Market Watch: E Automotive, Copperleaf post robust results in third quarter following IPOs

Two companies that recently entered the public markets announced robust third quarter 2021 results in the second week of November.

E Inc., the company behind E Automotive, said that as a result of organic growth and three acquisitions over the last year, that it brought in revenues of $19.8 million USD, up 108 percent compared to $9.5 million USD in the same quarter last year.

For its part, Copperleaf Technologies Inc., announced record revenues of $16.8 million (all numbers for E Inc in USD), an increase of 55 percent over Q3 2020, driven by the increase in new clients and the expansion of existing clients.

E Inc. operates a digital vehicle marketplace, EDealer, which allows dealers to track vehicle inventory and offer it to potential buyers through a digital showroom, and EBlock, a live auction platform for car dealers and buyers.

During the quarter, E. Inc. bought and sold 41,970 vehicles, up 84 percent from the same quarter in 2020.

The company posted a net loss of $6.3 million, compared to $400,000 in the same time frame over the previous year. E Inc. reported an adjusted EBITDA of $1.8 million compared to $500,000 in 2020 for the same quarter.

In August 2021, the company acquired ESP and TradeHelper, which further strengthened its position in Quebec.

E Inc. raised net proceeds of approximately $127.7 million CAD from its initial public offering subsequent to the end of the quarter and began trading on the TSX on November 3.

“We have established great momentum and built a business of scale in this rapidly evolving and growing market,” said Jason McClenahan, president and CEO of E Inc. “We continue to grow in Canada with the recent acquisitions of TradeHelper and ESP Auctions which extend our market penetration further into Quebec.

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McClenahan added: “Our market leadership in Canada, established scale in the western U.S., as well as the capital from the IPO put us in a great position to aggressively expand across the United States and fuel continued organic growth as dealerships increasingly adopt technology to drive performance.”

Copperleaf reported a gross profit of $12.9 million (all numbers of Copperleaf in CAD), a 67 percent increase from $7.7 million in Q3 2020. The year-over-year growth reflects an increase in revenue, and successful remote delivery resulting in less travel.

Copperleaf provides enterprise decision analytics software solutions to companies managing critical infrastructure.

The company posted an adjusted EBITDA loss of $1.4 million , compared to a loss of $2 million in Q3 2020.

As of September 30, Copperleaf had cash and cash equivalents of $12.2 million compared to $15.9 million at December 31, 2020. Subsequent to quarter end, Copperleaf completed its IPO for net cash proceeds of $151.5 million.

“Some of the world’s largest and most respected organizations trust Copperleaf to guide their investment decisions,” said Judi Hess, CEO of Copperleaf. “We have built a strong global brand and we intend to continue making investments to support future growth.”

The company said that at the end of Q3 2021, the water and wastewater verticals officially became core sectors at Copperleaf alongside energy, with transportation starting to gain global traction in our emerging verticals.

Photo courtesy of Unsplash

Charles Mandel

Charles Mandel

Charles Mandel's reporting and writing on technology has appeared in, Canadian Business, Report on Business Magazine, Canada's National Observer, The Globe and Mail, and the National Post, among many others. He lives off-grid in Nova Scotia.

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