Engagement Labs Releases Q2 2021 Results

New Brunswick, NJ/Toronto, ON — August 27, 2021 – Engagement Labs Inc. (TSXV: EL) released results for its second quarter ended June 30, 2021. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.   Second Quarter Financial Highlights
  • Total revenue increased by 17% to $730,848 in Q2 2021 from $624,013 in Q2 2020;
  • Gross profit was $361,083 for Q2 2021, an increase of 92% compared to $188,224 for Q2 2020. As a percentage of revenue, the gross margin increased to 49% for Q2 2021 from 30% for Q2 2020;
  • EBITA(1) loss improved by 64% or $330,264, to -$185,267 for Q2 2021 from -$515,531 for Q2 2020;
  • Non-GAAP Adjusted EBITDA(1) loss improved by 72% or $224,158, to -$88,512 for Q2 2021 from -$312,670 for Q2 2020;
  • Operating expenses before impairment on goodwill decreased by 30% or $292,311, to $687,284 for Q2 2021 from $979,595 for Q2 2020;
  • Net loss for Q2 2021 decreased to -$326,963, down 56% or $408,227, from -$735,190 for Q2 2020;
  • Basic and diluted loss per share was ($0.001) for Q2 2021, compared to ($0.003) for Q2;
  • As at June 30, 2021, the Company was holding cash of $1,248,355 compared to $868,053 as at December 31, 2020.
                            Six-month Period Financial Highlights
  • Total revenue decreased by 5% to $1,509,252 for the six-month period ended June 30, 2021 from $1,596,432 for the six-month period ended June 30, 2020;
  • Gross profit increased by 14% to $732,747 for the six-month period ended June 30, 2021 compared to $645,592 for the six-month period ended June 30, 2020. As a percentage of revenue, the gross margin increased to 49% for the six-month period ended June 30, 2021 from 40% for the six-month period ended June 30, 2020;
  • EBITDA(1) loss improved by 67% or $812,873, to -$403,390 for the six-month period ended June 30, 2021 from -$1,216,263 for the six-month period ended June 30, 2020;
  • Non-GAAP Adjusted EBITDA(1) loss improved by 62% or $317,525, to -$198,639 for the six-month period ended June 30, 2021 from -$516,164 for the six-month period ended June 30, 2020;
  • Operating expenses before impairment on goodwill decreased by 27% or $527,949, to $1,436,365 for the six-month period ended June 30, 2021 from $1,964,314 for the six-month period ended June 30, 2020;
  • Net loss for the six-month period ended June 30, 2021 decreased to -$699,848, down 57% or $929,453 from -$1,629,301 for the six-month period ended June 30, 2020;
  • Basic and diluted loss per share was ($0.003) for the six-month period ended June 30, 2021, compared to ($0.007) for the six-month period ended June 30, 2020.
  1 EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Number for comparative periods were revised to exclude SRED credit tax, variation on exchange, and bank charges in EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA to which the Company adds stock-based compensation including the grant of stock options, restricted shares units, and restricted share awards as these expenses do not result in any use of operating cash flows by the Company, severance payments, impairment loss on goodwill, write-off of intangible assets, change in fair value of investment in shares, expenses related to acquisition or disposal of business, and loss on extinction of debt and equity components of convertible debentures, which are extraordinary and non-recurrent expenses, and Board remuneration, which is paid in shares units. EBITDA and non-GAAP adjusted EBITDA are provided as a supplementary earning measure to assist readers in determining the ability of ENGAGEMENT LABS INC. to generate cash from operations and to cover financial charges. They are also widely used for business valuation purposes. These measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.   To learn more visit www.engagementlabs.com   Disclaimer in regard to Forward-looking Statements Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Looking for Real Influence: Forget Celebrity Influencers, Focus on Real People

New Social Network Science Research Says it Time to Shift Our Thinking About Influence

Looking for Real Influence: Forget Celebrity Influencers, Focus on Real People At Engagement Labs we have long believed in the power of everyday influencers to drive business results. And now there is new, independent scientific evidence that supports our view. For example, in a piece entitled, Influencer marketing: beyond the hype, we said that while businesses are rushing to engage with celebrity and near-celebrity “influencers” with their huge followings on social media, “marketers have a much more sustainable opportunity to engage everyday influencers whose value comes from personal relationships with their closest friends and families. Because of the fascination with paid influencers, we believe marketers overlook a massive—and proven—opportunity to cultivate strategies that would put the power of these everyday influencers to work on their behalf.” Everyday influencers – by which we mean the 1 in 10 consumers who are sought out for their advice and whose recommendations are heeded – have 131 brand-related conversations every week versus the national average of 73. Further, they regularly seek out information, including that put out by brands, that helps them keep up with what’s new and worth talking about. By reaching these influencers, marketers enjoy almost twice the word-of-mouth reach than average consumers provide, and the impact of their recommendations is four times as great due to their credibility and perceived expertise. Weekly Consumer Conversations in the U.S.

