RIWI Releases Q2 Financials

Rhea-AI Summary

RIWI Corp. (TSXV: RIWI) (OTC Pink: RWCRF) reported its Q2 2024 financial results. Key highlights include:

- Revenue increased 10.5% to $1,026,112 compared to Q2 2023
- Net loss improved by 32.9% to $108,826 compared to Q2 2023
- Acquired majority assets of CoolTool Inc., enhancing platform capabilities
- Signed 16 new client contracts, including 9 new customers
- Delivered first marketing-related market research projects
- Achieved back-to-back quarters of over $1 million USD in revenues

The company's transactional revenue segment was impacted by new data quality measures. RIWI is developing an AI-powered platform to address industry fragmentation and ensure data quality, positioning itself for long-term success.

Positive

• Revenue increased 10.5% to $1,026,112 in Q2 2024 compared to Q2 2023
• Net loss improved by 32.9% to $108,826 in Q2 2024 compared to Q2 2023
• Acquired majority assets of CoolTool Inc., enhancing platform capabilities and opening new SaaS revenue stream
• Signed 16 new client contracts, including 9 new customers
• Delivered first marketing-related market research projects, expanding into consumer packaged goods segment
• Achieved back-to-back quarters of over $1 million USD in revenues for the first time since 2021

Negative

• Transactional revenue segment significantly impacted by new data quality measures
• Management expects continued impact on transactional revenue segment for the next two quarters
• Company still operating at a net loss, albeit improved from previous year

Toronto, Ontario--(Newsfile Corp. - August 21, 2024) - RIWI Corp. (TSXV: RIWI) (OTC Pink: RWCRF) (the "Company" or "RIWI"), a market research platform and global trend-tracking and prediction technology firm, reported its financial results for the quarter ended June 30, 2024. All figures are reported in U.S. dollars unless otherwise indicated. RIWI's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

RIWI Highlights for the Quarter Ended June 30, 2024 – in USD:

• RIWI earned $1,026,112 in revenues in the second quarter of 2024 compared to $928,415 for the three months ended June 30, 2023, an increase of 10.5%. The Company's revenue in the second quarter of 2024 consisted of $360,284 in transaction revenue, $400,945 in recurring revenue and $264,883 in project-based revenue. RIWI also recorded a net loss of $108,826 for the three months ended June 30, 2024, as compared to a net loss of $162,190 for the three months ended June 30, 2023, an improvement of 32.9%.

• The RIWI transactional revenue segment was significantly impacted by RIWI's newly implemented data quality measures and the Company's commitment to demonstrable quality data in order to win new clients in an industry increasingly sensitive to these requirements. Management expects this segment to continue being impacted for the next two quarters as improvements are made to improve the customer experience of the RIWI Respondent Marketplace and as RIWI improves the respondent supply quality.

• On April 24, 2024, RIWI announced the acquisition of the majority of the assets of CoolTool Inc., a leading survey and non-conscious data collection platform. This acquisition enhances the RIWI platform by providing customers with new functionality and opens up a new Software-as-a-Service (SaaS) recurring revenue stream.

• RIWI signed 16 new client contracts in the three months ended June 30, 2024, including contract signings with 9 new RIWI customers.

• RIWI delivered its first set of marketing-related market research projects by completing both a packaging market research project and a video-testing project. Management is of the view that these successful capstone projects will help attract new areas of business opportunity for RIWI and provide references for the Company's expanding consumer packaged goods customer segment.

• RIWI delivered the first back-to-back quarters of in excess of $1 million USD in revenues since 2021, showing the stabilization of the business.

• RIWI was recognized in several notable publications in the second quarter of 2024: a paper from The World Bank on "Attitudes Towards Reducing Fossil Fuels: Evidence Across 12 Middle-Income Countries"; an article in Communications Medicine on "Perceptions of the determinants of health across income and urbanicity levels in 8 countries"; an article in Foreign Policy about "What do Russians Really Think About Putin's War"; a paper in Research Square on "Perceived Threats From Minorities Decreases with Increased Societal Threat: Evidence from the 2021 Military Coup in Myanmar"; and in interviews with RIWI's CEO Greg Wong and Dmitry Gaiduk, the Company's Chief Product Officer, in Greenbook's CEO series.

"The global market research industry is ripe for disruption. Currently, clients are often forced to juggle multiple providers and platforms, leading to inconsistent methodologies and unreliable data," said Greg Wong, RIWI's Chief Executive Officer. "At RIWI, we're seizing this opportunity by developing a comprehensive, AI-powered platform that integrates research technologies, sample collection, and services. Our singular solution addresses the industry's fragmentation, ensuring data quality and trustworthy insights. This innovative approach not only meets our customers' needs for better decision-making but also positions RIWI for long-term success. We're confident that our strategy will deliver significant value to investors who join us on this transformative journey," added Mr. Wong.

