EQ Inc. Third Quarter Revenue Increases by 115% Year over Year

Toronto, Ontario (FSCwire) - EQ Inc. (TSXV: EQ) (“EQ Works” or the “Company”), North America’s leader in mobile location-based data, today announced its financial results for the third quarter ended September 30, 2017.

Revenue for the third quarter grew significantly to $1.6 million, an increase of 115% from the same period a year ago and an increase of 10% from the second quarter of 2017.  The adjusted EBITDA loss for the third quarter was substantially improved and reduced to approximately $0.1 million, an improvement of 76% from the same quarter last year and an improvement of 47% from the previous quarter.

“Our investment in sales and marketing and the constant improvement in mobile location-based targeting has continued to fuel our growth " said Geoffrey Rotstein, President and CEO of EQ Works. “Through EQ’s proprietary location behavior platform, the ability to target an audience based on where people go in the real world and connect with that audience through digital channels has been a huge step forward for marketers. With matching learning algorithms and advanced AI solutions to continually optimize those target segments, location behavior solutions can drive performance metrics that deliver superior results.”

EQ has added over 40 new portfolio clients for the first 9 months of 2017 which demonstrates how well our technology is being received.  “We are just at the beginning of the growth stage for location behavior technologies and momentum is building.  We are pleased with the results for the third quarter, but remain focused on continuing to build our platform and our brand to take advantage of this market opportunity and continue to develop new business relationships and market penetration opportunities.”

Highlights for the Third Quarter ended September 30, 2017

• Increased revenue by 115% compared to the same period  a year ago and 10% when compared to the second quarter of 2017

• Improved gross profit resulting in $0.7 million for the third quarter of 2017, compared with $0.4 million in the same period of 2016

• Added over 40 new portfolio clients during the year

• Signed new data partnership to provide some of the most comprehensive data for Canadians

Non-IFRS Financial Measures

We measure the success of our strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net income (loss) in the section entitled “Reconciliation of Net Loss for the period to Adjusted EBITDA” in the MD&A. The Company defines Adjusted EBITDA as net income (loss) from operations before; (a) depreciation of property and equipment and amortization of domain properties and other intangible assets; (b) share-based payments, (c) restructuring, (d) impairment of goodwill and domain properties and other intangible assets, (e) Income tax expense and recovery,  (f) finance income and costs, net,  (g) gain from extension of loan and borrowings (h) loss on derivative liability . Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information related to the Company's ability to provide operating cash flows for working capital requirements, capital expenditures, and potential acquisitions. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry.

The non-IFRS financial measure is used in addition to and in conjunction with results presented in the Company’s  consolidated financial statements prepared in accordance with IFRS and should not be relied upon to the exclusion of IFRS financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-IFRS financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-IFRS adjustments described above, and exclusion of these items from the Company's non-IFRS measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

The table below reconciles net loss from operations and Adjusted EBITDA for the periods presented:

About EQ Works

EQ Works (www.eqworks.com) provides a smarter way to target customers. Using first-party, location-based behavior signals, advanced data analytics, and proprietary software, EQ creates and targets customized, performance-boosting audience segments. Proprietary algorithms and data generate attribution models that connect consumer behavior in the physical world to consumer behavior in the digital world, solving complex challenges for brands and agencies.

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Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements.  EQ Inc. is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

EQ Inc.

1235 Bay Street, Suite 401| Toronto, Ontario |M5R 3K4

[email protected]

www.eqworks.com

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/EQ11212017.pdf
Source: EQ Inc. (TSX Venture:EQ)

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