eResearch Corp. (www.eresearch.com) published a 14-page update Equity Research Report on EQ Inc. (TSXV:EQ; OTC:CYPXF) pertaining to EQ’s recent release of its first quarter financial results.
EQ enables businesses to understand, predict, and influence customer behavior. Using unique and third-party data sets, advanced analytics, artificial intelligence, and machine learning, EQ creates actionable intelligence for businesses to attract, retain, and grow customers. The Company’s proprietary SaaS platform mines insights from location and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.
EQ’s data solutions revenue, recently its fastest-growing segment, increased 12% year-over-year to $0.5 million in the first quarter ended March 31, 2021 but was down over 50% from the previous quarter due to seasonality and COVID-19 impacts. Overall revenue in the quarter was $1.8 million, down from $2.2 million in Q1/2020 but slightly higher than our estimate of $1.7 million.
However, EQ expects second quarter revenue to be at least 60% higher than first quarter revenue as it was booking higher revenue month-over-month through the first quarter and the trend continued into the second quarter.
EQ also reported that it continued to engage more clients on its LOCUS data platform, added more third-party data providers, and also launched new data products. In January, the Company announced that its clients agreed to spend a minimum of $4 million on projects this year that use EQ’s data analysis tools as well as its targeted media-buying platform.
Recent client deals announced by EQ support a much stronger second half of the year. EQ announced in June that it signed a data services contract with one of Canada’s largest integrated media companies and then signed a $1.8 million agreement with an unnamed Media Agency.
In February, EQ closed an $11.5 million equity financing and its cash balance at March 31 was $13.4 million so the company is well-positioned to grow its data business and look at M&A opportunities.
Chris Thompson, Director of Equity Research of eResearch wrote, “When government mandated shopping restrictions are completely lifted, EQ’s technology will play an important role for businesses to understand consumer behaviour in a post-COVID-19 world. EQ offers a unique value proposition in the market as it gives customers the ability to understand what consumers are looking for and then present them with the most relevant content and advertising”
In the digital advertising, analytics and business intelligence industry, EQ competes with Adobe Inc. (NASDAQ:ADBE), Foursquare Labs Inc., and Inuvo Inc. (AMEX:INUV).
For more information about eResearch’s 14-page update Equity Research Report on EQ, including the target price and revenue forecasts, please visit eResearch’s website (www.eresearch.com).
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