This reduction aligns
Like many businesses in our space, we grew our headcount aggressively over the last few years. With the economic uncertainty that lies ahead, we must prioritize our biggest opportunities and make sure we have the proper cost structure in place to pursue them. It is difficult to say goodbye to so many talented colleagues who have made important contributions to
The reduction in workforce and certain other cost saving initiatives being implemented by the Company are expected to generate approximately
In addition,
All comparatives, unless otherwise noted, are versus the same period in the prior year.
Financial and Operating Highlights:
Q4 2022 revenue is expected to be
Digital advertising revenue is expected to be
E-commerce revenue is expected to be
Adjusted EBITDA is expected to be
MAUs in Q4 2022 increased 7.4% to 113.6 million inclusive of a 5.9% organic MAU decline
Fourth quarter results came in lower than last year as a result of macroeconomic weakness through the holiday shopping period which translated to lower advertising rates as well as reduced volume from e-commerce partners. The steps we've taken today to reduce our cost structure will allow us to maintain a strong financial position in this weaker economic environment while we continue to execute on our long term strategy,' commented
The financial and operating results included in this news release are based on preliminary unaudited estimated results which have not yet been finalized or, in the case of annual results, audited, and will be updated and superseded by the Financial Statements and MD&A of the Company which are expected to be released on
About
Founded in 1999 and headquartered in
The estimated results contained herein are subject to change upon completion of the Financial Statements and the audit of such financial statements, and such changes could be material due to, among other things, the completion of the Company's financial closing procedures, final adjustments, review by the Company's auditors, and other developments that may arise between now and the time the financial results are finalized. Accordingly, such estimated results are forward-looking statements within the meaning of applicable securities legislation and are subject to the limitations and risks described under 'Forward-Looking Statements' below.
Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation that reflects the Company's current expectations regarding future events. When used in this news release, words such as 'should', 'could', 'intended', 'expect', 'plan' or 'believe' and similar expressions indicate forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the anticipated publishing date of the Company's Financial Statements and MD&A, and statements regarding select preliminary unaudited estimated financial and operating results of the Company and balances relating to the financial position of the Company, as at and for the three months ended
Non-IFRS Measures
This news release references certain non-IFRS measures, including Adjusted EBITDA as described below. This news release also makes reference to MAU, which is an operating metric used in our industry. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
The Company uses non-IFRS measures including:
Adjusted EBITDA' is calculated as net income (loss) excluding interest, income tax expense (recovery), and depreciation and amortization, or EBITDA, adjusted for share-based compensation, share performance related bonuses, unrealized gains or losses from changes in fair value of derivative financial instruments, severance, adjustments to contingent consideration liabilities measured at fair value through profit and loss, gain or loss on sale of assets, gain or loss on sale of investments, foreign exchange loss (gain), impairment and other charges that include direct and incremental business acquisition related costs and costs directly incurred in connection with the Initial Public Offering that are not deducted from the equity proceeds.
Contact:
Tel: 416-341-7174
Email: IR@verticalscope.com
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