LGIQ - Earnings call transcript Q2 2021

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Operator

Good morning. And thank you for joining us today to discuss the results for Logiq's Second Quarter ended June 30, 2021.

Joining us today are Logiq's President, Brent Suen, its Chief Executive Officer, Tom Furukawa. They are joined by the Chief Financial Officer of the Company's DataLogiq subsidiary Rod Granero.

Following their remarks, we'll open the call to your questions. today's made provide call. by conclude regarding important we statements forward-looking management before call, some I'll cautions Then during today's would will remind being to instructions provided telephone also today's press the I is release. today's call replay everyone following recorded made be that it in available for and like

like the Sir, would call ahead. go Now, please Logiq's to now I over to turn Suen. President, Bret

Brent Suen

to Thanks everyone. good Good and Rocco, afternoon morning or

some of even are And good evening. you

despite points as Again, because year $X to quite I'm quarter, in had than ago to XX.X% XX.X% the repeat This million to year compares I financial we revenue Revenue that results Gross $X.X joining June. increased proud quarter our of sequentially to and us. first Earlier the decline quarter. climbed revenue. profit importantly, from million second of transform million and our we margin same a actually XX%. the to record quarter ago gross sequential from streams. But we quarter, XXX gross So year that higher our higher the $X.X thanks quarter. margins. just compared XX.X% team. to by ended for reported X% revenue in a this the gross We quarter jump margins margin in XXX% margins quarter, for second on in more had the of the of continue revenue business XX.X% another showed ago more for a on quality record increased basis $X.X our improvement sequentially gross focus as million in which to followed

from margin decision of to move in the revenues. and revenues However, this favor we higher took margin validates low the higher quality business away

expanding In across our margin also in and and many line great made preparation for top a and QX. strides strong some strengthening when business very had expectations, sequential especially exceeded growth. expansion second the future fact, quarter, and ensuring the considering we our such In we fronts, strong

X, were we critical processes. front, and our AppLogiq that inventory included which merchants released features the by On CreateApp to simplify management stocking requested

short. are deployed once Logiq's after strategic welcome this Additionally, other there option PayLogiq, underway WIP. partnership by all license Indonesia. driver's is the weeks, on enhancing to Marketing Indonesia formed the for that audio we'll consequently, which on with the Indonesian few operated we technology a this Using fully to testing even We data which and those Also is logic our we new of psychological exciting WIP, the going in several provider value currently, very over is is This And the during however, challenges developments And worth with licensed associate, a millions Social the win marketing that services. we lockdown Indonesia. us. reported exciting next for or in mobile annual the and Platform in call potentially shareholders. exclusive quarter a Mentalku, win months WIP an update is in payment for huge required channel revenues payment BPJS of Digital new for PayLogiq, segment, It's renewals for logic applications offer in launched Initiative investment. a Mentalku be the testing mobile LDM is detailing government for Security

we now that as it. such more our digital our add we digital brands of marketing and have podcasts. because area agencies marketing and can tap In multichannel, their to attracted on and a platform platform via based audio radio clients channels, and web, addition This for campaigns growth overall connected TV, to digital is mobile e-commerce onto now advertising marketing can huge

in signing year. of LDM April on and many growth represent. corporate In agencies We've account ramping over more media the especially the margins buying is launch been now significantly exciting, are average, higher that they again for just are than of And programs LDM this brands our extremely fact, more given segment to for up gross XX%. since that

the the significant these believe event the most IPO near growth capital other the of the our exchange and near support the We Incidentally, premier considered that which term recently was higher on is listings and will exchange, $X.X Canadian NEO raised recently perhaps million look IPO not us NEO The for that at raise Now, Tesla, million, of some was quarter gross the emerging additional were Google, non-Canadian which like ours. IPO catalysts growth resources who were able companies TSX. investors I to drive an Depository $X Canada's their on initiatives additional you post listed profitability the term NEO margin or in in have instead million that There's have there, all total if CAD CDRS happened just Receipts, all of and US proceeds, followed and IPO. participate goals. which or Amazon, share you. the have $X.X will with toward by a that are on

And Then year. to outlook the technology, near DataLogiq will walk marketing these the is development over about the market bigger creating through then through of our business catalysts call with First, to the growth us and Rod? for opportunities. term turn take CFO, initiatives our financial for more return remainder the will and with results I'll who the which our us bigger digital CEO, going Rod I'm Granero quarter. Tom our

