Quarterly Revenue growth of 44% for TotalSocial® platform year-over-year
MONTREAL, Nov. 22, 2018 /CNW/ -- Engagement Labs Inc. (TSXV: EL) (OTCQB: ELBSF) released results for its third quarter ended September 30, 2018. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
Third Quarter Financial Highlights
- TotalSocial® Revenue of $727,316 for Q3 2018 represents a 44% increase vs Q3 2017 of $506,204. For the comparative quarters the number of brands using TotalSocial® increased from 6 to 14, and the number of industry sectors increased from 6 to 10. New sectors include Sports, Retail/Apparel, Beverage and Agency, to go along with Media, Beauty, Telecom, Software, Food and Financial.
- Total revenue, including both TotalSocial® and EL legacy products was $883,342 for Q3 2018 compared to $878,953 for Q3 2017.
- In Q3, the increase in amortization of TotalSocial® software development led to a decrease of gross margin to 40% in Q3 2018, from 51% in Q3 2017. Without the amortization, the gross margin remained stable at 51% for the comparative quarters.
- Operating expenses increased 17% or $212,074 from Q3 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 24% or $260,080 from -$1,089,472 for Q3 2017 to -$1,349,552 for Q3 2018.
- Non-GAAP Adjusted EBITDA loss of $747,432 for Q3 2018, representing an increase of $362,597 compared to $384,835 for Q3 2017.
- Basic and diluted income per share was ($0.01) for Q3 2018 compared to ($0.01) for Q3 2017.
- As at September 30, 2018, the Company had cash (excluding restricted cash) of $1,646,785, compared to $2,677,049 as of December 31, 2017.
"2018 is a shaping up to be a transformative year for Engagement Labs as TotalSocial is now resonating with clients and prospects," said Ed Keller, CEO. "Our +44% revenue growth for TotalSocial from Q3 2017 to Q3 2018 is just the beginning, and our growing pipeline is expected to yield continued growth for the remainder of the year and into 2019. Further, our partnership with Kantar Analytics UK, announced in October, is expected to drive enhanced UK revenue given their large client base to sell into, and accompany our sales efforts in the US."
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.
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.
SOURCE Engagement Labs