TORONTO, ON / ACCESSWIRE / November 18, 2020 / EQ Inc. (TSXV:EQ) ("EQ Works" or the "Company"), a leader in geospatial data and intelligence, announced its financial results today for the third quarter ended September 30, 2020.
Revenue for the third quarter was approximately $2.9 million, which increased over 65% from the previous quarter and increased by 15% when compared to the third quarter of 2019. This revenue growth was the result of new data engagements entered into during the quarter and the overall continued growth in the business. Gross margin for the quarter was 50%, significantly stronger than the previous quarter and up substantially from the same period a year ago. Adjusted EBITDA loss for the quarter was approximately $0.1 million, a significant improvement from the loss of $0.6 million experienced in the previous quarter.
The Company continued to show growth from both its data and advertising divisions. A continued focus on driving business results from data and analytics, artificial intelligence, predictive modelling and machine learning has continued to generate interest and demand for the Company's products. Data revenue for the quarter increased by 81% compared to the same period a year ago and 64% sequentially, as demand continued to increase for the proprietary data solutions.
Business conditions continued to improve throughout the quarter, as clients reinvested in their business and engaged with the Company.
Highlights for the Third Quarter ended September 30, 2020
- Data revenue increased by 81% compared to the same period last year and 64% sequentially;
- Gross margin increased to 50% for the three months ended September 30, 2020 compared to 42% for the same period in 2019 and 37% sequentially;
- Cash balance at the end of the quarter was $4.7 million and net working capital was $3 million;
- Operating line of credit with one of Canada's major banks was increased to $1.6 million;
- Extension was awarded to EQ for a multi-year engagement with a leading Canadian university;
- U.S. expansion with one of the world's largest book publishers to help launch 10 new titles nationally across the United States; and
- 33 new clients during the first nine months of the year.
"I am extremely proud of how well our team performed during the quarter and excited to see the continued momentum as we push into the fourth quarter" said Geoffrey Rotstein, President and CEO of EQ Works. "Our performance this quarter was the direct result of our team working with our clients to make sure our products delivered the business results they needed. Understanding and engaging with customers has never been more important and our proprietary data platform provides these insights."