Rod Granero

of is available section our the Thank of website. our copy you, Brent, release we everyone. of second the in the issued results good Earlier shortly. today, of I'll release and A afternoon, with review quarter which investor relations XXXX, press a

our consumer business two commerce digital and delivered under DataLogiq a mobile with as As service AppLogiq segments. platform which we offerings. and platform our of manage our our by many is reportable marketplace is marketing enablement, CreateApp

the revenues with sequential quarter our ended QX another of compared consolidated June $X.X X.X%. in for starting XXXX, an increase or million million operations million. to the $X.X quarterly $X.X for totaled our Now XX, increase of second statement XXXX This marks of quarter;

the margins trends key management. most demonstrate As decisions the our importantly, on my positive Brent mentioned, made revenue based gross and strategic

This decrease quarter's a a of the in $X.X million to temporary X%. same period revenue year compares ago,

a moved from same we revenues, As to decrease to the XX.X%. white bulk transition down revenues of year the users. compared partially period to year end year higher due an the successfully the DataLogiq's million same away to was decrease margin revenue This from AppLogiq second direct contributed or $X.X period a million, the from was ago. a The primarily of XX.X% were or $X.X in revenue. in million, quarter ago, revenues for higher margin consolidated level our consolidated distributors by increase offset ago as $X.X

the in the quarter DataLogiq increased AppLogiq million, year. XX.X% However, million. increase of or quarter period this quarter. revenues the $X.X from slightly ago, an year $X.X $X.X to same This XX.X% million Sequentially, $X.X a revenues or XX.X%. compares contributed to in second revenues first DataLogiq the million million of our for previous of $X.X $X.X million, sequentially in decreased consolidated from

than expectations. Our doubled QX our XXXX, of exceeding in gross profit more

plan gross $X.X million $X.X margins of $X.X XXXX. increased primarily of profit XXXX, to and intelligence $X.X to to of XX.X% Improvement in $X for an was from due in to XXXX Gross million in consumer XXX.X%. profit also in additional of or period profit end margins in increase or an in was increased $X.X and marketplace million, intent to of the along of million, XX.X% with second XXXX QX $XX.X gross QX to revenues sellers. of a for driven bulk the XX.X% in distributors depth XX.X% XXXX, from from same away quarter or results AppLogiq's gross of consolidated calls, million or from QX increase both DataLogiq's to of in $X.X users. gross of XXXX. traffic buyers increased to label increased QX due or XX.X%. distributed Gross company's also in or QX offerings XX.X% transition million, $X.X gross The million compared increase to XXXX million, ago, $X.X Our QX from to profit gross the year both for million, white customer sales was profit of new XXX.X%. direct in margins of an and improvement QX in XXXX gross other margins and million QX

in with due which increases second in to for the professional in and of in million, is the M&A The AI increase $X.X, the period from $X.X and a administrative XXX.X%. increase expenses to the Canada primarily or growth development $X.X G&A and $X.X of in to million, and million, support to $X.X increase of The operating XXXX legal and additional million, compared additions increase research million $X.X acquisition in of its to the expenses associated $X.X $X.X the in compensation amortization quarter AI. and an expenses DataLogiq's Rebel million, due IPO an and time one of of $X.X Our million. fees Fixel increase general million of expense year nature G&A mainly increase stock-based of expense and the was same headcount depreciation expenses and are mainly million operating ago, of

our further evaluate reduce continue costs. and to will implement we operating upgrade overall operating As technical we and opportunities infrastructure, to

previously of of million $X.X $X.X share, million, a and or losses year a year as a to business. a of in year increase and loss XXXX, same XXXX is as AI same basic the increase totaled due net second QX to our second the net the the Rebel offset loss net incurred from incurred quarter $X.XX loss legacy a loss additional as in of Fixel ago. net compared ago. diluted acquisitions Our in compared million diluted the of $X.X a largely XXXX million, due million expenses This to as of AppLogiq The $X.X and a in loss was period million the the or DataLogiq quarter million loss net of net $X a share of same period in of a $X.X operating consolidated of to basic net in per compared decrease ago. fully by loss $X.X the net $X.XX discussed. period in to fully per increase

DataLogiq's AppLogiq transition half revenues, in from partially in users, the which of a totaled at versus part offset to of first management's ago in resulted year the XX.X% decrease half for a the platform was the revenues of an to period last by highlights market The end looking primarily year. due decision to was the company's directly to increase margins. revenues. the year. The which Now decrease down strategic first decrease same Consolidated $XX.X, AppLogiq higher performance in was revenues

consolidated distributors of to same million in XX.X% ago. revenues direct XX.X% a to end margin, to the the of $XX.X first of primarily DataLogiq year higher away in Revenues and platform from $XX.X the XXXX, to period in marketplace due contributed or XX.X% year, to compared which $X.X $X.X increase or additional a million bulk marketing consolidated half management decrease its same XX.X% white increased decreased half the AppLogiq first label of revenues, of For users. from continued decision offerings due customer million, Revenues contributed year our million, consumer a transition ago. the period as growth.

