Creatd Announces Record Reduction of 45% in QoQ Operating Expenses for its First Quarter 2022

May 15, 2023

NEW YORK, May 16, 2022 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), a creator-first holding company and the parent company of Vocal, a proprietary technology platform for creators, today reported its financial results for the first quarter ended March 31, 2022.

Financial Highlights

  • Creatd's Q1 2022 GAAP revenue grew 81% YoY to nearly $1.4 million, with $2.5 million in non-GAAP revenue, led by stable growth across all business segments.
  • Creatd maintained revenues QoQ while reducing operating expenses by a record 45%, as well as decreasing Vocal marketing costs.
  • The reduction in Vocal subscription-related marketing expenses is a testament to the platform's 'stickiness,' the scalability of Creatd's multiple subscription-based revenue models, and management's commitment to working toward cash flow break-even.
  • At the conclusion of Q1 2022, Creatd's balance sheet has no long-term debt.
  • Mid-way through Q2 2022, the Company's second-quarter revenues are already tracking above those of last quarter; the Company maintains guidance of between $1.55 million and $1.75 million in net revenues for such period.  

Business Highlights (Year to Date)

  • Creatd's flagship platform, Vocal, released 'Comments', one of its most highly-requested features, as part of a suite of social-oriented features being introduced this year.
  • Creatd Ventures' direct-to-consumer beverage brand, Dune, launched in luxury SoCal grocery retailer Erewhon Market after selling out at Urban Outfitters in less than two weeks. Dune continues to field strong interest from a range of additional retailers as consumer demand for premium, high-quality wellness drinks increases.
  • Creatd Partners, the pillar housing the Company's agency businesses, released a new website design and media kit for its content marketing arm, Vocal for Brands. The new Vocal for Brands positioning works to highlight its shift toward a more integrated, cohesive agency offering, leveraging WHE's powerful influencer network as well as Vocal creators to drive even further impact for Creatd Partners clients.
  • Creatd Studios, the Company's transmedia production arm, announced the upcoming launch of a new podcast featuring the voices and stories of Vocal's creators; additionally, the Company announced the upcoming release of a print book featuring the winners of Vocal's 'Fiction Awards' Challenge, with publication expected in early 2023 in partnership with UK-based publisher, Unbound.
  • The Company is planning an Investor Day webcast to present its business expansion plans for the second half of 2022. The event is expected to take place next month, with further details to be announced.

Commented Creatd's CEO Laurie Weisberg, "Over the last quarter, our Company has been able to operate efficiently and effectively; at the heart of Creatd remains a commitment to creators and our technology platform, Vocal. In the face of significant headwinds, we are still on schedule to deliver our first ever Vocal mobile app, which we expect to be the most momentous event for the technology since the platform's inception nearly six years ago."

About Creatd, Inc.
Creatd, Inc. is a publicly traded digital holding company renowned for its commitment to innovation, transparency, and growth. Central to its operations is the flagship platform, Vocal—a pioneering social media and publishing platform designed to amplify user engagement and monetization.
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