Published on February 05, 2023
NEW YORK, Feb. 6, 2023 /PRNewswire/ -- Creatd, Inc. (OTCQB: CRTD) ("Creatd" or the "Company"), a creator-first technology company, today announced the preliminary results for fiscal year 2022. Preliminary Fiscal Year 2022 Financial ResultsThe Company's preliminary results for fiscal year 2022 include expected net revenues of nearly $5 million, and gross revenues totaling approximately $10 million, in line with previous guidance. Deferred revenue is expected to total near $275,000, up from $71,000 reported in the third quarter.
As of year-end 2022, the Company has greatly strengthened its balance sheet, and significantly reduced its operational expenses, keeping a steady eye toward reaching increasingly tight cost controls and cash flow breakeven. Last year, the Company allocated considerable focus toward optimizing and reducing its marketing expenditure by 55% year-over-year while scrutinizing many of the contributing expenses within general & administrative processes. In the second half of the year, the Company reduced its workforce by 60%, lowering payroll by approximately 40% in the fourth quarter alone. In addition, the Company integrated back office operations and reorganized future expenses. The Company's Cost of Goods Sold was also reduced quarter over quarter by over 20%.
Operational Highlights
Jeremy Frommer, Creatd's founder and CEO, commented, "We are pleased to have begun the new year with a highly consolidated management structure, which we have found to be most efficient and cost-effective while still yielding continued growth in revenues. Robby's addition to our C-Suite as CIO considerably bolsters our executive team's collective capabilities and will serve as an important complement to Chelsea Pullano, multi-year CFO, and Justin Maury, our COO and trusted product visionary. Further supporting this powerhouse group is the support of Pete Majar–a structured products expert who hails from institutions including Credit Suisse First Boston and Piper Sandler, and literary expert Erica Wagner, the writer and critic and former literary editor of The London Times, who has grown to be an instrumental part of our firm's content development and monetization. We expect this tight management structure to translate and a unique product and service offering to translate into similar revenue growth in 2023 as we saw in 2022."
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.