margin solidifies to $X.X XXXX management's gross profit the Our revenues, in further or This AppLogiq's the to period both same half million, of and of in XX% $X.X or $X.X gross profit ago. decision same of compared first gross in consolidated to as XX.X% higher period million, ago. XX.X% million year to margins revenues increase $X.X increased a year gross a in the to compared transition profit to million offerings. decreased

data in were gross period in gross AppLogiq's in change million first of was the direct XX%, $X the the focus The year $X.X of an first a improvement from half customer and an gross a million revenues to was marketing margin up year acquisition $X.X of margin The increases in XX.X% overall as the white profit and the distributors in in decrease in profit in XX.X%, period of a period or ago, to XXX.X%. same are in margin increase the result increased label first DataLogiq's However, same gross profit compared in and the decreasing to due increase the strategic ago. XXXX XXXX half gross XXXX ago. users. half Gross to up from XX.X% margins monetization the costs. year in bulk million from of gross end same

and and million a operating year was in an total in or of the Our of XX.X%. $X.X million half fees period increase of million, in $X.X operating net the a ago. administrative to million, basic $XX.X basic to fully professional in compared loss Canada of $X.XX year to million, fully to and a XXXX due which acquisitions, net ago, due share in expenses an million, of and amortization Fixel increase XXXX, expenses M&A headcount IPO $X.X associated and nature period in million. stock-based million its $X.X additional is G&A expense increase time $X.X in first The diluted and mainly AI per increased and of $X expenses in same $X.X an $X.XX the increases the $X.X the per of of the DataLogiq's million one compared primarily totaled and to Rebel sales and The first or million in mainly depreciation loss and G&A increase $X.X of general are additions compensation legal $X.X from with marketing growth and the or in AI. Consolidated of diluted million, increase same of to in share support half the

Our $X.X was in million $X.X AppLogiq the year the the net million a same $X.X first period. in ago. ago million a net of $X.X platform up compared DataLogiq's half XXXX, in to loss year loss same of million from period incurred

Now current equivalents $X.X June million and and equivalents cash of and US. are a month, for $X.X turning XX, sufficient review. to our as cash believe financial financing This sheet; wraps to XXXX, $X restricted cash March foreseeable the XXXX. of this future. cash total restricted as levels of XX, cash and completed million cash our the our We our cash compared up Earlier in we balance million

update over business to Now, call development, I'd for on Tom the an like to turn Tom. our

Tom Furukawa

All much you, you thank today. Hello, right. for Thank joining Rod. everyone. us very And

we which development bear powerful have DataLogiq Over I year, stack, the robust an to new again of business But performance is incredibly like and into beginning on our the details with the technology, really past marketing business. digital the before get course of technology to fruit. built our I first would financial initiatives, of touch

thirds XX% Rod is for mentioned, As about improvement quarter another Medicare with record revenue revenue revenue. its strong two of $X.X This due represented primarily generation DataLogiq, at million. was QX consolidated and in up our to verticals. This finance

demonstrates in a it This marketplace, improved DataLogiq's objectives. a in from of of QX to margin QX executing of on consumer XX.X% strategy, doubling how at looking successfully XXXX, margin, low XXXX. XX.X% nearly we Now gross record and our are of gross data monetization

to increasing business more verticals. for increased Our expressed intelligence to consumer data of people generation or That and more home a marketplace businesses our number scale by builds our XX has efforts, engaged also solar buyers operate renovation. offerings of our potential first profiles. continue type have this this to profiles consumers enlisting internal across Medicare, while more that we business require and a verticals. intent This for find across of who And greater traffic of sells than service. consumer buying product level of We includes party a industry

supporting we resources. Additionally, a ecommerce or agencies platform Marketing compete for as many brands, helps launched required last of Logic sales large in an increase that marketing LDM. brands more easily cost SMB online [Indiscernible] that quarter larger to with traditionally LDM and agencies and effectively. and In SMBs order Digital is

