NEW YORK, April 19, 2023 /PRNewswire/ -- Creatd, Inc. $VOCL; Upstream: $VOCL ("Creatd" or the "Company"), the parent company of Vocal offers creators economic opportunities, revenue generation, and brand collaborations. Their creator-centric strategy provides advanced tools, supportive communities, and monetization options through the Vocal platform.
2022 Full-Year Financial and Operational Highlights
- Creatd, Inc.'s gross revenues for FY 2022 increased to $10 million, representing a 47% year-over-year growth from $6.6 million in FY 2021. This growth is attributed to our team's innovation, strategic investments, and unique solutions for our customers.
- GAAP revenues rose to $4.8 million in FY 2022, up from $4.3 million in FY 2021, marking a 12% increase of $500,000. Despite market headwinds, the Company saw growth in its ecommerce business. Even with a decrease in agency revenues in a slower influencer sales market, Vocal revenues remained stable, albeit experiencing a slight decline as the Company shifted from a pay-to-play model to an organic growth framework that allows for long-term scalability.
- The Company expects over $5 million of GAAP revenues for FY 2023.
- Operating expenses for the year ended December 31, 2022 showed a substantial decrease compared to the previous year. This reduction can be attributed to a significant cut in overhead costs, a major drop in marketing spend, and lower research and development expenses. Furthermore, stock-based compensation also decreased, contributing to the overall reduction in expenses. However, this was partially offset by a rise in legal and consulting fees, as well as office rent.
- The Company continues to reduce operating expenses. First quarter 2023 has already shown a near 50% reduction in expenses, compared to first quarter 2022. A majority of the reduced expenses are due to a continued reduction in overhead.
- The net loss attributable to common shareholders improved in 2022, dropping to $33 million (loss per share of $1.60) from the previous year's $43 million (loss per share of $3.44) in 2021. This progress highlights our ongoing commitment to financial stability.
- The Company estimates it will be cashflow positive in FY 2023, as it has continued to reduce expenses including overhead and marketing, while it transitions its back office model to a human-led AI assisted moderation environment, as well as advances its organic growth strategies.
"The last two years of market turmoil have prompted a shift in my perspective on corporate valuations. Previously, the market rewarded internalized growth, making it sensible to acquire and consolidate opportunistic derivative businesses. However, market sentiment has changed, and the focus has shifted from revenue value to cash value," commented Jeremy Frommer, Creatd's founder and CEO. "As a result, we're dividing the Company into three separate public entities: the OG Collection Inc, which we plan to spin off on Upstream and subsequently on another exchange; Creatd Ventures, which will become an independent company listed on a traditional and a blockchain exchange; and finally, Creatd will be renamed Vocal, with a CUSIP change, as we prepare to uplist the new company to the NYSE. This is our path forward."
Forward Looking Statements
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