Frankly Inc. Announces 2015 Third Quarter Results
Canada NewsWire
SAN FRANCISCO, Nov. 25, 2015
SAN FRANCISCO, Nov. 25, 2015 /CNW/ – Frankly Inc. (the “Company” or “Frankly”) (TSX-V: TLK) a leading content and conversation platform, today announced its financial results for the three and nine months ended September 30, 2015, which include approximately one-month of results from Frankly’s acquisition of former Worldnow, currently Frankly Media. Financial references are in U.S. dollars unless otherwise indicated.
Third Quarter 2015 Financial Highlights
Revenue of $1.5 million, with the addition of Frankly Media results for one-month. Stand-alone revenue for Frankly Media was $1.7 million, reduced by approximately $250,000 in consolidation due to purchase price accounting adjustments for deferred revenue
EBITDA loss (before non-recurring items) of $3.0 million
Net loss of $4.4 million, including the impact of business acquisition related costs
$12.4 million in Cash as at September 30, 2015
Third Quarter 2015 Operational Highlights
Acquired Worldnow on August 25, 2015, a top web property in the U.S. and a leading mobile platform for news. Worldnow was rebranded Frankly Media
Announced the following partnerships:
Isobar US to develop innovative and interactive retail technologies
United Nations Foundation to launch a mobile App for UN Global Goals and Social Good Conversations
GetSocial to offer social engagement and monetization platform for game developers
Acquisition integration kicked off with two companies coming together as one consolidated organization, with the goal of realizing operational synergies and cost reductions
“With our acquisition of Worldnow, Q3 has been one of the most exciting to-date for Frankly,” said Steve Chung, Founder and Chief Executive Officer of Frankly. “We are now positioned to accelerate our technology and reach nearly 100 million users on a combined basis, with the local media vertical as the focal driver for the next twelve months. We now have the ability to combine the best of our mobile technology and social engagement expertise from Silicon Valley with the market leadership that Worldnow had in the local media and broadcast customer segment. Together, we now have scale and innovative technology to drive growth into 2016 and become a significant company in the media and mobile sector.”
Mr. Chung continued: “Revenue grew materially year-over-year as a result of the Worldnow acquisition. We remain optimistic about 2016 as we focus on integrating our platform across the news vertical with our enhanced product and service offerings. By providing top quality desktop and native mobile app platforms, we can drive value for our customers while increasing our revenue through advertising, digital goods and recurring platform fees. With an estimated total addressable market of $1.5 billion for our mobile app platform, we have significant opportunity for expansion.”
Please refer to the financial statements, associated footnotes and MD&A for further details.
Product and Market Positioning
Through the acquisition of Frankly Media in Q3 2015, Frankly became a software-as-a-service provider of content management and digital publishing software, also offering related digital advertising services for local media sites on the web and mobile.
As a combined business post acquisition, Frankly is now positioned to offer an integrated white-labeled platform for media customers to publish digital content and increase user engagement through the chat platform on connected multiscreen devices including desktop and mobile applications. Frankly continues to remain optimistic on its growth prospects in fiscal 2016 and beyond.
2015 Third Quarter Conference Call Details
DATE:
Wednesday, November 25, 2015
TIME:
5:00 p.m. ET
DIAL IN NUMBER:
647-427-7450 or 1-888-231-8191
CONFERENCE ID:
82624379
TAPED REPLAY:
778-371-8506 or 416-849-0833 or 1-855-859-2056
Available until 12:00 midnight (ET), December 2, 2015
Reference number: 82624379
LIVE WEBCAST:
http://bit.ly/1Of3CH0
Webcast will be archived for 90 days
About Frankly: Frankly provides a platform and first-in-class data capabilities for media companies, enterprises, and brands to grow their audience, build engagement, manage their content, and generate revenue across their digital properties. Frankly Media provides content management and advertising solutions to local news media in the United States, covering approximately 100 million monthly users. Frankly Platform is a white-labeled engagement platform that serves top brands and influencers along with Frankly Media customers. Founded in 2013, Frankly is headquartered in San Francisco, California, with offices in New York City. The Company is publicly traded under the ticker symbol TLK on Canada’s TSX Venture Exchange. To learn more, please visit www.franklyinc.com or email press@franklyinc.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding forward-looking statements:
This release includes forward-looking statements regarding Frankly and its business, including statements with respect to its ability to accelerate its technology and its projected user reach, the Company’s growth prospects, expected growth and market position, the market size for its product offering, and expansion opportunities. Forward-looking events and circumstances discussed in this release are based on the Company’s operations, estimates, forecasts and projections and resulting assumptions, and may not occur by certain specified dates or at all. Actual results and outcomes could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including, but not limited to, those risk factors listed in the Company’s MD&A. The outcome of any forward-looking statement cannot be guaranteed. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable securities laws, Frankly undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Frankly Inc.
Frankly Inc.: Steve Chung, Chief Executive Officer, Phone: 415.861.9797; Investor Relations: Conrad Seguin, National Equicom, Phone: 416.586.1951, E-mail: cseguin@national.ca
Copyright CNW Group 2015
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