Record Breaking Quarterly Revenue With India and USA Business Units Reporting First Ever Positive Adjusted EBITDA
TORONTO, MUMBAI and LOS ANGELES, March 10, 2022 /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 preliminary unaudited financial results for the quarter ended December 31, 2021. Highlights include as follows:
- Record Breaking Quarterly Revenue: For the three months ended December 31, 2021 revenue was approximately $5.7M representing a year over year increase of nearly 500% and a quarter over quarter increase of over 20%. Original top end revenue guidance provided on May 31st 2021 for Q4 2021 had previously been disclosed as $4,500,000.
- Operating Business Units Reach Positive Adjusted EBITDA*: For the first time in company history the business units of both Q India and QYOU USA achieved positive Adjusted EBITDA results. Q India recorded revenues of $3,808,682 and Adjusted EBITDA of approximately $80,000. QYOU USA recorded revenue of $1,873,643 and Adjusted EBITDA of approximately $10,000.
- Net Income (loss): Net loss for the quarter is approximately $1,990,00 which includes a loss from operations of approximately $350,000 and non-cash losses from share based compensation, marketing credits and amortization of approximately $1,640,000.
- Use of Cash in the Quarter: Cash on hand as of December 31, 2021 was $6,406,476 as compared to $7,769,599 at September 30, 2021 representing a decrease of $1,363,123. The use of cash is primarily due to prepaying for channel distribution, investing in original content in India and increased Accounts Receivable tied to the revenue increase and costs for the operation of the public company operations which offsets the positive Adjusted EBITDA in the operating units.
- Recent Company Announcements: The company announced the launch of two new channels in Q1 2022. This includes the broadcast channel, The Q Marathi, and the digital channel The Q Kahaniya. In addition, both QYOU Media India Pvt. Ltd and QYOU USA Inc. recorded the highest revenue and net cash positive Adjusted EBITDA results for the first time in company history.
- Fiscal Year Change in 2022: The company has announced that it is transitioning to a calendar year end (December 31) fiscal year (previous year end of June 30) and will report official audited results for calendar Q3 and Q4, 2021 on or before April 29, 2022, All subsequent results will follow the new fiscal year calendar with FY Q1 2022 being reported on or before May 31, 2022.
QYOU Media CEO and Co-Founder, Curt Marvis commented, "We are thrilled to achieve our goal in Q4 2021 of building a solid financial foundation for growing our business and operating plan in 2022. We are well positioned to invest into driving greater growth across 2022 by leveraging our current success both in India and the US markets. We are beginning our transition from a single popular channel with varied broadcasting and digital outlets into a multi-tiered next generation digital media enterprise serving Young India audiences with top tier digital content and influencer talent. We are now better positioned for success than ever before."
About QYOU Media
QYOU Media operates in India and the United States producing and distributing content created by social media stars and digital content creators. In India, via our flagship brand, The Q and the upcoming Q Marathi and Q Kahaniyan, we curate, produce and distribute premium content including television networks and VOD for cable and satellite television, OTT, mobile, smart TV's and app based platforms. Our India based influencer marketing division, Chtrbox, is among India's leading influencer marketing platforms connecting brands and social media influencers. In the United States, we create and manage influencer marketing campaigns for major film studios, game publishers and brands. 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 and www.theq.tv
* 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 and 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 operating expenses of 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.
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.
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SOURCE QYOU Media Inc.
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