- 17% year-over-year growth in TotalSocial revenue
- EBITDA improved by 53% from Q2 2018
- Non-GAAP Adjusted EBITDA improved by 50% from Q2 2018
MONTREAL, Aug. 22, 2019 /CNW/ -- Engagement Labs Inc. (TSXV: EL) released results for its second quarter ended June 30, 2019. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
Second Quarter Financial Highlights
- Total company revenue was $961,435 for Q2 2019, of which $927,671 is TotalSocial® revenue, representing a 17% increase in TotalSocial revenue vs Q2 2018 ($791,274).
- Operating expenses have decreased to $1,274,931 in Q2 2019, down 20% or $325,775 from $1,600,706 in Q2 2018.
- Gross margin increased to 48% in Q2 2019, from 39% in Q2 2018.
- Net loss before income taxes has decreased to -$784,522 in Q2 2019, down 46% or -$659,300 from -$1,443,822 in Q2 2018.
- EBITDA loss of -$463,162 for Q2 2019, representing an improvement of $514,982, from -$978,144 for Q2 2018.
- Non-GAAP Adjusted EBITDA loss of -$412,425 for Q2 2019, representing an improvement of $407,461 from -$819,886 for Q2 2018.
- Basic and diluted income per share was ($0.01) for Q2 2019 compared to ($0.02) for Q2 2018.
- As at June 30, 2019, the Company had cash of $2,085,264, compared to $906,455 as of December 31, 2018.
"TotalSocial is gaining traction in 2019, with 30 client deployments across 12 industry verticals. We have recently announced our first clients in two new sectors – leisure travel and video games – both with leading players. What's attractive about this breadth is that it proves TotalSocial is not just a platform for a handful of brands in a limited set of categories, but has a large Total Addressable Market to pursue," said Ed Keller, CEO. "Further, our cost cutting initiatives have put us on a path to cash flow breakeven that will make us a stronger company."
Company Hires Computershare for Equity-Based Securities Administration Agreement
The Company has retained Computershare Trust Company of Canada ("Computershare") to act as administrative agent to administer an Equity-Based Securities Administration Agreement (the "Plan") for the sale of shares of the Company underlying its various share compensation arrangements to pay withholding taxes on behalf of Plan beneficiaries. Computershare will establish a separate custodial account in its name and execute sales through its own broker in the normal course. In accordance with Exchange requirements, the Company announces that further to the shareholders' meeting held May 22, 2019 at which shareholders approved the issue of 6,000,000 common shares to directors for past services, the Company confirms that, subject to TSX final approval, a final number of 4,294,447 common shares will be issued in the aggregate, inclusive of common shares that will be issued to Computershare under the Plan.
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.
SOURCE Engagement Labs