NEW YORK, Sept. 22, 2020 (GLOBE NEWSWIRE) -- Logiq, Inc. (formerly Weyland Tech) (OTCQX: WEYL), a global provider of award-winning eCommerce solutions, expects to end 2020 with record revenue at more than $38 million, with margins expanding across all business segments.
“Despite a tumultuous year of challenges and setbacks created by the global pandemic, we have been able to transform Logiq into a global provider of a full-range of eCommerce solutions for companies of all sizes,” said Logiq president, Brent Suen. “This has kept us on course for growth in 2020 and beyond with more diversified, high-margin revenue streams derived from the strongest segments of our industry.”
The company’s offerings now range from mobile commerce and fintech solutions for micro-, small- and medium-sized businesses (MSMBs) to AI-powered customer acquisition for major enterprises and brands. Customer relationships now range from hundreds of thousands of MSMBs around the world to publicly traded Fortune 500 companies. Marquee clients now include Home Advisor, QuinStreet and Sunrun.
The new major clients reflect how the company has been evolving from primarily an eCommerce services company to a leading innovator of data-driven consumer intelligence and marketing technology. The transformation of Logiq began at the beginning of the year with its acquisition of the eCommerce business of U.S.-based Push Interactive. This has led to a streamlining of the company’s various products and business units into two segments: AppLogiq™ and DataLogiq™.
The AppLogiq platform-as-a-service (PaaS) enables MSMBs worldwide to easily create and deploy a native mobile commerce app without technical knowledge or capital expense. AppLogiq empowers businesses to reach more customers, increase sales, process payments, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way. It also empowers novice mobile marketers with easy-to-use data analytics and re-engagement/retargeting solutions.
The company’s PayLogiq™ mobile e-wallet and GoLogiq™ urban food delivery services showcase the power of the AppLogiq platform to create highly valuable mobile apps that can attract large and active user bases. These services have become magnets of interest by major industry partners due to the valuable consumer data both have acquired since inception and their focus on emerging markets in Southeast Asia.
Logiq recently formed a partnership with Shopee, the leading online shopping platform in Southeast Asia and unit of NYSE-traded Sea Ltd., and announced an integration of GoLogiq with the ShopeePay mobile payment platform and launched a co-marketing campaign. ShopeePay brings to the campaign strong growth in this market. In its recent quarter, ShopeePay generated 260 million financial transactions, up 130% year-over-year, with revenue up 187% to a record $510.6 million.
Last week, Logiq also joined forces with Yabx, the microfinance unit of $5.2 billion Tech Mahindra (BSE:TECHM). Together, they will offer credit-based financial services via the PayLogiq mobile app in Indonesia.
“Not only do these major new partnerships demonstrate the power of AppLogiq to create strong new revenue opportunities for our company and AppLogiq subscribers, they also validate Logiq as a solid partner for multibillion-dollar global tech companies,” said Suen. “Such partnerships also present opportunities where such new in-house business units created by AppLogiq can be created and potentially spun out to partners at considerable valuations. We understand it is important to remain focused on our core strengths, so at the right time and valuation, this is our plan for these two solutions.”
Together, PayLogiq and GoLogiq annualized gross transaction volume (GTV) currently exceeds $24 million. Comparative M&As and investments place the valuation of PayLogiq and GoLogiq at 2-4 times their GTV or at $48 million to $96 million. The combined GTV growth outlook for 2021 currently exceeds $50 million.
Meanwhile, these platforms continue to benefit from strong market trends. Statista reports that online food delivery business in Indonesia where GoLogiq operates is growing at an 11.5% compounded annual growth rate and will reach $3 billion by 2024. Meanwhile, Bank Indonesia, the country’s central bank, reports that the total value of e-wallet transactions increased more than tripled in 2019 to $10.45 billion.
“As one of only a handful of U.S. publicly traded companies focused on this hyper-growth market, our success there validates our market strategy,” said Suen, “and especially when it attracts valuable, high-profile, partners like ShopeePay.”
