Achieving profitability is a milestone for any small company and Toronto-based microcap Yangaroo, Inc. (TSX-V: YOO)(OTCPK: YOOIF) has hit that goal. The digital media management company on Tuesday morning released it results for the fourth quarter and full 2017 year, ended December 31, 2017, showing a big gain in sales and the company operating in the black for the first time.
Revenue for the fourth quarter came in at (in Canadian dollars) $1.91 million, up from $1.57 million in 2016. For the full year, revenue totaled $7.66 million, up 43% from $5.34 million in the year prior.
The jump in revenue was attributable to the company’s advertising division, which saw sales balloon 84% to $4.71 million in 2017. The entertainment unit contributed revenue of $2.94 million in 2017, up 6% from 2016. Management said some softness in the quarter for the entertainment division was because of the timing of booking awards show revenue.
The company posted positive EBITDA (earnings before interest, taxes, depreciation and amortization) for the year of $265,785 versus a loss of $663,184 in 2016. EBITDA was positive in Q4, despite slipping to $137,508 compared to $181,394 in the year earlier quarter.
Net income for the fourth quarter salvaged the year for Yangaroo, with a profit of $88,493. Although that was down from a profit of $139,987 in Q4 2016, it pushed the 2017 total to a net profit of $77,228. In 2016, the company reported a net loss of $834,933.
Expressing his pride in the first full-year of profitability for the company, Yangaroo president and CEO Gary Moss said that the company still is working towards its goal of 10% advertising market share. Underscored by the efforts to capture market, Moss added that the company’s pipeline of prospects "has never looked better."
Investors apparently aren’t impressed and are selling the news early in Tuesday trading action. Shares of Toronto-listed YOO are down 14.7% at 29 cents, albeit on only about 133,000 in volume.
