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  

Engagement Labs Releases Q1 2021 Results

New Brunswick, NJ/Toronto, ON — May 27, 2021 – Engagement Labs Inc. (TSXV: EL) released results for its first quarter ended March 31, 2021. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.   Q1 2021 in comparison to Q4 2020 highlights:
  • Total revenue increased by 71% to $778,404 in Q1 2021 from $454,197 in Q4 2020;
  • Gross profit was $371,664 for Q1 2021, an increase of 470% compared to $65,202 for Q4 2020. As a percentage of revenue, the gross margin increased to 48% for Q1 2021 from 14% for Q4 2020;
  • EBITDA loss(1) improved by 62% to -$218,123 for Q1 2021 from -$571,490 for Q4 2020;
  • Non-GAAP Adjusted EBITDA loss(1) improved by 66% to -$110,127 for Q1 2021 from -$321,089 for Q4 2020;
  • Operating expenses were $749,081 for Q1 2021, a decrease of 12% compared to $853,531 for Q4 2020;
  • Net loss for Q1 2021 decreased to -$372,885, down 51% from -$756,684 for Q4 2020;
  • Basic and diluted loss per share was ($0.002) for Q1 2021, compared to ($0.003) for Q4 2020;
  • As at March 31, 2021, the Company was holding cash of $1,107,292 compared to $868,053 as at December 31, 2020.
                               Q1 2021 in comparison to Q1 2020 highlights:
  • Total revenue decreased by 20% to $778,404 in Q1 2021 from $972,419 in Q1 2020;
  • Gross profit was $371,664 for Q1 2021, a decrease of 19% compared to $457,368 for Q1 2020. As a percentage of revenue, the gross margin increased to 48% for Q1 2021 from 47% for Q1 2020;
  • EBITDA loss(1) improved by 69% to -$218,123 for Q1 2021 from -$700,732 for Q1 2020;
  • Non-GAAP Adjusted EBITDA loss(1) improved by 46% to -$110,127 for Q1 2021 from -$203,494 for Q1 2020;
  • Operating expenses were $749,081 for Q1 2021, a decrease of 44% compared to $1,345,853 for Q1 2020;
  • Net loss for Q1 2021 decreased to -$372,885, down 58% or $521,226 from -$894,111 for Q1 2020;
  • Basic and diluted loss per share was ($0.002) for Q1 2021, compared to ($0.004) for Q1 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.   “I am pleased by the rebound in our revenue in Q1, after a challenging 2020 and the substantial impact that Covid-19 had on our business.  Our sequential revenue growth of more than 70% is a clear reflection of renewed focus on growth by our client base and a belief that TotalSocial can help them achieve their 2021 growth objectives” said Ed Keller, CEO.  “Further, the impact of the cost reductions initiatives we implemented led to 46% improvement in our Adjusted Non-GAAP EBITDA loss as we remain focused on the goal of making Engagement Labs a profitable company in 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   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