DataLogiq, the company’s U.S.-based eCommerce platform, uses proprietary methodologies and AI systems to deliver valuable consumer insights that can dramatically enhance the effectiveness, reach, and ROI of online marketing spend.
By drawing from its first-party data acquired across Logiq’s eCommerce platforms, Logiq is developing a company-wide system for building custom audiences for advertising using its deep pool of consumer intelligence. It looks to assemble these audiences using hundreds of potential points of consumer interest. By managing the end-to-end consumer experience, Logiq is able to rapidly execute highly effective online campaigns that generate high ROI on marketing spend for itself and its customers worldwide.
As DataLogiq continues to scale and expand its core lead-generation business, it is also seeking accretive and complementary acquisitions. It recently announced its plans to acquire Fixel AI, which would allow an immediate entrée to higher margin, self-serve SaaS offerings. Other targeted acquisitions include high margin opportunities in Digital-out-of-Home and Connected TV markets.
2020 Financial Outlook Logiq sees revenue in the second half of 2020 to be driven primarily by 20% growth in DataLogiq, leading to more than $38 million in revenue for the year. DataLogiq’s strong growth will be partially offset by a slow return to growth in AppLogiq subscription revenue due to the impact of a COVID-19 lockdown in Jakarta, Indonesia where most of AppLogiq’s distributors and customers operate. AppLogiq is expected to return to its historical double-digit growth in 2021.
The company has also implemented a transition away from lower margin distributor relationships for AppLogiq, replacing them with either higher-margin engagements or higher-margin direct sales given the results of a successful new online marketing program announced in August.
DataLogiq remains on track to reach the higher end of its 2020 revenue guidance issued earlier this year of $13 million to $15 million, with gross margins expanding to nearly 20% by year end.
Logiq expects its net loss, driven primarily by the pandemic impact, to improve from $4.5 million in the first half of the year to about $2 million in the second half, with this improvement trend continuing into the new year, as margin improve from around 18% to the target of 30-32% in 2021.
Also driving future growth will be the near-term completion of the recently announced Fixel AI acquisition and the increased beneficial stake in the company’s PayLogiq/GoLogiq subsidiary from 31% to 51%. Gaining control PayLogiq/GoLogiq positions the company to consolidate the subsidiary’s revenue and take better advantage of any potential strategic alternatives, as mergers and acquisitions, as well as eCommerce business in general continue to intensify.
Earlier this year, Logiq engaged the leading U.S. investment bank, The Benchmark Company, to assist in the exploration, evaluation and execution of strategic alternatives design to enhance shareholder value.
According to Logiq CEO, Tom Furukawa: “Through our synergistic acquisitions and new partnerships, and further cross-platform enhancements, we will continue to increase customer activity across our business segments as we take advantage of the market trends driving the phenomenal growth of eCommerce worldwide.”
About Logiq Logiq, Inc. (OTCQX: WEYL) is a U.S.-based leading global provider of eCommerce, mCommerce, and fintech business enablement solutions. Its AppLogiq™ platform-as-a-service enables small-and-medium sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. AppLogiq empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way. AppLogiq is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia. The company’s subsidiary, DataLogiq, provides a data-driven, end-to-end eCommerce marketing solution for enterprises and major U.S. brands, including Home Advisor, QuinStreet and Sunrun. Its AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend. The company’s PayLogiq™ offers mobile payments, and GoLogiq™ offers hyper-local food delivery services. For more information about Logiq, go to Logiq.com.
Forward-Looking Disclaimer This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. The Company cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the Company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by the Company or its affiliates that any of our plans or expectations will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including, without limitation: the fitness of our product for a particular application or market, expectations of future events, financial results, and/or business transactions that may not be consummated or realized, as well as other risks described in our prior press releases and in our filings with the Securities and Exchange Commission (“SEC”), including under the heading "Risk Factors" in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
Company Contact Brent Suen, President Logiq, Inc. Email contact
Media & Investor Contact Ronald Both or Grant Stude CMA Investor & Media Relations Tel (949) 432-7566 WEYL@cma.team