NEW YORK - Creatd, Inc. (OTCQB: $CRTD), a technology company, has announced its financial outcomes and strategic plans, including revenue guidance of $2 million for the fiscal year 2023 and expectations for significant growth in the following year.
The company's core operational business is nearing cash flow positivity, and it has reduced both its cost of revenue and operating expenses substantially in the past year.
The company reported an 83% decrease in the cost of revenue, down to $1 million from $6 million the previous year, and a 63% reduction in operating expenses to $8.6 million, down from $23.5 million in 2022, after adjusting for stock-based compensation.
Creatd also saw a historic improvement in gross margins, turning positive to $900K in 2023 from a negative $1.3 million in 2022. Moreover, the net cash used in operating activities was significantly reduced to $3.4 million in 2023, marking a 131% decrease from $16.6 million in 2022.
The company has extended the deadline for finalizing the definitive agreements with TAMI Ventures/Bettaverse to April 23, 2024. Creatd also expects to release its 10-K report in mid-May 2024, followed by the first quarter of 2024 financial filings.
This delay is attributed to the extensive work and audit efforts to strengthen the company's balance sheet and position it for future acquisitions and the elimination of all discontinued operations. Following the 10-K release, the company will proceed with the release of the OG Collection, Inc. audit.
As part of its ongoing mergers and acquisitions strategy, Creatd is actively engaged in several discussions and is preparing for a potential uplisting to a national exchange later this year. The company is currently interviewing underwriters in anticipation of this move.
Jeremy Frommer, Chairman and CEO of Creatd, acknowledged the delay in financial filings and emphasized the importance of thorough preparation for uplisting. He expressed encouragement by the company's performance and resilience despite economic challenges. Creatd plans to share more details in a conference call later this month.
The company's statements include forward-looking information based on current expectations and assumptions, which are subject to uncertainties and risks that could cause actual results to differ materially. Creatd has not committed to updating any forward-looking statements after their publication date. Further details and risk disclosures can be found in the company's SEC filings.
This news is based on a press release statement from Creatd, Inc.
InvestingPro Insights
As Creatd, Inc. (OTCQB: $CRTD) outlines its financial outcomes and strategic plans for the future, it's crucial to consider current market data and performance metrics that can provide a broader context for evaluating the company's position. According to real-time data from InvestingPro, Creatd's market capitalization stands at a modest $2.57 million, reflecting the size and scale of the company within its sector.
The company's revenue for the last twelve months as of Q3 2023 was reported at $2.92 million, though it is noteworthy that this represents a considerable decline of 45.91% compared to the previous period. This contraction in revenue is a critical factor to bear in mind when considering the company's future growth prospects.
InvestingPro Tips highlight several challenges facing Creatd, including a significant debt burden and a rapid cash burn rate. These factors are emblematic of the high-risk nature of the investment, as reflected in the company's price volatility.
Over the last week, the stock has taken an 18.37% hit, underscoring the stock's susceptibility to sharp movements. Furthermore, over the last six months, the stock has experienced a substantial 75.79% decline, which is indicative of the broader challenges the company has faced in the market.
For investors seeking a deeper dive into Creatd's financial health and stock performance, InvestingPro offers additional insights. There are 16 more InvestingPro Tips available for Creatd, which can be accessed by visiting InvestingPro's website.
These tips provide a comprehensive analysis of Creatd's financial metrics and market behavior, which could be invaluable for making informed investment decisions. Readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of financial data and expert analysis.
Considering the company's strategic plans and the insights provided by InvestingPro, investors should weigh the potential for growth against the backdrop of Creatd's current financial challenges and market volatility. As the company prepares for potential uplisting and further developments, staying informed with the latest data and expert analysis will be key to understanding the investment landscape surrounding Creatd, Inc.
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