SAN FRANCISCO, Nov. 14, 2017 /PRNewswire/ — Frankly Inc. (TSX VENTURE: TLK) (Frankly), a leader in transforming local TV broadcasters and media companies by enabling them to publish and monetize their digital content across multiple platforms, reported financial results for the third quarter and nine months ended September 30, 2017. All financial statements have been prepared in accordance with U.S. GAAP.

Third Quarter 2017 Financial Results (All amounts in U.S. dollars)

• Revenue was flat compared to the prior quarter at $6.5 million, and increased 5% from $6.2 million in the third quarter of 2016. The year-over-year increase in revenue was primarily due to contractual changes to the company’s advertising program requiring it to recognize gross revenues beyond commissions, as well as increases in professional services fees, offset partially by a reduction to license fees due to contract termination fees recognized during the third quarter of 2016 resulting from anticipated consolidation of some of the company’s existing customers.
• Net loss totaled $(3.1) million, compared to $(2.4) million in the prior quarter and $(1.4) million in the third quarter of 2016.
• Adjusted EBITDA loss was $(180,000) compared to adjusted EBITDA loss of $(381,000) in the prior quarter, and adjusted EBITDA of $335,000 in the third quarter of 2016 (see discussion about the presentation of adjusted EBITDA below). The increase in adjusted EBITDA compared to the prior quarter was primarily due one-time advertising and marketing expenses related to the company’s presence at the National Association of Broadcasters (NAB) show in April. The decrease from the year-ago quarter was primarily due to personnel expenses related to acceleration of the company’s product roadmap, which are intended to take advantage of increased customer opportunities in the company’s pipeline over the coming quarters, as well as an increase in professional fees concerning legal matters of the company.
• The company had $1.9 million in cash and restricted cash at September 30, 2017.

Nine Month 2017 Financial Results (All amounts in U.S. dollars)

• Revenue increased 16% to $19.4 million from $16.7 million in the same period a year ago. The increase in revenue was primarily due to contractual changes to the company’s advertising program requiring it to recognize gross revenues beyond commissions, as well as increases in usage and professional services fees.
• Net loss totaled $(7.0) million, compared to $(4.4) million in the same period in 2016.
• Adjusted EBITDA loss totaled $(132,000) compared to adjusted EBITDA of $231,000 in the prior year period (see discussion about the presentation of adjusted EBITDA below).

Management Commentary
“The third quarter was a continuation of the solid and consistent results we’ve been achieving for some time now, which becomes increasingly apparent when looking at our year-to-date results,” said Frankly CEO Steve Chung. “Our successes were due, in large part, to the growth and development of both Frankly Local and Frankly Data. Frankly Local has enabled us to significantly expand our monetization capabilities by offering a full suite of local marketing agency services for our media customers. With Frankly Data, we launched this data-as-a-service a little over a year ago, and it continues to drive incremental revenues for our advertising business.

“More recently, we partnered with IRIS.TV in launching the Frankly Artificial Intelligence Initiative. Our goal is to leverage the most cutting-edge AI and machine learning technologies to help the more than 200 media properties currently on the Frankly platform increase their audience engagement, enhance content relevancy and deepen insights from their operations. We are positioning ourselves to enter the next generation in media publishing and monetization by unlocking the power of artificial intelligence and machine learning to empower both our customers and other media companies. As we close out the fiscal year, we are remaining focused on strategic growth catalysts, like the Frankly AI Initiative, that will scale our business to the next level.”

Conference Call
Frankly management will hold a conference call today (November 14, 2017) at 5:30 p.m. Eastern time (2:30 p.m. Pacific time) to discuss these results. The call may also include discussion of company developments, forward-looking information and other material information about Frankly’s business and financial matters.

Frankly CEO Steve Chung, along with CFO and COO Lou Schwartz, will host the presentation.

U.S. listen-only dial-in: 1-800-289-0438
International listen-only dial-in: 1-323-794-2423
Conference ID: 7613385

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.

The conference call will be broadcasted live and available for replay here. A replay of the call will be available after 8:00 p.m. Eastern time through November 29, 2017.

U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 7613385

About Frankly
Frankly (TSX VENTURE: TLK) builds an integrated software platform for media companies to create, distribute, analyze and monetize their content across all of their digital properties on web, mobile and TV.  Its customers include NBC, ABC, CBS and FOX affiliates. The company is headquartered in San Francisco with major offices in New York. To learn more, visit www.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.

Non-GAAP Measures
The Company reports earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA, which are not financial measures calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”) and therefore may not be comparable to similar measures presented by other issuers. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute to net income (loss) or any other financial measures of performance or liquidity calculated and presented in accordance with GAAP. The Company defines Adjusted EBITDA as EBITDA, adjusted to exclude certain non-cash charges and other items that we do not believe are reflective of our ongoing operating results. The Company utilizes Adjusted EBITDA internally for purposes of forecasting, determining compensation, and assessing the performance of our business, therefore, we believe this measure provides useful supplemental information that may assist investors in assessing an investment in the Company.

The following unaudited table presents the reconciliation of net loss to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2017. 

Notice Regarding Forward-Looking Statements
This release includes forward-looking statements regarding Frankly and their respective businesses.  Forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the parties. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Frankly undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

View original content:http://www.prnewswire.com/news-releases/frankly-reports-results-for-the-third-quarter-and-first-nine-months-of-2017-300555900.html

SOURCE Frankly Inc.