Mr. Ed Keller reports
ENGAGEMENT LABS RELEASES Q3 2021 RESULTS AND CORPORATE UPDATE
Engagement Labs Inc. has released results for its third quarter ended Sept. 30, 2021. Condensed interim consolidated financial statements and management report are available on SEDAR's website.
Third quarter financial highlights:
- Total revenue increased by 20 per cent to $611,615 in Q3 2021 from $509,940 in Q3 2020;
- Gross profit was $272,268 in Q3 2021, an increase of 46 per cent compared with $186,148 in Q3 2020. As a percentage of revenue, the gross margin increased to 45 per cent for Q3 2021 from 37 per cent for Q3 2020;
- Earnings before interest, taxes, depreciation and amortization improved by 141 per cent, or $1,348,723, to $389,342 in Q3 2021 from ($959,381) in Q3 2020;
- Non-GAAP (generally accepted accounting principles) adjusted EBITDA improved by 32 per cent, or $125,043, to ($263,659) in Q3 2021 from ($388,702) in Q3 2020;
- Operating expenses before gain on settlement of trade payables and other long-term payables and impairment loss on goodwill decreased by 19 per cent, or $166,356, to $708,544 in Q3 2021 from $874,900 in Q3 2020;
- Net profit in Q3 2021 was $258,044, compared with a net loss of ($1,129,113) in Q3 2020, for an improvement of 123 per cent, or $1,387,157;
- Basic and diluted profit per share was 0.1 cents in Q3 2021, compared with a basic and diluted loss per share of (0.5 cent) in Q3 2020;
- As at Sept. 30, 2021, the company was holding cash of $920,437 compared with $868,053 as at Dec. 31, 2020.
Nine-month period financial highlights:
- Total revenue increased by 1 per cent to $2,120,867 for the nine-month period ended Sept. 30, 2021, from $2,106,372 for the nine-month period ended Sept. 30, 2020;
- Gross profit increased by 21 per cent to $1,005,015 for the nine-month period ended Sept. 30, 2021, compared with $831,740 for the nine-month period ended Sept. 30, 2020. As a percentage of revenue, the gross margin increased to 47 per cent for the nine-month period ended Sept. 30, 2021, from 39 per cent for the nine-month period ended Sept. 30, 2020;
- EBITDA improved by 99 per cent, or $2,161,596, to ($14,048) for the nine-month period ended Sept. 30, 2021, from ($2,175,644) for the nine-month period ended Sept. 30, 2020;
- Non-GAAP adjusted EBITDA improved by 49 per cent, or $442,568, to ($462,298) for the nine-month period ended Sept. 30, 2021, from ($904,866) for the nine-month period ended Sept. 30, 2020;
- Operating expenses before gain on settlement of trade payables and other long-term payables and impairment loss on goodwill decreased by 24 per cent, or $694,305, to $2,144,909 for the nine-month period ended Sept. 30, 2021, from $2,839,214 for the nine-month period ended Sept. 30, 2020;
- Net loss for the nine-month period ended Sept. 30, 2021, decreased to ($441,804), down 84 per cent, or $2,316,610, from ($2,758,414) for the nine-month period ended Sept. 30, 2020;
- Basic and diluted loss per share was (0.2 cent) for the nine-month period ended Sept. 30, 2021, compared with (1.2 cents) for the nine-month period ended Sept. 30, 2020.
Corporate update
The company announced on Nov. 1, 2021, that the completion of its previously announced merger proposal with DGTL Holdings Inc., if approved by shareholders, might not be completed before year-end due to a delay in DGTL's year-end financial filing which delayed its ability to raise financing for the transaction.
Since that time DGTL has issued its year-end audit and its Q1 2022 results and has reaffirmed its desire to close the transaction with the company. Toward this end, DGTL has lowered the financing condition for closing the acquisition to $1-million and indicated it expects to close the financing in early December. Based on its expectations that all necessary conditions will be met to allow the plan of arrangement to be approved, the company is preparing to set a meeting date for shareholders to vote on the proposed merger in early February. The merger is expected to close in Q1 2022.
About Engagement Labs Inc.
Engagement Labs is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.