IQST – iQSTEL Announces Q1 37% Revenue Increase To $19.42 Million: On Track To $90 Million 2022 Annual Revenue Forecast

Rhea-AI Summary

iQSTEL, Inc. (OTCQX: IQST) reported a 37% increase in Q1 2022 revenue, reaching $19.42 million, compared to Q1 2021. The net loss was reduced by 72%, improving stockholders' equity by 410% to nearly $7 million, exceeding Nasdaq listing requirements. From Q4 2021 to Q1 2022, revenue rose by 9%, with a gross profit increase of 201%. The company maintains $4.22 million in cash for operational stability amid market conditions. Anticipated acquisitions will add $11.6 million in revenue and increase net income by $1.34 million annually, starting in Q2.

Positive

• Q1 2022 revenue increased 37% to $19.42 million.
• Net loss reduced by 72% compared to Q1 2021.
• Stockholders' equity surged by 410% to almost $7 million.
• Company has $4.22 million cash, ensuring operational sustainability.
• Acquisitions expected to add $11.6 million in revenue and $1.34 million net income annually.

Negative

• Gross profit decreased by 1%, indicating potential margin pressures.

New York, NY , May 16, 2022 (GLOBE NEWSWIRE) -- iQSTEL, Inc. (OTCQX: IQST) today announced filing its Q1 financial report. The company realized a 37% increase in revenue to $19.42 million in Q1 compared to the same period in 2021.  The company is approaching breakeven posting a substantial bottom line improvement reducing its net loss by 72% compared to the same period last year.  Stockholder’s equity increased 410% to almost $7 million compared to Q1 2021 surpassing the Nasdaq minimum listing requirement.

Summary Financials Q1 2021 vs Q1 2022
Statements of Operation	Q1 2021	Q1 2022	%	Direction
Revenues  (Million US$)	14.20	19.42	37%	Increase
Gross Profit (US$)	487,370	484,060	-1%	Flat
Operation Lost (US$)	-1,010,741	-505,438	-50%	Reduction
Consolidated Net Loss (US$)	-1,878,489	-524,731	-72%	Reduction
Balance Sheet	Q1 2021	Q1 2022	%	Direction
Cash (US$)	3,032,637	4,227,044	39%	Increase
Assets  (Million US$)	8.17	9.85	21%	Increase
Liabilities  (Million US$)	6.81	2.91	-57%	Reduction
Stocksholders´ Equity  (Million US$)	1.36	6.94	410%	Increase

“iQSTEL’s cross selling strategies and introduction of new higher margin products are working together to grow revenue, and more importantly, increase profits,” said Leandro Iglesias, CEO of iQSTEL.”  From Q4 2021 to Q1 2022, revenue increased 9%, and at the same time, gross profit increase 201% combining to reduce the quarter-to-quarter net loss by 30%.  A breakeven milestone is now in sight. It’s also important to note the company has $4.22 million in cash in the bank providing adequate sustainability to weather the prevailing market conditions without having to raise additional funds.”

Summary Financials Q4 2021 vs Q1 2022
Statements of Operation	Q4 2021	Q1 2022	%	Direction
Revenues (Million US$)	17.86	19.42	9%	Increase
Gross Profit (US$)	160,728	484,060	201%	Increase
Operation Lost (US$)	-692,430	-505,438	-27%	Reduction
Consolidated Net Loss (US$)	-751,922	-524,731	-30%	Reduction
Balance Sheet	Q4 2021	Q1 2022	%	Direction
Cash (US$)	3,334,813	4,227,044	27%	Increase
Assets (Million US$)	9.06	9.85	9%	Increase
Liabilities (Million US$)	2.64	2.91	10%	Increase
Stocksholders´ Equity (Million US$)	6.42	6.94	8%	Increase

A full analysis of the company’s overall improving financial performance displayed in a variety of charts and graphs is available at the following link:

https://bit.ly/IQSTELGraphsMarch2022

Note that the current financial results do not include the recently announced acquisitions of Smartbiz and Whisl that are expected to add $11.6 Million revenue and $1.34 Million positive net income to the company’s existing revenue and income on yearly basis. The company will start to show this impact in Q2 partially and in Q3 in full.

Management indicates that the year-to-date results surpass expectations in regard to the company’s $90 million revenue, net income positive FY-2022 forecast.

In combination with the Q1 financial report, management encourages shareholders to review the CEO Update published last week addressing the prevailing market conditions and iQSTEL’s expected continued growth regardless of the prevailing market conditions. 

iQSTEL Inc. (OTCQX: IQST) (www.iQSTEL.com) is a US-based publicly-listed company holding an Independent Board of Directors and Independent Audit Committee offering leading-edge services through its two business divisions and each of them with independent brands. The B2B division, Brand IQSTelecom offering Telecommunications, Internet of Things, Technology and Blockchain platforms services, the target market for the B2B division is Global Markets. The B2C division, Brand EVOSS offering EV Electric Motorcycles, Fintech Ecosystem, the target market for this business division is Latin America, and the Spanish speakers in the USA. The company has presence in 15 countries, and its products and services are used in several industries as Telecommunications, Electric Vehicle (EV), Financial Services, Chemical and Liquid Fuel Distribution Industries. IQSTEL announced on February 17th 2021 that it became a Debt Free Company and is now completely debt free with no Convertible Notes, Warrants, Promissory Notes or Settlement Agreements from its Balance Sheet.

Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and iQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. This press release does not constitute a public offer of any securities for sale.Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

iQSTEL Inc.

IR US Phone: 646-740-0907, IR Email: investors@iqstel.com

Source: iQSTEL Inc. and its subsidiaries: www.iqstel.com

FAQ

What were iQSTEL's Q1 2022 revenue figures?

iQSTEL reported a revenue of $19.42 million for Q1 2022, a 37% increase from the previous year.

How much did iQSTEL reduce its net loss by in Q1 2022?

iQSTEL reduced its net loss by 72%, amounting to $524,731 in Q1 2022.

What is the current cash position of iQSTEL?

iQSTEL has $4.22 million in cash as of Q1 2022.

When will the impact of recent acquisitions be reflected in iQSTEL's financials?

The impact from acquisitions is expected to start showing in Q2 2022 and fully in Q3 2022.

What was the increase in stockholders' equity for iQSTEL in Q1 2022?

Stockholders' equity increased by 410% to nearly $7 million in Q1 2022.