TORONTO, MUMBAI and LOS ANGELES November 29, 2023: 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 September 30, 2023. Highlights include as follows:
Records 10th Consecutive Quarterly YOY Revenue Growth: For the three months ended September 30, 2023 revenue was $7,279,874 marking the 10th consecutive quarter of YOY revenue growth.
Adjusted EBITDA*: For the three months ended September 30, 2023, the Adjusted EBITDA loss increased by 29% compared to the prior quarter ended September 30, 2022 to $910,507 driven primarily by the decrease in US revenue attributable to the actors and writers strike in Q3 2023 combined with larger investment into growth initiatives in the direct to consumer gaming business.
Improved Net Loss: Net Loss for the three months ended September 30, 2023, decreased and improved by $193,311 or 9%.
Cash Balance: The Company concluded the period ended September 30, 2023 with cash of $1,701,511 as compared to September 30, 2022 cash of $3,077,769.
QYOU Media CEO and Co-Founder, Curt Marvis commented, “We keep moving the ball forward in what has clearly continued to be a really tough public markets environment, particularly for small and micro cap issuers. In addition, in the US, the actors and writers strike took a larger toll on Q3 revenues than we expected and it will continue to be somewhat of an issue for us in Q4 2023 as the slow recovery from those strikes begins to take hold. We know this is a very temporary and unpredictable setback and the silver lining is that it also spawned a significant and exciting amount of growth for us with new gaming partners like Activision and Ubisoft.
The impact of the strike on the US business was combined with our predetermined move to push forward on our direct to consumer initiatives in India. Our strategic move to launch a Direct-to-Consumer gaming offering in India has, in part, been driven to optimally leverage our massive channel viewership audience alongside our strong in-country influencer marketing capabilities; both requisites of our Direct-to-Consumer business plans.
We remain confident that investors will soon see the impact of these moves in fiscal 2024 and beyond. We are particularly excited about Q GamesMela, our recently launched free and real money gaming app which has shown exciting momentum in the earliest stages of its release. While we continue to exercise as much financial restraint as possible in the face of a lengthy and tough financial environment, we remain more bullish than ever that the type of growth we experienced in 2021 and 2022 will return in 2024 as a result of the work put in this year.”
*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 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.
In connection with the closing of the Company’s private placement of units for aggregate gross proceeds of $2,100,000, as announced on October 20, 2023, the Company paid an aggregate of approximately $55,040 and issued finder's warrants to acquire up to an aggregate of 1,695,561 common shares at a price of $0.10 per share for twenty-four months as finder's fees to certain persons who assisted the Company in connection with the offering.
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, via our flagship , The Q and on channels Q Kahaniyan, Q GameX, Q Comedistaan, Sadhguru TV and Bollywood Hungama 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 125 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 mobile 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
Investor Relations Contact:
RedChip Companies Inc.
Source: QYOU Media Inc.
Contact: Doug Barker
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