EarthLabs Reports Results For The Fourth Quarter and Fiscal Year 2024

Rhea-AI Summary

EarthLabs reported strong revenue growth despite challenges in Q4 2024. The company saw a 172.1% increase in advertising revenue to $1.84M and a 39.9% increase in subscription revenue to $322K compared to Q4 2023.

For the full year 2024, advertising revenue jumped 176.9% to $6.1M, while subscription revenue grew 41.3% to $1.24M. The company ended the year with $39.2M in total cash, equivalents, and investments.

Key financial highlights:

• Net investment loss of $3.67M in Q4 2024
• Net loss reduced to $4.96M ($0.04 per share) from $11.22M in Q4 2023
• Built $3.45M in deferred revenue, showing strong client confidence
• Implementing cost-cutting measures while investing in high-ARR tools

CEO Denis Laviolette emphasized strategic portfolio building and opportunities in the commodities sector, despite development delays and macro headwinds.

Positive

• 172.1% increase in Q4 2024 advertising revenue to $1.84M vs Q4 2023
• 176.9% increase in FY 2024 advertising revenue to $6.11M vs FY 2023
• 41.3% increase in FY 2024 subscription revenue to $1.24M
• Strong cash position with $39.23M in cash, equivalents and investments
• Net investment gains of $160,441 in FY 2024 vs losses of $2.28M in FY 2023
• Deferred revenue grew to $3.45M, indicating strong future revenue potential
• Reduced net loss to $6.19M in FY 2024 from $16.62M in FY 2023

Negative

• Q4 2024 net investment losses of $3.67M vs $1.26M in Q4 2023
• 20.3% decrease in exploration maps sales to $177,763 in FY 2024
• Operating expenses increased 21.2% to $11.34M in FY 2024
• R&D expenses nearly doubled to $3.17M in FY 2024
• Continued net losses despite revenue growth
• Total assets declined to $44.93M from $49.25M year-over-year

• Ended the year with total cash, cash equivalents, and investments of $39,234,437;
• 172.1% increase in advertising revenue as compared to Q4 2024 with advertising revenue of $6,108,765 for the year ended December 31, 2024 (176.9% increase);
• 39.9% increase in subscriptions revenue as compared to Q4 2024 with subscription revenue of $1,237,035 for the year ended December 31, 2024 (41.3% increase);

Toronto, Ontario--(Newsfile Corp. - April 28, 2025) - EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) ("EarthLabs" or the "Company") is pleased to announce the consolidated financial results for three months and year ended December 31, 2024 of the Company (the "Financial Results").

Highlights for the three-months period ended December 31, 2024:

• 172.1% increase in Advertising revenue to $1,843,012 as compared to $677,279 for the three months ended December 31, 2023;
• 39.9% increase in Subscriptions revenue to $322,338 as compared to $230,391 for the three months ended December 31, 2023;
• 12.0% increase in Sales of exploration maps to $37,655 as compared to $33,610 for the three months ended December 31, 2023;
• Net investment losses of $3,667,473 from our investment portfolio as compared to $1,263,270 for the three months ended December 31, 2023;
• Net loss and comprehensive loss of $4,959,177(basic loss per share of $0.04) as compared to net loss and comprehensive loss of $11,220,627 (basic loss per share of $0.08) for the three months ended December 31, 2023.

Highlights for the year ended December 31, 2024:

• Completed the nine-month period with total cash and cash equivalents, due from brokers, investments and equity investments of $39,234,437 as compared to $42,943,109 as at December 31, 2023;
• 176.9% increase in Advertising revenue to $6,108,765 as compared to $2,206,523 for the year ended December 31, 2023;
• 41.3% increase in Subscriptions revenue to $1,237,035 as compared to $875,682 for the year ended December 31, 2023;
• 20.3% decrease in Sales of exploration maps to $177,763 as compared to $223,038 for the year ended December 31, 2023;
• Net investment gains of $160,441 from our investment portfolio as compared to net investment losses of $2,277,329 for the year ended December 31, 2023;
• Net loss and comprehensive loss of $6,187,284 (basic loss per share of $0.04) as compared to 16,623,683 (basic loss per share of $0.12) for the year ended December 31, 2023.

"While this quarter brought significant challenges, we're actively reshaping our approach. Our advertising revenue has nearly tripled year-over-year, subscription revenue is up over 41%, and we've built a $3.45M war chest of deferred revenue that signals significant client confidence despite the macro headwinds. This growth comes as we continue to invest in developing high-ARR potential tools and platforms that will drive long-term shareholder value," said Denis Laviolette, Executive Chairman and CEO of EarthLabs. "While that development is taking longer than anticipated, we're taking decisive action to address our challenges by implementing targeted cost-cutting measures and making tough decisions about underperforming initiatives. At the same time, we're strategically building our asset base and strengthening our portfolio, which already includes stakes in some of the most promising companies in the mining sector. Given the current strength in commodities and the broader global economic landscape, we're confident these initiatives position EarthLabs for meaningful opportunities ahead, benefiting both the company and our shareholders."

