EQ Inc. Reports Third Quarter Financial Results

Revenue increase of 77% for the Quarter

EQ Inc. Reports Third Quarter Financial Results

150 150 EQ Works

TORONTO, ON (November 20, 2019) – EQ Inc. (TSXV: EQ) (“EQ Works” or the “Company”), a leader in driving location behavioural data and intelligence, announced its financial results today for the quarter ended September 30, 2019.

Revenue for the third quarter of $2.5 million was an increase of 77% when compared to the third quarter of 2018 and an increase of 12% from the previous quarter. Data revenue for the quarter increased by 87% year over year and 25% sequentially. This revenue growth is due in large part to the addition of new clients along with the increased number of data engagements entered into during the year. Adjusted EBITDA loss for the quarter was approximately $0.1 million, a significant improvement from the loss of $0.3 million experienced in the third quarter of 2018.

Highlights for the Third Quarter ended September 30, 2019

  • Revenue increased by 77% year over year
  • Data revenue increased by 87% year over year and 25% sequentially
  • 12 new clients were signed during the third quarter of 2019
  • 2 new data partners were integrated into LOCUS during the quarter
  • New deep location analytics with visitor cohort capabilities were introduced
  • New near real-time consumer segmentation refresh rates were implemented

“We are very pleased with our growth this quarter and excited about the expansion of our data business. With data revenue increasing by 87% over the previous year, we have continued to provide clients with insights and models that improve their business. Our clients have seen tremendous benefits by using our platform to create audience segments that target the most relevant people. We are also using our data capabilities to determine when a consumer has acted upon an ad they have seen, which helps our advertising customers determine their most effective media. AI solutions are also being tested to anticipate consumer behaviour, and we are excited about the potential for these types of engagements in the future.” said Geoffrey Rotstein, President and CEO of EQ Works.

Non-IFRS Financial Measures

 EQ Works measures the success of the Company’s 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 intangible assets, (b) share-based payments, (c) finance income and costs, net, and (d) depreciation of right-of-use assets. Management uses Adjusted EBITDA as a measure of the Company’s operating performance because it provides information on 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. Using first-party, location-based behaviour signals, advanced data analytics, and proprietary software, EQ creates and targets customized, performance-boosting audience segments. Proprietary algorithms and data generate attribution models that connect consumer behaviour in the physical world to consumer behaviour in the digital world, solving complex challenges for brands and agencies.

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 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.

 Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions, or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates, and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance, or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company’s MD&A for the three and nine months ended September 30, 2019. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives but cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and any other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.

EQ Inc.
1235 Bay Street, Suite 401| Toronto, Ontario |M5R 3K4
press@eqworks.com
www.eqworks.com