TORONTO, ON (November 30, 2015) – EQ Inc. (TSXV: EQ) (“EQ Works”) a leader in audience targeting for mobile, social, video, and display advertising today announced its financial results for the third quarter ended September 30, 2015. Total revenue for the quarter was approximately $0.9 million, relatively consistent with the $1.0 million recorded in the third quarter of 2014. The adjusted EBITDA loss for the quarter was approximately $0.3 million, representing a 42% improvement from the third quarter of 2014 and 14% improvement when compared the second quarter of 2015.
Highlights for the Third Quarter ended September 30, 2015
- Signed four new agency partners during the quarter;
- Added two new SAAS partners to promote “ATOM”, the EQ self-service digital media buying solution for small businesses; and
- Integrated additional data partners into the EQ platform to provide more depth into EQ attribution modeling.
“Although revenue was roughly flat during the quarter, the addition of new clients and our ability to deliver great campaign results for our existing clients, make us confident that our focus on client services and platform enhancements will result in continued sales momentum” said Geoffrey Rotstein, President and CEO. “Although the third quarter is typically a slower time in the media space, significant traction was made in both our self-serve platform and our managed services offering, both of which we expect to generate future results.”
Non-IFRS Financial Measures
We measure the success of our strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net income (loss) in the section entitled “Reconciliation of Net Loss for the period to Adjusted EBITDA” in the MD&A. The Company defines Adjusted EBITDA as net income (loss) from operations before; (a) depreciation of property and equipment and amortization of domain properties and other intangible assets; (b) share-based payments, (c) restructuring, (d) impairment of goodwill and domain properties and other intangible assets, (e) Income tax expense and recovery, and (f) finance income and costs, net. Management uses Adjusted EBITDA as a measure of the Company’s operating performance because it provides information related to the Company’s ability to provide operating cash flows for working capital requirements, capital expenditures, and potential acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.
The non-IFRS financial measure is used in addition to and in conjunction with results presented in the Company’s consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company’s consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company’s non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:
About EQ Works
EQ Works (www.eqworks.com) provides a smarter way to target customers. The Company uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. EQ Inc. is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
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Click to view: 9 Months Ended September 30, 2015 Financial Statements