Company Reports Positive Quarterly Adjusted EBITDA* For the First Time in its History
TORONTO, MUMBAI and LOS ANGELES, Aug. 29, 2024 /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 financial results for the quarter ended June 30, 2024. Highlights include as follows:
QYOU Media Inc. Logo (CNW Group/QYOU Media Inc.)
Continued Strong Revenue: The company recorded quarterly revenue of $8,277,457, a small margin higher than Q1, however once again setting the highest quarterly revenue mark in corporate history. This was primarily driven by strong results for the QYOU USA and Chtrbox India Influencer Marketing business units. Revenue on a YOY basis increased by $1,703,106 or 12%.
Positive Adjusted EBITDA*: For the three months ended June 30, 2024 compared to the same period prior year, Adjusted EBITDA significantly improved by 122% or $654,618 to become positive at $119,321 for the first time in company history. This was driven by QYOU USA's strong revenue growth and profitability along with a meaningful reduction of costs all directed towards achieving cash positive operating results.
Improved Net Loss: For the three months ended June 30, 2024, net loss improved by $889,509 or 62% compared to the same period prior year, most significantly driven by strong revenue growth augmented by a meaningful reduction of overall operating costs and investments.
Cash Balance: The Company concluded the three months ended June 30, 2024 with cash of $1,010,556 (December 31, 2023 - $736,713). Cash used in operating activities for the three months ended June 30, 2024 was $398,555 compared to $1,439,716 in the three months ended June 30, 2023.
QYOU Media CEO and Co-Founder, Curt Marvis commented, "Q2 2024 reflects the push from India Group CEO Raj Mishra and QYOU USA President Glenn Ginsburg along with all management to control costs and drive growth around business units that are delivering cash positive results. Management and the board believe that sharpening our focus on bottom line performance that both reduces the need to raise more capital and eliminates an investment strategy that drags down financial performance is in the best interest of all shareholders. As markets, share prices and overall conditions improve, we will be well positioned to take advantage with a business that is delivering positive financial results. We expect more announcements and business decisions driven by this strategy across the remainder of 2024 with the goal of strengthening our balance sheet and improving overall financial results. A cash positive quarter is indeed a breath of fresh air for us all and we fully expect to enter 2025 from a position of strength."
More commentary on the Q2 results will be provided by CEO and Co-Founder Curt Marvis along with India Group CEO Raj Mishra on the next "First Thursday" video published to the company YouTube channel on Thursday September 5th at 8 AM PST available when you CLICK HERE. Please submit any questions to the QYOU Investor email address by Sunday September 1st when you CLICK HERE.
*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 and or non-recurring operating expenses including but not limited to 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.
In compliance with the TSX Venture Exchange's policies, QYOU Media Inc. announces that it previously engaged the services of ICP Securities Inc. ("ICP") to provide 'market making' services for a monthly service fee of $7,500 per month. The services began on February 1, 2024 and ended on April 30, 2024. ICP is at arm's length to the Company and does not currently have any interest, directly or indirectly, in the Company or its securities.
Forward-Looking Statements
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.
About QYOU Media
One of the fastest growing creator-media companies, QYOU Media operates in India and the United States producing, distributing and monetizing content created by social media influencers and digital content stars. In India, under our flagship brand, The Q and on connected TV, via channels Q Kahaniyan, Q GameX, Q Comedistaan & Sadhguru TV, QToonz and RDCMovies we curate, produce and distribute premium content across television networks, VOD and OTT platforms, mobile phones, smart TV's and app-based platforms. In addition, QYOU has numerous additional content destinations, apps and gaming platforms engaging over 115 million Indian households weekly. Our influencer marketing company, Chtrbox, has been a pioneer in India's creator economy, leveraging data to connect brands to the right social media influencers. QGamesMela is a recently launched casual gaming business leveraging access to the large audience enjoyed by Q India products. In the United States, we power major film studios, game publishers and brands to create content and market via creators and influencers. Founded and created by industry veterans from Lionsgate, MTV, Disney and Sony, QYOU Media's millennial and Gen Z-focused content reaches more than one billion consumers around the world every month. Experience our work at www.qyoumedia.com
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.