enables teams. consumer XXX US marketing Along of and It digital available logic March We these the mega the to ramping just a Logiq's in-house has a into operations, and new such cost. more been short fast ecommerce teams these their digital media strategize platform and we existing In easy market This both ecommerce technologies from rising span this LDM e-marketing enables fraction as this or effectively use, benefits in introduced been execute costs, agencies laws key was powerful for with now quickly for a consumers have and By Now are reach of with hidden AI partner nearly Rebel marketing a the built competitors, available enterprise, the regulations marketing of commitments. integrated fees, without well the have US based to channel. fully but associated to up address buying acquired SMBs In means the as LDM effective Group as brands making underserved launch A specifically as programs compete evolving alone, and by and technology agencies, made available surrounding rapidly but as platform, to technology audio brands or to data campaigns. can many the of on into integrated against marketing to the with them agencies and of agencies, time, marketing proprietary They an and challenges. largely our campaigns. costs dashboard for brands who top marketing they year, same reach more clients the and of and we than built provide media represent. size. a cost a SMBs are Decibel, through marketing LDM LDM dozen any privacy. IDM, is the upgrade last them. Sway technology LDM can quarter purpose and and Digible fragmented more competitors contracted the their XX% with in-house scale control marketing larger the ecommerce

become ads you or we as critical songs. if has audio a brands for have in music between channel serve. probably stream Soundcloud, TuneIn, example, marketing such on you platforms Spotify, For Audio heard the

and and such marketing enables further channels software us channel allows recently like audio LDM. audio easily arise. audio provides unprecedented actionable with transparency it insight an add new channels for demand of steps. clients as enhance marketing to channels, new the level launched design advanced LDM So LDM's our we marketing on into and

interoperability campaigns this marketing platforms. believe marketing many Now LDM flexibility our partners to these benefits build and be offering compared and valued results. powerful to and that help ecommerce make can and enables other We nimble digital our more unmatched deliver highly responsive, differentiated and

and effectively now are data strategy executing objectives. We monetization on our

the to capabilities second marketing quarter, the advances subsequent fact, expand and solutions. announced In enhance that of ecommerce we reach the

quarter. these others and throughout We further discussing will be this advances

So please stay tuned.

publishers. Now, in by head are opportunities they years XX that we ago, address was is directly seeing what's ecosystem. advertising purchased on digital today's marketing with digital market key negotiating

purchased IAB. recently XXXX, market time the helps reach millions potential made strategic today, are pre This bid programmatic the just access advertising. announced spend billion contextual add States ads market for as However the huge partnerships We've us to rapidly United a enable from up total in Recent otherwise report to in the expected In interoperability of by to second LDM per advances the marketers data programmatic capabilities of growing XX% context cited known Zenith options, to real real ad to market. serve via this we better in $XX and time will to digital advertising according media placements. media forming LDM. making of

direct forward look Pacific Asia expanded to providing the initiatives region. recently We also later on We media across new year. buying access our an these this update

to transition mobile let's Asia, with developments commerce CreateApp. Southeast product in line, key Now, our

in feature a and receipt by e-store released awaited simplified an product X.X Brent module. and significant management end in merchants simplified most management our mentioned, and skews. The which are of products release As the modules, different we e-store with representing CreateApp inventory requested types. similar stocking These invoicing the allowing many configurable embarks of enhancements set

e-stores. with set vary and but delivery pickup the different apparel quickly style memory digital like helpful their are delivery size, product to having GoLogiq. The SKUs range variations. which includes manage options, in can enhancement configurations merchants and inventory similar access merchants storage merchant for stock much by Similarly, which These inventory up display large effectively. release also particularly their vary more to products, and merchants, and material clients with maintain enhanced example, a e-store for allows services allows to For the of

second a anticipate the of half spending, by strong the half ahead, driven digital year. to we first compared increased Looking

penetration And add drive top help I in continue margin new existing thank and to verticals say our members to will your huge we I also expansion. team DataLogiq at I'd a in expect and We verticals to consumer want with Brent. that like call execution, for the now, to are marketplace your will deeper before turn proud back just that, that growth commitment and you over AppLogiq line of continue we And to are dedication, things the market the and to finish, accomplishing Logiq.

Brent Suen

the six future, progress I Tom. over tiny years ago actually, And Logiq listened when know near single I Thanks impressive this future, Wow. product I funny really some that in Asia actually It's over products the we to describe has because near evolving will evolved. amazing really started company offers. see that that the from that Tom think and you services us. It's

or on we sales, Weyland impacted distribution covered shutdowns Perkasa as in as revenue earlier, higher partners. And margin AppLogiq WIP. in for greatly by both have decision well for our As Indonesia CreateApp was Indonesia refocus related COVID to impacted furthermore, Indonesia,