Engagement Labs Releases FY 2020 Audited Results

New Brunswick, NJ/Toronto, ON — April 30, 2021 – Engagement Labs Inc. (TSXV: EL) released results for its fiscal year ended December 31, 2020. Audited consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com. Since Q1 of 2020, COVID-19 has had a significant impact on the marketplace and led to a reduction in marketing spend by major brands of the type who are our customers and with it a pull back in spending on services of the type we provide. This had a revenue impact on our 2020 results.  During this difficult time, management made a priority of reducing costs in light of the revenue decrease.  As a result, the Non-GAAP Adjusted EBITDA loss improved by 41% due to cost containment measures implemented by the Company.   Fiscal year 2020 Audited Results:  Highlights
  • Revenue was $2,560,569 for the year ended December 31, 2020, a decrease of 37% compared to $4,083,497 for the year ended December 31, 2019;
  • Operating expenses were $4,495,839 for the year ended December 31, 2020, a decrease of 34% compared to $6,813,918 for the year ended December 31, 2019. Excluding impairment loss on goodwill and gain on extinction of debt and equity components of convertible debentures, the non-GAAP Operating expenses before non-operational expenses decreased by 37% or $2,098,859, to $3,565,839 for the year ended December 31, 2020 from $5,664,698 for the year ended December 31, 2019;
  • Non-GAAP adjusted EBITDA(1) loss improved by 41% or $844,613, from -$2,070,568 for the year ended December 31, 2019 to -$1,225,955 for the year ended December 31, 2020;
  • EBITDA(1) loss improved by 34% or $1,426,907, from -$4,174,041 for the year ended December 31, 2019 to -$2,747,134 for the year ended December 31, 2020;
  • The net loss for the year ended December 31, 2020 decreased to -$3,515,098, down 34% or $1,774,989 from -$5,290,087 for the year ended December 31, 2019. Basic and diluted loss per share was ($0.02) for the year ended December 31, 2020, compared to ($0.03) for the year ended December 31, 2019;
  • Gross profit decreased from $2,006,774 for the year ended December 31, 2019 to $896,942 for the year ended December 31, 2020. As a percentage of revenue, the gross margin decreased from 49% for the year ended December 31, 2019 to 35% for the year ended December 31, 2020;
  • As of December 31, 2020, the Company was holding cash of $868,053 compared to $844,107 as at December 31, 2019. During the year ended December 31, 2020, the Company has been able to seek loans and grants totaling $1,208,787. Management estimates that $435,704 of these loans will likely be forgiven by the US Government under the terms of the PPP loan program.
(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.   “We were off to strong start of the year, as evidenced by the TotalSocial revenue growth of 11% in Q1 ’2020 versus Q1 2019, before the impact of COVID-19 hit and had a significant impact on our revenues for the rest of 2020,” said Ed Keller, CEO. “The Company took quick action to reduce costs and those efforts succeeded in cushioning the impact of the pandemic on our non-GAAP Adjusted EBITDA loss, which in fact improved by 41% over 2019.” “As we look to 2021, we have announced several important signings recently, including a multi-year renewal with a leading global media and advertising agency valued at $430,000 and contracts with two leading multinational technology brands valued at $158,000, one of whom was a long-time client who has now returned to our client roster.  Additionally, we announced a business development partnership with a leading digital activation firm to use our proprietary data, which we will expect will add a new revenue stream in FY 2021,” Keller continued.

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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

Engagement Labs Signs Two New Contracts with Leading Multinational Technology Brands

New Brunswick, NJ/Toronto, ON — March 11, 2021 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has secured contracts from two multinational leading brands in the technology sectors. The clients secured the offerings of the industry leading TotalSocial® platform’s valuable data and analytics that help brands and businesses in supporting their sales, marketing ROI and other business outcomes. One client is one of the fastest growing technology companies in the video creation and social networking sector. They will use the TotalSocial platform as they enter and grow their sports business to analyze and measure tentpole events and sponsorships. The combined deals are valued at CAD $158,000 over the first half of 2021. “Despite the significant challenges of 2020, we are pleased to see a resurgence and momentum with deals and continue to grow our tech sector roster of clients. As more marketers plan for economic growth in 2021, we are excited to work together to help them with their goals,” said Ed Keller, CEO of Engagement Labs. “Our newest, high profile clients recognize that our proprietary data on consumer conversations can have enormous impact on their brands in terms of sales, brand health, and other KPIs.” “Our clients recognize the value of TotalSocial and how it aligns to help them achieve their strategic goals,” said Steven Brown, president and CRO of Engagement Labs. “We believe the number and variety of deals we’ve entered in Q1 is a testament to the benefits of our platform and the growth of our customer base across multiple industry verticals. We are confident that these latest relationships will lead to long term subscriptions, as does our customers’ willingness to deepen ties with Engagement Labs as their projects move to the next stage.”   ### 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

Engagement Labs Signs Data Partnership with Dstillery

New Brunswick, NJ/Toronto, Ontario — February 10, 2021 — Engagement Labs Inc. (TSXV: EL), the industry-leading data and analytics firm that specializes in social intelligence for leading brands and companies, has announced a new alliance with Dstillery, the leading custom audience solutions partner for agencies and brands. This deal is part of the overall growth strategy of Engagement Labs to make its data assets as valuable as possible, thereby accelerating its client base and revenue growth.   The partnership aims to help Fortune 500 brands with access to Engagement Labs TotalSocial® platform and Dstillery’s geospatial, data and insights for advertising and targeting. The data segments cover the full range of consumer categories from CPG brands in food, beverages, household products, technology, telecom, automotive, financial and travel services. The audience targets made are made available through Dstillery and programmatic ad platforms.   “This is an important new opportunity for our clients and brands to reach a vital segment of consumers who are already talking about their brand and category, to drive advocacy that will amplify their messages and accelerate sales,” stated Ed Keller, CEO of Engagement Labs. “As a firm that prides itself on innovation, we are thrilled and proud to be associated with Dstillery with their impressive data offering of incomparable speed and flexibility. This partnership widens and builds our targeting capacity to help our clients to further enhance and galvanize their word-of-mouth strategies.”   “Our clients are highly interested in reaching powerful, new-to-market audience segments that will enable their media buying to be more efficient and effective. Word-of-mouth advocacy is of great interest,” said Peter Ibarra, Director Strategic Initiatives at Dstillery. “We recognize that Engagement Labs is a leader in consumer conversation data. Combining our data and technologies provides marketers and advertisers access to a new, highly valuable set of audience segments so they can prosper in our highly connected marketplace.”    

