Creatd, Inc. Reports 2023 Financial Results, Highlighting Major Cost Reductions and Improved Gross Margins

Published on June 28, 2024

Creatd, Inc. (OTC: CRTD) (“The Company”) today announced its financial results for the year ended December 31, 2023.

Comparable net GAAP revenues for 2023 were approximately $2 million, showing flat growth from the previous year. However, the Company achieved significant milestones in cost management and operational efficiency. The cost of goods sold (COGS) was reduced from $2.6 million in 2022 to $1 million in 2023, representing a 61.54% decrease. This reduction resulted in gross margins of nearly $1 million, compared to a negative gross margin of $310,000 in 2022. First time the company’s history it has ever reported positive gross margins.

Financial Highlights

  • Net Revenues: $2 million in 2023, compared to $2.3 million in 2022.
  • Cost of Goods Sold: Reduced to $1 million in 2023 from $2.6 million in 2022.
  • Gross Margins: Improved to $1 million in 2023 from a negative $310,000 in 2022.
  • Compensation Costs: Decreased significantly, with expenses falling from $4.6 million in 2022 to below $3 million by the end of 2023. The Company is on track to reduce these costs to below $1.5 million for the fiscal year 2024, all while maintaining revenues and improving gross margins.
  • Research and Development Costs: Down 50% year-over-year.
  • Marketing Costs: Reduced by 65% year-over-year.

Jeremy Frommer, CEO of Creatd, Inc., commented on the results, “Great progress on all financial fronts. As far as I am concerned, the annual numbers were ready to be filed with the SEC a month ago, and we were stuck with an awful situation. We could either waste time and money with our previous auditor or accept that they wouldn’t file due to their own internal issues. We had to create a new plan that will lead to better shareholder value and a safer operating company. Therefore, as we announced yesterday, we will re-audit 2023, which I expect to take less time since we have already done the work as seen in this filing.”

Frommer continued, “While we are in this limbo period for the next 90 days, we will focus on the core business, increasing revenues, and several potential strategic acquisitions I am excited to announce. We will post all of our news regularly on, our Slack channel, and our Twitter, as well as the OTC site.”

Strategic Initiatives

Over the past six months, The Company has focused on significantly strengthening its overall balance sheet and will continue to do so. Key steps forward include ongoing efforts to clean up debt and lower SG&A expenses, with a commitment to maintaining revenues and improving gross margins.

Creatd remains dedicated to enhancing shareholder value through prudent financial management and strategic cost reductions, positioning the Company for sustainable growth and profitability.

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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