Logiq Inc. (NEO:LGIQ.AQN, OTCQX:LGIQ) saw its revenue grow during the fourth quarter of 2021 as it shifted its focus to higher quality, more profitable revenue streams.
During 4Q, Logiq’s revenue more than doubled to $13.1 million versus $6.6 million in the comparable year-ago quarter.
AppLogiq, its mCommerce platform-as-a-service, contributed $6.2 million, or 47.3%, of fourth-quarter consolidated revenue quarter, an increase of 193.7% from $2.1 million in the year-ago quarter driven by the shift to targeting higher-margin end-customers compared with low-margin, high-volume, white-label resellers.
READ: Logiq completes acquisition of Battle Bridge, including Section 2383 LLC
As a result of the shift, Logiq nearly doubled its full-year 2021 gross margins compared to the same year-ago quarter to 29.6% versus 16.8%.
For the year ended December 31, 2021, Logiq reported $37.3 million in revenue, down slightly from the $37.9 million it posted in 2020. AppLogiq revenues were softer in the first few quarters, which the company attributed to a loss of customers from the adverse effects of the pandemic and a strategic shift away from white label APP resellers towards higher-margin direct marketing customers.
Logiq reported a 4Q loss of $5.3 million compared to the $7.1 million in the prior year, while its net loss for the full year came in at $20.1 million versus $14.5 million in 2020.
"While a little lumpy, our strong revenue growth and margin expansion achieved last year demonstrates our re-tooled business plan is succeeding, and it's only the second inning,” CEO Brent Suen said in a statement accompanying the numbers.
“In 2021, we took several pivotal steps to reach far higher levels of growth and profitability by reinforcing and broadening our ad-tech and mar-tech digital platforms that are now capable of scaling to over $100 million in annual sales without significant capital expenditure."
Battle Bridge expected to bring in revenue
The firm recently closed its acquisition of Battle Bridge Labs, a Tulsa, Oklahoma-based digital brand marketing agency, which it anticipates will book $3.8 million in Battle Bridge revenue with $1.4 million in EBITDA (earnings before interest, depreciation, taxes and amortization) cash flow over the next 12 months.
"The Battle Bridge acquisition exemplifies our accretive acquisition strategy to gain substantial revenue growth and margin expansion opportunities near and long term," Suen said. "We are closely evaluating several well-managed businesses with attractive valuations that offer the scale and expertise to synergistically drive our market penetration and shareholder value."
The New York-based company is projecting annualized revenues for fiscal 2022 to be in the range of $50 million to $75 million, reaching a breakeven EBITDA run rate by the end of 2022 and attaining profitability in early 2023.
"In addition to our growth initiatives, we are also actively planning to create and integrate our own NFTs to leverage our ad-tech and mar-tech platform and facilitate deploying industry influencers to boost those results and identify high buying-intent consumers,” Suen added.
Cash, cash equivalents and restricted cash totaled $1.6 million as of December 31, 2021.
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