Summary of financial results

The following are selected interim condensed consolidated financial results as at and for the three and twelve months ended December 31, 2024, with comparatives:

Consolidated statements of loss and comprehensive loss highlights		Three months ended December 31,						Twelve months ended December 31,
		2024			2023			2024			2023
Advertising revenue	$	1,843,012		$	677,279		$	6,108,765		$	2,206,523
Subscriptions revenue		322,338			230,391			1,237,035			875,682
Sales of exploration maps		37,655			33,610			177,763			223,038
Net investment gains (losses)		(3,667,473	)		(1,263,270	)		160,441			(2,277,329	)
Other income		180,074			167,400			755,956			902,780
Operating, general and administrative		(3,239,686	)		(2,256,744	)		(11,339,500	)		(9,358,659	)
Research and development expenses		(742,954	)		(359,641	)		(3,173,710	)		(1,605,738	)
Total expenses		(4,016,968	)		(2,622,561	)		(14,657,449	)		(10,984,404	)
Loss from equity investment		(325,339	)		(16,670	)		(355,724	)		(107,524	)
Impairment of goodwill and intangible assets		-			(9,530,129	)		-			(9,530,129	)
Income tax recovery		667,524			1,187,884			385,929			2,152,241
Net loss and comprehensive loss for the period		(4,959,177	)		(11,220,627	)		(6,187,284	)		(16,623,683	)
Loss per common share for the period - basic and diluted		(0.04	)		(0.08	)		(0.04	)		(0.12	)

 

Consolidated statements of financial position highlights		December 31, 2024			December 31, 2023
Cash and cash equivalents	$	4,122,474		$	5,227,657
Due from brokers		416,907			485,949
Accounts receivable, net of expected credit losses		519,491			120,253
Investments, at fair value		32,912,428			35,091,151
Equity investment		1,782,628			2,138,352
Income tax receivable		268,362			854,023
Property, equipment and right-of-use assets		1,128,713			1,252,737
Intangible Assets		2,826,438			3,127,000
Goodwill		624,290			624,290
Total assets		44,930,710			49,251,445
Accounts payable and accrued liabilities		1,697,947			1,287,021
Deferred revenue		3,452,044			1,921,102
Total promissory note		726,458			980,971
Total lease liabilities		1,031,645			1,155,154
Deferred tax liabilities		-			204,690
Total liabilities		7,105,575			5,589,812
Share capital, contributed surplus, and warrants		52,575,143			52,224,357
Deficit		(14,750,008	)		(8,562,724	)

 

About EarthLabs Inc.

EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) is a mining investment, technology, and media company that aims to provide strategic leverage to the metals and mining sector through investments, royalties and a full suite of data-driven media SaaS tools and services including CEO.CA, The Northern Miner, MINING.COM, Canadian Mining Journal and DigiGeoData.

For further information please contact:

Denis Laviolette
Executive Chairman and CEO
EarthLabs Inc.
Tel: 647-345-7720
Email: investors@earthlabs.com

Neither the TSX Venture Exchange ("TSXV"), OTC Best Market ("OTCQX") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement on Forward-Looking Information

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, risks detailed from time to time in the Company's filings with securities regulators and available under the Company's profile on SEDAR at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250004

FAQ

How much did EarthLabs (SPOFF) advertising revenue grow in Q4 2024?

EarthLabs' advertising revenue grew 172.1% to $1,843,012 in Q4 2024, compared to $677,279 in Q4 2023, showing strong growth in their advertising segment.

What is EarthLabs (SPOFF) total cash position as of December 31, 2024?

EarthLabs ended 2024 with $39,234,437 in total cash, cash equivalents, and investments, compared to $42,943,109 at the end of 2023.

What caused EarthLabs (SPOFF) net loss in Q4 2024?

EarthLabs reported a Q4 2024 net loss of $4,959,177, primarily due to investment losses of $3,667,473 and operating expenses of $3,239,686, despite strong revenue growth.

How much deferred revenue does EarthLabs (SPOFF) have for future growth?

EarthLabs has built up $3,452,044 in deferred revenue as of December 31, 2024, representing a significant increase from $1,921,102 in 2023, indicating strong future revenue potential.

What was EarthLabs (SPOFF) subscription revenue growth in 2024?

EarthLabs' subscription revenue increased by 41.3% to $1,237,035 for the full year 2024, compared to $875,682 in 2023.