Business
Vertiqal Studios Reports Strong Q2 2024 Financial Performance with Higher Gross Profit Margins, Reduced Expenses and Improved EBITDA
Toronto, Ontario--(Newsfile Corp. - August 14, 2024) - Vertiqal Studios Corp. (TSX: VRTS) (OTCQB:...
About this update from Vertiqal Studios Corp
[{"type":"text","content":"Vertiqal Studios Reports Strong Q2 2024 Financial Performance with Higher Gross Profit Margins, Reduced Expenses and Improved EBITDAToronto, Ontario--(Newsfile Corp. - August 14, 2024) - Vertiqal Studios Corp. (TSX: VRTS) (OTCQB: VERTF) (FSE: 9PY0) (\"the Company\") - Vertiqal Studios, a leading digital-channel network and video-production studio, is pleased to announce Q2 financial results, highlighting significantly higher gross profit margins, a reduction in expenses which contributed to a more favorable EBITDA loss.Below is a summary of the financial results for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023.Three months ended June 30, 2024Three months ended June 30, 2023Variance(%)Six months ended June 30, 2024Six months ended June 30, 2023Variance (%)Revenues$1,104,170$1,420,830-22%$1,947,079$2,143,039-9%Gross Profit$868,146$982,613-11%$1,522,991$1,160,56831%Total Expenses$1,749,090$5,752,330-70%$2,999,180$8,751,967-65%Net Loss($913,677)($4,668,616)-80%($1,426,724)($7,259,541)-80%EBITDA($485,801)($2,098,859)-80%($679,943)($3,372,920)-80% Financial Highlights of Q2 2024:Revenue Composition and Growth: Vertiqal Studios reported a 22% decline in revenue compared to Q2 2023, exclusively due to a change in the platform revenue share structure of its programmatic offering, which shifted from a 50/50 split to a 70/30 split. Despite this, revenues from direct media have increased by 18% in comparison to Q2 2023. For the six months ended June 30, 2024, revenues decreased slightly by 9% in comparison to the six months ended June 30, 2023, again highlighting the shift in revenue share.Cost Reductions: For the three months ended June 30, 2024, the Company saw a decrease in its gross profit in comparison to the three months ended June 30, 2023 by 11% due to the programmatic offering structure mentioned above,, however the gross profit margin for Q2 2024 was an incredible 79% compared to 69% in Q2 2023. This represents the unwavering commitment by the Company to ensure there is profitable revenue growth, through strategic reductions in personnel and more controls on campaign spend. For the six months ending June 30, 2024, the Company saw an incredible increase in gross profit by 31% in comparison to the six months ended June 30, 2023, despite a lower revenue number. This r...