Logiq posts $8.3M in 2Q revenue as it shifts focus to high margin revenue streams

Logiq Inc saw another quarter of sequential revenue growth with $8.3 million in 2Q 2021, up 3% from its previous quarter.

Brett Suen, Logiq’s president, told investors that the New York-based ecommerce company is zeroing in on high-margin, high-quality revenue streams.

Its AppLogiq platform-as-a-service (PaaS) product contributed $2.8 million or 34% during the quarter ended June 30, while the DataLogiq digital marketing platform made up 66% of consolidated revenue at $5.5 million.

READ: Logiq closes public offering, raising gross proceeds of approximately US$4.0 million (C$5.0 million) before expenses

Total revenue decreased 11% as compared to $9.3 million in the same year-ago quarter primarily due to a decrease in AppLogiq PaaS revenue as it transitioned to high-margin deployments, which was partially offset by an increase in DataLogiq revenue, Logiq told shareholders, but the quarterly sequential increase was due to growth in AppLogiq revenue.

“In 2Q, we achieved another quarter of improvement as we continued to transform our business and focus on higher margin, higher quality revenue streams,” Suen said. “Revenue climbed 3% sequentially to $8.3 million, following a better-than-expected, record 23% jump in the previous quarter.”

During the quarter, the company hit a major milestone with its initial public offering on the NEO exchange in Canada, which raised nearly C$6.5 million followed by another US$4 million raise.

As well, the company launched a new digital audio marketing channel on its Logiq Digital Marketing platform and partnered with Mentalku in Indonesia to offer a mobile payment option for the country’s driving schools.

The company also released CreateApp 4.0, its mCommerce platform-as-a-service, that Logiq said included critical features requested by the company’s merchants to simplify stocking and inventory management processes.

“We continue to see strong market trends driving phenomenal growth in the e-commerce markets worldwide,” Suen said. “So, we believe the combination of DataLogiq’s robust digital marketing solutions and AppLogiq’s m-commerce fintech technology will help drive increased global market penetration over the coming quarters, along with strong revenue growth and expanding margins.”

The firm’s net loss came in at $5 million or $0.27 per share in 2Q compared to net loss of $1.4 million or $0.14 per share in the year-ago quarter.

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Story by ProactiveInvestors