D2L Reports Q1 Revenue of $52.84M, Up 8.9% Y/Y. Subscription and Support Revenue Grows 11% YoY.

D2L reported Q1 revenue of $52.84M, an 8.9% YoY increase. Subscription and support revenue grew 11% YoY to $47.7M, while constant currency annual recurring revenue reached $206.8M, up 9% YoY. Adjusted EBITDA was $9.3M, with a 17.6% margin, compared to $4M and an 8.3% margin in the prior year. Income for the period was $3.3M, up from $0.6M in the same period last year.

In the first quarter of 2025, D2L (OTCPK:DTLIF) and Dollarama (OTCPK:DLMAF) reported their respective financial results, offering insights into their performance in a challenging economic environment.

D2L (OTCPK:DTLIF)

D2L reported a strong Q1 performance, with revenue reaching $52.84 million, marking an 8.9% year-over-year (YoY) increase. The company's subscription and support revenue grew by 11% YoY to $47.7 million. Notably, constant currency annual recurring revenue (CCARR) reached $206.8 million, a 9% YoY increase. Adjusted EBITDA for the period was $9.3 million, up from $4.0 million in the prior year, resulting in a 17.6% adjusted EBITDA margin. Income for the period was $3.3 million, a significant improvement over the $0.6 million reported in the same period last year [1].

Dollarama (OTCPK:DLMAF)

Dollarama reported a solid Q1 sales performance, with sales increasing by 8.2% to $1,521.2 million compared to $1,405.8 million in the same period last year. This growth was driven by an increase in the total number of stores and comparable store sales growth. Comparable store sales increased by 4.9%, over and above the 5.6% growth in the corresponding period of the previous year. The company also provided guidance for fiscal 2026, predicting net new store openings between 70 and 80, with comparable store sales growth of 3.0% to 4.0%, and gross margin of 44.2% to 45.2% [2].

Conclusion

While both companies showed resilience in the face of economic challenges, their performances varied. D2L's strong revenue growth and improved profitability indicate a robust financial health, while Dollarama's solid sales performance, driven by store expansion and comparable sales growth, highlights its ability to maintain market share. Investors should closely monitor both companies' guidance for the upcoming quarters to gauge their resilience in the face of ongoing economic uncertainty.

References

[1] https://seekingalpha.com/news/4457348-d2l-reports-q1-results
[2] https://seekingalpha.com/news/4457169-dollarama-reports-q1-results