TORONTO, ONTARIO--(Marketwired - April 30, 2015) - Engagement Labs Inc. (TSX VENTURE:EL) creator of the eValue™ score, today released its financial results for the year ended December 31, 2014. Engagement Labs' comparative fiscal year for the period ended December 31, 2013 covers only a seven-month period because the Company changed its year end in 2013 from May 31 to December 31.
Highlights
- Revenues for the twelve months ended December 31, 2014 have increased by 99% compared to the seven-month period ended December 31, 2013 and by 8% compared to the period of twelve months for the year ended May 31, 2013.
- Revenues for the last quarter ended December 31, 2014 (Q4) increased by 21% compared to previous quarter ended September 30, 2014 (Q3)
- Significant investment in strengthening our Management and Sales teams, in R&D for eValue and increasing our brand awareness and brand recognition
Bryan Segal, recently appointed CEO of Engagement Labs, commented on the year-end report, "Engagement Labs' 2014 financial results reflect a year of transformational and positive change for the business:
- the Company brought in a seasoned board of highly experienced directors, an advisory board of world-leading marketing experts, a new CEO and a new Chief Strategy Officer, all with industry-leading experience
- we acquired Entrinsic
- we ramped up our sales and marketing team and undertook significant R&D initiatives to shore up our eValue suite of products
- we raised over $10 million in additional working capital in 2014 and a further $8 million in Q1 2015)
- we rationalized operations by eliminating non-strategic assets."
Segal's added "our focus and strategic direction for 2015 includes the following priorities:
- to continue to grow and strengthen our revenue, marked in early 2015 by a renewal and increase in business from our first Fortune 60 customer
- for the remainder of 2015 to roll out improvements and additions to our product roadmap as well as to continue to build our results-driven salesforce and marketing team.
- to continue to invest in people and products, to drive market penetration of eValue, and to being the global standard for social media scoring."
The increase in year over year revenue is attributable to increased sales of eValue and revenues arising from our merger with Entrinsic. The significant increase in year over year general and administrative expenses is attributable to an investment of approximately $1.5 million in research and development and marketing, approximately $768,000 in interest expense and $800,000 in a combination of stock based compensation and accrued expenses to be paid in shares. Non recurring expenditures aggregating approximately $1.3 million included termination pay to our former CEO, financing costs, the Entrinsic acquisition and the restructuring of M30 and roll out of our Edu Performance division.
OVERALL PERFORMANCE
For the year ended December 31, 2014, the Company shows a net loss from continuing operations of $7,446,872 for a twelve-month period compared to a net loss of $1,646,243 for the seven-month period ended December 31, 2013 and a net loss of $2,812,548 for the twelve month financial year ended May 31, 2013. Adjusted EBITDA loss from continuing operations increased by $4,427,051 from -$1,197,881 (-118% of sales) for the seven-month period ended December 31, 2013 to -$5,624,932 (-278% of sales) for the twelve month period ended December 31, 2014. The Adjusted EBITDA loss increased by $3,731,176 compared to $1,893,756 (-101% of sales) for the year ended May 31, 2013. The basic and diluted loss per share was $0.49 for the year ended December 31, 2014, compared to $0.27 for the seven-month period ended December 31, 2013 and $0.47 for the year ended May 31, 2013. ENGAGEMENT LABS INC's total assets as at December 31, 2014 amounted to $5,993,529, an increase of $2,785,919 from December 31, 2013.
- Audited consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
About Engagement Labs
Engagement Labs' eValue™ Score is the global benchmark for social media scoring. eValue Analytics Pro, an enterprise-grade social media analytics platform, scores brands between 0-100. eValue measures brands' social media and digital marketing efforts. It's composed of a series of metrics and key performance indicators (KPIs), including Engagement, Responsiveness and Impact, which is benchmarked against 75,000+ handpicked and verified brands.
The eValue score is composed of Engagement, Impact and Responsiveness metrics. Engagement is the level of interaction content receives on a specific social network, Impact is the reach content receives on a specific social network, and Responsiveness measures how much, how fast and how well a brand responds to actual conversations amongst its users.
Engagement Labs (TSX V.EL) offers intelligent social data, analytics and insights for organizations that are actively engaging on social networks. Offered as a SaaS or through an API, the eValue™ analytics platform allows brands to measure and maximize the effectiveness of their social media marketing campaigns, as well as measure that of their competitors across major social networks Facebook, Twitter and YouTube. Engagement Labs maintains offices in Montreal, Toronto and Paris. www.engagementlabs.com / www.eValueanalytics.com.