Vertiqal Studios Reports Record-Breaking Q3 with Its First Ever EBIT Positive Quarter
Vertiqal Studios (TSX: VRTS) (OTCQB: VERTF) reported its Q3 2024 financial results, achieving its first-ever EBIT positive quarter. The company saw a 14% revenue increase to $1.86M, driven by a 78% rise in direct media revenue. Gross profit grew 13% to $993K, while total expenses decreased 72% to $555K. The company significantly improved its EBITDA loss to $290K from $477K in Q3 2023. For the nine months ended September 30, 2024, revenues increased 1% to $3.81M, with gross profit margin expanding to 66% from 54% year-over-year.
Vertiqal Studios (TSX: VRTS) (OTCQB: VERTF) ha riportato i risultati finanziari per il terzo trimestre del 2024, registrando il suo primo trimestre con EBIT positivo. L'azienda ha visto un aumento del 14% dei ricavi, raggiungendo i 1,86 milioni di dollari, grazie a un incremento del 78% delle entrate dirette dai media. Il profitto lordo è cresciuto del 13% a 993.000 dollari, mentre le spese totali sono diminuite del 72% a 555.000 dollari. L'azienda ha notevolmente migliorato la sua perdita EBITDA, riducendola a 290.000 dollari rispetto ai 477.000 dollari del terzo trimestre del 2023. Per i nove mesi terminati il 30 settembre 2024, i ricavi sono aumentati dell'1% a 3,81 milioni di dollari, con un margine di profitto lordo che è passato dal 54% al 66% su base annua.
Vertiqal Studios (TSX: VRTS) (OTCQB: VERTF) informó sus resultados financieros del tercer trimestre de 2024, logrando su primer trimestre con EBIT positivo. La compañía experimentó un aumento del 14% en los ingresos, alcanzando 1,86 millones de dólares, impulsado por un incremento del 78% en los ingresos de medios directos. La ganancia bruta creció un 13% a 993.000 dólares, mientras que los gastos totales disminuyeron un 72% a 555.000 dólares. La compañía mejoró significativamente su pérdida de EBITDA a 290.000 dólares desde 477.000 dólares en el tercer trimestre de 2023. Para los nueve meses finalizados el 30 de septiembre de 2024, los ingresos aumentaron un 1% a 3,81 millones de dólares, con un margen de ganancia bruta que se expandió del 54% al 66% interanual.
Vertiqal Studios (TSX: VRTS) (OTCQB: VERTF)는 2024년 3분기 재무 결과를 발표하며 최초로 EBIT이 긍정적인 분기를 기록했습니다. 회사는 수익이 14% 증가하여 186만 달러에 달했으며, 이는 직접 미디어 수익이 78% 증가한 데 따른 것입니다. 총 이익은 13% 증가하여 99만 3천 달러에 이르렀고, 총 비용은 72% 감소하여 55만 5천 달러에 머물렀습니다. 회사는 EBITDA 손실을 2023년 3분기 47만 7천 달러에서 29만 달러로 대폭 개선하였습니다. 2024년 9월 30일로 종료된 9개월 동안, 수익은 3.81백만 달러로 1% 증가했으며, 총 이익률은 전년 대비 54%에서 66%로 확대되었습니다.
Vertiqal Studios (TSX: VRTS) (OTCQB: VERTF) a annoncé ses résultats financiers pour le troisième trimestre 2024, atteignant son premier trimestre avec un EBIT positif. L'entreprise a enregistré une augmentation des revenus de 14%, atteignant 1,86 million de dollars, grâce à une hausse de 78% des revenus publicitaires directs. Le bénéfice brut a augmenté de 13% pour atteindre 993 000 dollars, tandis que les dépenses totales ont diminué de 72% pour se chiffrer à 555 000 dollars. L'entreprise a considérablement réduit sa perte d'EBITDA à 290 000 dollars par rapport à 477 000 dollars au troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, les revenus ont augmenté de 1% pour atteindre 3,81 millions de dollars, avec une marge brute qui s'est élargie de 54% à 66% d'une année sur l'autre.
Vertiqal Studios (TSX: VRTS) (OTCQB: VERTF) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und dabei zum ersten Mal ein positives EBIT verzeichnet. Das Unternehmen erzielte einen Umsatzanstieg von 14% auf 1,86 Millionen Dollar, bedingt durch einen Anstieg der direkten MediEinnahmen um 78%. Der Bruttogewinn stieg um 13% auf 993.000 Dollar, während die Gesamtausgaben um 72% auf 555.000 Dollar sanken. Das Unternehmen verbesserte seinen EBITDA-Verlust erheblich auf 290.000 Dollar, verglichen mit 477.000 Dollar im dritten Quartal 2023. Für die neun Monate bis zum 30. September 2024 stiegen die Einnahmen um 1% auf 3,81 Millionen Dollar, während sich die Bruttomarge von 54% auf 66% im Jahresvergleich ausdehnte.
