EarthLabs Reports Results For The Second Quarter of 2024

Rhea-AI Summary

EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) reported strong financial results for Q2 2024. Highlights include:

• 1,119.9% increase in total revenue compared to Q2 2023
• 384.3% increase in advertising revenue to $1,444,784
• 41.3% increase in subscription revenue to $300,734
• Total cash, equivalents, and investments of $44,373,956

For the six-month period, advertising revenue grew 162.7% to $2,860,470, while subscription revenue increased 39.6% to $604,607. Despite these gains, the company reported a net loss of $1,962,457 for Q2 and $356,571 for the six-month period. CEO Denis Laviolette emphasized the company's growth trajectory and strategic initiatives in the commodities sector.

Positive

• 1,119.9% increase in total revenue for Q2 2024 compared to Q2 2023
• 384.3% increase in advertising revenue to $1,444,784 in Q2 2024
• 41.3% increase in subscription revenue to $300,734 in Q2 2024
• 162.7% increase in advertising revenue to $2,860,470 for the six-month period
• 39.6% increase in subscription revenue to $604,607 for the six-month period
• Strong cash position with $44,373,956 in total cash, cash equivalents, and investments

Negative

• Net loss of $1,962,457 for Q2 2024, compared to $1,801,140 in Q2 2023
• Net loss of $356,571 for the six-month period, compared to net income of $464,791 in the same period last year
• Net investment loss of $427,144 from investment portfolio in Q2 2024

• 1,119.9% increase in total revenue for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023;
• 384.3% increase in advertising revenue as compared to Q2 2023 with advertising revenue of $2,860,470 for the six-months period ended June 30, 2024 (162.7% increase);
• 41.3% increase in subscriptions revenue as compared to Q2 2023 with subscription revenue of $604,607 for the six-months period ended June 30, 2024 (39.6% increase);
• Ended the quarter with total cash, cash equivalents, and investments of $44,373,956.

Toronto, Ontario--(Newsfile Corp. - August 9, 2024) - EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) ("EarthLabs" or the "Company") is pleased to announce the unaudited consolidated financial results for three and six months ended June 30, 2024 of the Company (the "Financial Results").

Highlights for the three-months period ended June 30, 2024:

• Advertising revenue of $1,444,784 as compared to $298,320 for the three months ended June 30, 2023, an increase of 384.3%;
• Subscription revenue of $300,734 as compared to $212,772 for the three months ended June 30, 2023, an increase of 41.3%;
• Net investment loss of $427,144 from our investment portfolio as compared to $693,821 for the three months ended June 30, 2023;
• Net loss and comprehensive loss of $1,962,457 (basic loss per share of $0.01) as compared to $1,801,140 (basic loss per share of $0.01) for the three months ended June 30, 2023.

Highlights for the six-months period ended June 30, 2024:

• Completed the six-month period with total cash and cash equivalents, due from brokers, investments and equity investments of $44,373,956 as compared to $42,943,109 as at December 31, 2023;
• Advertising revenue of $2,860,470 as compared to $1,088,814 for the six months ended June 30, 2023, an increase of 162.7%;
• Subscription revenue of $604,607 as compared to $433,023 for the six months ended June 30, 2023, an increase of 39.6%;
• Net investment gains of $2,883,228 from our investment portfolio as compared to $2,734,954 for the six months ended June 30, 2023;
• Net loss and comprehensive loss of $356,571 (basic loss per share of $0.00) as compared to net income and comprehensive income of $464,791 (basic earnings per share of $0.00) for the six months ended June 30, 2023.

"EarthLabs' Q2 2024 results highlights an important phase of our growth trajectory," said Denis Laviolette, Executive Chairman and CEO of EarthLabs. "With a 384.3% increase in advertising revenue and a 41.3% rise in subscriptions revenue, our strategic initiatives are clearly effective within the commodities sector and the larger investment community. Our investment in cutting-edge technology and platform acquisitions has strengthened our market position, enabling us to seize current opportunities. The performance of Q2 2024 is a testament to our resilience and strategic vision, marking another milestone in what promises to be a significant year of growth and achievement for EarthLabs."

