SOURCE: Engagement Labs Inc.

Engagement Labs Inc.

November 28, 2017 17:05 ET

Engagement Labs Reports Q3 2017 Results and Closing of Private Placement

MONTREAL, QC--(Marketwired - November 28, 2017) - Engagement Labs Inc. (TSX VENTURE: EL) today released results for its third quarter ended September 30, 2017. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.

Company update: Revenue growth of 11% from continuing operations, sharply improved gross margin (now >50%) and improved non-GAAP Adjusted EBITDA loss on a year-over-year comparison

Third Quarter Financial Highlights

  • Revenue of $878,953 for Q3 2017 represents a 10% increase vs Q2 2017 ($795,441) and an 11% increase vs Q3 2016 based on continuing operations ($790,521).
  • Gross margin increased to 51% in Q3 2017, from 42% in Q2 2017 and from 14% in Q3 2016. (Note: the comparison to 2016 is impacted by the closure of the Canadian unit and the capitalization of certain expenses associated with the development of the TotalSocial product).
  • Operating expenses, before extraordinary items remained stable to $1,260,258 in Q3 2017, up 1% or $18,193 from $1,242,065 in Q2 2017, and down 58% ($1,766,326) vs Q3 2016. (In 2017, the Company started capitalizing costs associated with the development of its TotalSocial product; $285,059 in costs were capitalized in Q3 2017).
  • Non-GAAP Adjusted EBITDA loss of -$384,835 for Q3 2017, representing an improvement of $140,143 compared to Q2 2017, and an improvement of $947,601 compared to Q3 2016.
  • Basic and diluted loss per share was ($0.01) for Q3 2017 compared to ($0.06) for Q3 2016.
  • As at September 30, 2017, the Company had cash (excluding restricted cash) of $1,117,501, compared to $4,152,658 as of December 31, 2016.

Mr. Keller added: "The Company's singular focus on TotalSocial continued to gain momentum in Q3. With our full platform offering now in place, we can say confidently that TotalSocial is the only data and analytics platform that combines online and offline data with predictive analytics, serving the needs to Fortune 500 companies to drive better insights, improved marketing ROI, and increased sales. Our marketing and PR efforts have continued to raise awareness of Engagement Labs in the US and the UK, and have raised the profile of TotalSocial within our target audience. We now have leading brands as TotalSocial clients across a growing range of sectors, including: media and sports, beauty, telecom, food, financial services and software. And lastly, our substantial cost reductions in 2016 combined with revenue growth have allowed us to improve our gross margins and reduce our losses, thus putting our cost base on a firmer footing."

Engagement Labs has closed it previously announced private placement of $3.2 million in Units, particulars of which are disclosed in the Company's News Release of November 17, 2017. An aggregate of cash commissions totalling $39,600 were paid on the brokered portion of the Offering, along with 864,885 compensation options. At total of $935,000 in Units were purchased by directors, officers and a major shareholder. The securities issued are subject to a four month hold period which expires March 23, 2018. Use of proceeds will be for ongoing development, marketing and sale of TotalSocial® and for general working capital.

About Engagement Labs

Engagement Labs (TSX VENTURE: EL) providers the world's leading brands with a unique and powerful way to drive sales and improve marketing ROI. Our TotalSocial® technology combines social media listening metrics and with the world's only ongoing measure of offline word of mouth into a single dashboard, to allow marketers the ability to measure performance, diagnose areas of weakness and opportunity, and identify specific strategies and tactics to increase sales and improve marketing ROI. Our proprietary predictive analytics tie TotalSocial metrics to critical business outcomes. Engagement Labs has offices in the US, the UK and Canada.

Disclaimer in regarding Forward-looking Statements

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, Engagement Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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