

As previously announced on December 10, 2021, Corcentric and North Mountain announced that they have entered into a definitive agreement to consummate a business combination (the “Transaction”). Upon the closing of the Transaction, the combined entity (the “Company”) will be named Corcentric, Inc. and will become a publicly traded company. The Company’s common stock is expected to be listed on the Nasdaq Global Market.

The Transaction has been unanimously approved by the Board of Directors of Corcentric and the Board of Directors of North Mountain and is expected to close in the third quarter of 2022, subject to the satisfaction of customary closing conditions, including the receipt of requisite regulatory approvals and the approval of the shareholders of North Mountain.