Logiq, Inc., a global provider of award-winning consumer acquisition solutions, reported results for the third quarter ended September 30, 2021. All comparisons are to the same year-ago period unless otherwise noted.
The company will hold a conference call at 5:00 p.m. Eastern time today to discuss the results (see dial-in information below).
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Q3 2021 Financial Highlights
- Revenue increased 11% to $7.8 million.
- Overall gross profit increased 108% to $2.3 million.
- Consolidated gross margin was 29.5%, up 13.7 percentage points.
- Gross margin for DataLogiq, the company’s data-driven, end-to-end e-commerce marketing solution, improved from 18.9% to 28.2%.
- Gross margin for AppLogiq, the company’s mobile commerce platform-as-a-service (PaaS), improved from 12.1% to 31.7%.
- Cash and cash equivalents and restricted cash totaled $5.3 million as of September 30, 2021.
AppLogiq Operational Highlights
- Received Indonesian government approval of an annual lending rate for offering micro-lending services to more than 50 million Indonesians.
- Launched exclusive mobile payment option for driver license psychological testing in Indonesia following recently announced partnership with Mentalku, the exclusive government-licensed provider of driver license psychological testing in Indonesia.
- Announced planned launch of first-ever super app in Indonesia that combines all of AppLogiq’s mobile e-commerce and fintech solutions into one mobile app for easier access and interoperability.
- Entered into preliminary agreement with Novaji Introserve, a value-added IT and financial services company based in Lagos, to provide home delivery and mobile financial services to millions of unbanked and underbanked people in Nigeria.
DataLogiq Operational Highlights
- Added auto, life and health insurance verticals to Logiq Consumer Marketplace (LCM).
- Integrated SMS, email and call center support into Logiq Digital Marketing™ (LDM) platform.
- Joined forces with Peer39 to provide small and medium sized brands (SMBs) with the industry’s largest and most scaled pre-bid keyword, contextual and brand safety solutions for modern markets.
- Launched geofencing-based targeting on the LDM platform, enabling marketers to customize messaging based upon context of consumer location.
- Partnered with IRIS.TV to provide greater transparency and performance in streaming video for e-commerce marketers, and teamed with GumGum to add contextual intelligence to multi-channel marketing campaigns.
- Added direct media buying to LDM platform for access to web, mobile and connected TV and audio media providers across the Asia Pacific region.
Other Operational Highlights
- Promoted Steven Hartman to chief operating officer to lead the company’s global strategy, branding and communications, setting performance goals and managing an effective corporate infrastructure.
- Engaged The Benchmark Company to assist Logiq in a restructuring initiative designed to separate the company’s DataLogiq and AppLogiq businesses into two independent publicly traded companies, with the separation approved by Logiq’s board of directors in October.
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Management Commentary
“Our performance in Q3 demonstrates we have finally pivoted back to year-over-year growth after emerging from the severe impact of the global pandemic,” commented Logiq president, Brent Suen. “Also during this period, we refocused our efforts on higher margin, higher quality revenue streams while eliminating low margin revenue sources. As a result, our gross margin expanded to more than 29.5%, nearly double from 15.8% in the same year-ago quarter.
“Over the last several months we have also established a stronger foundation for addressing the abundant e-commerce opportunities worldwide. For DataLogiq, we added auto, life and health insurance verticals to our strong Medicare vertical, with this enabled by the investments we made this past year in our foundational marketing and customer acquisition technology.
“Our Logiq Consumer Marketplace has been gaining solid traction with new and existing customers. We recently reported that our proprietary DataLogiq scoring system for client customer acquisitions is driving a ramp up in e-commerce campaign activity, including with a long-time client which is a multi-billion-dollar publicly traded company.
“During the quarter we made significant investments into our Logiq Digital Marketing platform’s ability to efficiently and economically help brands and agencies advertise on valuable streaming video and connected TV content. We also added contextual and brand safety solutions. Accounting for context has proven to be a superior targeting method, especially compared to using third-party cookies. The decisions by media platforms to phase out the usage of third-party cookies further underscores the value and importance of our contextual targeting solutions.
“As a further means to unlock shareholder value, we recently announced the board approval of our plans to separate our DataLogiq and AppLogiq businesses into two independent publicly traded companies. We believe that by creating two standalone businesses, DataLogiq and AppLogiq will be in a better position to capitalize on their respective growth opportunities in the rapidly evolving e-commerce and fintech landscape.
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