Decentral Life, Inc. (WDLF)·Q3 2018 Earnings Summary

Executive Summary

• Q3 2018 revenue was $0.09M, down sequentially from Q2 ($0.12M) but up year over year as licensing replaced low-margin digital marketing; net loss narrowed sharply YoY to $(0.37)M from $(1.15)M due to lower non-cash stock-based comp versus Q3’17’s $0.86M warrants expense .
• Management highlighted 9M18 licensing revenue growth of 246% (to $0.285M) and consolidated revenue up 120% YoY (to $0.288M), while confirming a planned 2019 Canadian IPO of MjLink.com; cash rose to ~$0.215M at 9/30 vs ~$0.019M at 6/30 on $0.63M equity raise and related-party loan reductions .
• User KPIs accelerated into October: 1.3M registered users across MjLink/WeedLife, >52M monthly page views, 2.6M monthly sessions, and 367k active registered members—framed as the basis for a ~$35M MjLink valuation and a minimum $5M raise target for the IPO .
• No Wall Street consensus estimates or numeric guidance were provided; the company scheduled a shareholder update call (Nov 14) focused on Q3 results and the MjLink IPO roadmap, but we did not locate a transcript in the filing set .

What Went Well and What Went Wrong

• What Went Well

  • Licensing-led model scaling: 9M18 licensing revenue +246% YoY to $0.285M; consolidated revenue +120% to $0.288M as the mix shifts to licensing, reducing dependence on digital marketing .
  • Cash and balance sheet improvement: Cash increased to ~$0.215M at 9/30/18 (from ~$0.019M at 6/30/18 per press release) driven by $0.63M equity issuance; related-party loans fell from $80.8k at 6/30 to $26.4k at 9/30 (≈67% reduction) .
  • Strong audience KPIs to underpin MjLink monetization: 1.3M registered users, >52M monthly page views in October, and 367k active users; management explicitly connected active-user monetization benchmarks to a $35M pre-IPO valuation for MjLink .

• What Went Wrong

  • Sequential revenue decline: Q3 revenue fell to $0.09M from $0.12M in Q2 as licensing receipts moderated and digital marketing remained minimal; the company cited an earlier pullback of sales/marketing staff for digital ads .
  • Elevated operating costs vs prior year: 9M18 operating expenses rose by ~$0.166M (+241%) YoY on higher professional fees (audit, IR) and executive fees; warrant expense totaled $2.45M YTD though Q3 warrant expense was nil (vs $0.863M in Q3’17) .
  • No formal financial guidance and limited coverage: No quantitative outlook was provided, and we found no consensus estimates—reducing external anchors for investor expectations and heightening event/catalyst risk tied to the MjLink IPO path .

Financial Results

Revenue, EPS, margins vs prior periods and estimates

Margins (computed from reported figures)

Segment/Revenue mix

Balance sheet snapshot and liquidity

Note: The press release cites ~$19k cash at 6/30/18 vs $14,067 reported in the 10-Q; we rely on the filed 10-Q for period-end cash .

KPIs and Operating Metrics

Estimates vs Actuals

• We did not find S&P Global consensus estimates for revenue/EPS for Q3 2018. Comparisons vs estimates are not included.

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our business continues to have strong momentum in all three business areas: Cannabis, Sports, and Real Estate… Our revenue for the 9-month period ending September 30th was up 246% over the same 2017 period… We are actively pursuing growth through organic revenue as well as reviewing potential accretive acquisitions and conducting a planned IPO of MjLink on a Canadian Exchange in 2019.” — Ken Tapp, CEO .
• “MjLink and WeedLife… exceeding 52 million monthly page views in October… we’ve arrived at a much more realistic value of $35M USD for MjLink… based on real user traffic as of today.” — Ken Tapp, CEO .
• “We couldn’t be more pleased to have Mark DiSiena as our new CFO, as we charge forward with the planned IPO of MjLink… this coming year.” — Ken Tapp, CEO .

Q&A Highlights

• We did not locate a Q3 2018 earnings call transcript. The company held a shareholder update call on Nov 14 to discuss selected 9M18 financials and the MjLink IPO process; a replay/webcast was made available, but no transcript was filed in the set we reviewed .

Estimates Context

• No S&P Global consensus estimates were found for Q3 2018 revenue or EPS for WDLF; as a result, we do not present beats/misses vs consensus for this quarter.

Key Takeaways for Investors

• Licensing mix shift is working: despite small absolute dollars, licensing revenue is scaling and supports >98% gross margins; sustaining licensing momentum is critical to break-even math .
• Liquidity runway improved via equity issuance and loan reduction; continued access to capital remains a watch item given prior going-concern disclosures .
• User KPIs provide a tangible foundation for MjLink monetization; execution risk centers on converting engagement into predictable ad/licensing cash flows .
• MjLink IPO remains the central 2019 catalyst; milestones (banking syndicate, filing progress, valuation/raise sizing) will likely drive stock narrative near term .
• Governance/professionalization continues (new CFO, expanded board); investors should monitor internal controls and audit readiness for IPO and scale-up .
• Near-term trading: headlines around the MjLink IPO path and user growth updates are likely to be principal stock movers absent formal financial guidance .
• Medium-term thesis: prove-out of licensing model, recurring monetization of the 367k active user base, and disciplined opex control are key to narrowing losses and validating valuation aspirations .

Sources: Q3 2018 results 8-K and Exhibit 99.1 press release; Q2 2018 10-Q; MjLink user metrics press release; CFO appointment; shareholder call announcements .