As costs a related AppLogiq's solution scaled and a level. returns activity result, marketing back to until actually CreateApp normal more advertising on business to we've

our property. However, as we in mobile we there partnerships to key build of off monetize our presence are order intellectual in developing Indonesia,

are easier within is for exclusive represents Indonesian the required psychological XX this to the the in payment Indonesia, government mandated for renewals. the this pay applications includes relationship process we provider integrating this app perspective, payment Mentalku, driver's the can mobile of And mobile tests. Indonesia that issues person. app, million person license Mentalku under even we which actually via year, the So terminals and or into testing millions every and much AtozPay Right put time name with first testing of about made testing makes drivers the at the mentioned of now, licensed And the the as centers. centers it mobile be which in in solution, licenses. payments This PayLogiq Mentalku of and earlier, driver's market in for

certainly growth opportunity, and both Logiq. for huge a Mentalku for it's So

with as to seamless for then represents talking ahead. more the and But access millions the help we we digital as Mentalku apply conveniently go has alternative licenses government of move services, that partnership use will make that testing. potential more digitization access users people other We driver's believe well and of will to further about be our to payments in wallet as additional services. the they financial gain which AtozGo with to Mentalku contactless person also can of types

their the in Social more move the manage Our mandate Indonesia. new members. payment organization The by now. Agency been participation, pensions million the encourage who FinTech Indonesia, line away more and FinTech And makes program as and based things years X be solution Indonesia, Security We've is also for health developing as vehicles. lower purchasing, convenient also both in is benefits provide business membership delivery in this costs overseen or can a government's BPJSTK to used cash or for that digital to from Garda use. serves their loans with repairing we're micro for drivers for been has They which available to to out many loan personal economy, which members such and micro a their the mobile which designed services mobile of is configuring contract Digital rolling these it platform

not So an BPJS' Actually, the entire members. introduced universe XX it's this incorrect will to eventually million. that's be million XX of

and be motor PayLogiq mobile to think as vehicle our their license well such administration. as members now XX supports I and e-wallet through access the GoLogiq as hyper will million affiliated also which able XXX,XXX platforms. And it's local delivery food SMBs, Mentalku, organizations,

ecommerce and the micro We this weeks So regarding micro the this opportunities lending provide from update solutions new initiative. user and our an payments, in plan on streams to like with for coming are lending, huge expansion tremendous. regional revenue updates mobile base

please asked stay And lot we So updating a will of everyone people shortly. have I tuned. be know about that.

with about in being that Indonesia. excited we growth said, the are extremely So prospects

last in And US. go spoken calls a have to calls, Previously, indicated to past said to public and SCA; are some well. about the investors on only start that on company streams that based also live the that that companies Indonesia about three three calls, investor and was I that Southeast things talked I've in see start the are our and public Asia as going we've the in lot.

over gone $XXX. past think over year, $XXX billion. from to the that is stock their $XX has And market I cap

focus region US. which FinAccel two is also the the ago months billion FinAccel However, merger Altimeter Grab Park a here a is and merging; in Singapore Victory of $XX announced Indonesia. Growth, is out has out And a SPAC based of $X.X Chicago recently a an is there specific Park is Bukalapak billion which this in a SPAC; $X.X company then a are of in merger. billion IPO a was Victory with and valuation.

So two in transactions, three we've investors, invest which institutional had and the investors months, in the US past to region. growth in retail opportunities give

interested the regional you about enter some it lot parties, a partnerships, And be initiatives, region us? fruition. super What in with as that pretty foreign of that you believe more outright more is discussions What does even or that hottest very companies market So I for see an soon, our of and does the think indicating to well it's something lot a for into shareholders? about And I as think in we'll I as goal original position do that of emerging sale has certainly come to or to do We've us ourselves spin-off well I talking all strongly believe out that. we pass, we're that ahead, see as strategic as going to been details. setting move that. will talking coming the on business. as

into excited And said, We're potential that which neighboring opportunities with IP So Asia, being this soon. suitors describing discussions countries that. of our also mobile be about we're looking Southeast these have other quarter. also large at very will absolutely up picked in licensing two

coming greater believe and market revenue absolutely So that quarters. now DataLogiq overall and brands and of lending the has reach contextual with the combined robust penetration, for market marketing increase agencies, upcoming initiatives capabilities drive a regional logic overall, app margins will solution, we increased growth ad offering expansion and over digital micro which e-wallet

if great. would with up call that, that with could So go to Rocco, like the I'd questions, instructions ahead the be open to you

Operator

Instructions] first Lisa Research. Investment comes And Zacks from [Operator today's question Thompson at

LisaThompson

give putting back time at o'clock vote and one Hi, at in more the I'm everybody to guys. a call numbers. to look

