Engagement Labs Reports Q2 2017 Results
MONTREAL, Quebec — August 22, 2017 – Engagement Labs Inc. (TSXV: EL) today released results for its second quarter ended June 30, 2017. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.
Company update: Improved revenue from continuing operations, new bookings totaling $1.86 million, improved gross margin and improved non-GAAP Adjusted EBITDA loss on a year-over-year comparison
Second Quarter Financial Highlights
- Revenue of $795,441 for Q2 2017 represents a12% increase vs Q2 2016 based on continuing operations ($707,719).
- TotalSocial clients were signed to multi-year deals. One with a top Global media company and the other with one of the world’s leading diet and lifestyle brands. The total value of these transactions equals $1,227,900. In addition, 6 legacy client contracts were renewed with annual contracts totaling $633,220.
- Gross margin increased to 42% in Q2 2017, from 36% in Q1 2017 and from 12% in Q2 2016. (Note: the comparison to 2016 is impacted by the closure of the Canadian unit and the capitalization of certain expenses associated with the development of the TotalSocial product).
- Operating expenses, before extraordinary items, have decreased to $1,242,065 in Q2 2017, down 6% or $79,547 from $1,321,612 in Q1 2017, and down 36% or $690,403 from $1,932,468 in Q2 2016. (In 2017, the Company started capitalizing costs associated with the development of its TotalSocial product; $401,031 in costs were capitalized in Q2 2017).
Non-GAAP Adjusted EBITDA loss of -$524,978 for Q2 2017, representing an improvement of $655,658, compared to Q2 2016 (-1,180,636).
- Basic and diluted loss per share was ($0.02) for Q2 2017 compared to ($0.03) for Q2 2016.
As at June 30, 2017, the Company had cash (excluding restricted cash) of $2,323,018, compared to $4,152,658 as of December 31, 2016.
Mr. Keller added: “The Company’s singular focus on TotalSocial has gained significant momentum in Q2. We announced the launch of our predictive analytics capability (TotalSocial Predict), which represents a major enhancement to the TotalSocial technology platform. Our marketing and PR efforts have helped to raise awareness of Engagement Labs in the US and the UK, and have raised the profile of TotalSocial within our target audience. This had led to encouraging sales momentum for us in Q2, and other opportunities we have in the pipeline that give me optimism that we are on a good track. We now have leading brands as TotalSocial clients across a growing range of sectors, including: media, beauty, telecom, food, financial services and software. And lastly, our substantial cost reductions in 2016 have allowed us to improve our gross margins and reduce our losses, thus putting our cost base on a firmer footing.”
About Engagement Labs
Engagement Labs (TSX VENTURE: EL) providers the world’s leading brands with a unique and powerful way to drive sales and improve marketing ROI. Our TotalSocial® technology combines social media listening metrics and with the world’s only ongoing measure of offline word of mouth into a single dashboard, to allow marketers the ability to measure performance, diagnose areas of weakness and opportunity, and identify specific strategies and tactics to increase sales and improve marketing ROI. Our proprietary predictive analytics tie TotalSocial metrics to critical business outcomes. Engagement Labs has offices in the US, the UK and Canada.
Disclaimer in regards 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.
Ed Keller, CEO, Engagement Labs Inc.,