Logiq Inc. Sees Third Quarter Revenue Increase to $ 7.8 Million and Gross Profit Increase 108%, Thanks to AppLogiq and DataLogiq Businesses

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For the period ended September 30, 2021, the New York-based company reported revenue of $ 7.8 million, up from $ 7 million for the same quarter a year earlier.

Logiq Inc., an e-commerce solutions provider and fintech business support, released third quarter results which saw revenue jump 11% year-on-year on strong contributions from its DataLogic business and AppLogic.

For the period ended September 30, 2021, the New York-based company reported revenue of $ 7.8 million, up from $ 7 million for the same quarter a year earlier.

“The increase over the period last year demonstrated continued positive trends based on key strategic decisions made by management,” the company said.

READ: Logiq announces partnership with Indonesian bank BPRS to provide microfinance services and digital payment solutions

AppLogiq business, Logiq’s platform as a service, under the CreateApp brand, contributed $ 2.8 million or 36% of consolidated revenue in Q3 2021, up from $ 3.2 million in revenue over the same period in 2020. The company explained that the decline was due to the “strategic shift to target high-margin end customers versus high-volume and low-volume white-label resellers. margin ”. AppLogiq allows small and medium businesses to easily build and deploy a native mobile app for their business without technical knowledge.

Meanwhile, DataLogiq, Logiq’s consumer monetization platform connecting traffic and data providers with interested brands, contributed $ 5 million in the quarter, up 30% from 3.8 million dollars from 3Q 2020.

The company’s overall gross profit rose 108% to $ 2.3 million in 3Q 2021, from $ 1.1 million in the same quarter last year.

During the quarter, AppLogiq’s gross margin increased 133% to $ 0.9 million, while DataLogiq’s gross margin increased 94% to $ 1.4 million.

In the third quarter of 2021, the company’s total operating expenses reached $ 8.1 million, up from $ 4 million in the same period a year earlier. The increase is mainly due to an increase in general and administrative expenses of $ 3.2 million, according to the company. R&D expenses also increased, as did depreciation expense of $ 0.6 million, which was partially offset by lower marketing expenses.

The company 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 reported revenue of $ 24 million, down 23% from $ 31.3 million for the corresponding period a year earlier. The company said the decline was mainly due to lower revenue from AppLogiq, partially offset by higher revenue from DataLogiq, which included revenue from Fixel AI and Rebel AI.

Overall gross margin increased 40% to $ 7 million in the first nine months of 2021, from $ 5 million in revenue during the same period in 2020. Logiq’s net loss amounted to $ 14.8 million, or $ 0.76 per basic and fully diluted share in the first nine months. from 2021.

“Our performance in Q3 shows that we are finally back to year-over-year growth after emerging from the severe impact of the global pandemic,” Logiq Chairman Brent Suen said in a statement.

“During this period, we refocused our efforts on higher margin and better quality revenue streams while eliminating low margin revenue streams. As a result, our gross margin increased to over 29.5%, almost double the 15.8% in the same quarter last year. “

Suen said the company has established a “stronger foundation” for targeting many e-commerce opportunities.

“For DataLogiq, we added the auto, life and health insurance verticals to our strong Medicare business with investments we made last year,” said Suen. “Our Logiq Consumer Marketplace has gained ground with new and existing customers… Our proprietary DataLogiq rating system for customer customer acquisition is driving increased e-commerce campaign activity. “

Significantly, Logiq revealed that the board has approved plans to separate its DataLogiq and AppLogiq businesses into two publicly traded companies.

“We believe that by creating two stand-alone 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 than Logiq’s today. An analyst who follows us recently said that for Logiq, “the sum of the parts is greater than the whole”. We totally agree… We believe that a stand-alone valuation of AppLogiq could be set at $ 100 million or more.

The US investment bank, The Benchmark Company, is helping Logiq with the separation and potentially other related transactions.

Contact author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive


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