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.”
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.
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