EQ Inc. Reports Improved Financial Performance in Q4 and Year End 2023

EQ Inc., headquartered in Toronto and listed on TSXV under EQ.V, disclosed positive financial outcomes for the fourth quarter and the full year of 2023. As a provider of AI and data-centric software solutions, the company registered a 19% sequential revenue increase for the quarter, totaling more than $3.1 million. This rise also represents a 7% increase compared to the same period in the previous year.

The firm highlighted a surge in its gross margin to 49% in the quarter, attributed to strategic utilization of AI solutions merged with key data assets. Consequently, EQ Inc. achieved profitability this quarter and noted a significant $1.3 million turnaround in Adjusted EBITDA—from a $1.1 million loss to a $0.2 million gain year over year.

Yearly revenues for 2023 amounted to $10 million, while strategic shifts to optimize data and analytics utilization led to an improvement in gross margin from 37% in 2022 to 45% in 2023. Despite these gains, total annual revenue saw a slight decline from the preceding year. The company also recorded a one-time gain of $0.5 million and an impairment and goodwill charge of $3.8 million related to past acquisitions.

Looking ahead, President and CEO Geoffrey Rotstein conveyed a continued focus on profitability in 2024, emphasizing optimized cost structures and market-ready AI data products. He asserts that the company is set up for reaping the benefits of its investments, aiming for higher margin and more consistent revenue streams in the forthcoming period.