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India and US Business Units Reporting First Ever Positive Adjusted EBITDA
Audited Results For Quarter Ending and Six Months Ending December 31, 2021 Completes Transition to Calendar Based Fiscal Year
TORONTO and MUMBAI, India and LOS ANGELES, May 2, 2022 /CNW/ - QYOU Media Inc., (TSXV: QYOU) (OTCQB: QYOUF) a company operating in India and the United States producing and distributing content created by social media stars and digital content creators, is reporting final audited financial results for the quarter and six months ended December 31, 2021. Highlights include as follows:
Record Breaking Quarterly Revenue: For the three months ended December 31, 2021 revenue was $5,585,641 representing a year over year increase of 477% and a quarter over quarter increase of 18%. Revenue includes a negative revenue adjustment of $95,000 from previously published unaudited results related to the timing of revenue recognition.
477% YOY Quarterly Revenue increase: For the three months ended December 31, 2021 revenue increased 477% compared to the same period in the prior year.
Operating Business Units Reach Positive Adjusted EBITDA*: For the first time in company history the business units Q India and QYOU USA achieved positive Adjusted EBITDA results. Q India recorded revenues of $3,807,230 and Adjusted EBITDA of $73,389. QYOU USA recorded revenue of $1,778,558 and Adjusted EBITDA was flat.
Net Loss: Net loss for the quarter is $2,427,210, an increase of 368% driven by an increased loss in non-cash items of 945% due primarily to higher share based compensation expenses. Net loss includes the cash operating loss from operations of $357,651 (Adjusted EBITDA) and non-cash losses from share based compensation, marketing credits and amortization of $2,023,770.
Cash Balance: Cash balance as of December 31, 2021 was $6,548,890 as compared to $710,394 as of December 31, 2020.
Fiscal Year Change in 2022: The company provided notice that it determined to change its fiscal year end from June 30 to December 31 to align the Company's year-end with that of comparable media companies, allowing investors to more easily compare quarterly and annual financial results. This change has been completed and is reflected in both the MD&A and Financial notes available on SEDAR at www.sedar.com.
QYOU Media CEO and Co-Founder, Curt Marvis commented, "2021 was the most exciting and important year in the history of the company to date. The foundation was created across our business units in both India and the United States to truly leverage the explosive growth of social video, social commerce and the creator economy. We expect that momentum to continue throughout 2022 as we roll out new channels and advertising initiatives that will drive increasing audience reach and accompanying revenues."
On April 8, 2022, 2,185,000 share options were granted to certain employees, officers and consultants of the Company pursuant to the Company's share option plan. The share options are exercisable at a price $0.21 per share option, vest on a monthly basis for a period of 4 years and expire 5 years from the grant date. Of the total share options granted, 850,000 were issued to related parties. 550,000 RSUs were granted to certain employees, officers and consultants of the Company. One third of RSUs granted vest on each of the first three anniversaries of the date of grant. Of the total RSUs, 100,000 were issued to related parties.
Note on Adjusted EBITDA:
To supplement our consolidated financial statements, which are prepared and presented in accordance with International Financial Reporting Standards ("IFRS"), we present Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA") which is a non-IFRS financial measure. The presentation of non-IFRS financial measurement are not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss or net income (loss) or any other performance measures derived in accordance with IFRS or as an alternative to net cash provided by operating activities or any other measures of cash flows or liquidity.
We define earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as revenue minus operating expenses excluding non-cash operating expenses of stock-based compensation, marketing credits, depreciation and amortization (interest and taxes are not included in the Company's operating expenses). Adjusted EBITDA is used as an internal measure to evaluate the performance of our operating segments. We believe that information about this non-IFRS financial measure assists investors by allowing them to evaluate changes in operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and other factors that affect reported results. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Furthermore, this measure may vary among companies; thus Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Words such as "expects'', "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein may include, but are not limited to, information concerning the completion of future investments, the approval of the Exchange of the investments, the approval of the Reserve Bank of India of future investments, the expected use of proceeds from the investment, and statements relating to the business and future activities of QYOU. These forward-looking statements are based on QYOU's current projections and expectations about future events and other factors management believes are appropriate. Although QYOU believes that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect, and readers cannot be assured that the offering and the closing thereof will be consistent with these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of numerous factors, including certain risk factors, many of which are beyond QYOU's control. Additional risks and uncertainties regarding QYOU are described in its publicly-available disclosure documents, filed by QYOU on SEDAR (www.sedar.com) except as updated herein. The forward-looking statements contained in this news release represent QYOU's expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. QYOU undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
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Neither the 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.
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SOURCE QYOU Media Inc.
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