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D2L DESIRE2LEARN D2L Inc. Announces Financial Results for Third Quarter Fiscal 2022 Annual recurring revenue grows 20 % year over year to US $ 149.6 million Total subscription and support revenue increases by 20 % for Q3 to US $ 34.9 million and by 19 % fiscal year to date to US $ 98.5 million TORONTO , Dec. 08 , 2021 ( GLOBE NEWSWIRE ) -- D2L Inc. ( TSX : DTOL ) ( “ D2L " or the " Company " ) , a global learning technology leader , today announced financial results for its fiscal 2022 third quarter ended October 31 , 2021 . " We're having a strong year at D2L , and we experienced continued momentum across the business during the third quarter , " said John Baker , President and CEO of D2L . " Our results reflect an increase in new customers and expanded relationships with existing customers early returns from our investments in sales - as well as sustained adoption of digital learning experiences across our core markets . Our year - to - date performance puts us on track to achieve approximately 20 % revenue growth for the full year . " Mr. Baker added : " In our more than 20 - year history , the market backdrop and opportunity have never been stronger . D2L's mission to transform the way the world learns is also more vital than ever , as we work with educators to tackle learning loss from the pandemic and support employers to meet the pressing need for upskilling in the workforce . With new growth capital from the recent IPO , we are executing on an expanded strategy to press our advantage and become the category leader in learning . " 1 Third Quarter Fiscal 2022 Financial Highlights ( All amounts are in U.S. dollars unless otherwise indicated ) • Annual Recurring Revenue¹ increased by $ 25.0 million or 20 % year - over - year to $ 149.6 million as at October 31 , 2021 , compared with $ 124.6 million as at October 31 , 2020 . • Revenue of $ 39.1 million , up 18 % from the comparative period in the prior year . • Subscription and support revenue of $ 34.9 million , an increase of 20 % over the same period in the prior year . Adjusted Gross Profit¹ of $ 25.1 million ( 64.2 % of revenue ) , an increase of 30 % from Adjusted Gross Profit of $ 19.3 million ( 58.1 % of revenue ) in the prior year . • Gross Profit of $ 17.0 million , compared with $ 19.3 million in the prior year . Gross profit in the current period included one - time , non - cash stock - based compensation expenses of $ 8.1 million related to the unwinding of an Employee Stock Trust as part of the Company's initial public offering ( " IPO " ) . Adjusted EBITDA¹ loss of ( $ 0.3 ) million , compared to Adjusted EBITDA of $ 2.1 million for the comparative period in the prior year . • Net loss of $ 41.5 million , compared with a net loss of $ 28.1 million in the same quarter of the prior year . The higher net loss mainly reflects one - time , non - cash stock - based compensation expenses of $ 65.8 million related to the unwinding of the Employee Stock Trust . These were partly offset by a one - time fair value gain of $ 25.9 million on the Company's redeemable convertible preferred shares , also related to the IPO . • Cash flow from operating activities of $ 3.5 million , versus $ 10.1 million in the prior year , and Free Cash Flow¹ of $ 3.2 million , compared with $ 9.5 million in the prior year . Subsequent to quarter end , D2L completed its IPO for total gross proceeds of C $ 150.0 million ( C $ 88 million to D2L after factoring the secondary offering and underwriter commissions ) . Please refer to " Non - IFRS Financial Measures and Reconciliation of Non - IFRS Financial Measures " section of this press release . ● Third Quarter Fiscal 2022 Business & Operating Highlights Signed a new customer agreement with the State University of New York ( SUNY ) , the largest comprehensive education system in the U.S. , to deliver the D2L Brightspace learning environment to 400,000 learners across SUNY's 64 colleges and universities . • Signed a new customer agreement with the University of Groningen , one of the oldest in the region and one of the most prestigious in the world , serving more than 34,000 students . D2L Brightspace was selected to replace a legacy learning platform . D2L now supports > 40 % of the top universities across the Netherlands . Signed a new customer agreement with Lee Valley Tools , a Canadian business serving customers around the world , to help onboard , train and engage employees across the country using D2L Brightspace . Expanded a customer agreement with Energy Safety Canada , the national safety association for Canada's oil and gas