OneSoft Solutions Reports Q4 and Annual Results for Fiscal 2023 and Reiterates Fiscal 2024 Guidance - Seite 2

The chart below shows revenue for the past thirty quarters (7.5 years). Quarterly revenue increased as a result of continued addition of new customers, expanded use of CIM by existing customers and augmented by the acquisition of IM Operations' customers acquired June 30, 2022. Management's objective is to continue to increase revenues to drive cash flow and profitability which we believe will increase future Company value for shareholders.

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Fiscal 2023 Operational Update

• The Company's customer relationships continued to strengthen, supporting Management's beliefs that customer retention is expected to remain near 100% and its current and new software-as-a-service ("SaaS") products under development will continue to be adopted by existing and new customers.
• The Cognitive Integrity Management ("CIM") SaaS platform is currently being used as the primary integrity management solution for oil and gas ("O&G") pipeline companies who collectively operate approximately 20% of the piggable pipeline infrastructure in the U.S.A. Management believes that use of the Company's solutions for the balance of non-piggable pipelines that are currently managed using legacy systems and processes represents significant future opportunity for the Company.
• The Company's CIM platform includes core CIM and various functionality modules that integrate with CIM, including Internal Corrosion Management ("ICM"), External Corrosion Management ("ECM"), Crack Management ("CM"), Probabilistic Risk Management ("RM") and Geohazard Strain Management ("GS"). Management's optimism for the business is bolstered by expressions of interest from customers and from the formalized steering committee initiated at the October 2023 CIM user group event, comprised of senior industry personnel whose roles generally direct integrity management functions and control the associated budgets.
• The Company invested resources in Fiscal 2023 to advance marketing, sales and product development initiatives, with a view to enhance its competitive moat and maintain its global technology lead by leveraging cloud computing, data science and machine learning to assist O&G pipeline operators to mitigate failure threats and reduce operating costs.
• The Company attended several key O&G industry tradeshow and exhibition events during Fiscal 2023, participated in industry educational events wherein Company personnel presented white paper research learnings and hosted its first annual User Group Conference, in collaboration with the Microsoft team that focuses on O&G customers. OneBridge benefits from being a Microsoft "managed partner" whose O&G sales team members participate in joint sales efforts to pursue sales opportunities involving the Company's solutions that operate on Microsoft's Azure cloud platform.
• Use of the CIM platform by customers increased essentially in accordance with Management's expectations during Fiscal 2023, with higher pipeline miles operated by customers and miles under SaaS subscriptions driving revenue. OneBridge onboarded five additional pipeline operators during Fiscal 2023, who became new CIM users due to direct sales efforts or after being acquired by existing CIM customers. Some customers expanded their use of the CIM platform to include ICM and other new functionality modules, a trend we believe will generate recurring revenue in future periods.
• The Company's development team had a highly productive year in 2023, having released 6 major CIM platform updates, evolved the ICM, ECM, CM, RM and GS functionality modules and advanced various data science and machine learning projects. This team also addressed 221 User Stories, 180 Bugs and 2,496 commitments for customers and upgraded the CIM platform to .NET 6 status. Development staff trained in new Microsoft technologies and systems during Fiscal 2023 and this, together with our new customer additions, resulted in the Company earning the Microsoft Solutions Partner designation for "Digital and App Innovation (Azure)". This provides the Company access to accelerated support and discounted or free internal user rights for a wide swath of Microsoft products.
• The Company's client services team addressed 17 projects during Fiscal 2023, primarily involving 6 clients and 5 core CIM platform implementations, collectively involving 15 divisional operators and more than 700 pipeline systems. Projects included work associated with integrity management and compliance, geographic information system ("GIS") integrations, loading of more than 3,700 ILI assessments and 67 million anomalies into CIM, migrating data from legacy systems into CIM, integrating with various customer software applications and training.
• The following table estimates the aggregate pipeline miles operated by all customers, miles of customers' pipeline assets that are subject to multi-year SaaS agreements and miles of pipeline data ingested into our CIM platform, for which revenue was earned ("data-miles") in Fiscal 2023. Please refer to the MD&A for more information regarding data-mile.

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^1: The revenue per mile (Cdn $) for revenue generating miles includes CIM revenue only and excludes IM Operations revenue.