By Glenn Johnson
LifeSpeak Inc. on Wednesday swung to a net loss in the second quarter on lower recognized revenue from a major client and higher expenses.
The Toronto-based mental health and wellbeing software company had a net loss of $6.5 million Canadian dollars (US$5 million), or C$0.13 a share, compared with a profit of C$508,000, or C$0.01 a share, in the comparable quarter a year ago.
Adjusting for non-recurring costs, LifeSpeak had a loss of C$0.06 a share.
Revenue more than doubled to $12.1 million from the same period in 2021 as the total number of clients rose to 921 from 253 a year ago.
The company attributed its net loss to compensation-plan expenses and reduced recognizable revenue from an embedded client.
Share-based compensation costs rose to C$2.9 million from C$401,000, while sales and marketing expenses rose to C$3.6 million from C$1.9 million and general and administrative expenses climbed to C$6.9 million from C$1.3 million.
The company said it is negotiating the renewal of a contract with a customer that, at its peak, represented the largest client in LifeSpeak’s embedded solutions platform. In May, LifeSpeak said a substantial portion of the revenue from the contract was recognized in 2021 and the rest was primarily recognized in the first quarter.
Write to Glenn Johnson at [email protected]
Credit: www.marketwatch.com /