RIWI CORP.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
For the three and six months ended June 30, 2024 and 2023
(Unaudited and expressed in U.S. dollars)
								Three months ended						Six Months Ended
								June 30						June 30
								2024			2023			2024			2023
Revenues (Note 8)							$	1,026,112		$	928,415		$	2,161,959		$	2,129,655
Operating expenses
	General and administrative (Note 9)							302,984			446,687			691,738			1,026,253
	Operations (Note 9)							530,605			-			1,036,091			-
	Technology costs (Note 9)							109,197			382,217			215,915			881,747
	Sales and marketing (Note 9)							179,595			236,465			316,720			504,640
Total operating expenses								1,122,381			1,065,369			2,260,464			2,412,640
Operating loss before other income								(96,269	)		(136,954	)		(98,505	)		(282,985	)
Other income
	Interest income							22,297			23,112			51,620			42,873
	Gain on asset disposal							-			971			-			971
	Other expenses (Note 9)							(34,854	)		(36,962	)		(34,854	)		(37,228	)
Total other income								(12,557	)		(12,879	)		16,766			6,616
Net loss before income taxes								(108,826	)		(149,833	)		(81,739	)		(276,369	)
Income tax expense								-			(12,357	)		-			(13,764	)
Net loss and comprehensive loss for the period							$	(108,826	)	$	(162,190	)	$	(81,739	)	$	(290,133	)
Net loss per share
	Basic and diluted						$	(0.01	)	$	(0.01	)	$	(0.00	)	$	(0.02	)
Weighted average number of common shares outstanding
	Basic and dliuted							18,004,428			18,004,428			18,004,428			18,004,428

 

 

RIWI CORP.
Condensed Consolidated Interim Statements of Financial Position
As at June 30, 2024 and December 31, 2023
(Unaudited and expressed in U.S. dollars)
		June 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents (Note 5)	$	2,072,324		$	3,094,542
Accounts receivable (Note 11(a))		675,590			637,894
Unbilled revenue (Note 8(b))		37,402			81,948
Contract costs		17,272			43,182
Prepaid expenses and other assets		105,281			53,571
Total current assets		2,907,869			3,911,137
Property and equipment		30,967			3,116
Intangible assets (Note 6)		595,613			151,381
Total assets	$	3,534,449		$	4,065,634
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	182,129		$	472,703
Contingent consideration liability (Note 4)		128,244			-
Deferred revenue (Note 8b))		477,353			902,884
Total current liabilities		787,726			1,375,587
Long-term liabilities
Contingent consideration liability (Note 4)		64,274			-
Total liabilities		852,000			1,375,587
Shareholders' equity
Share capital (Note 7)		4,940,930			4,940,930
Contributed surplus (Note 7)		2,907,278			2,833,137
Accumulated deficit		(5,165,759	)		(5,084,020	)
Total shareholders' equity		2,682,449			2,690,047
Total liabilities and shareholders' equity	$	3,534,449		$	4,065,634

 

RIWI's audited Financial Statements and Management's Discussion and Analysis for the quarter ended June 30, 2024, are available via RIWI's website at https://riwi.com and on SEDAR at www.sedar.com.

About RIWI

RIWI is a market research platform and global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, RIWI offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries - without collecting any personally identifiable data. https://riwi.com

RIWI CORP.

Signed: "Greg Wong"
Greg Wong, Chief Executive Officer

For more information, please contact investors@riwi.com or call 1-833-FOR-RIWI (367-7494)

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTION REGARDING FORWARD-LOOKING INFORMATION:

Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and RIWI does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Company's expectations or beliefs regarding future events. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220712

FAQ

What was RIWI's revenue for Q2 2024?

RIWI's revenue for Q2 2024 was $1,026,112, a 10.5% increase compared to $928,415 in Q2 2023.

How did RIWI's net loss change in Q2 2024 compared to Q2 2023?

RIWI's net loss improved by 32.9%, decreasing from $162,190 in Q2 2023 to $108,826 in Q2 2024.

What acquisition did RIWI announce in Q2 2024?

RIWI announced the acquisition of the majority of assets of CoolTool Inc., a leading survey and non-conscious data collection platform, on April 24, 2024.

How many new client contracts did RIWI sign in Q2 2024?

RIWI signed 16 new client contracts in Q2 2024, including 9 contracts with new customers.

What is impacting RIWI's transactional revenue segment?

RIWI's transactional revenue segment is being impacted by newly implemented data quality measures and the company's commitment to demonstrable quality data.