MONTREAL, QC–(Marketwired – May 16, 2017) – Engagement Labs Inc. (TSX VENTURE: EL) today released results for its first quarter ended March 31, 2017. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR’s website at www.sedar.com.
Company update: Improved gross margin and improved non-GAAP Adjusted EBITDA loss on a year-over-year comparison, despite reduced revenue due to closure of Canadian Operations.
First Quarter Financial Highlights
- Revenue has decreased by 40%, from $1,333,446 for Q1 2016 to $805,820 for Q1 2017. The decrease of $527,626 is mainly attributable to the closing of a non-profitable unit and markets in which the Company no longer offers its services, which accounted for $517,262 in the prior period revenue.
- Gross margin increased from 19% in Q1 2016 to 36% in Q1 2017.
- Operating expenses have decreased by 30% or $572,982 from $1,894,594 in Q1 2016 to $1,321,612 in Q1 2017.
- Non-GAAP Adjusted EBITDA loss decreased by $479,551 from -$1,204,683 for Q1 2016 to -$725,132 for Q1 2017.
- Basic and diluted loss per share was ($0.02) for Q1 2017 compared to ($0.03) for Q1 2016.
- As at March 31, 2017, the Company had cash and restricted cash of $3,505,471, compared to $4,536,999 as at December 31, 2016.
Mr. Keller added: “The Company’s substantial cost reductions in 2016 have allowed us put our cost base on a firmer footing. Our focus in Q1 has been product improvement for TotalSocial, most notably our predictive analytics solution has progressed and is now in beta testing. Our other major priority is the ramping up our marketing and sales efforts to drive revenue growth for the remainder of FY ’17. Sales in Q1 were slower to close than I would have liked, but we have secured contracts recently with some of the largest nationally recognized brands in the US, and the pipeline is now filling at the rate we would like giving me optimism that we are on a good track.”
The Company also announced that the Board has approved the issuance of 122,222 restricted share units to an officer of the Corporation. One third of the restricted share units vest on each of the first, second and third anniversaries of the date of grant.
About Engagement Labs
Engagement Labs (TSX VENTURE: EL) is the world’s first TotalSocial® company, offering intelligent data, analytics and insights for marketers. We are leaders in tracking, measuring and benchmarking the social impact of conversations happening around a brand and industry — both online and offline. Consumer conversations are a proven driver of critical business outcomes, including sales. Engagement Labs’ TotalSocial measurement solutions provides brands with unique data fueled insights and powerful analytics to understand online and offline social impact and drive business results.
TotalSocial is the first technology that combines in-depth social listening with comprehensive offline conversation measurement to provide marketers with the only means to measure all the consumer conservation that drive their business results. It identifies the differences between the online and offline conversations about their brands and provides diagnostics about ways to improve performance. TotalSocial includes the power of Engagement Lab’s eValue and amplifies it many times over. eValue is a component of TotalSocial estimated to represent 1/8th of the algorithm. In addition, it builds upon and extends the world’s most extensive word of mouth database developed by the Keller Fay Group and acquired in 2015 when Engagement Labs acquired Keller Fay.
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.
For media inquiries please contact:
KCSA Strategic Communications
[email protected] / [email protected]
212-896-1252 / 212-896-1207
Ed Keller
CEO
Engagement Labs
[email protected]
732.846.6800
