Star Metro - EQ Inc. Reports Profitable Fourth Quarter and 2024 Year End Financial Results

TORONTO, ON / ACCESS Newswire / April 30, 2025 / EQ Inc. (TSXV:EQ.V) ("EQ Works" or the "Company"), a leader in AI and data driven software and solutions, announced its financial results today for the fourth quarter and the year ended December 31, 2024.

The Company is pleased to report that revenue for the fourth quarter of $3.3 million increased by over 33% sequentially and 5% from the same period a year ago. The revenue increase was the result of continued client demand for our data driven media solutions and the strong performance of our Paymi business unit, which delivered a sequential revenue increase of over 133%. Gross margin for the quarter was approximately 40% and the Company generated a positive adjusted EBITDA of $161 thousand.

Revenue for the year ended December 31, 2024, was $9.9 million consistent with the previous year while the adjusted EBITDA loss improved by over 40%. After years of investing in technology, data and AI driven solutions, the Company continued to focus on profitability and reduced the number of campaigns that did not utilize the full potential of its data and analytics offerings which generated lower margins. This focus resulted in a significantly improved adjusted EBITDA loss for the year, and a positive adjusted EBITDA for the fourth quarter. The adjusted EBITDA loss for the year improved by over 37% to $0.9 million, which is a significant improvement from the $1.4 million loss for the same period in 2023.

Significant Milestones and Highlights During the Year:

• The Company generated positive net cash from operating activities of approximately $0.5 million.

• Entered into a $1.1 million contract with a leading automotive company to support and execute their digital strategies.

• Executed contracts in excess of $1.0 million to drive AI powered innovation, engagement and digital strategies to leading appliance manufacturers.

• Paymi revenue increased by over 133% when compared to the previous year.

• Developed white label platforms for multiple Paymi customers to help drive additional insights and cash savings opportunities.

• Card link offers on the Paymi platform increased by over 100% during 2024.

• Paymi entered new partnerships with 4 white-label customers including Save.ca (a division of Torstar), and a leading financial services firm.

• The Company received $1.0 million in net cash injection from a legal settlement related to a past acquisition.

The Company continued to invest in its proprietary technology and data platforms over the course of the year. These investments, primarily Paymi and Clear Lake, helped build additional scale into our proprietary technology, our zero party data collection efforts, and drive significant interest from brands and agencies across the country. Our technology and data assets have formed a strong foundation for the Company as it turned its focus to higher margin and more recurring revenue lines of business. Early results from these investments are very positive as interest and traction are being shown from clients across multiple verticals.

"Product innovation that drives value and profitability remains a top priority for the Company," said Geoffrey Rotstein, President and CEO. "Last year, we streamlined our cost structure, carefully evaluating all product development expenses to ensure they align with our mission of delivering exceptional products to the market. Innovation continues to be at the core of everything we do, and as we see growing interest and exciting new business opportunities from these investments, we're confident that our Company and our dedicated team are well-positioned to deliver impactful solutions that create real business value as we move into 2025."

Non-IFRS Financial Measures

EQ Works measures the success of the Company's strategies and performance based on Adjusted EBITDA, which is outlined and reconciled with net 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 loss from operations before: (a) depreciation of property and equipment and amortization of intangible assets, (b) share-based payments, (c) finance income and costs, net, (d) depreciation of right-of-use assets (e) impairment of goodwill and intangible assets (f) gain from acquisition related transactions (g) restructuring costs. Management uses Adjusted EBITDA as a measure of the Company's operating performance because it provides information on 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:

About EQ Works

EQ Works (www.eqworks.com) enables businesses to understand, predict, and influence customer behaviour. Using unique data sets, advanced analytics, machine learning and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company's proprietary SaaS platform mines insights from movement and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.

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

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions, or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks, and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied, or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance, or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company's MD&A for the year ended December 31, 2024. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives but cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and any other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect subsequent information, events, or circumstances or otherwise, except as required by law.

EQ Inc.
Michael Kahn, Chief Financial Officer
2 Bloor Street West, Suite 700 | Toronto, Ontario | M4W 3E2
[email protected]

SOURCE: EQ Inc.

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S.Clark--SMC