Creatd, Inc. Announces Q3 2023 Earnings and Updates Strategic Plan

Published on November 15, 2023

NEW YORK, November 15, 2023 -- Creatd, Inc. today reported its third-quarter fiscal year 2023 earnings, showcasing tangible results from the Company's strategic realignment. This quarter has been pivotal in demonstrating a marked improvement in gross margins, a testament to the Company's efforts in stabilizing revenues and streamlining operations. Gross margin improved 120% year over year from a negative $380,000 margin in Q3 2022 to a positive $80,000 margin in Q3 2023. Revenue for the nine months ended September 30, 2023 was approximately $2.1 million.

Jeremy Frommer, CEO and Chairman of Creatd, Inc., commented, "This quarter's results reflect the successful implementation of our strategic initiatives. We've focused on creating a leaner, more agile, and potent Creatd, with significant steps taken towards reducing headcount, closing non-performing assets, and recalibrating resources. Our vision for the future is clear, and we are on track to achieve our goals with unwavering commitment and precision."

Key Highlights of Q3 2023:

  • Improved creator retention on the Vocal platform through the introduction of the Vocal Awards, an innovative strategy that has not only created a new revenue stream but also attracted a fresh wave of creators.
  • Completion of the sale of CPG brands Basis and Brave, leading to a reduction in liabilities and operational costs. The Company has exited its CPG division, aligning with its strategy to improve gross margins.
  • Restructuring of nearly $3 million in convertible debt and reduction of legacy liabilities by over $2 million.
  • Successful launch of the Reg CF campaign for Vocal, Inc., and initiation of the "Testing the Waters" campaign for subsidiary OG Collection, Inc.
  • Settlement of multiple legal disputes and ongoing negotiations with outstanding creditors.
  • Progress towards the special dividend of OG Collection, Inc. shares to current shareholders, with more details, including a record date, expected before the year's end.

Frommer further added, "As we look to the future, our focus remains on surviving and growing our company through one of the most difficult economic environments I have seen in my career. We will look to enhance shareholder value and capitalize on the growth opportunities before us. The steps we've taken this quarter are just the beginning. We are poised for continued accomplishments and are excited about what lies ahead for our stakeholders."

Forward Looking Statements

Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings.

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