Xcyte Digital Corp. Reports Q3 Fiscal 2024 Revenue of $463,000 Up 130% Quarter Over Quarter

POMPANO BEACH, FL, August 30, 2024 (Newswire.com) - • Q3 FY 2024 (June 30) revenue of $0.46 million

• Q3 results include A+ Conferencing, Ltd. ("A+") assets acquired on April 3, 2024

• Q4 FY 2024 (September 30) results to include Webinar.net Incorporated ("Webinar") assets purchased on July 10, 2024

Xcyte Digital Corp. (TSXV:XCYT) ("Xcyte" or the "Company"), a trusted global events technology company, specializing in next-generation event solutions, announces that it has filed unaudited interim financial statements and related management's discussion and analysis ("MD&A") on SEDAR+ for the three and nine months ended June 30, 2024. All dollar amounts are denominated in United States dollars, unless otherwise noted.

The Company also announces that it has filed an amended and restated MD&A on SEDAR+ for the three and nine months ended June 30, 2024 as an incorrect version was inadvertently filed earlier today.

Q3 Fiscal 2024 (June) Highlights

During the quarter ended June 30, 2024, the Company reported revenue of $0.46 million, EBITDA of $-0.45¹ million, and net loss of $0.46 million. During Q3, A+ contributed revenues of $0.24 million, and EBITDA of $36,000. The Company continues to focus on eliminating redundant expenses from its newly acquired A+ operations and expects higher contributed EBITDA from A+ in Q4 and onwards. As the asset acquisition closed on April 3, 2024, Q3 benefited from A+'s contribution for approximately the entire period. A+ generated $1.4 million in annual revenue and $207,000 normalized EBITDA² during 2023.

"Q3 marked an important point in Xcyte's evolution as reported revenue grew 130% sequentially this quarter. Q3 included nearly a full quarter of contribution from A+, which closed on April 3^rd; however, we are still completing the integration and reducing the operating expenses of the A+ division and expect all redundant expenses to be eliminated and further synergies to be realized in Q4," said Randy Selman, CEO of Xcyte. "We also expect Q4 to include strong contribution from the Webinar.net assets, which we purchased on July 10^th. As result, we expect a similar level of sequential revenue growth."

Subsequent Events

On July 10, 2024, Xcyte closed the purchase of the Webinar.net assets. As a result, Q3 did not realize any revenue contribution from this acquisition. Q4 will benefit from Webinar.net's contribution for almost the entire period. The assets of Webinar.net generated $2.8 million annual revenue and EBITDA (unaudited)³ of $0.6 million for the twelve months ended December 31, 2023.

Outlook and Management Commentary

During the remainder of FY 2024 and into FY 2025, the Company intends to continue its organic and potential M&A growth strategy, having already acquired the business of A+ in April 2024 and having completed an asset purchase agreement with Webinar.net, which closed in July 2024. In addition, in June 2024, the Company completed a share exchange and asset purchase agreement with MCON Live, Inc., a Nevada corporation ("MCON"), which hosts various annual events that bring the military community together.

The Company also continues to focus on its longer-term goals and objectives, including its new subscription service which launched in May 2024 (the "Xperience Subscription Service"), and providing an all-in-one subscription service for hosting events. The Company plans on expanding the Xperience Subscription Service in the coming months to include additional partners, clients and events.

About Xcyte Digital Corp.

Xcyte Digital (TSXV:XCYT) is a trusted global events technology company, specializing in next-generation applications for physical, hybrid, virtual, immersive, and phone-based events. Combining proprietary technology with a robust partner ecosystem, Xcyte offers both do-it-yourself and managed services, ensuring secure and scalable solutions worldwide. Thousands of clients, from innovative startups to major corporations, rely on Xcyte's cost-effective solutions to meet their event needs. Xcyte Digital is headquartered in Canada and the USA, with operations across the globe. Visit us at xcytedigital.com.

Non-IFRS Financial Measures

This press release may include references to certain non-IFRS financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"). These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The measures above have been described and presented to provide shareholders, potential investors and analysts with additional measures for assessing the performance of Xcyte, A+, Webinar.net and, where applicable, the pro forma expectations of the combined entity, as applicable, and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

For further information, please contact:

Xcyte Digital Corp.
Randy Selman, Chief Executive Officer and Director
Phone: (647) 777 7501
Email: [email protected]

Investor Relations
Nikhil Thadani, Sophic Capital
Email: [email protected]
Phone: (647) 777 7501

To receive Xcyte investor news, please sign up at https://xcytedigital.com/investors/

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

Forward-Looking Information

Certain information in this news release constitutes forward-looking statements and forward-looking information under applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information include, but are not limited to, statements with respect to the expected synergies that Xcyte may realize as a result of the completion of the transactions with A+, Webinar.net and MCON and the impact that the completion of the transactions with A+, Webinar.net and MCON and the launch of the Xperience Subscription Service may have on Xcyte's growth prospects generally. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements and future events to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, that the A+ and Webinar.net assets and MCON may not perform or generate revenue at the levels experienced historically; that there may be obstacles to absorbing the A+ and Webinar.net assets into Xcyte's broader business; that the synergies anticipated by the completion of the A+, Webinar.net and MCON transactions may not materialize to the extent expected or at all; and other factors that apply to the Company's business generally as described in greater detail in the public documents of the Company available at www.sedarplus.ca. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Investors are cautioned that undue reliance should not be placed on any such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

[1] Non-IFRS measurement, EBITDA of approximately $-447,200 for the three months ended June 30, 2024, was calculated based on a net income of $460,000 before interest ($9,500), taxes ($0) and depreciation and amortization ($3,300).

[2] Non-IFRS measurement, A+ normalized EBITDA of approximately $207,200 for the twelve months ended December 31, 2023, was calculated based on a loss of $59,000 before interest ($0), taxes ($4,200), depreciation and amortization ($7,500), and considering non-recurring and discretionary partner compensation of $254,500.

[3] Non-IFRS measurement, Webinar EBITDA of approximately $615,000 for the twelve months ended December 31, 2023, was calculated based on a net income of $342,000 before interest ($272,000), taxes ($1,000), and depreciation and amortization ($0).

Contact Information

Nikhil Thadani
Investor Relations
[email protected]
(647) 777 7501

SOURCE: Xcyte Digital Corp.

Source: Xcyte Digital