Engagement Labs Reports Q3 2017 Results and Closing of Private Placement

MONTREAL, QC--(Marketwired - November 28, 2017) - Engagement Labs Inc. (TSX VENTURE: EL) today released results for its third quarter ended September 30, 2017. Condensed interim consolidated Financial Statements and Management Report are available on SEDAR's website at www.sedar.com.

Company update: Revenue growth of 11% from continuing operations, sharply improved gross margin (now >50%) and improved non-GAAP Adjusted EBITDA loss on a year-over-year comparison

Third Quarter Financial Highlights

• Revenue of $878,953 for Q3 2017 represents a 10% increase vs Q2 2017 ($795,441) and an 11% increase vs Q3 2016 based on continuing operations ($790,521).
• Gross margin increased to 51% in Q3 2017, from 42% in Q2 2017 and from 14% in Q3 2016. (Note: the comparison to 2016 is impacted by the closure of the Canadian unit and the capitalization of certain expenses associated with the development of the TotalSocial product).
• Operating expenses, before extraordinary items remained stable to $1,260,258 in Q3 2017, up 1% or $18,193 from $1,242,065 in Q2 2017, and down 58% ($1,766,326) vs Q3 2016. (In 2017, the Company started capitalizing costs associated with the development of its TotalSocial product; $285,059 in costs were capitalized in Q3 2017).
• Non-GAAP Adjusted EBITDA loss of -$384,835 for Q3 2017, representing an improvement of $140,143 compared to Q2 2017, and an improvement of $947,601 compared to Q3 2016.
• Basic and diluted loss per share was ($0.01) for Q3 2017 compared to ($0.06) for Q3 2016.
• As at September 30, 2017, the Company had cash (excluding restricted cash) of $1,117,501, compared to $4,152,658 as of December 31, 2016.

Mr. Keller added: "The Company's singular focus on TotalSocial continued to gain momentum in Q3. With our full platform offering now in place, we can say confidently that TotalSocial is the only data and analytics platform that combines online and offline data with predictive analytics, serving the needs to Fortune 500 companies to drive better insights, improved marketing ROI, and increased sales. Our marketing and PR efforts have continued to raise awareness of Engagement Labs in the US and the UK, and have raised the profile of TotalSocial within our target audience. We now have leading brands as TotalSocial clients across a growing range of sectors, including: media and sports, beauty, telecom, food, financial services and software. And lastly, our substantial cost reductions in 2016 combined with revenue growth have allowed us to improve our gross margins and reduce our losses, thus putting our cost base on a firmer footing."