LOGIQ, INC. (LGIQ)·Q4 2021 Earnings Summary

Executive Summary

• Record Q4 revenue of $13.1M, up 99.5% YoY, driven by stronger DataLogiq monetization and a pivot to higher‑margin end customers; revenue exceeded the Jan 6 pre‑announcement by $0.8M, while gross margin expanded YoY to 31.0% but finished below the >34% prelim guide .
• Segment mix balanced: AppLogiq $6.2M (+193.7% YoY) on higher‑margin direct customers; DataLogiq $6.9M (+55.0% YoY) on robust data monetization and Push Interactive contribution .
• 2022 outlook reiterated: revenue $50–$75M with EBITDA breakeven run‑rate by year‑end 2022 and profitability in early 2023; Battle Bridge acquisition expected to add ~$3.8M revenue and ~$1.4M EBITDA over the next 12 months beginning April 1, 2022, at attractive ~3x EBITDA purchase multiple .
• Strategic separation: AppLogiq assets transferred into Lovarra (GoLogiq) with mid‑2022 share distribution planned to LGIQ holders; management cites M&A as a key 2022 growth catalyst .

What Went Well and What Went Wrong

What Went Well

• Strong topline and margin expansion: consolidated Q4 revenue doubled YoY to a record $13.1M with gross margin rising to 31.0% vs. 21.1% a year ago, reflecting mix shift to higher‑margin end‑customers and scale benefits .
• Segment execution: AppLogiq revenue surged to $6.2M (+193.7% YoY) on direct end‑customer focus, while DataLogiq grew 55.0% YoY to $6.9M on data monetization and Push Interactive .
• Management confidence and scalability: “digital platforms… capable of scaling to over $100 million in annual sales without significant capital expenditure” and M&A pipeline targeting EBITDA‑accretive deals to boost margins and cross‑sell .

What Went Wrong

• Gross margin short of preliminary guide: actual 31.0% came in below the Jan 6 “exceeding 34.0%” update despite YoY improvement; company did not specifically explain the delta, though cited higher‑margin mix as the structural driver .
• Operating intensity persists: Q4 total operating expenses rose 9.8% YoY to $9.4M; net loss improved but remained elevated at $(5.3)M vs. $(7.1)M YoY, reflecting investments in R&D and sales and marketing .
• Liquidity watchpoint: year‑end cash, cash equivalents and restricted cash totaled $1.6M; the company raised ~$3M of equity around the call to support M&A and operations, implying reliance on external financing .

Financial Results

Quarterly trends (oldest → newest):

Year-over-year comparison:

Segment breakdown:

Additional KPIs and commentary:

• Q4 gross profit up 193.6% YoY, reflecting scale and higher‑margin mix .
• Total operating expenses up 9.8% YoY to $9.4M, primarily from R&D and sales/marketing .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our re‑tooled business plan is succeeding… we took several pivotal steps to reach far higher levels of growth and profitability by reinforcing and broadening our ad‑tech and mar‑tech digital platforms that are now capable of scaling to over $100 million in annual sales without significant capital expenditure.”
• “The Battle Bridge acquisition exemplifies our accretive acquisition strategy to gain substantial revenue growth and margin expansion opportunities near and long term.”
• “We anticipate booking approximately $3 million to $4 million in revenue over the next 12 months… and we expect the acquisition will be accretive to our EBITDA numbers, adding over $1 million in EBITDA… the valuation is approximately 3x this year’s EBITDA.”
• “Looking ahead through 2022… we are also actively planning to create and integrate our own NFTs… and identify high buying‑intent consumers.”

Q&A Highlights

• Guidance/segment framing: Management reiterated FY22 $50–$75M revenue range, with EBITDA breakeven at the lower end; organic EBITDA breakeven expected by mid‑2023 and profitability by late 2023; refused to break out DataLogiq guidance specifics beyond mix of organic and M&A .
• Battle Bridge accretion and timing: Better gross margin than corporate average; accretive to both top line and EBITDA; impact to be felt in the last three quarters of 2022 (post‑close) .
• Seasonality: Expect normal seasonality return post Medicare AEP—Q1 down sequentially vs. Q4; diversification into >10 verticals (e.g., home improvement, auto insurance) aims to smooth seasonality .
• Capital/share count: Around the call, company issued ~3M shares for ~$3M in new equity financing; also ~3M in restricted shares to Battle Bridge sellers, with lock‑up and leak‑out provisions .
• Spin‑off mechanics: AppLogiq to be consolidated until distribution occurs; mid‑2022 timeline indicated; GoLogiq to operate independently thereafter .

Estimates Context

• Wall Street/S&P Global consensus: Consensus estimates for Q4 2021 (Primary EPS and Revenue) were unavailable via S&P Global for LGIQ at the time of this analysis; therefore, no “vs. consensus” comparisons are presented.

Key Takeaways for Investors

• Revenue inflection with structural margin uplift: Q4 revenue doubled YoY to $13.1M and gross margin rose to 31.0% on a higher‑margin customer mix—evidence that the strategic pivot is working .
• Mixed print vs prelims: Topline beat the Jan 6 prelim by ~$0.8M, but gross margin undershot the >34% prelim; watch mix/margin cadence into 2022 as seasonality normalizes .
• M&A as a key 2022 catalyst: Battle Bridge adds revenue and EBITDA at ~3x EBITDA; cross‑sell with Rebel AI/programmatic should enhance client wallet share and margins .
• Separation unlock: AppLogiq transfer to Lovarra (GoLogiq) completed with mid‑2022 distribution planned, potentially improving investor transparency and segment‑appropriate valuation multiples .
• Liquidity and dilution watch: Year‑end cash was $1.6M; company raised ~$3M around the call and paid part of Battle Bridge in stock—implies continued reliance on equity to fund growth .
• 2022 setup: Company projects $50–$75M revenue and EBITDA breakeven run‑rate by year‑end; execution on M&A pipeline and margin discipline are the likely stock catalysts .

Appendix: Prior Quarter Context

• Q3 2021: Revenue $7.826M (+11% YoY), gross margin 29.5%; DataLogiq revenue $5.0M (+30% YoY), AppLogiq $2.8M (down YoY due to mix shift); strong Medicare AEP and new insurance verticals .
• Q2 2021: Revenue $8.304M, gross margin 29.5%; expanded LDM capabilities (audio, contextual, CTV) and released CreateApp 4.0; cash $5.8M at quarter‑end .

All citations:

• Q4/FY 2021 8‑K press release and financial tables
• Q4 2021 earnings call transcript
• Pre‑announcements and separation updates
• Q3 2021 results
• Q2 2021 results