Logiq, Inc., a global provider of consumer acquisition solutions, reported preliminary unaudited results for its fourth quarter and full year ended December 31, 2021.
Revenue for the fourth quarter is expected to total a record $12.3 million, up 87% from $6.6 million in the same year-ago quarter.
Gross margin for the quarter is also expected to expand to record levels, exceeding 34.0%. This compares to 29.5% in the previous quarter and 21.1% in the same year-ago quarter.
These results exceed the company’s earlier revenue guidance for the fourth quarter by $2.3 million, reflecting an exceptionally strong finish to the year. It also puts full year revenue on track to total approximately $36.5 million. Gross margin for Q4 2021 is expected to exceed earlier guidance by a hundred basis points.
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“Our improving revenue performance throughout 2021 demonstrates our team’s commitment to driving a transformation of our business overall and providing visibility on future profitability,” stated Brent Suen, president of Logiq. “As we refocused our efforts on higher quality, more profitable revenue streams and adjusted to the changing market dynamics, we also drove strong gross margin improvement every quarter of 2021. In fact, our gross margin more than doubled in Q4 2021 compared to the full year of 2020.”
“We believe this strong progress across the board is keeping us on the path to profitability for both of our business segments,” continued Suen. “It also advances our plans to separate our DataLogiq and AppLogiq businesses into two independent publicly traded companies as another way to further unlock shareholder value.”
The company recently reported it had finalized its agreement with Lovarra, a fully-reporting public company, to transfer Logiq’s AppLogiq assets into Lovarra. The transfer is now nearly complete.
“Our strong performance and planned separation of our businesses has also strengthened our position with several M&A targets we have been pursuing,” added Suen. “We have a number of acquisition candidates, and believe that such targets would be accretive to EBITDA overall.”
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The company believes it already has the funding and advisors in place to facilitate such potential transactions, although there can be no assurances that any will be completed as planned.
Suen added: “Looking ahead in 2022, we anticipate our momentum to continue to build, driven by the increasing demand for fintech/m-commerce solutions in emerging markets worldwide and high-growth e-commerce market segments in the U.S. Finding high buying intent consumers has become increasingly important to our customers, and this is where we believe that Logiq excels beyond anyone else in the industry. We believe we’re still very much in the early stages of growth, so we expect 2022 to be our biggest year yet.”
Based upon its potential deal pipeline, which includes M&A and potential partnerships or client relationships, the company has set a goal of $50 million to $75 million in annualized revenue by the end of 2022 for both business segments and profitability by early 2023.
The company plans to report its full year results and host an investor conference call in March.
