TORONTO, May 30, 2022
/CNW/ - Facedrive Inc. ("STEER" or "the
Company") (TSXV: FD) (OTCQX: FDVRF), an integrated ESG
technology platform, today announced and filed its Q1 interim
financial statements for the quarter ended March 31, 2022 ("Q1 2022"). All financial
results are reported in Canadian dollars, unless otherwise
stated.
Highlights include a Company quarterly revenue record of
$10,734,515 in Q1 2022, up from
$2,772,834 in Q1 2021,
representing 287.13% year-over-year growth. All revenue growth was
organic. The Company also reported a record Gross Merchandize
Valuei of $19,465,606 in Q1 2022, up from $13,027,766 during Q1 2021, representing
49.42% growth. STEER's electric vehicle subscription revenues grew
to $758,102 in Q1 2022, up from
$596,713 in Q1 2021 while
STEER's on-demand revenues grew to $9,976,413, up from $2,176,121 in Q1 Fiscal 2021. Net loss was
$8,182,039 (of which 4,950,979 was
cash used in operating activities) compared to $5,630,405 (of which 4,791,658 was cash used in
operating activities) in Q1 2021. Revenue has grown 287.13%
(year-over-year) while net loss has grown at a lesser pace of 45%
(year-over-year). As a result, the Company's Management is
confident that the streamlining measures undertaken in early 2022
including: (i) operational realignment (with a view to centralizing
and consolidating resources and focusing on selling Subscription
and On-demand offerings); and (ii) continued improvements in
expense management, will continue to result in increased
operational efficiency. As such, Steer is experiencing revenue
growth at a faster pace than the corresponding increase in
operational expenses. The Company expects this trend to further
strengthen in fiscal 2022.
Q1 2022 Interim Financial and
Operational Highlights
- Revenue for Q1 2022 was $10,734,515, up from $2,772,834 in the same period a year
earlier.
- STEER's subscription revenue was $758,102 in Q1 2022, up from $596,713 in the same period a year
earlier.
- STEER's on-demand revenue was $9,976,413 in Q1 2022, up from $2,176,121 in the same period a year
earlier.
- Net loss was $8,182,039 (of
which $4,950,979 was cash used in
operating activities) in Q1 2022, as compared to a net loss of
$5,630,405 (of which
$4,791,658 was cash used in
operating activities) in the same period a year earlier, such that
while net loss has grown 45%, while revenue has grown 287% for
the same period.
- General and administration expenses were $2,004,384 in Q1 2022, down from
$2,059,249 in the same period a
year earlier.
"2022 has been off to a strong start. In Q1 2022, we have nearly
quadrupled revenues as compared to Q1 2021, and continue to curtail
operating costs which is a signal of significant growth while
increasing operational efficiencies in the Company. Our focus on
building On-Demand and Subscription offerings and significant
investments to align operations with this focus have resulted
in solid top-line growth and simultaneous efficiencies in
operating costs.
The platform we have built has demonstrated that we can increase
revenues significantly while managing costs, which is evident in
our Q1 results. All our growth has been organic, which further
evidences STEER's strength. Based on the investments we have made
in our team and operations, STEER is well-positioned to take
advantage of the burgeoning demand in the Delivery as a Services
("DaaS") sector. Our analytics capabilities also continue to
improve, providing strategic advantages across our operational
footprint. In addition, we continue to extend our ESG mandate
throughout our business processes, making us a desirable business
partner for other responsible corporations", said Suman Pushparajah, Chief Executive Officer of
the Company.
Selected Financial
Highlights
The following provides a summary of the Financial Results of the
Company. For detailed information please refer to Facedrive's Q1
2022 Interim Financial Statements and its Management's Discussion
and Analysis of Financial Condition and Results of Operations for
the quarter-ended March 31, 2022 (the
"Q1 2022 MD&A"), filed on SEDAR at
www.SEDAR.com.
