Logiq Inc., a provider of e-commerce and fintech business enablement solutions, posted third-quarter results that saw its revenue jump 11% year-over-year on the back of strong contributions from its DataLogic and AppLogic businesses.
For the period ended September 30, 2021, the New York-based company reported revenue of $7.8 million, compared to $7 million for the same quarter a year earlier.
“The increase from the year-ago period demonstrated continued positive trends based on key strategic decisions made by management,” said the company.
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The AppLogiq business, Logiq’s platform-as-a-service, branded as CreateApp, contributed $2.8 million or 36% of consolidated revenue in 3Q 2021, compared to $3.2 million in revenue in the same period in 2020. The company explained that the decrease was due to “the strategic shift to target high-margin end customers compared to low margin high volume white label resellers.” AppLogiq enables small and medium-sized businesses easily create and deploy a native mobile app for their business without technical knowledge.
Meanwhile, DataLogiq which is Logiq's consumer monetization platform connecting traffic and data providers with interested brands, contributed $5 million during the quarter, up 30% from $3.8 million in 3Q 2020.
The company’s overall gross profit increased 108% to $2.3 million in 3Q 2021, compared to $1.1 million in the same quarter last year.
During the quarter, AppLogiq’s gross profit increased 133% to $0.9 million, while DataLogiq’s gross profit increased 94% to $1.4 million.
In 3Q 2021, the company’s total operating expenses climbed to $8.1 million, compared to $4 million in the same period a year earlier. The increase was mainly due to an increase in general and admin expenses of $3.2 million, according to the company. R&D expenses also grew, as did depreciation and amortization expense of $0.6 million, which were partially offset by a decrease in marketing expenses.
The firm reported a net loss of $5.8 million or $0.25 per basic and fully diluted share in 3Q 2021.
As of September 30, 2021, Logiq had cash, equivalents, and restricted cash of $5.3 million.
Meanwhile, for the first nine months of 2021, the company saw revenue of $24 million, down 23% from $31.3 million in the corresponding period a year earlier. The company said the decrease was mainly due to a decrease in AppLogiq revenue, partially offset by an increase in DataLogiq revenue, which included revenue from Fixel AI and Rebel AI.
Overall gross profit increased 40% to $7 million in the first nine months of 2021, compared to $5 million of revenue in the same period in 2020. Logiq’s net loss was $14.8 million, or $0.76 per basic and fully diluted share in the first nine months of 2021.
“Our performance in the 3Q demonstrates we have finally pivoted back to year-over-year growth after emerging from the severe impact of the global pandemic,” Logiq President, Brent Suen said in a statement.
“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.”
Suen said the company has established a “stronger foundation” for targeting abundant e-commerce opportunities.
“For DataLogiq, we added auto, life and health insurance verticals to our strong Medicare vertical with investments we made this past year,” said Suen. “Our Logiq Consumer Marketplace has been gaining solid traction with new and existing customers … Our proprietary DataLogiq scoring system for client customer acquisitions is driving a ramp-up in e-commerce campaign activity.”
Significantly, Logiq has revealed the board has approved plans to separate its DataLogiq and AppLogiq businesses into two publicly traded companies.
“We believe that by creating two standalone businesses, DataLogiq and AppLogiq will be in a better position to capitalize on growth opportunities in the rapidly evolving e-commerce and fintech landscape,” said Suen. “We also believe that the separation will create higher peer valuations as compared to where Logiq is today. An analyst who follows us recently said that for Logiq, ‘the sum of the parts is greater than the whole.’ We couldn’t agree more…We believe a standalone valuation for AppLogiq could be pegged at $100 million or more.”
US investment bank, The Benchmark Company, is helping Logiq with the separation and potentially other related transactions.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive