TORONTO, ON (August 29, 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 June 30, 2018.
Revenue for the second quarter increased by over 51% from the first quarter of 2018, to over $1.3 million, with revenue from data analytics growing for the fourth sequential quarter. As the Company continues to focus on projects that leverage its proprietary location based data and insights tools, as opposed to more commodity based campaigns, this change in composition resulted in a small revenue decrease from the same period last year. The adjusted EBITDA loss for the second quarter was approximately $0.4 million, consistent with the previous quarter, and an increase from the same period a year ago as investments into proprietary data and geospatial tools continued.
Data is expected to account for several billions of dollars of investment over the next few years, as companies realize the enormous impact it will have on the success of their overall business. EQ Works is well positioned to take a leadership role in this area as it proprietary tools and technologies gather, analyze and execute on unique data sets that empower companies of all sizes. “As we continue to focus on combining real world behaviors with digital channels, data revenue increased by over 900% compared to the same period a year ago,” said Geoffrey Rotstein, President and CEO of EQ Works. “We are providing clients with insights and data that has not been available in the past. Real-time insights into where people go in the real world, provided through LOCUS, our unique proprietary platform, arms our partners with information allowing them to make the best online and offline decisions for media, growth and overall strategy.”
LOCUS, EQ’s proprietary platform for location data and insights, was launched a little over a year ago and has already generated hundreds of unique audience profiles for many of Canada’s leading companies. The investments this past quarter were in response to customer demand and resulted in enhanced geospatial mapping technology, machine learning and AI capabilities all of which will make it easier for companies to understand and measure the location behavior of their audiences. LOCUS utilizes almost half a petabyte of proprietary device location data to enable companies to better understand and measure their customers and deliver insights.
Highlights for the Second Quarter ended June 30, 2018
Data revenue increased over 900% as compared to the same period a year ago and for the fourth sequential quarter
LOCUS audience profiles increased by 29% in the quarter
Nine new high-value clients were added during the second quarter of 2018
Completed an equity financing of $0.9 million
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 Q2 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.