Summary of financial results

The following are selected interim condensed consolidated financial results as at and for the three and six months ended June 30, 2024, with comparatives:

Interim condensed consolidated statements of income (loss) and comprehensive income (loss) highlights		Three months ended June 30,						Six months ended June 30,
		2024			2023			2024			2023
Advertising revenue	$	1,444,784		$	298,320		$	2,860,470		$	1,088,814
Subscriptions revenue		300,734			212,772			604,607			433,023
Sales of exploration maps		40,378			51,189			105,081			139,499
Net investment gains (losses)		(427,144	)		(693,821	)		2,883,228			2,734,954
Other income		198,982			259,237			477,228			500,751
Operating, general and administrative		(2,689,917	)		(1,983,138	)		(5,323,266	)		(3,721,748	)
Research and development expenses		(870,219	)		(441,473	)		(1,590,005	)		(852,019	)
Total expenses		(3,596,811	)		(2,429,228	)		(6,987,057	)		(4,583,464	)
Loss from equity investment		(1,671	)		(29,731	)		(16,511	)		(76,033	)
Income tax recovery (expense)		78,291			530,122			(283,617	)		227,247
Net income (loss) and comprehensive income (loss) for the period		(1,962,457	)		(1,801,140	)		(356,571	)		464,791
Earnings (loss) per common share for the period - basic		(0.01	)		(0.01	)		(0.00	)		0.00
Earnings (loss) per common share for the period - diluted		(0.01	)		(0.01	)		(0.00	)		0.00

 

Interim condensed consolidated statements of financial position highlights		June 30, 2024			December 31, 2023
Cash and cash equivalents	$	4,356,101		$	5,227,657
Due from brokers		856,684			485,949
Accounts receivable, net of expected credit losses		385,395			120,253
Investments, at fair value		37,039,330			35,091,151
Equity investment		2,121,841			2,138,352
Income tax receivable		219,557			854,023
Property, equipment and right-of-use assets		1,224,968			1,252,737
Intangible Assets		2,948,799			3,127,000
Goodwill		624,290			624,290
Total assets		50,091,620			49,251,445
Accounts payable and accrued liabilities		1,281,849			1,287,021
Deferred revenue		2,471,214			1,921,102
Total promissory note		1,017,092			980,971
Total lease liabilities		1,095,370			1,155,154
Deferred tax liabilities		612,730			204,690
Total liabilities		6,578,079			5,589,812
Share capital, contributed surplus, and warrants		52,432,836			52,224,357
Deficit		(8,919,295	)		(8,562,724	)

 

About EarthLabs Inc.

EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) is a mining investment, technology, and media company that aims to provide strategic leverage to the metals and mining sector through investments, royalties and a full suite of data-driven media SaaS tools and services including CEO.CA, The Northern Miner, MINING.COM, Canadian Mining Journal and DigiGeoData.

For further information please contact:

Denis Laviolette
Executive Chairman and CEO
EarthLabs Inc.
Tel: 647-345-7720
Email: investors@earthlabs.com

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

Cautionary Statement on Forward -Looking Information

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, risks detailed from time to time in the Company's filings with securities regulators and available under the Company's profile on SEDAR at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219269

FAQ

What was EarthLabs' (SPOFF) revenue growth in Q2 2024?

EarthLabs reported a 1,119.9% increase in total revenue for Q2 2024 compared to Q2 2023.

How much did EarthLabs' (SPOFF) advertising revenue grow in Q2 2024?

EarthLabs' advertising revenue grew by 384.3% to $1,444,784 in Q2 2024 compared to Q2 2023.

What was EarthLabs' (SPOFF) subscription revenue growth in Q2 2024?

EarthLabs' subscription revenue increased by 41.3% to $300,734 in Q2 2024 compared to Q2 2023.

What was EarthLabs' (SPOFF) net income/loss for Q2 2024?

EarthLabs reported a net loss of $1,962,457 for Q2 2024.

How much cash and investments did EarthLabs (SPOFF) have at the end of Q2 2024?

EarthLabs ended Q2 2024 with total cash, cash equivalents, and investments of $44,373,956.