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:
- 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.
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SOURCE QYOU Media Inc.
