eResearch Corp. (www.eresearch.com) published a 13-page update Equity Research Report on EQ Inc. (TSXV:EQ; OTC:CYPXF) pertaining to EQ’s recent release of its fourth quarter and 2021 annual 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 Software-as-a-Service (SaaS) platform mines insights from location and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.
EQ recorded its highest quarterly revenue since 2010, with $4.2 million booked in Q4/2021, up 36% quarter-over-quarter and 16% year-over-year, but below our estimate of $5.0 million due to the negative effects caused by the COVID-19 pandemic, which continued to impact the retail operations of various businesses.
However, even with the challenging retail environment, the company recorded a 16% year-over-year jump in revenue to $12.1 million in 2021 compared to $10.4 million in the prior year. The revenue increase was powered by the continued traction in the data business, which grew 11% in the quarter and 29% during 2021.
EQ also reported that it continued to engage more clients on its LOCUS consumer data platform, added more third-party data providers, and also launched LOCUS Commute to help insurance providers, retailers, and digital out-of-home networks (e.g. digital billboards) to better understand the movement behaviour of customers.
After acquiring Paymi in July 2021, EQ has been ramping up operations with additional product development. Paymi is a consumer-facing, marketing rewards application (a downloadable app for iOS and Android) that uses card linking technology but only generated $0.2 million in revenue in 2021.
However, Paymi's propriety technology platform accumulates first-party data (100% consent-based) and should enhance the EQ's LOCUS platform with proprietary zero-party data.
EQ reported it has seen significant traction and interest from clients across multiple verticals and recently announced $6.0 million of new client engagements for data-driven marketing projects, an increase of 50% from last year.
Furthermore, the company expects to launch several proprietary SaaS products that could generate additional revenue growth during the second half of 2022 and into 2023.
Chris Thompson, Director of Equity Research of eResearch wrote, “EQ is a leader in location-based analytics linking activity in the online world to the physical world to provide actionable insights for businesses and advertisers. As 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.”
In the digital advertising, analytics, and business intelligence industry, EQ competes with Adobe (NASDAQ:ADBE), Foursquare Labs, and Inuvo (AMEX:INUV).
For more information about eResearch's 13-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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