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Vertiqal Studios Reports Strong Q1 2024 Financial Performance with Revenue Growth and Cost Reductions
Newsfile Corp.
3 min read
Toronto, Ontario--(Newsfile Corp. - May 15, 2024) - Gamelancer Media Corp. (TSX: VRTS) (OTCQB: GAMGF) (FSE: P93) (dba Vertiqal Studios) ("the Company") - Vertiqal Studios, a leading digital-channel network and video-production studio, is pleased to announce a robust financial performance for the first quarter of 2024. The company has achieved a significant increase in revenues and a reduction in costs, leading to a substantial decrease in EBITDA loss compared to Q1 2023.
Below is a summary of the financial results for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
Three months ended March 31, 2024
Three months ended March 31, 2023
Variance (%)
Revenues
$842,909
$722,209
16%
Gross Profit
$654,845
$177,955
268%
Total Expenses
$1,250,090
$2,999,637
-58%
Net Loss
($513,047)
($2,590,925)
80%
EBITDA
($194,141)
($1,273,961)
85%
Financial Highlights of Q1 2024:
Revenue Composition and Growth: Vertiqal Studios reported a 17% increase in revenue compared to Q1 2023. Its programmatic offering of content contributed to 73% of the total revenues, highlighting its continued dominance in the Company's revenue mix. Additionally, revenues from Direct Media saw a measurable increase, now accounting for 28% of total revenues.
Cost Reductions: The company successfully reduced its cost of sales by 65%, thanks to strategic reductions in personnel resources, paid media spending, and revenue share with Snapchat partners. This optimization has resulted in an impressive margin of 78% for the quarter, compared to 25% in the same quarter last year, with specific highlights including a 75% margin from Snapchat and an 85% margin from Direct Media.
EBITDA Improvement: Vertiqal Studios has dramatically improved its EBITDA, reporting a loss of $194k for the quarter, a significant improvement from a loss of $1.2M in Q1 2023. This improvement reflects the effective management and operational efficiencies implemented across the company.
Operational and Strategic Developments:
Reductions in Operating Expenses: General administrative, advertising, and promotional expenses were collectively reduced by 41%, aligning with the company's commitment to streamline operations and enhance profitability.
Strategic Priorities and KPIs: The company continues to focus on building out its revenue team and optimizing operations through enhanced data strategies and internal control implementations. Vertiqal Studios is committed to maximizing every opportunity to its fullest potential, maintaining high margins and increasing operational efficiency.
Jon Dwyer, Chairman & CEO of Vertiqal Studios, commented, "First quarter results reflect our strategic focus on high-margin opportunities and operational efficiency. With the continued execution of our business strategy, Vertiqal Studios is well-positioned for sustained scalable growth and profitability."
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.
For more information and to join our email subscriber list for direct press releases and newsletters, visit https://vertiqalstudios.com/.
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.
The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
