NEW BRUNSWICK, N.J. and
TORONTO, April 30, 2021 /CNW/ -- Engagement Labs Inc.
(TSXV: EL) released results for its fiscal year ended December 31, 2020. Audited consolidated Financial
Statements and Management Report are available on
SEDAR's website at www.sedar.com.
Since Q1 of 2020, COVID-19 has had a significant impact on the
marketplace and led to a reduction in marketing spend by major
brands of the type who are our customers and with it a pull back in
spending on services of the type we provide. This had a revenue
impact on our 2020 results. During this difficult time,
management made a priority of reducing costs in light of the
revenue decrease. As a result, the Non-GAAP Adjusted EBITDA
loss improved by 41% due to cost containment measures implemented
by the Company.
Fiscal year 2020 Audited Results: Highlights
- Revenue was $2,560,569 for the
year ended December 31, 2020, a
decrease of 37% compared to $4,083,497 for the year ended December 31, 2019;
- Operating expenses were $4,495,839 for the year ended December 31, 2020, a decrease of 34% compared to
$6,813,918 for the year ended
December 31, 2019. Excluding
impairment loss on goodwill and gain on extinction of debt and
equity components of convertible debentures, the non-GAAP Operating
expenses before non-operational expenses decreased by 37% or
$2,098,859, to $3,565,839 for the year ended December 31, 2020 from $5,664,698 for the year ended December 31, 2019;
- Non-GAAP adjusted EBITDA(1) loss improved by 41% or
$844,613, from -$2,070,568 for the year ended December 31, 2019 to -$1,225,955 for the year ended December 31, 2020;
- EBITDA(1) loss improved by 34% or $1,426,907, from -$4,174,041 for the year ended December 31, 2019 to -$2,747,134 for the year ended December 31, 2020;
- The net loss for the year ended December
31, 2020 decreased to -$3,515,098, down 34% or $1,774,989 from -$5,290,087 for the year ended December 31, 2019. Basic and diluted loss per
share was ($0.02) for the year ended
December 31, 2020, compared to
($0.03) for the year ended
December 31, 2019;
- Gross profit decreased from $2,006,774 for the year ended December 31, 2019 to $896,942 for the year ended December 31, 2020. As a percentage of revenue,
the gross margin decreased from 49% for the year ended December 31, 2019 to 35% for the year ended
December 31, 2020;
- As of December 31, 2020, the
Company was holding cash of $868,053
compared to $844,107 as at
December 31, 2019. During the year
ended December 31, 2020, the Company
has been able to seek loans and grants totaling $1,208,787. Management estimates that
$435,704 of these loans will likely
be forgiven by the US Government under the terms of the PPP loan
program.
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(1)
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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.
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"We were off to strong start of the year, as evidenced by the
TotalSocial revenue growth of 11% in Q1 '2020 versus Q1 2019,
before the impact of COVID-19 hit and had a significant impact on
our revenues for the rest of 2020," said Ed
Keller, CEO. "The Company took quick action to reduce
costs and those efforts succeeded in cushioning the impact of the
pandemic on our non-GAAP Adjusted EBITDA loss, which in fact
improved by 41% over 2019."
"As we look to 2021, we have announced several
important signings recently, including a multi-year renewal
with a leading global media and advertising agency valued at
$430,000 and contracts with two
leading multinational technology brands valued at $158,000, one of whom was a long-time client who
has now returned to our client roster. Additionally, we
announced a business development partnership with a leading digital
activation firm to use our proprietary data, which we will expect
will add a new revenue stream in FY 2021," Keller continued.
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