Want to promote your new product or trigger a shift in thinking? Rethink your influence strategy.

  Newly published research by Damon Centola, a Professor of Communication, Sociology, and Engineering at the University of Pennsylvania who studies social networks and behavioral change, finds that as prominent and revered as social influencers seem to be — “think Kim Kardashian promoting a new product on Instagram” — in reality, they are unlikely to change a person’s behavior by example, and might actually be detrimental to the cause. Why? “An influencer is great at spreading information that already resonates with her followers,” says Centola. “But when she shares information that contradicts their worldview, it’s perceived as a breach of trust . . . Social influencers often do more harm than good.” To stimulate a shift in thinking, Centola’s research recommends turning the influence model on its head, a bottoms up approach rather than focusing on people in the middle with a huge number of followers, “Our study revealed that we should look to the margins, or the mathematical periphery: ‘regular’ people who may not have nearly as many connections as others in the same network.” Why? “Partly because humans make decisions with the assistance of people they see as like them in circumstance. If a family is considering moving to a new neighborhood, they don’t ask Gwyneth Paltrow or Kim Kardashian to weigh in; they ask families with similarly aged children, in similar financial circumstances — those with needs and bottom lines that resemble their own.”

Bazaarvoice Research Also Touts Everyday Influencers

Another new study from Bazaarvoice also makes a case for the value of everyday influencers rather than celebrity endorsers. In a piece entitled, What Influence to Influencers Have, Bazaarvoice reports on the results of a 9000 person global survey and finds everyday social media users (56%) are the type of influencer people followed the most, far ahead of celebrities (34%), subject matter experts (29%) and social media stars (25%). When it comes to trust, everyday social media users (38%) and subject matter experts (39%) were neck-and-neck, while celebrities (14%) and social media stars (9%) lagged much further behind.  

Engagement Labs Has Deep Data and Insight about Influencers and Partnership with Dstillery for Activation

Engagement Labs and Dstillery Partner to Help Brands Tap into Word-of-Mouth Audiences at Scale We are pleased to see these new studies that corroborate our long-held belief in the power of everyday influencers, or the group we call Conversation Catalysts. They are a cornerstone of our TotalSocial platform, an “always on” data and analytics platform covering both offline WOM and online social media conversation. TotalSocial lets marketers understand the role of everyday influencers in driving brand performance and strategies for maximizing performance among this highly influential group of consumers. With nearly one in four offline conversations now include people talking about things they see in digital media, our partnership with Dstillery allows marketers to identify these everyday influencers in the digital ecosystem and buy media to reach and activate this powerful audience segment.

Packaging innovation is a great consumer buzz generator—just ask Andy England

Bulldog Reporter   Aug 11, 2021 | Marketing, Public Relations   “The marketer who steered Coors Light’s ‘cold’ ad messaging for years is now taking the same approach to vodka,” according to AdAge and other recent trade news. “Andy England—who was chief marketing officer at MillerCoors from 2008 to 2015—is now CEO at Phillips Distilling, a Minnesota-based spirits marketer that under his watch is about to flood the market with new innovations, packaging and campaigns.” AdAge’s article caught our eye because Andy England is an advocate for the power of word of mouth. His innovations with packaging while at MillerCoors were a powerful example of how to generate word of mouth in a category where differentiation is often difficult. At MillerCoors, and again with his new vodka brand Cubist, innovative packaging is the conversation spark. Cubist packaging uses thermochromic technology that turns the bottle blue when its temperature drops to zero degrees Celsius or below. We know that packaging plays a role in people’s word of mouth conversation. Our offline WOM data shows that the beverages (6.68 percent) is the most likely category where people talk about product packaging when they talk about brands. Offline, word of mouth conversation data referencing product packaging is also above average for beauty and personal care with 6.52 percent of the chatter, followed by children’s products (5.24 percent), household products (5.1 percent) and food/dining (4.87 percent). As part of a case study in our CEO Ed Keller’s book, The Face-to-Face Book: Why Real Relationships Rule in a Digital Marketplace, England discussed his philosophy about the one-two punch of product innovation and strong advertising to get people talking.     Read the full Bulldog Reporter article, here.
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For more information on TotalSocial®  or to request a demo, visit www.engagementlabs.com For sales contact us at:sales@engagementlabs.com For media inquires contact us at:media@engagementlabs.com
About TotalSocial® Want a better understanding of the online and offline conversations around your brand? Are you a journalist who wants to use real data to measure the brands you’re reporting on? Are you a company who wants to gain further insights into your brand’s marketing strategies to develop effective campaigns to reach your audiences?  

