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Engagement Labs Releases Q2 2021 Results

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NEW BRUNSWICK, N.J. and TORONTO, Aug. 27, 2021 /CNW/ -- Engagement Labs Inc. (TSXV: EL) released results for its second quarter ended June 30, 2021. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.

(PRNewsfoto/Engagement Labs)
(PRNewsfoto/Engagement Labs)

Second Quarter Financial Highlights

  • Total revenue increased by 17% to $730,848 in Q2 2021 from $624,013 in Q2 2020;

  • Gross profit was $361,083 for Q2 2021, an increase of 92% compared to $188,224 for Q2 2020. As a percentage of revenue, the gross margin increased to 49% for Q2 2021 from 30% for Q2 2020;

  • EBITA(1) loss improved by 64% or $330,264, to -$185,267 for Q2 2021 from -$515,531 for Q2 2020;

  • Non-GAAP Adjusted EBITDA(1) loss improved by 72% or $224,158, to -$88,512 for Q2 2021 from -$312,670 for Q2 2020;

  • Operating expenses before impairment on goodwill decreased by 30% or $292,311, to $687,284 for Q2 2021 from $979,595 for Q2 2020;

  • Net loss for Q2 2021 decreased to -$326,963, down 56% or $408,227, from -$735,190 for Q2 2020;

  • Basic and diluted loss per share was ($0.001) for Q2 2021, compared to ($0.003) for Q2;

  • As at June 30, 2021, the Company was holding cash of $1,248,355 compared to $868,053 as at December 31, 2020.

Six-month Period Financial Highlights

  • Total revenue decreased by 5% to $1,509,252 for the six-month period ended June 30, 2021 from $1,596,432 for the six-month period ended June 30, 2020;

  • Gross profit increased by 14% to $732,747 for the six-month period ended June 30, 2021 compared to $645,592 for the six-month period ended June 30, 2020. As a percentage of revenue, the gross margin increased to 49% for the six-month period ended June 30, 2021 from 40% for the six-month period ended June 30, 2020;

  • EBITDA(1) loss improved by 67% or $812,873, to -$403,390 for the six-month period ended June 30, 2021 from -$1,216,263 for the six-month period ended June 30, 2020;

  • Non-GAAP Adjusted EBITDA(1) loss improved by 62% or $317,525, to -$198,639 for the six-month period ended June 30, 2021 from -$516,164 for the six-month period ended June 30, 2020;

  • Operating expenses before impairment on goodwill decreased by 27% or $527,949, to $1,436,365 for the six-month period ended June 30, 2021 from $1,964,314 for the six-month period ended June 30, 2020;

  • Net loss for the six-month period ended June 30, 2021 decreased to -$699,848, down 57% or $929,453 from -$1,629,301 for the six-month period ended June 30, 2020;

  • Basic and diluted loss per share was ($0.003) for the six-month period ended June 30, 2021, compared to ($0.007) for the six-month period ended June 30, 2020.

(1)

EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Number for comparative periods were revised to exclude SRED credit tax, variation on exchange, and bank charges in EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA to which the Company adds stock-based compensation including the grant of stock options, restricted shares units, and restricted share awards as these expenses do not result in any use of operating cash flows by the Company, severance payments, impairment loss on goodwill, write-off of intangible assets, change in fair value of investment in shares, expenses related to acquisition or disposal of business, and loss on extinction of debt and equity components of convertible debentures, which are extraordinary and non-recurrent expenses, and Board remuneration, which is paid in shares units. EBITDA and non-GAAP adjusted EBITDA are provided as a supplementary earning measure to assist readers in determining the ability of ENGAGEMENT LABS INC. to generate cash from operations and to cover financial charges. They are also widely used for business valuation purposes. These measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

About Engagement Labs
Engagement Labs (TSXV: EL) is an industry-leading data and analytics firm that provides social intelligence for Fortune 500 brands and companies.

To learn more visit www.engagementlabs.com

Disclaimer in regard 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.

For media inquiries please contact:
Vanessa Lontoc / Ed Keller, CEO
Engagement Labs
vanessa.lontoc@engagementlabs.com / ed.keller@engagementlabs.com

SOURCE Engagement Labs

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