TORONTO, ON--(Marketwired - May 17, 2016) - Engagement Labs Inc. (TSX VENTURE: EL) today released results for its first quarter ended March 31, 2016. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.
First Quarter Financial Highlights
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Total revenue for Q1 2016 increased by 67% to $1,333,446, compared to $800,340 in Q1 2015.
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The gross profit increased by 14% to $250,600 in Q1 2016, from $219,687 in Q1 2015.
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While total revenue grew by 67% for year over year quarter, the operating expenses, excluding change in fair value of investment in shares, decreased by 16% to $1,947,612 in Q1 2016, from $2,309,916 in Q1 2015.
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Adjusted EBITDA loss decreased by 10% to $1,204,683 for Q1 2016, from $1,332,222 for Q1 2015.
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As at March 31, 2016, the Company was holding cash and restricted cash of $3,047,742.
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Basic and diluted loss per share decreased by 57% to $0.03 in Q1 2016, from $0.07 in Q1 2015.
"We are excited by the progress our company has made and the growth we have achieved in a seasonally weak quarter for our industry," said Bryan Segal, CEO at Engagement Labs. "Our pipeline is the largest it has ever been and we are excited to introduce our new ground breaking product -- TotalSocial -- in Q2 of this year. TotalSocial is the first measurement system that integrates all consumer conversations about your brand, both those that occur online via social media, as well as offline word of mouth conversations into a single measurement standard."
Financing Update
The Company intends to complete a financing of approximately $2 million on a private placement by selling approximately 7.5 million Units at $0.27 per Unit. The financing is fully subscribed for. The private placement is conditional upon a requisite number of holders of outstanding convertible debentures, of which approximately $2.9 million are outstanding, approving the extension of the maturity date of the debentures from December 31, 2016 until June 30, 2018 and a reduction of the conversion price from $0.35 to $0.27 per share. As of today's date, 86% of the holders have approved this extension and we expect to have requisite 90% by the closing of the financing which is scheduled for Tuesday May 24, 2016.
About Engagement Labs
Engagement Labs (TSX VENTURE: EL) offers intelligent data, analytics and insights for marketers and organizations to track, measure and benchmark the conversations happening around their brand or industry, both online and offline. These conversations are proven to drive critical business outcomes, including sales, while Engagement Labs' tools provide the data and actionable insight to help guide business decisions and power marketing effectiveness.
eValue™ Analytics is the global benchmarking tool for social media scoring. eValue's proprietary data technology offers real-time analysis to measure a brand's social media performance. TalkTrack®, from the Keller Fay Group, an Engagement Labs company, is the only data system to measures the totality of word of mouth -- both online and offline. Engagement Labs maintains offices in Toronto, New Brunswick NJ, Montreal, and London.
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Disclaimer in regards to 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.