- First-ever EBIT positive quarter at $438,177
- Revenue increased 14% YoY to $1.86M in Q3 2024
- Direct media revenue grew 78% YoY
- Gross profit margin improved to 66% from 54% YoY
- Total expenses reduced by 72% to $555,297
- EBITDA loss improved by 39% to $290,897
- Still operating at a net loss of $52,208 in Q3 2024
- Negative EBITDA of $290,897 in Q3 2024
Toronto, Ontario--(Newsfile Corp. - November 14, 2024) - Vertiqal Studios Corp. (TSX: VRTS) (OTCQB: VERTF) (FSE: 9PY0) ("the Company") - Vertiqal Studios, a leading digital-channel network and video-production studio, as well as the owners of North America's largest gaming and lifestyle network on social media, is pleased to announce Q3 financial results, highlighting the achievement of its first-ever EBIT positive quarter.
Below is a summary of the financial results for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023.
| Three months ended September 30, 2024 | Three months ended September 30, 2023 | Variance (%) | Nine months ended September 30, 2024 | Nine months ended September 30, 2023 | Variance (%) | |
| Revenues | ||||||
| Gross Profit | ||||||
| Total Expenses | - | - | ||||
| Net Loss | ( | ( | - | ( | ( | - |
| EBITDA | ( | ( | ( | ( | ||
| EBIT | ( | ( | ( |
Figure 1
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Financial Highlights of Q3 2024:
- Revenue Composition and Growth: Vertiqal Studios reported a
14% increase in revenue compared to Q3 2023, exclusively due to an increase in direct media revenue of78% . For the nine months ended September 30, 2024, revenues increased by1% in comparison to the nine months ended September 30, 2023, again highlighting the shift in revenue share. - Cost Reductions: For the three months ended September 30, 2024, the Company saw an increase in its gross profit in comparison to the three months ended September 30, 2023 by
13% . This represents the unwavering commitment by the Company to ensure there is profitable revenue growth, through strategic reductions in personnel and more controls on campaign spend. For the nine months ending September 30, 2024, the Company saw a substantial increase in gross profit by23% in comparison to the nine months ended September 30, 2023. This results in a gross profit margin of66% vs54% compared to last year. This marked improvement highlights the Company's ability to become more efficient in managing its costs relative to its revenue and significantly enhances its profitability. It also reflects strategic decisions in pricing, cost management and overall business operations. - EBITDA Improvement: Additionally, Vertiqal Studios has dramatically improved its EBITDA, reporting a loss of
$290 k for the quarter, a significant improvement from a loss of$477 k in Q3 2023. Furthermore, for the nine months ended September 30, 2024, the Company had an EBITDA loss of$970 k compared to$2.5M loss in 2023. The138% improvement in EBITDA loss reflects the combined efforts of more profitable revenues as well as a rigorous cost management policy. This is a direct metric that showcases the company's operational performance and its ability to generate cash flow.
Operational and Strategic Developments:
- Reductions in Operating Expenses: For the three months ended September 30, 2024, the Company saw a reduction in Professional fees, General & Administrative and Advertising expenses for a total of
$327 k in comparison to the three months ended September 30, 2023. For the nine months ended September 30, 2024, the Company saw a reduction of$1.5M in the categories mentioned above for the same time period in 2023. This continuous effort of tightening control over spending and increasing efficiencies to reduce costs will be an ongoing exercise in the upcoming quarters as the Company aims to reduce the EBITDA loss even further.
Overall, these achievements reflect the Company's successful efforts in streamlining operations, optimizing costs and enhancing overall financial performance, setting a positive trajectory for upcoming quarters.
Jon Dwyer, Chairman & CEO of Vertiqal Studios, commented, "Our third quarter results showcase the strength of our core offerings and our ability to adapt to changes in revenue structures. The growth in direct media revenues reinforces our focus on high-margin opportunities and operational efficiency. As we continue executing our strategy, Vertiqal Studios remains well-positioned for sustained growth and long-term profitability."
About Vertiqal Studios
Vertiqal Studios, owners of North America's largest gaming and lifestyle network on social media, is a leading digital-channel network and video-production studio. The company specializes in the creation and distribution of viral videos for brands and advertisers to create always-on digital strategies that live authentically in Gen Z and Millennial culture. Vertiqal Studios partners with leading brands to develop strategic solutions, creative ideation, and content production, while also providing distribution and amplification through its Owned & Operated channels - all delivered with boutique, white-glove service. Its expertise lies with managing over 130 channels across TikTok, Instagram, and Snapchat, while producing over 100+ pieces of content a day for a growing audience of 52 million-plus followers. For more information and to join our email subscriber list for direct press releases and newsletters, visit https://vertiqalstudios.com/.
For media inquiries, please contact:
Jon Dwyer
Chairman and Chief Executive Officer
+1 (416) 627-8868;
Email: jon@vertiqalstudios.com;
Investor Relations Email: ir@vertiqalstudios.com
Forward-Looking Information
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release.
The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
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