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STEER Reports Record Revenues in Q1 2022

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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.

Steer Logo (CNW Group/Facedrive Inc.)
Steer Logo (CNW Group/Facedrive Inc.)

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.

Cision
Cision

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