Data Revenue Grows by 95% as EQ Works Continues to Build Upon its Data Offerings

eResearch Corp. (www.eresearch.com) published a 13-page update Equity Research Report on EQ Inc. (TSXV:EQ; OTC:CYPXF) pertaining to EQ’s recent release of its fourth quarter and full year financial results.

EQ enables businesses to understand, predict, and influence customer behavior. Using unique and third-party data sets, advanced analytics, artificial intelligence, and machine learning, EQ creates actionable intelligence for businesses to attract, retain, and grow customers. The Company’s proprietary SaaS platform mines insights from location and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.

Although EQ’s advertising revenue continued to be negatively impacted by the COVID-19 pandemic, the Company reported that its customers returned to a more normal level of spending as the year progressed and booked a record high of $1.5 million in revenue in December. Overall, revenue for the year increased to $10.4 million, up 16% from $9.0 million in 2019.

Data solutions revenue increased 95% annually to $2.55 million in 2020 and now accounts for 24% of the overall yearly revenue.

As advertisers continue to seek a better understanding of customer behaviors, we expect EQ’s data solutions to grow substantially again this year. In January, the Company reported more than $4 million in new commitments for data-driven marketing projects.

In the fourth quarter, revenue was $3.65 million, an increase of 16% quarter-over-quarter and up 27% compared to $2.87 million in same quarter last year.

The U.S. accounted for less than 4% of revenue in the fourth quarter but is the largest advertising market in the world. We await news of more U.S. deals and also an acquisition that could facilitate entry into the U.S. market.

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In February, EQ announced a partnership with Opta Information Intelligence to deliver a first-of-its-kind digital marketing solution for the Canadian Insurance industry. Opta is Canada’s largest property location intelligence provider. According to the Company, a recent proof of concept with a digital insurance company resulted in a 60% reduction of acquisition costs and a 3-5x improvement in new client conversion.

Chris Thompson, Director of Equity Research of eResearch wrote, “When the North American economy finally fully restarts, EQ’s technology will play an important role for businesses to understand consumer behaviour. In the advertising and geolocation market, EQ offers a unique value proposition as it gives customers the ability to understand what consumers are looking for and then present them with the most relevant content and advertising.”

EQ shored up its Balance Sheet in February when it closed an $11.5 million equity financing and believes that based on its current business outlook and cash balance, it is well-positioned to outlast the current health crisis.

In the digital advertising and analytics/business intelligence industry, EQ competes with Adobe Inc. (NASDAQ:ADBE), Foursquare Labs Inc., and Inuvo Inc. (AMEX:INUV).

For more information about eResearch's 13-page update Equity Research Report on EQ, please visit eResearch's website (www.eresearch.com).

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