TORONTO, ON (November 29, 2018) – EQ Inc. (TSXV: EQ) (“EQ Works” or “EQ” or the “Company”), North America’s leader in location behaviour data and intelligence, announced its financial results today for the quarter ended September 30, 2018.
Revenue for the third quarter increased to $1.4 million, a sequential increase of 5% in a typically slow time, with revenue from data analytics growing for the fifth sequential quarter. As the Company continued to focus on more strategic, higher margin projects that leverage its proprietary location based data and insight tools, the Company expects to maintain this trend of increasing the data line of revenue in future quarters. The adjusted EBITDA loss for the third quarter improved to approximately $0.3 million, when compared to the previous quarter as the Company continued to invest into its proprietary data and geospatial platform and tools.
Based on quarterly revenue to date, as well as new sales activity, EQ anticipates that Q4 revenue will be up more than 40% sequentially over Q3 2018.
EQ Works continues to lead the industry in location behaviour insights and strategies. The proprietary tools and technologies developed by EQ are changing the way companies gather, analyze and execute on unique data sets with location as the driving force. “Our growth in data revenue demonstrates that companies are looking for new and innovative ways to better understand their consumers.” said Geoffrey Rotstein, President and CEO of EQ Works. “We are providing clients with customized data that has not been available in the past and then empowering them to execute against these data through multiple online and offline channels. Real-time insights into where people go in the real world enables our partners to make the best online and offline decisions for planning, media, forecasting growth and their overall business strategy.”
Revenue from EQ’s data platform, LOCUS, increased over 190% year over year as the Company continued to invest in its proprietary data, geospatial tools and business intelligence for businesses of all kinds including research, media, and Artifical Intelligence.
Subsequent to the third quarter the Company acquired Tapped Mobile (“Tapped”) to further strengthen its data, optimization, and mobile programmatic media capabilities. Combining EQ’s proprietary location based data platform with Tapped’s marketing solutions enabled both companies to expand their respective value offering and aggressively enter new markets.
Highlights for the Third Quarter and Subsequent to the Quarter End:
- Completed the acquisition of Tapped Mobile to further strengthen EQ’s sales, data and brand profile
- Increased data revenue for the fifth sequential quarter resulting in 190% growth compared to the same period a year ago and 71% sequentially
- Increased LOCUS audience profiles by 33% in the quarter
- Added seven new high-value clients during the third quarter of 2018
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) 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. 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 behavior in the physical world to consumer behavior in the digital world, solving complex challenges for brands and agencies.
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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