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Engagement Labs (TSXV:EL) announced its third quarter results ended September 30, 2018 with the company highlighting a 44 percent increase in revenues in its TotalSocial vertical as compared to same period in 2017. The company engaged in data and analytics sector said that its total revenue across TotalSocial and its EL legacy products was C$884,342 …
Engagement Labs (TSXV:EL) announced its third quarter results ended September 30, 2018 with the company highlighting a 44 percent increase in revenues in its TotalSocial vertical as compared to same period in 2017.
The company engaged in data and analytics sector said that its total revenue across TotalSocial and its EL legacy products was C$884,342 as compared to US$878,953 in the prior year period.
As quoted in the press release:
Third Quarter Financial Highlights
- TotalSocial® Revenue of $727,316 for Q3 2018 represents a 44% increase vs Q3 2017 of $506,204. For the comparative quarters the number of brands using TotalSocial® increased from 6 to 14, and the number of industry sectors increased from 6 to 10. New sectors include Sports, Retail/Apparel, Beverage and Agency, to go along with Media, Beauty, Telecom, Software, Food and Financial.
- Total revenue, including both TotalSocial® and EL legacy products was $883,342 for Q3 2018 compared to $878,953 for Q3 2017.
- In Q3, the increase in amortization of TotalSocial® software development led to a decrease of gross margin to 40% in Q3 2018, from 51% in Q3 2017. Without the amortization, the gross margin remained stable at 51% for the comparative quarters.
- Operating expenses increased 17% or $212,074 from Q3 2017. The increase from 2017 reflects management’s commitment to invest in sales and marketing to drive TotalSocial® technology sales growth, including the hiring of a Chief Revenue Officer in late December.
- Net loss before income taxes increased 24% or $260,080 from –$1,089,472 for Q3 2017 to –$1,349,552 for Q3 2018.
- Non-GAAP Adjusted EBITDA loss of $747,432 for Q3 2018, representing an increase of $362,597 compared to $384,835 for Q3 2017.
- Basic and diluted income per share was ($0.01) for Q3 2018 compared to ($0.01) for Q3 2017.
- As at September 30, 2018, the Company had cash (excluding restricted cash) of $1,646,785, compared to $2,677,049 as of December 31, 2017.
“2018 is a shaping up to be a transformative year for Engagement Labs as TotalSocial is now resonating with clients and prospects,” said Ed Keller, CEO. “Our +44% revenue growth for TotalSocial from Q3 2017 to Q3 2018 is just the beginning, and our growing pipeline is expected to yield continued growth for the remainder of the year and into 2019. Further, our partnership with Kantar Analytics UK, announced in October, is expected to drive enhanced UK revenue given their large client base to sell into, and accompany our sales efforts in the US.”