So that's my story. first

I Is about So didn't revenues my is that great question, that? supposed I better question Or a any than explanation it? had be, on looks like think DataLogiq that are for my actually sequentially. we expected. grow noticed - to first it you what guess would there quarter

TomFurukawa

Yes, sure.

a reiterate but the we have mainly obviously, exceeded slight expectations, so yes, to that one did that QX, had So thing important of greatly we great QX It's think period. decrease. it's growth enrollment ACA because also I overall affected

so And for the of some latter pause, in activity, And of brought and to revenue expected of second resume the of half record the quarter. in QX then in rolling a actually was are actually that lots the half. so a lot Medicare us year

also is the overachieved time, But will at into I biggest QX. more on call we introduced the the improvement. give today think So thing home same discussed verticals, additional penetration as in we we've that us

for And we're numbers. And we looking the way to the close were also I so is, really the then good it look second half. at QX record

LisaThompson

the couldn't a have write said rational I Thank liked were just repeat what Great, I would as explanation. you expenses QX? Could as to. that's you. you quickly one-time in

TomFurukawa

want to you one. Rod, Yes, take that

RodGranero

up let pull it quick. real Yes, me

LisaThompson

- I go think ahead. the $X.X million stock for based

RodGranero

QX, happened legal which acquisition mainly obviously Canada, to professional one million, the some and QX. And as in compensation. flow time more due of nature, like stock-based were which time in expenses one the fees million $X.X finalizing Rebel, in in into were the the well as of but late are then Yes, IPO there which $X.X nature,

LisaThompson

that from X.X, of what I like? this to Expense if kind QX quarter, look take is wise? that going out is So

RodGranero

also I Yes. to as not that mean, high going compensation be half. stock-based was first think would I the our as is in it

So yes, going would the our I you that's expenses take operating that basically forward. out imagine if X.X normalized

LisaThompson

Okay, great.

then Is what in income? And what back. that get a what got me was I've Let thing, that? is other $XXX,XXX one-time you

RodGranero

recorded Yes, that other was that the of That's income? is loan a one-time the forgiveness PPP under thing.

LisaThompson

Okay. to Good know.

see. Let's

going we're costs? few get per to much of test test for Brent something? license Indonesia, driver So, in a assume that how the cents I or

BrentSuen

using fee, good depends the about That's question. personal is not be most actual the we're interested whether charged the though, data that on the transaction $X. they're or on app, person. in because in if it going or necessarily well, Q&A their demographic of of and in, is the app What too. historically about, fee a They've US the captured equivalent they'll participation the It using is the all but information,

are auto that's compelling, aftermarket. to companies insurance in motorcycle, and and quite especially the that scooter probably So

LisaThompson

get Okay. where start. Interesting and to

BrentSuen

We pilots now. are in

e-wallet. the have there's resurgence actually that scenario think app but drives and so, app, have and the is more our I going rollout to further within we with unique hoping this the is tests well, point a lockdowns. use use on the right to We elsewhere, the not creating expect next, of that not in worst country. were but is they've now which to COVID the start at Indonesia, had to Apparently unfortunately, where in-person month they series people point to the actually the

LisaThompson

So licenses this are stand stop? renewing and they driver's not or just like

BrentSuen

I as to license Even tested have well. on it's need But about there's with of every think motorcycle renewals the the that drivers' you it's X.X and tests, three to new do especially that be applications all scooter drivers And those have months. every have million ride the to have or goods, tests currently when either or psychological deliveries do renewals, of sharing.

LisaThompson

Well, Okay. ITA? can about you now complain All the right.

were see, questions. my Let's I those think main

there next? what would you? from the from or next look be thing from So that we might news for Something any hear we do Indonesia,

BrentSuen

I Without spin been business a have the having lot. stepped off minutes we've in or giving a about away too the few of a sale discussions that up a ago, said much, stake as

events COVID that more; less more IPL. I to every due think and unicorn valued due discussions in of the are liquidity SPAC, the I with have to those it's and XX started. two for I companies heard there that SPAC, one IPO, it's based banks just one US investment mean,

As as well list. secondary the

valued million companies and too. active million, XXX I mean, it's between think $XXX there. probably I discussions in which $XXX there's are everyone's

see of down this to to a think we're well. until say I as lot So its our going more trickles level

Operator

Four And our [Christian from today Research.] Gaudi question next Phase with comes

UnidentifiedAnalyst

my questions. questions. for actually thanks segmentation asked of one Hi, my Lisa taking

and like I ask to than little more the And so toughed thought. a guys forward you're color, earlier from here. for going looks a mean, little it said, and you she you estimates, try going I'm like actually I guys beat

what So points on that side the AppLogiq couple X.X by estimate was two did you a was It if it? beat my hundred thousands.

