EQ Inc. Reports First Quarter Results

Toronto, Ontario (FSCwire) - EQ Inc. (TSXV: EQ) (“EQ Works”), North America’s leader in mobile location-based data,  today announced its financial results for the first quarter ended March 31, 2017.

“We are very pleased with the progress we have made with new business opportunities, unique data sources for location-based targeting, and additions to the EQ team.  The first quarter is typically slow for the advertising industry, and as a result, these advancements began to show results in the second quarter, and set the foundation for future quarters,” said Geoffrey Rotstein, CEO of EQ.

Revenue for the first quarter of 2017, which ended on March 31, 2017, was approximately $0.9 million with an adjusted EBITDA loss for the quarter of approximately $0.3 million.  This compares to revenue of $1.0 million and an EBITDA loss of $0.3 million generated in the same quarter a year ago. 

Based on the changes and advances discussed above, EQ expects revenue for the second quarter to be up more than 35% from the first quarter and up over 65% from the second quarter a year ago.  This organic growth is a combination of new client opportunities, deeper relationships with existing accounts and the first steps of selling our proprietary data of location-based audience segments.  EQ allows marketers to reach very specific audience segments based on behavioral location patterns, rather than just a current position.  The rapid evolution of EQ’s technology along with improved marketing and sales strategies have resulted in improved recognition both with clients and the industry.  EQ’s primary focus continues to be growth in terms of both revenue traction and technology advancement. 

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:

EQ Works (www.eqworks.com) provides a smarter way to target customers. The Company uses its real-time technology and advanced analytics to detect the actionable data that boosts performance for all web, mobile, social and video initiatives. EQ Works balances the many components that comprise the complex advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device.

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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

press@eqworks.com

www.eqworks.com

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/EQ05302017JA.pdf

Source: EQ Inc. (TSX Venture:EQ)

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