Packaging Innovation Is a Great Consumer Buzz Generator – Just Ask Andy England

Packaging Innovation Is a Great Consumer Buzz Generator – Just ask Andy England “The marketer who steered Coors Light’s ‘cold’ ad messaging for years is now taking the same approach to vodka,” according to AdAge and other recent trade news. “Andy England—who was chief marketing officer at MillerCoors from 2008 to 2015—is now CEO at Phillips Distilling, a Minnesota-based spirits marketer that under his watch is about to flood the market with new innovations, packaging and campaigns.” AdAge’s article caught our eye because Andy England is an advocate for the power of word of mouth. His innovations with packaging while at MillerCoors were a powerful example of how to generate word of mouth in a category where differentiation is often difficult. At MillerCoors, and again with his new vodka brand Cubist, innovative packaging is the conversation spark. Cubist packaging uses thermochromic technology that turns the bottle blue when its temperature drops to zero degrees Celsius or below. We know that packaging plays role in people’s word of mouth conversation. Our offline WOM data shows that the beverages (6.68%) is the most likely category where people talk about product packaging when they talk about brands. Referencing Product Packaging by Category - Engagement Labs Offline, word of mouth conversation data referencing product packaging is also above average for beauty and personal care with 6.52% of the chatter, followed by children’s products (5.24%), household products (5.1%) and food/dining (4.87%). As part of a case study in our CEO Ed Keller’s book, The Face-to-Face Book: Why Real Relationships Rule in a Digital Marketplace, England discussed his philosophy about the one-two punch of product innovation and strong advertising to get people talking. “If you want people to talk about your product, you’ve got to give them something to talk about,” England told us when we interviewed him, “and at the end of the day I’d far rather that they were talking about my product than my commercial.” Two prime examples were cold-activated cans and wide-mouth venting. With cold-activated cans, the color on the can turns blue when the temperature reaches 44 degrees. This reinforces and dramatizes the idea of “Rocky Mountain cold refreshment.” When England refers to the copy line on the package (“When these mountains turn blue, your beer is as cold as the Rockies”), he told us, “you know you’ve achieved something when guys start talking about whether their mountains are blue, when they literally use that copy off the package or the ads. That’s just a beautiful thing. As vernacular for “my beer is cold,’ you’ve got ‘My mountains are blue.’” Similarly, with regard to Coors Light, England noted, “We already have 100 percent awareness in our target market, but you’re not necessarily going to have a conversation about Coors Light unless there’s something to talk about.” So Coors turned again turned to a product innovation with regard to the packaging and invented wide-mouth venting, in which package designers enlarged the opening on the can to improve the pouring and reduce “gurgling.” The marketer and its agencies came up with a campaign that played on the word “venting,” in the sense of literally letting off steam. One ad featured a guy who escapes his girl friend to go to his buddy’s place because he has “got to vent.” England told us that one way to achieve success is when you have an idea that becomes part of the vernacular. “I remember playing tennis with this twenty-four-year-old, and we are playing doubles, and one of the other older guys said to me, ‘So what’s new in the beer business?’ And I said, “Well, there’s the new wide-mouth Coors.’ And the twenty-four-year old instantly said ‘Let’s vent!’ I thought, I love that!” cubistFreezerWe are excited to see how England succeeded in bringing this playbook to Vodka brand Cubist, that “is specially designed to be stored in the freezer—a ploy that plays off of the custom many vodka drinkers have of putting the booze in the icebox” according to Ad Age. “Cubist packaging uses thermochromic technology that turns the bottle blue when its temperature drops to zero degrees Celsius or below. The brand, which will initially debut in Minnesota and Arizona in August, will use the tagline, ‘The World’s Most Refreshing Vodka.’” And we encourage any marketer interested in seeing its brand become a part of the vernacular, to think like Andy England about innovation wherever it might come from, including packaging. And then, give people a vernacular to use to talk about it, while the package itself also serves as a visual cue to spark that conversation. The results will be something you . . . and your consumers . . . will be proud to talk about. SIGN ME UP TotalSocial Briefing

Engagement Labs Five for One Share Consolidation Now Effective

New Brunswick, New Jersey/Toronto, Ontario — July 23, 2021 – Engagement Labs Inc. (TSXV: EL) announces that effective today the Corporation’s common shares will commence trading on the TSX Venture Exchange on a five-for-one consolidated basis. Articles of Amendment giving effect to the Arrangement were filed on July 21, 2021.  

