Vertiqal Studios Fiscal Year 2023 Reports 36% Revenue Increase, 51% Decrease in Adjusted EBITDA Loss, Outlining Optimistic Future
Newsfile Corp.
4 min read
Toronto, Ontario--(Newsfile Corp. - April 2, 2024) - Gamelancer Media Corp. (TSX: VRTS) (OTCQB: GAMGF) (FSE: P93) (dba Vertiqal Studios) ("the Company"), today unveiled its financial achievements for the fiscal year ended 2023, showcasing significant growth, strategic enhancements, and robust financial health. The announcement also highlights the company's positive outlook for fiscal 2024, emphasizing continued growth and expansion plans.
In fiscal 2023, Vertiqal Studios made pivotal strides, marked by the strategic acquisition of OffBeat Media, which augmented its content portfolio and expanded its digital presence. The company fortified its capital position, evidenced by a 108% increase in cash through successful private placements of common shares, reflecting strong market confidence and a solid foundation for future initiatives. Leadership enhancements were a key focus, with the appointment of Tyler Wells as Chief Operating Officer, Pamela Glassman as Chief Revenue Officer, and Gopal Patel as Senior Vice President of Revenue Ops, among others, to bolster the executive team for accelerated growth.
The Company reported total revenues of $4,845,926 in 2023, representing a 36% increase from the previous fiscal year, and adjusted EBITDA loss of $2,960,784 compared to fiscal 2022 adjusted EBITDA loss of $6,134,460. Normalized cash expenses decreased by 24%, and adjusted EBITDA loss decreased significantly by 51%, demonstrating improved operational efficiencies and strategic execution.
Gross margins also saw a substantial improvement of $3,439,770 (71% gross margin in fiscal 2023) in comparison to $2,344,653 (66% gross margin in fiscal 2022), representing a 47% increase year over year.
As part of the annual impairment analysis, the company identified an impairment due to changes in share price, market cap as well as macroeconomic themes that impacted 2023 guidance. It was imperative for the Company to recognize the true value of goodwill and intangible assets on its books to ensure no further impairment is recognized in future years.The company reported a Net Loss which includes all non-cash expenses of $49,018,797, a majority of which is related to the impairment losses on goodwill and intangible assets. When normalizing Losses before taxes, the Company saw a decrease of $3,119,347 in comparison to the previous fiscal year.
Looking to fiscal 2024, Vertiqal Studios guides to $8,600,000 in revenue, which represents a 79% growth over the prior year, generating positive EBITDA. This growth is expected to be driven by both TikTok & Meta brand deals, as well as the Company's growing Snapchat portfolio, demonstrating Vertiqal's diverse and robust business model. Strategic reductions in general and administrative expenses and professional fees are expected to contribute to achieving a positive EBITDA. A major strategic initiative for the coming year includes the expansion of Vertiqal Studios' presence in the US market, leveraging its strengthened sales department and new executive leadership, to capture increased market share and develop new revenue opportunities.
Reflecting on the past year's success and the strategic direction for 2024, Jon Dwyer, Chairman & CEO of Vertiqal Studios, expressed optimism about the company's trajectory. "The past fiscal year was transformative for Vertiqal, marking significant milestones in financial performance, strategic positioning, and operational execution. Our sights are now set on 2024, with a strategic focus on innovation, market expansion, and maintaining financial discipline as we pursue our growth objectives," said Mr. Dwyer.
About Vertiqal Studios
Vertiqal Studios is a leading digital-channel network and video-production studio specializing in the creation and distribution of viral videos. With a daily output of 100+ videos across 138 owned-and-operated channels, Vertiqal leverages TV economics to monetize content on platforms like TikTok and Instagram, and revenue-share on platforms such as Snapchat. The company's focus on producing and broadcasting performative organic content to an audience of over 52 million followers and subscribers, generating over 2 billion monthly video views, positions Vertiqal as a key player in scalable marketing concepts with brands, agencies, and creators for full production and distribution brand campaigns on major social platforms.
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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.
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