MONTREAL, Aug. 24, 2018 /CNW/ -- Engagement Labs Inc. (TSXV: EL) (OTCQB: ELBSF) released results for its second quarter ended June 30, 2018. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
Second Quarter Financial Highlights
Revenue of $952,670 for Q2 2018 represents a 20% increase vs Q2 2017 ($795,441) and revenue of $1,951,206 for H1 2018 represents a 22% increase vs H1 2017 ($1,601,261).
Gross margins year to date it increased to 44% in H1 2018 from 39% in H1 2017. In Q2, an increase in amortization of TotalSocial led to a decrease to 39% in Q2 2018, from 42% in Q2 2017
Operating expenses increased 29% or $358,641 vs Q2 2017, and it increased 28% or $722,752 from H1 2017. The increase from 2017 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.
Net loss before income taxes increased 21% or $254,147, from -$1,189,675 for Q2 2017 to -$1,443,822 for Q2 2018, and it increased 17% or $409,788 from -$2,458,247 for H1 2017 to -$2,868,035 for H1 2018.
Non-GAAP Adjusted EBITDA loss of -$819,886 for Q2 2018, representing a decrease of $294,908 compared to -$524,978 for Q2 2017 and Non-GAAP Adjusted EBITDA loss of -$1,745,655 for H1 2018, representing a decrease of $495,545 compared to $1,250,110 for H1 2018.
Basic and diluted loss per share was ($0.01) for Q2 2018 compared to ($0.02) for Q2 2017 and ($0.02) for H1 2018 compared to ($0.03) for H1 2017.
As at June 30, 2018, the Company had cash (excluding restricted cash) of $613,771, compared to $2,677,049 as of December 31, 2017.
"Revenue growth and gross margin improvements are key priorities for Engagement Labs in 2018, and we have been investing in 2018 to drive sales, including the hiring of a Chief Revenue Officer to build out our sales organization," said Ed Keller, CEO of Engagement Labs. "Our 20+% revenue growth year to date is reflective of this commitment, and our growing pipeline is expected to yield continued growth for the remainder of the year and into 2019."
The Company also announced that the Board has approved the issuance of 500,000 restricted share awards to an officer of the Corporation. Each Restricted Share will be subject to risk of forfeiture over a period of three years. 797,500 stock options at an exercise price of $0.05 per share having a term of five years have been granted to employees of the Corporation.
About Engagement Labs Engagement Labs (TSXV: EL) (OTCQB: ELBSF) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies. The Company's TotalSocial® platform focuses on the entire social ecosystem by combining 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, matched with its cutting-edge predictive analytics that use machine learning and artificial intelligence to reveal the social metrics that increase marketing ROI and top line revenue for its diverse group of clients.
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.