For the three months
ended March 31,
|
|
2022
|
|
2021
|
REVENUE
|
$
|
10,734,515
|
$
|
2,772,834
|
COSTS AND OPERATING
EXPENSES
|
|
|
|
|
Cost of
revenue
|
|
11,745,485
|
|
3,370,567
|
General and
administration
|
|
2,004,384
|
|
2,059,249
|
Operational
support
|
|
3,701,208
|
|
2,187,947
|
Research and
development
|
|
737,478
|
|
344,435
|
Sales and
marketing
|
|
591,115
|
|
858,087
|
Amortization
|
|
664,538
|
|
663,690
|
Depreciation
|
|
356,788
|
|
30,174
|
Total costs and
operating expenses
|
|
19,800,996
|
|
9,514,149
|
OPERATING
LOSS
|
|
(9,066,481)
|
|
(6,741,315)
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
Government and other
grants
|
|
1,022,814
|
|
1,084,882
|
Foreign exchange
loss
|
|
(7,945)
|
|
(49,390)
|
Interest
expenses
|
|
(240,328)
|
|
(187,285)
|
Interest
income
|
|
56
|
|
9,632
|
Gain from sale of
equipment
|
|
19,570
|
|
-
|
Gain on lease
terminations
|
|
86,774
|
|
5,071
|
Fair value loss on
investment
|
|
132
|
|
-
|
LOSS BEFORE INCOME
TAXES
|
$
|
(8,185,408)
|
$
|
(5,878,405)
|
Deferred income tax
recovery
|
3,369
|
|
248,000
|
NET
LOSS
|
|
(8,182,039)
|
|
(5,630,405)
|
Cumulative translation
adjustment
|
|
(22,988)
|
|
(34,084)
|
NET LOSS AND
COMPREHENSIVE
LOSS
|
$
|
(8,205,027)
|
$
|
(5,664,489)
|
Loss per share –
basic and diluted
|
$
|
(0.08)
|
$
|
(0.06)
|
Weighted average
shares outstanding –
basic and diluted
|
|
98,310,931
|
|
93,746,852
|
About the Company
STEER is an integrated ESG technology platform that moves people
and delivers things through subscription and on-demand services.
The Company's goal is to build a one-of-a-kind system that
aggregates conscientious users, through a series of connected
offerings, and enables them to buy, sell, or invest with the same
platform, STEER. The Company's offerings generally fall into two
categories: subscription-based offerings led by its flagship
electric vehicle subscription business, Steer EV, and on-demand
services incorporating delivery, B2B marketplace,
Delivery-as-a-Service (DaaS) and rideshare businesses. The
Company's platform is also powered by EcoCRED, its big data,
analytics and machine learning engine which seeks to capture,
analyse, parse and report on key data points in ways that measure
the Company's impact on carbon reductions and offsets.
For more about the Company, visit www.facedrive.com.
STEER
100 Consilium Pl, Unit 400
Scarborough, ON
Canada M1H 3E3
www.facedrive.com
Forward-Looking
Information
Certain information in this press release contains
forward-looking information, including with respect to the
Company's business, operations and condition, management's
objectives, strategies, beliefs and intentions, and the company's
forward plans to rebrand. This information is based on management's
reasonable assumptions and beliefs in light of the information
currently available to us and are made as of the date of this press
release. Actual results and the timing of events, such as those
pertaining to the Company's expected continued revenue growth and
plans for improving expense management and improving margins, may
differ materially from those anticipated in the forward-looking
information as a result of various factors. Information regarding
our expectations of future results, performance, achievements,
prospects or opportunities or the markets in which we operate is
forward-looking information. Statements containing forward-looking
information are not facts but instead represent management's
expectations, estimates and projections regarding future events or
circumstances. Many factors could cause our actual results, level
of activity, performance or achievements or future events or
developments to differ materially from those expressed or implied
by the forward-looking statements.
See "Forward-Looking Information" and "Risk Factors" in the
Company's Annual Management Discussion & Analysis (MD&A)
for the year ended December 31, 2021
(filed on SEDAR on May 2, 2022) and
its interim MD&A for the period ended September 30, 2021 (filed on SEDAR on
November 29, 2021) for a discussion
of the uncertainties, risks and assumptions associated with these
statements and other risks. Readers are urged to consider the
uncertainties, risks and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information. We have no intention and undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable securities legislation and
regulatory requirements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
_____________________________
i
|
"Gross Merchandise
Value" (GMV) means the total value of all merchandise and
services sold over a given period of time through the Company's ESG
platform of product and services offerings. Gross Merchandise
Value is a metric most commonly used by e-commerce companies.
It is intended to measure of the growth of the business or use of a
platform to sell merchandise and services, some or all of which may
be owned by others and is therefore not all revenue to the platform
owner or provider (such as the Company). In the Company's case, GMV
includes the value of the food and merchandise ordered and the
gross fees charged by the Company to customers on account of rides
and deliveries, a substantial portion of which the Company does not
recognize as revenue. The most directly comparably or correlated
GAAP financial measure in the context of our Company is revenue
which, for Q1 2022 was $10,734,515 and $2,772,834 in Q1 2021. Note
that GMV is a non-GAAP financial measure, meaning that it is not a
standardized financial measure under the financial reporting
framework used to prepare the Company's financial statements and it
might not be comparable to similar financial measures disclosed by
other issuers.
|
SOURCE Facedrive Inc.