Year-over-year revenue growth of 24% and gross margin improves from 36% to 48%
MONTREAL, May 30, 2018 /CNW/ -- Engagement Labs Inc. (TSXV: EL) (OTCQB: ELBSF) released results for its first quarter ended March 31, 2018. The results are in line with the preliminary Q1 results released by the Company on April 27, 2018. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
First Quarter Financial Highlights
Revenue of $998,536 for Q1 2018 represents a 24% increase vs Q1 2017 ($805,820).
Gross margin increased to 48% in Q1 2018, from 36% in Q1 2017.
Operating expenses before extraordinary items increased 28% or $364,111 vs Q1 2017. The increase reflects management's commitment to invest in sales and marketing to drive TotalSocial® technology sales growth, including the hiring of a Chief Revenue Officer in late December.
Non-GAAP Adjusted EBITDA loss of -$925,769 for Q1 2018, representing an improvement of $123,438 compared to -$1,049,207 for Q4 2017, and a decrease of $200,637 compared to -$725,132 for Q1 2017.
Basic and diluted loss per share was ($0.01) for Q1 2018 compared to ($0.02) for Q1 2017.
As at March 31, 2018, the Company had cash (excluding restricted cash) of $1,456,421, compared to $2,677,049 as of December 31, 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.
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 business. The Company's TotalSocial® platform is the only platform that combines powerful online (social media) and offline (word of mouth) data with predictive analytics. Engagement Labs has a proprietary ten-year database of unique brand, industry and competitive intelligence. The Company's cutting-edge predictive analytics uses machine learning and artificial intelligence to reveal the social metrics that increases marketing ROI and top line revenue for its diverse group of clients, consisting of Fortune 500 companies.
About TotalSocial® TotalSocial® is a premier data and analytics platform that provides brands with unique insights, improved marketing ROI and strategies to grow revenue. Fueled by actionable online and offline data, TotalSocial is the only platform that encompasses and listens to the entire social ecosystem. TotalSocial offers unique, proprietary data about brands, its industry and competitors. With cutting-edge diagnostics, patent-pending predictive analytics and machine learning, TotalSocial identifies business opportunities and provides recommendations and a roadmap to grow revenue and achieve business and marketing goals.
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.