Facedrive Reports Record Q1 Revenue, Margins Remain Negative
Facedrive Inc (TSXV: FD), which now goes by the name STEER, released its first quarter funding results this morning. While the company said it posted “record revenue” for the period, the company’s revenue was relatively flat compared to its fourth quarter results.
Revenue for the quarter was $10.7 million, an increase of 4.1% over fourth quarter revenue of $10.3 million. Revenue, however, reflected a 287.1% year-over-year improvement from the $2.8 million in revenue recorded the previous year.
Revenues were broken down as follows:
- Subscription revenue fell to $0.66 million from $0.75 million in the fourth quarter
- On-demand revenue, which includes food delivery, restaurant commissions and its B2B marketplace, was $9.98 million, up from $9.17 million in the fourth quarter.
- EcoCRED revenue was $0.10 million
“2022 is off to a strong start. In the first quarter of 2022, we almost quadrupled our revenues compared to the first quarter of 2021 and continue to reduce operating costs, which is a signal of significant growth while increasing the operational efficiency of the company. Our focus on building on-demand and subscription-based offerings and significant investments to align operations with this direction has resulted in solid revenue growth and concurrent savings in operating costssaid CEO Suman Pushparajah.
While revenue may have reached an all-time high for the company, the business obviously still hasn’t reached scale, with the cost of that revenue coming in at $11.7 million for the three-year period. months, which means that gross margins are still in negative territory.
On top of that, the business had operating support costs of $3.7 million in the quarter, as well as general and administrative expenses of $2.0 million, resulting in an operating loss of $9. $.1 million for the three-month period.
After receiving government grants of $1.0 million, which were partially offset by interest charges, the company recorded a net loss for the period of $8.2 million.
Regarding the statement of cash flows, the company reported negative operating cash flow of $4.95 million during the period, while generating $6.39 million in cash from operating activities. funding. As a result, the company’s current cash position fell from $2.2 million to $3.6 million during the quarter.
This cash position is despite raising $4.7 million on March 1. The company has since completed a second financing, which closed in April, for gross proceeds of $17.5 million.
Facedrive last traded at $0.64 on the TSX Venture Exchange.
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