- 24% year-over-year revenue growth for Q1 2018
- Gross margin improves from 36% to 48% for Q1 2018
MONTREAL, April 27, 2018 /CNW/ -- Engagement Labs Inc. (TSXV: EL) (OTCQB: ELBSF) releases preliminary results for the three months quarter ended March 31, 2018. The Company expects to report quarterly revenue of approximately CDN $998,500 which represents a 24% increase year-over-year. The Company also expects the gross profit to rise to 48% from 36% in Q1 2017.
"Revenue growth is a key priority for Engagement Labs in 2018, and we began investing in Q4 to drive sales, including the hiring of a Chief Revenue Officer to build out our sales organization," said Ed Keller, CEO of Engagement Labs. "I am therefore pleased to report the 24% revenue growth year-over-year, which I see as clear evidence that our TotalSocial® product is gaining acceptance in the marketplace. Further, our clients span nine different vertical sectors, demonstrating its broad appeal."
Recently, Engagement Labs released an update on the performance of TotalSocial in the 18 months since its launch, including the fact that over CDN $7.3M in TotalSocial contracts have been signed with a diverse group of Fortune 500 companies and brands in nine sectors, demonstrating the broad appeal of TotalSocial.
Fiscal year 2017 Audited Results Released
The Company also released results for its fiscal year ended December 31, 2017. Audited consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
For the year ended December 31, 2017, the Company had reduced revenue versus 2016 as a result of the shuttering of Canadian business units in Montreal and Toronto that were losing money, and as part of the Company's focus on the development of TotalSocial only in the US and the UK. The company had 2017 revenue of $3,469,767 compared to revenue of $4,697,118 for the year ended December 31, 2016. The decrease of $1,227,351 is fully attributable to the decline of revenue generated by the Canadian units and was largely compensated by a reduction of associated expenses of $2,648,409.
Gross margin increased to 42% for the year ended December 31, 2017 from 25% for the year ended December 31, 2016. EBITDA loss improved by 68% or $5,773,701 from $8,481,574 for the year of 2016 to an EBITDA loss of $2,707,873 for the year of 2017. Non-GAAP Adjusted EBITDA loss improved by 38% or $1,657,033 from $4,341,185 for the year of 2016 to a non-GAAP Adjusted EBITDA loss of $2,684,152 for the year of 2017. Basic and diluted loss per share decreased by 62% to -$0.05 for the year of 2017 from -$0.13 for the year of 2016.
About Engagement Labs
Engagement Labs (TSXV: EL) (OTCQB: ELBSF) is an industry-leading data and analytics firm that focuses on the entire social ecosystem and its impact on businesses. Engagement Labs' TotalSocial platform provides brands with unique online (social media) and offline (word of mouth) insights, and predictive analytics achieved through machine learning, to reveal the social metrics and insights that will increase marketing ROI and top line revenue. TotalSocial, which tracks 500 brands, is the only platform that provides marketers with proprietary brand data, industry and competitive intelligence and in-depth analysis of what drives performance and how to improve, while tracking KPI's and goals.
TotalSocial is the only platform that combines online data about brand conversations that take place via social media, with offline conversation data. The platform has a proprietary 10-year database of offline conversation built by Engagement Labs, the only such source of offline data about brands. These data sets feed the company's predictive analytics engine, which uses proprietary algorithms and Artificial Intelligence/machine learning to forecast future sales and provide marketers with better insights, improved marketing ROI and increased sales.
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:
Ed Keller, CEO, Engagement Labs, Ed.email@example.com, 732.846.6800
SOURCE Engagement Labs