Facedrive Inc (TSXV: FD), whom now goes by the name STEER, this morning released its first quarter financing results. While the firm headlined that it posted “record revenues” for the period, the firms revenue was relatively flat compared to its fourth quarter results.
Revenues for the quarter came in at $10.7 million, a 4.1% increase over the $10.3 million in revenues recorded during the fourth quarter. The revenues however did reflect a 287.1% improvement on a year over year basis from the $2.8 million in revenue posted in the year ago period.
Revenue was broken down as follows:
- Subscription revenues fell to $0.66 million from $0.75 million in the fourth quarter
- On-demand revenues, which include food delivery, restaurant commissions and its B2B marketplace, were $9.98 million, versus $9.17 million in the fourth quarter
- EcoCRED revenues were $0.10 million
“2022 has been off to a strong start. In Q1 2022, we have nearly quadrupled revenues as compared to Q1 2021, and continue to curtail operating costs which is a signal of significant growth while increasing operational efficiencies in the Company. Our focus on building On-Demand and Subscription offerings and significant investments to align operations with this focus have resulted in solid top-line growth and simultaneous efficiencies in operating costs,” said CEO Suman Pushparajah.
While revenues may have hit a record level for the company, the firm has evidently still not hit scale, with the cost of those revenues coming in at $11.7 million for the three month period, meaning that gross margins still remain in negative territory.
On top of this, the firm had operational support costs of $3.7 million during the quarter, as well as general and administrative costs of $2.0 million, leading to an operating loss of $9.1 million for the three month period.
After the receipt of $1.0 million in government grants, which was partly offset by interest expenses, the company posted a net loss for the period of $8.2 million.
Looking to the cash flow statement, the firm reported negative operational cash flow of $4.95 million during the period, while generating $6.39 million in cash from financing activities. The firms current cash position climbed from $2.2 million to $3.6 million during the quarter as a result.
This cash position is despite raising $4.7 million on March 1. The company has since conducted a second financing however which closed in April, for gross proceeds of $17.5 million.
Facedrive last traded at $0.64 on the TSX Venture.
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