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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     About Dstillery Dstillery is the leading custom audience solutions company, empowering brand marketers and their agencies to maximize the value of customer data and transform the way they connect with their audiences. Our premier product, Custom AI Audiences, is built by just-for-your-brand Custom AI models that deliver the ideal combination of accuracy and scale. Because Dstillery continuously refreshes audience data, our audiences are always up-to-date and on-target. That’s why brands across Retail, CPG, Finance, Luxury, B2B, Telco, Travel, and Tech rely on Dstillery’s audience solutions to optimize their branding and performance marketing campaigns, helping to drive growth. To learn more, visit us at www.dstillery.com or follow us on LinkedIn.

December 29, 2020 Annual General and Special Meeting of Holders

On December 29, 2020, the Company held its Annual General and Special Meeting of Holders. All the motions proposed on the proxy form were approved by the shareholders of the Company.  

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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

Engagement Labs Signs Deal with One of the Largest American Multinational Beverage Corporation

Client Signed Contracts Worth CAD $192,000 for Q1-2021

  New Brunswick, NJ/Toronto, Ontario — January 11, 2021 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has signed new contracts to conduct marketing and sponsorship evaluation programs in Q1 of 2021. The engagement is an extension of earlier TotalSocial work for the client. The Client’s program is valued at CAD $192,000 for fiscal first quarter. “We are very pleased to win this lucrative deal for Q1 that demonstrates the resiliency of our business model and the value of the data and analytics solutions we have for brands in evaluating their ad and sponsorship effectiveness,” said Steven Brown, President and Chief Revenue Officer of Engagement Labs. “Building momentum in a challenging but improving environment and seeing the progress we have made to date gives us confidence in our approach moving forward. We have established a strong relationship with this client, and this new engagement is testimony to the high regard with which TotalSocial is held as an important part of its marketing and sponsorship evaluation metrics.”

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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

Engagement Labs Announces Multi-Year Renewal with a Leading Global Media and Advertising Agency

Client Renews TotalSocial® Three-Year Contract Valued at CAD $430,000

  New Brunswick, NJ/Toronto, Ontario — December 22, 2020 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has secured a three-year renewal with a leading media agency. The deal is valued at CAD $430,000 with a 2.5% increase on the second and third years of the contract. TotalSocial® has become an integral tool to create strategies and evaluate performance for the Agency in driving media and ad performance. “We are excited to continue our work with the Agency in providing them with insights to drive advertising strategies and increase the totality of conversations happening among their clients that drive optimal business results,” said Ed Keller, CEO at Engagement Labs. “This renewal is another example of our clients and brands reengaging as we go into 2021.” The media agency uses Engagement Labs data in several different ways, including media planning, understanding the impact of communications plans on key performance indicators like advocacy, quantifying the multicultural influencer marketplace in the U.S., market mix models that quantify the impact of marketing investment, and new business pitches. The renewal occurred after deeper engagement with the Agency’s clients in four sectors: consumer electronics, healthcare, streaming services and one of the largest global financial services company. “A key component to Engagement Labs’ growth strategy is to expand our business with our clients and renewing their contracts. This agency shares that belief, and integrates our TotalSocial data into their work on behalf of their impressive list of Fortune 500 clients,” adds Steven Brown, President and Chief Revenue Officer of Engagement Labs. “We are extremely excited by this renewal as it is a great example of a client seeing the value of our platform across the organization and supporting their growth. The ultimate expression of this is their renewing with a long-term commitment.”   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

Engagement Labs Secures Multiple Initial Deals in Tech Sector to Provide Data and Innovative Approaches