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   For media inquiries please contact: Vanessa Lontoc Engagement Labs vanessa.lontoc@engagementlabs.com

Leading U.S. Insurance Provider Renews TotalSocial Subscription Contract with Engagement Labs

20 Percent Increase on One-Year Contract Valued at CAD $415,000

  New Brunswick, NJ/Toronto, ON — July 19, 2021 – Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has signed a renewal with one of the largest and top providers of insurance in America. The one-year agreement has a total value of CAD $415,000 which represents growth and increase of 20 percent compared to previous year. TotalSocial® has been instrumental to the Client’s successful marketing programs during the COVID-19 pandemic and they have chosen to not only renew, but increase the data and analytics provided by the TotalSocial platform. “We are excited to continue our work together and we are committed to helping our client successfully execute their marketing and advertising strategies. During the COVID-19 pandemic, we deepened our relationship to drive actionable insights and real-time campaign effectiveness evaluation to sustain and grow the business during a challenging time,” said Ed Keller, CEO of Engagement Labs. “We are pleased that our client sees the value of TotalSocial and its capability to deliver innovative data and predictive analytics insights to help drive their businesses successfully,” said Steven Brown, President and Chief Revenue Officer of Engagement Labs. “The insurance industry is a competitive industry, and this renewal is proof of the value of our TotalSocial solutions and data for national advertisers.”

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. To learn more visit www.engagementlabs.com   Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

Study: Today’s podcast audience is a WOM powerhouse

Bulldog Reporter   Jul 16, 2021 | Public Relations “Even before COVID-19, the podcast industry was seeing rapid growth, with monthly listeners reaching 645mn globally in 2019 and advertising revenues growing at a double-digit rate; industry revenues are poised to more than double by 2024,” according to PwC’s Entertainment & Media Outlook 2020-2024. Good news for podcast advertisers: we have strong evidence that the podcast audience is a word of mouth powerhouse. They talk more about brands across a variety of categories—in fact more so than the audience for any other medium including social media. And they are richer in word of mouth influencers, as well. Given the important tie between word of mouth advocacy and sales, they are a marketer’s dream audience. According to newly released Engagement Labs data, heavy podcast listeners, who on average listen to 1 or more hours of podcasts per day, engage in more than 100 offline conversations per week about products, services and brands. This compares to 76 weekly conversations for the general public—an increase of 34 percent. At 102 weekly WOM conversations, these heavy podcast listeners are at the top of the list versus other media.  Heavy social media users and heavy radio listeners are tied for second, both close behind at 99 offline conversations per week, with heavy TV viewers at a distant 67 conversations per week.     Read the full Bulldog Reporter article, here.
Follow Us:

For more information on TotalSocial®  or to request a demo, visit www.engagementlabs.com For sales contact us at:sales@engagementlabs.com For media inquires contact us at:media@engagementlabs.com
About TotalSocial® Want a better understanding of the online and offline conversations around your brand? Are you a journalist who wants to use real data to measure the brands you’re reporting on? Are you a company who wants to gain further insights into your brand’s marketing strategies to develop effective campaigns to reach your audiences?  

Study: Podcast Audience is a WOM Powerhouse

podcast “Even before COVID-19, the podcast industry was seeing rapid growth, with monthly listeners reaching 645mn globally in 2019 and advertising revenues growing at a double-digit rate; industry revenues are poised to more than double by 2024,” according to PwC’s Entertainment & Media Outlook 2020-2024. Good news for podcast advertisers: we have strong evidence that the podcast audience is a word of mouth powerhouse. They talk more about brands across a variety of categories – in fact more so than the audience for any other medium including social media. And they are richer in word of mouth influencers, as well. Given the important tie between word of mouth advocacy and sales, they are a marketers dream audience. According to newly released Engagement Labs data, heavy podcast listeners, who on average listen to 1 or more hours of podcasts per day, engage in more than 100 offline conversations per week about products, services and brands. This compares to 76 weekly conversations for the general public – an increase of 34%. Source: Engagement Labs, July 2021 At 102 weekly WOM conversations, these heavy podcast listeners are at the top of the list versus other media. Heavy social media users and heavy radio listeners are tied for second, both close behind at 99 offline conversations per week, with heavy TV viewers at a distant 67 conversations per week. Average Weekly Conversations Among Total Public Source: Engagement Labs, July 2021 Moving from total conversations to conversations by category, podcast listeners outperform the general public across each of 15 categories. Food/dining and media/entertainment lead the way. And the gaps between the podcast audience and the general public is particularly wide in categories such as technology, children’s products, beauty and personal care, sports and retail/apparel. Average Weekly Conversations by Category Average Weekly Category Conversations Among Heavy Podcast Listeners Source: Engagement Labs, July 2021