great. And So color, can that that'd more ASP answer is Where be clients? Is coming whoever an that that I'm trying to is out find from? raised? that

TomFurukawa

sure. go have Tom. some then And Rod numbers. this me more Yes, let I'll is Yes, get context. of the into Yes,

this we of And really the as talked really guess, become we and I our data DataLogiq so specific the and we very definitely really and to Medicare And what with segments. as beat about own in we look selling expectations the vertical become, started the so started at to well growing. good half, first QX profitable

and doing we those solar, to home in well, so like addition things And mentioned are renovation, Medicare.

started so verticals, say And what is more for to done add we've things example. insurance, around

And that's the data grow. leverage as is and where we so continuing be verticals to would our practices, more part as in AppLogiq able to adjacent well infrastructure, more, --. of say, I to our And enter our we can business best

UnidentifiedAnalyst

That's interesting. really

call it. of each same rate, new at are verticals So growing these let's

TomFurukawa

and that. to more growth, very we in quality can use to we They're very get away of If in start be different really data to quality able to continue partnership. much but more insurance that provide things, results, they're say of we take and terms find high providing types more those and that customers. do company also and we succeed And established business then

UnidentifiedAnalyst

yes. Interesting,

then then verticals you how got more how go? the do is question So many to many

TomFurukawa

we're mean, right I XX. Yes, over now in

carefully, more not adding bit. careful bit be could into up, margin three going verticals doubling our could that of to I ensure say in the but And we're think those two that's much But to also, entire supply bunch and a enter why into that important the it, we'll to test along of different the if we're, you've sure revenue. things part us, make are jump what's businesses; money and we then let's very profiles good chain increasing a vertical, we is maybe margin another the it's with it. is just or spend new of by and And got increasing always each maybe few focus profile, have revenue. pretty got working more for that's revenue, well, each to on

UnidentifiedAnalyst

guys okay, you with gets Which X.X on DataLogiq, me it was to came that. side? Yes, so that something like in what

RodGranero

for that to DataLogiq. clarify, Just was

TomFurukawa

DataLogiq, was Yes, answer for my yes.

UnidentifiedAnalyst

Yes.

Okay.

my $X.X that by too estimate beat kind million. So of

gross QX higher that from well, how around able be were QX? - clients? a revenue, total salvaged sequentially I I mean, that over Was color that in was of so have And enough salvaging margin - you mean. how me give to grow to

TomFurukawa

- terms can So or your ask of you sorry, DataLogiq can in again, question,

UnidentifiedAnalyst

so $X.X And find Okay, revenue that. on estimate of I'm trying out that how kind or side; to DataLogiq my it beat the did by so. million

that that Some you. beat again revenue So did have that was didn't that new that that you be actually in there? that of was revenue a client? was a saw Thank salvaging? sacrificed? part What different actually the to that Was

TomFurukawa

verticals to us guess and increase I more in its contributed was that is deeper So Yes, that in it's penetration, are the adding existing question additional revenue. then for previous my

UnidentifiedAnalyst

fixed question the there. how asked of she then had, that I which was was And much out cost Yes.

it. being million, how of be expenses we taken kind the like for thinking is going forward. kind of $X.X about should So quarter next out And that's

you cash foreseeable quantifying future? So for said okay, future? Are so you foreseeable

TomFurukawa

to want take that you do Rod, one? Yes,

RodGranero

again? So what was the question

UnidentifiedAnalyst

way? you flow? Are how you terrific. going future? was ramping looks could get somewhere that mean to cash guys profitability margins I are somewhat or you That like be cash the cash or do gross the you because putting around that up right for breakeven anything are Just the quantifying If long or foreseeable think would

RodGranero

mentioned, were million on have, round absolutely. US the the we IPO, $X Canadian roughly that earlier million. financing Brent we our gross profits in did with here $X.X subsequent did this And of as week, last Yes, the no, that month

the that'll and new closer to or think both later entering you us growing, also probably Fixel a subsequent as we the the we'll LDM the to do year. Rebel, I give that businesses we're as growing Because mentioned, but in we're some of event with have call end them. probably acquisitions having of runway, year, are

the yes, future, subsequent towards do to we'll foreseeable but of more So, we the end the expect year. last to cash for have races

UnidentifiedAnalyst

you going direction. Thanks. the right It's Yes. much. so in Thank

TomFurukawa

Yes, Christian.

