Page 1

Absolute Software Reports First Quarter Fiscal 2022 Financial Results Company posts strong ARR growth in Enterprise and Government , raises Revenue and Adjusted EBITDA guidance VANCOUVER , British Columbia & SAN JOSE , Calif .-- ( BUSINESS WIRE ) -- November 9 , 2021 -- Absolute Software Corporation ( Nasdaq : ABST ) ( TSX : ABST ) , a leader in self - healing Zero Trust solutions , today announced its financial results for its first quarter fiscal 2022 ended September 30 , 2021. All dollar figures are stated in U.S. dollars , unless otherwise indicated . “ Since the acquisition of NetMotion , we have been able to make significant progress on our product integration milestones , while also delivering continued innovation to our customers and recording some of our strongest growth numbers in several quarters , ” said Christy Wyatt , Absolute Software's President and CEO . “ In the work - from - anywhere world we now live in , we're seeing strong demand for our products and services . There is meaningful opportunity ahead for us as we bring our unique offerings to the high - growth SASE and Zero Trust markets , as organizations navigate the challenges of enabling and securing their entire workforce . We are well - positioned to deliver the resiliency , connectivity , and intelligence they need to succeed in this new environment . " The company also announced today the launch of Absolute Application - Persistence - as - Service ( APaaS ) , empowering Independent Software Vendors ( ISVS ) and system manufacturers to leverage Absolute's firmware - embedded , self - healing device connection to strengthen the health and resiliency of their mission - critical applications . Read the press release here . First Quarter ( “ Q1 " ) Fiscal 2022 ( “ F2022 ” ) Financial Highlights • • • • • • Revenue in Q1 F2022 was $ 43.7 million , representing an increase of 53 % compared to Q1 of fiscal year 2021 ( " Q1 F2021 ” ) . 76 % of the total increase from Q1 F2021 was attributed to NetMotion and 24 % was attributed to Absolute's existing business . Adjusted Revenue ( ¹ ) in Q1 F2022 was $ 49.0 million , representing an increase of 72 % compared to Q1 F2021 reported revenue , and an increase of 15 % compared to Q1 F2021 revenue on an as - if combined basis without factoring in acquisition related adjustments ( ² ) . Net loss in Q1 F2022 was $ 7.6 million , compared to net income of $ 2.6 million in Q1 F2021 . Total ARR ( 4 ) at September 30 , 2021 was $ 187.4 million , representing an increase of 68 % over the prior year reported ARR , and increase of 17 % compared to an as - if combined basis for Q1 F2021 ( 3 ) . The Enterprise & Government portions of Total ARR increased by 92 % over the prior year , and 17 % compared to an as - if combined basis for Q1 F2021 ( 3 ) . The Enterprise & Government portion represented 77 % of Total ARR at September 30 , 2021 . The Education sector portion of Total ARR increased by 19 % year over year , and 18 % compared to an as - if combined basis for Q1 F2021 ( 3 ) . The Education sector portion represented 23 % of Total ARR at September 30 , 2021 .