Logiq Inc. (NEO:LGIQ.AQN, OTCQX:LGIQ) said it has posted US$4.1 million revenue for the quarter ended September 30, 2022 and stayed steady on guidance of $40 million to $50 million for the full year 2022.
The third quarter’s consolidated revenue included $334,987 from GoLogiq, which was majority owned by Logiq until its successful spin off of 87.8% of its shares, as an independent publicly traded company, to Logiq shareholders on July 27, 2022.
Logiq CEO Brent Suen said the company’s recent announcement of its largest new customer sales contract ever – at $2 million to $3 million monthly – indicates excellent operational progress.
READ: Logiq inks new client services contract that could generate revenue of $2M-$3M per month
“Far from being an outlier, we expect to have one or more similar such large sales to announce in the current quarter,” Suen said in a statement.
“This contract stemmed from our acquisition of Battle Bridge earlier this year, and we continue to see strategically executed M&A as a key driver of growth accelerating into 2023,” Suen added. “We expect to exit 2022 north of a $40 million run-rate while our outlook for 2023 is stronger than ever.”
Logic said it believes that 2023 revenues, including strategic, accretive M&A, could approach $100 million.
The New York-based company said consolidated operating income for the quarter was down from the $7.8 million a year ago, while revenue from its wholly owned DataLogiq (DLQ) operating segment was $3.8 million, an increase from $3.3 million sequentially and a decrease from $5.0 million in the prior year quarter.
The firm posted an operating loss of $7.7 million compared to $5.8 million in the same year-ago period.
Logic's new business pipeline includes customers within an industry in which product marketing and advertising is highly regulated and requires an advanced AdTech compliance expertise. The recent contract demonstrates Logiq’s success executing on its previously announced directional change towards higher margin and regulated vertical markets such as cannabis, eSports, gambling, and crypto, the company said.
Eyeing NASDAQ listing
Looking ahead, Logiq said it expects to close on its previously announced SPAC transaction with Abri SPAC I Inc in the first quarter of 2023. Accordingly, the company said it anticipates being a newly Nasdaq-listed company with a presumed cash infusion that will accelerate its M&A activity. Logiq said it is currently in advanced discussions for more than one business combination to broaden its services offering, expand its client base, add accretive cash flow and executive talent.
To improve operating margins, Logiq said it is shrinking its lowest-margin, smallest-account client base through attrition as it focuses its resources on serving and building its increasingly larger and higher margin client base.
Additionally, Logiq said it had expanded into the home improvement vertical market via both the residential and commercial EV charger installation market as well as the roofing market – deploying its on-demand digital marketing platform system which provides Logiq clients efficient, enhanced service.
Logiq said it remains opportunistic to capture market share of attractive verticals.
Contact the author at susie@proactiveinvestors.com