TORONTO, Nov. 30, 2020 /CNW/ -- 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)
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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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"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.
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
SOURCE Engagement Labs