I behind to really the say it's think one-time safe us. add to that, think just large I expense is

area we're in we're I that's going marketing. you And represent, that and cash engineering investing tied the QX peak really, success because for really one-time to guess continued within with in be really good especially platform. the if so DataLogiq seeing right So burn, is the But to customer we or We're to will, dozen expenses. scaling then the sales, growth verticals. the up the next set really year. want on And significantly of agencies

UnidentifiedAnalyst

Yes, integrated. and no, to it. Yes, all invest it's looks certainly looked all in Yes. ready integrated it go and

So so thank you much.

Operator

Private Tony Forte, next today question comes a from Investor. Our

UnidentifiedAnalyst

the listing is aware particularly the are Brent. release. and hard on on the low to wary is basically the OTC contribute know about the on very multiples believe question very, because NASDAQ? to know you which first of a I generally Logiq step. you working I increase know been preference? And be the can market gross Brent. either for you've list that Yes, to does do great earnings difficulties when congrats margins. and question New any This company I are able NEO Listing My on institutions the will Exchange Stock investing is York have there. or also

BrentSuen

question, good Oh, Thanks. Tony.

I calls XX,XXX brokers and Speaking There's in actually Since IPO, amounts we for actually receiving the clients. money that's of had a NEO every Canada. sometimes US. manage managers the a from wealth I who And to of the day, probably been in fair two about individuals two IPO requests say for I'd brokers the here started it's the from investors. part, after equivalent regular day, think, call around institutional exciting. pretty or weeks

institutional are I And exchange, really which on some So stepped quite of exciting. as primary now since we think confidence a calls a of requests investors, that's that's up we've and number had from well. been listed

up So front. on things have absolutely stepped that

all if meet that preference. the we share we OTC per the I as requirements. the uplisting really a would What as well. have is number, $X of at far qualify say we As don't shares, And

it. is trading the generally That's submission an see So XX what for consecutive do and days to ideally, then call you to at want of way application.

do, will let everyone we we've doing we will that, shareholders update when our know we're we and do. that but absolutely before intent when upon we So mentioned

Operator

And, our ladies like session. ahead, go back concludes I'd Please Suen. gentleman, question-and-answer over and Mr. the conference this sir. to to turn

Brent Suen

beyond. taking foundation strong everyone very Thanks, for call on to this out by join please and we've in Rocco. XXXX margin the had believe improvement. how created quarter, today. to do updated second feel keeping the a look We would us for of published. our are since the thank or time progress. which growth strong to a us email revenue I We number to free We Incidentally, my share. In you'd like thoughts like and many meanwhile, any highlighted everyone forward with for to and reflects was reach sequential you to questions

go what the up and speaking up We'd call. next out. Rocco, quarter. the So catch ahead the doing, love forward everyone, in to on exciting. people you again rest wrap reach again, we're because and look Thanks of please extremely to please it's

Operator

you. Thank

believes, of segment, including These successfully execute generate business Act growth make that statements Section of decision. XXXX, terminology, the may Company amended forward-looking segment and other XXA continue conclude such statement involve as use and today's statements, that call would and within important Exchange and plans like information. not included to have eCommerce of statements historical Company strategy, its the XXE uncertainties. non-historical statements attract continued the to expressions, definition to statements forward-looking of the of and statements cautions, customers All by investment Section forward-looking the XXXX by are and ability fact Company of be unknown Safe the the to partners the during amended. expects, Harbor of we business expansion any call, or into Before Securities other often Company's of forward-looking objectives as the made Securities provide statements similar known of includes risks herein, today's Act statements an are call. plan, of ability as statements, its today's contained the made to the and of during I forward-looking and and of should Company ability Statements forward-looking used management than revenues, the the regarding the identified and These

Although entirety are discussed qualified its including website assume Company are as the Investors reasonable, reliance these may that and in uncertainties, reflected these incorrect. Company believes expectations are do to the the involve Other filed securities assumptions, periodic by in be the they prove the not Commission duty undue forward-looking forward-looking statements these and and these laws, at expectations risks, does on should that reports place not factors, and The call. the its or any only on statements of Company's behalf of these a as conference forward-looking persons than the the speak actual in in date under acting the as Company's of Company with of these to All factors. statements. which Exchange required from their forward-looking Securities to statements, result results statements a expressively variety available www.sec.gov. forward-looking those differ attributable this could materially on anticipated update

call. for www.logiq.com. release call, us. to via Company's press replay would this Thank the evening. at conference will everyone starting call available that concludes today's like Before conference we to end today's I for this dial-in available joining Please later be replay refer This today's remind a website for you instructions

You may now disconnect.

Logiq (LGIQ) 17 Aug 212021 Q2 Earnings call transcript