New Brunswick, NJ/Toronto, ON — December 15, 2020 — Engagement Labs Inc. (TSXV: EL) (the “Company”) announced today that it has secured multiple proof of concept contracts from two leading technology companies in the US. One is the fastest growing social media app and the other is with one of the largest technology companies based in the US. The latter continues our success with OTT and subscription based companies and focuses on the corporation’s premium digital audio content brand. The proof of concept introduces the two new Clients to experience the industry leading TotalSocial® platform’s authority in delivering valuable data and analytics that help brands and businesses in supporting their sales and marketing goals to remain agile for the next normal. The combined deals valued at CAD $112,000. “We couldn’t be more pleased to work and support the fastest growing and most innovative brands such as our latest tech clients to test our POCs to reveal hidden patterns, correlations and other insights in light of prospective license deals next year,” said Ed Keller, CEO of Engagement Labs. “With these new relationships, TotalSocial provides data and insights that help them achieve their goals including development of original programming, highlight well-crafted storytelling, growing their user base, and maximizing retention and usage.” “As Engagement Labs grows, we continue to show our value with leading companies across a multitude of sectors. These are new deals with industry leading companies and we look forward to continue working together in 2021,” said Steven Brown, president and CRO of Engagement Labs.  

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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

Engagement Labs Releases Q3 2020 Results

Toronto, Ontario — November 30, 2020 — Engagement Labs Inc. (TSXV: EL) released results for its third quarter ended September 30, 2020. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com. Since March 2020, COVID-19 has had a significant impact on the marketplace and led to a reduction in marketing spend by major brands of the type who are our customers and with it a pull back in spending on services of the type we provide. This had a revenue impact on our Q3 results.  Despite the decrease in revenue, the Non-GAAP Adjusted EBITDA loss improved due to cost containment measures implemented by the Company. Third Quarter Financial Highlights
  • Revenue decreased by 51% to $509,940 in Q3 2020 from $1,042,909 in Q3 2019.
  • Operating expenses before impairment loss on goodwill decreased by 54% to $874,900 for Q3 2020 from $1,906,986 for Q3 2019.
  • EBITDA(1) loss improved by 20% to -$959,381 for Q3 2020 from -$1,203,021 for Q3 2019.
  • Non-GAAP Adjusted EBITDA(1) loss improved by 58% to -$388,702 for Q3 2020 from -$919,345 for Q3 2019.
  • Net loss for Q3 2020 decreased to -$1,129,113, down 11% from -$1,367,046 for Q3 19.
  • Gross profit was $186,148 for Q3 2020, a decrease of 66% compared to $546,539 for Q3 2019.
  • Basic and diluted loss per share was ($0.00) for Q3 2020, compared to ($0.01) for Q3 2019.
  • As at September 30, 2020, the Company was holding cash of $899,272 compared to $844,107 as at December 31, 2019.
Nine-month Period Financial Highlights
  • Revenue decreased by 28% to $2,106,372 for the nine-month period ended September 30, 2020 from $2,915,712 for the nine-month period ended September 30, 2019.
  • Operating expenses before impairment loss on goodwill decreased by 38% to $2,839,214 for the nine-month period ended September 30, 2020 from $4,576,274 for the nine-month period ended September 30, 2019.
  • EBITDA(1) loss improved by 11% to -$2,175,644 for the nine-month period ended September 30, 2020 from -$2,441,404 for the nine-month period ended September 30, 2019.
  • Non-GAAP Adjusted EBITDA(1) loss improved by 50% to -$904,866 for the nine-month period ended September 30, 2020 from -$1,800,496 for the nine-month period ended September 30, 2019.
  • Net loss for the nine-month period ended September 30, 2020 decreased to -$2,758,414, down 19% from -$3,420,704 for the nine-month period ended September 30, 2019.
  • Gross profit was $831,740 for the nine-month period ended September 30, 2020, a decrease of 41% compared to $1,402,375 for the nine-month period ended September 30, 2019.
  • Basic and diluted loss per share was ($0.01) for the nine-month period ended September 30, 2020, compared to ($0.02) for the nine-month period ended September 30, 2019.
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. “We were off to strong start of the year, as evidenced by the TotalSocial revenue growth of 11% in Q1 ’20 and a 64% reduction in our Non-GAAP Adjusted EBITDA loss,” said Ed Keller, CEO.  “COVID-19 continued to have a significant impact on our revenues in Q3.  The Company has taken quick action to reduce costs and those efforts succeeded in cushioned the impact of the pandemic on our Non-GAAP Adjusted EBITDA loss, which in fact improved over 2019.  We had some important signings in Q3 including renewals of one of the largest OTT Media and Entertainment companies and one of the largest telecommunications companies in the U.S., and new deals such as the sports division of another large media and entertainment companies. Our pipeline of new business opportunities is beginning to fill again, but it is not possible to know how quickly those opportunities will convert,” Keller continued.

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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