Toronto, ON: May 30, 2018 - EQ Inc. (TSXV: EQ) (“EQ Works” or the “Company”), North America’s leader in Location Behaviour data and intelligence, announced its financial results today for the quarter ended March 31, 2018.
“With data revenue increasing by over 30% compared to the previous quarter, our data strategy is gaining traction and seeing increased demand in the market. A central focus and major investment for EQ in the first quarter has been the enhancement of our systems to make it easy for marketers to visualize and measure the behavior of their customers and their competitors’ customers through the LOCUS platform (“LOCUS”). The newest release of LOCUS provides an easier and more tangible channel to engage location behavior data and provide marketers with access to almost half a petabyte of data for better business insights. Leveraging location behavior through LOCUS means marketers have a better way to understand and measure their customers.” said Geoffrey Rotstein, President and CEO of EQ Works. “As we engage more clients on this unique and powerful platform, we expect to see increased licensing revenue and demand for our LOCUS product.”
Revenue for the first quarter ending March 31, 2018 was approximately $0.9 million, consistent with the $0.9 million recorded in the same quarter of the previous year. Adjusted EBITDA loss for the quarter was approximately $0.4 million, an increase from the same period a year ago due to continued investment into the LOCUS platform.
Highlights for the First Quarter ended March 31, 2018
Increased data revenue by 30% as compared to the fourth quarter of 2017
Data revenue accounted for 15% of total revenue in the first quarter of 2018
Established Blockchain partnership through a strategic relationship with Kochava’s XCHNG Platform
Reduced outstanding debt and interest obligations by approximately $1 million
Added over new 10 high-value clients to portfolio during the first 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:
2018 Q1 Financial Statements available here.
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.
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Forward-Looking Statements
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.