June 30th Quarter Guidance of $2 Million in Revenue
Revenue Guidance Provided for Remainder of the Year Following Record Breaking Audience Growth in India
TORONTO, LOS ANGELES, and MUMBAI, India, May 31, 2021 /CNW/ - QYOU Media Inc. (TSXV: QYOU) (OTCQB: QYOUF), a company operating in India and the United States producing content created by social media stars and digital content creators and distributed via television, OTT platforms, mobile devices and apps, has reported financial results for FY Q3 2021 for the three months and nine months ended March 31, 2021. In addition, the company is providing revenue guidance for the remainder of calendar year 2021 as a result of the significant increase in revenues associated with the company's record breaking ratings results in India beginning in April of 2021.
In April of 2021 (beginning of FY Q4 2021), the company experienced a dramatic rise in ratings performance for its flagship channel in India, The Q. On February 12th, 2021 the company announced a new ratings high of 4.4 GRP (Gross Ratings Points) as measured by BARC, the "Nielsen of India". Following this, the ratings results rapidly accelerated and since the beginning of April the company has recorded seven consecutive weeks of ratings with an average of 45 GRP and a peak of 49 GRP.
This 10x rise in ratings will have a material positive effect on the revenue results for the current quarter and an even greater impact in subsequent quarters as ad sales begin to mature and stabilize. The Company believes that ratings are the best indicator of future revenues. There is a typical lag of 60-90 days between achieving ratings, signing an ad deal and the initial revenue recognition associated with the contract. This delay in revenue recognition and the impact of the current Covid crisis in India have been factored into the revenue guidance.
Revenue guidance for the remainder of calendar 2021, from April 1, 2021 thru December 31, 2021 is described in the table below (comprised of Q4 FY 2021 & Q1 FY 2022 & Q2 FY 2022)
Revenue Projected for 3 Quarters ended December 31, 2021: $9,000,000 to $10,700,000 |
||
FY Q4 2021 (Calendar Q2 2021) |
FY Q1 2022 (Calendar Q3 2021) |
FY Q2 2022 (Calendar Q4 2021) |
$2,000,000 to $2,300,000 |
$3,100,000 to $3,800,000 |
$3,900,000 to $4,500,000 |
As previously reported by the company on June 1, 2020, October 28, 2020 and March 1, 2021 the business in both India and the United States experienced material negative impact due to the loss of contracts and revenue caused by the Covid-19 pandemic. Results for Q3 of FY 2021(ended March 31) continued to experience material negative impact from Covid-19. Nevertheless, the rapid rise in audience growth of The Q India as described above has led to the dramatic increase in advertising bookings from advertisers including Pepsi, Unilever and Amazon and driven expected revenue generation in the current quarter that is significantly larger than the three previous quarters combined.
For the three months ending March 31, 2021, revenue was $296,945 compared to $887,898 in the comparative quarter in 2020 and $1,656,034 for the nine months ended March 31, 2021 as compared to $2,437,972 in the comparative period in FY 2020 primarily due to the impact of Covid-19. Net loss for the three months ended March 31, 2021 was $2,552,889 as compared to $1,058,222 and for the nine months ended March 31, 2021 was $4,220,800 as compared to $4,716,943 in the comparative period in FY 2020 primarily due to a reduction in operating expense adjustments due to Covid-19. The company concluded the period ended March 31, 2021 with cash of $12,799,348 (December 31, 2020 - $710,394).
Curt Marvis, Co-Founder and CEO of QYOU Media commented, "Our shareholders know that our business plan always called for years of investment before such investment would be monetized. We have now crossed the inflection point as evidenced by our revenue guidance. The stark increase in revenue is not an overnight success. It is a result of a three-part strategy that the company instituted three years ago: i) Building a great product with best of breed digital content; ii) Using that content to grow distribution across television, digital, mobile and app based platforms; iii) Monetizing via ad sales and influencer marketing campaigns. We are only in the early innings of how our monetization will play out. We have massive runway ahead for advertising revenue to drive our company's financial performance. When we layer on influencer marketing and the fast-growing category of social commerce, we believe that we'll be among the leading, unique media brands in all of India."
About QYOU Media
QYOU Media operates in India and the United States producing and distributing content created by social media stars and digital content creators. In India, we curate, produce and distribute premium content including television networks and VOD for cable and satellite television, OTT and mobile platforms. In the United States, we manage influencer marketing campaigns for major film studios and brands. Founded and created by industry veterans from Lionsgate, MTV, Disney and Sony, QYOU Media's millennial and Gen Z-focused content reaches more than 700 million consumers around the world. Experience our work at www.qyoumedia.com and www.theq.tv
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Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements'' within the meaning of applicable securities laws, including, without limitation, the Company's future plans and anticipated results, the strengthening of the Company's position and revenue in India, growth in the influencer marketing segments of the Company's business, and new strategic partnerships. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, although considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Additional risks and uncertainties regarding QYOU Media are described in its publicly available disclosure documents, filed by QYOU Media on SEDAR at www.sedar.com except as updated herein. The forward-looking statements contained in this news release represent QYOU Media's expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. Except as required by law, QYOU Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.
Neither the 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 QYOU Media Inc.
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