PowerBand Solutions (TSXV: PBX) this morning released its much awaited sales numbers for September as well as the third quarter as a whole. Gross revenues for the quarter overall surged 88% to $8.8 million.
While the company did not break down revenue figures specifically for September, based on the data provided September gross revenues are estimated to be $2.7 million, the second highest monthly figure to date. Originations for the month of September amounted to 230, with this figure expected to grow in oncoming months due to an expanded dealer network.
The company indicated that figures were down from August levels as a result of historically low inventory levels within the auto industry, along with interruptions due to flooding in the US northeast.
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Year to date revenues have now surpassed $16.0 million as per the company, at a reported gross margin of 50%.
Looking forward, the company now has a total of 909 dealers on its network, a steep climb from the 650 on the platform as of the end of August. Originations are expected to climb as a result, with the monthly drop experienced in September viewed as a short-term aberration due to low inventory levels that is not expected to persist long-term.
“We had set a dealer target of 1,000 by year-end 2021 and are tracking to outpace that KPI. Notwithstanding a short-term impact to September originations, we see growth resuming in fourth quarter, despite the dire inventory situation. Our new enterprise customers will drive incremental origination growth into year-end and throughout 2022, however, the full scaling capability of the business will not be appreciated by the market until inventory levels normalize,” stated Jon Lamb on the results.
The company currently expects Drivrz Financial Canada to be online by the end of the year, while DrivrzLane and DrivrzXchange are anticipated to be revenue-generating in Q1 2022.
PowerBand Solutions last traded at $0.93 on the TSX Venture.
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