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Wishpond’s AI Pivot Pays Off: A Profitability Turnaround in Fiscal 2024

Eli GrantThursday, Apr 24, 2025 7:02 am ET

38min read

VANCOUVER, BC — Wishpond Technologies Ltd. (TSXV: WISH, OTCQX: WPNDF) has emerged from a period of strategic reinvention with its strongest financial performance in years. The company reported a record Adjusted EBITDA of $1.73 million (CAD) for fiscal 2024, a 129% surge from the prior year, marking a pivotal shift toward profitability after years of navigating legacy business headwinds. This turnaround, driven by cost discipline and the rapid adoption of its AI-driven SalesCloser platform, positions Wishpond as a contender in the competitive SaaS landscape.

At the heart of this transformation is SalesCloser, an AI-powered sales automation tool that generated $800,000 in Annual Recurring Revenue (ARR) by early 2025—its fastest revenue ramp-up in the company’s history. The platform’s growth has become the cornerstone of Wishpond’s strategy, even as legacy revenue streams, such as email delivery services, dwindled.

The Financial Turnaround
Wishpond’s fiscal 2024 results reflect a stark turnaround. Despite a 7% drop in annual revenue to $21.6 million (from $23.1 million in 2023), the company achieved an Adjusted EBITDA margin of 8%, nearly tripling its 2023 margin of 3%. This margin expansion, fueled by cost optimizations and a focus on high-margin software products, was underscored by a 2,137% year-over-year spike in Q4 Adjusted EBITDA to $331,270.

The decline in revenue stemmed largely from a major legacy customer, whose spending fell by 67% to $501,253, as Wishpond pivoted away from lower-margin services. CEO Ali Tajskandar emphasized that this strategic shift was intentional: “We’re no longer a ‘jack-of-all-trades’ company. We’re doubling down on AI solutions that deliver predictable, recurring revenue.”

The SalesCloser Advantage
SalesCloser’s rise is central to this story. Launched in 2023, the platform automates sales outreach, qualifying leads and generating follow-ups via AI. By early 2025, it had secured partnerships with firms like Venops (healthcare) and Roomvu (real estate), expanding its reach into vertical markets. Wishpond’s White-Label Reseller Program, announced in February 2025, further amplifies this momentum, enabling agencies to rebrand and monetize SalesCloser under their own brands.

The platform’s scalability is evident in its gross margins: 68% in 2024, up from 66% in 2023. This reflects the low incremental cost of supporting software subscriptions versus the legacy email services, which required significant infrastructure investments.

Challenges and Strategic Risks
Despite the progress, challenges linger. Cash reserves dipped to $1.13 million at year-end—down from $1.4 million in 2023—as the company invested in R&D and marketing. Meanwhile, its credit facility drew increased borrowings to fund SalesCloser’s growth.

The company also faces execution risks. While SalesCloser’s ARR is promising, it must continue to convert free trial users into paying customers. Competitors like Outreach.io and Gong.io dominate the AI sales space, and Wishpond’s market share remains small.

The Path Forward
Wishpond’s 2025 priorities are clear: achieve quarterly positive Adjusted EBITDA, expand SalesCloser’s adoption internally (to reduce hiring costs) and externally (via resellers), and improve margins further. CFO Adrian Lim highlighted the company’s “tariff-resistant” business model, insulated from global supply chain disruptions as a pure software vendor.

The financials back this optimism. With $519,000 in positive cash flow from operations and a renewed focus on cost discipline, Wishpond is now prioritizing profitability over growth at any cost. The tenth consecutive quarter of positive Adjusted EBITDA signals a durable turnaround.

Conclusion: A New Chapter for Wishpond
Wishpond’s fiscal 2024 results are a testament to its ability to adapt. By shedding low-margin legacy businesses and doubling down on AI-driven software, it has transformed from a struggling multi-service provider into a focused SaaS player. The SalesCloser platform’s ARR growth, paired with margin improvements, suggests the company is on track to deliver consistent profitability.

While risks remain—including execution hurdles and competitive pressures—the data is compelling. With an Adjusted EBITDA margin nearly tripling in a year and a product poised for vertical market expansion, Wishpond’s pivot appears to have paid off. For investors, the question now is whether this momentum can sustain Wishpond’s ascent in an increasingly crowded AI landscape. The answers may lie in its next-gen AI tools and the staying power of its White-Label Reseller Program—a bet on partnerships that could redefine its future.

Final Note: Wishpond’s financial results underscore a broader theme in tech: the imperative to align with high-margin, recurring-revenue models. For now, the company is proving it can thrive in that space.

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