More influential, too

Heavy podcast listeners not only engage in more word of mouth, they are also richer in their concentration of WOM influencers than other media. Compared to the total public, they are 54% more likely to be influential – once again, placing them ahead of heavy radio listeners (+34%) and heavy social media users (+25%). Heavy TV viewers, meanwhile, index at 89. % of Influencers Indexed to Total Public Source: Engagement Labs, July 2021 The highest number of influential consumers among heavy podcast listeners are in the telecom category who index at 208 versus the general public when it comes to their concentration of category influencers. This followed by everyday influencers of wine & spirits (178 index), beauty and personal care (169), financial services (165) and travel services (164). % of Heavy Podcast Listeners Identified as Category Influencers Source: Engagement Labs, July 2021 One indicator of the value consumer conversations is that they tend to occur among very influential consumers or what we call the “everyday influencers” who have large social networks and regularly make recommendations. Becoming a beloved and enthusiastically recommended brand involves connecting with consumers through purpose-driven storytelling, delivering great experiences, and refreshing the connection through innovative marketing and advertising. Marketers should keep this all-in mind as they plan and respond to the rapidly changing nature of consumer behaviors and conversations. While social media may send one signal, what people talk about and what impacts them the most is often much more complex and a major reason why offline and online are often uncorrelated to each other. The combination of TotalSocial data and insights and well-crafted storytelling can help brands and companies achieve their goals whether to development of original programming, grow their user base, or maximize customer retention and usage.   SIGN ME UP TotalSocial Briefing

Engagement Labs Announces Plan to Implement Five-for-One Share Consolidation

New Brunswick, New Jersey/Toronto, Ontario — June 29, 2021 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced, that at its Annual General and Special Meeting held on December 29, 2020, shareholders of the Corporation approved a share consolidation, to be implemented at the Board’s discretion. The directors have determined to implement a five-for-one share consolidation, on or about July 9, 2021, subject to filing customary documentation with the TSX Venture Exchange and Articles of Amendment under the Canada Business Corporations Act. The consolidation will reduce the Corporation’s 234,093,241 common shares outstanding to 46,818,648 common shares.   ###     About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.   To learn more visit www.engagementlabs.com   Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   For media inquiries please contact: Vanessa Lontoc Engagement Labs vanessa.lontoc@engagementlabs.com

Engagement Labs Provides Share-Based Compensation Update

New Brunswick, New Jersey/Toronto, Ontario — June 22, 2021 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced, at the request of and in accordance with the requirements of the TSX Venture Exchange, that the shareholders of the Company approved, at its Annual General and Special Meeting of Shareholders (“AGM”) held December 29, 2020, an increase in the total common shares reserved for issuance under the Restricted Share Unit Plan and under the Restricted Share Award Plans combined (together, the “Plans”), from 21,726,143 common shares to 23,409,324 common shares; and at its immediately preceding AGM held February 13, 2019, an increase in the total common shares reserved for issuance under the Plans from 14,242,440 common shares to 21,726,143 common shares. The increased number of common shares approved by the shareholders and reserved for issuance at each of the two aforementioned AGMs equals 10% of the issued and outstanding common shares as of the Record Date for each of the two shareholders meetings held. The aggregate number of common shares issuable under the Plans together cannot exceed 23,409,324 common shares. In accordance with the policies of the TSX Venture Exchange, the number of common shares reserved for issuance under the Plans together in combination with the aggregate number of common shares issuable under the Stock Option Plan shall not exceed 20% of the issued and outstanding common shares.  

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    About Engagement Labs Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.   To learn more visit www.engagementlabs.com   Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   For media inquiries please contact: Vanessa Lontoc / Ed Keller, CEO Engagement Labs vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com