NEW YORK, November 15, 2023 -- Creatd, Inc. today reported its third-quarter fiscal year 2023 earnings, showcasing tangible results from the Company's strategic realignment. This quarter has been pivotal in demonstrating a marked improvement in gross margins, a testament to the Company's efforts in stabilizing revenues and streamlining operations. Gross margin improved 120% year over year from a negative $380,000 margin in Q3 2022 to a positive $80,000 margin in Q3 2023. Revenue for the nine months ended September 30, 2023 was approximately $2.1 million.
Jeremy Frommer, CEO and Chairman of Creatd, Inc., commented, "This quarter's results reflect the successful implementation of our strategic initiatives. We've focused on creating a leaner, more agile, and potent Creatd, with significant steps taken towards reducing headcount, closing non-performing assets, and recalibrating resources. Our vision for the future is clear, and we are on track to achieve our goals with unwavering commitment and precision."
Key Highlights of Q3 2023:
- Improved creator retention on the Vocal platform through the introduction of the Vocal Awards, an innovative strategy that has not only created a new revenue stream but also attracted a fresh wave of creators.
- Completion of the sale of CPG brands Basis and Brave, leading to a reduction in liabilities and operational costs. The Company has exited its CPG division, aligning with its strategy to improve gross margins.
- Restructuring of nearly $3 million in convertible debt and reduction of legacy liabilities by over $2 million.
- Successful launch of the Reg CF campaign for Vocal, Inc., and initiation of the "Testing the Waters" campaign for subsidiary OG Collection, Inc.
- Settlement of multiple legal disputes and ongoing negotiations with outstanding creditors.
- Progress towards the special dividend of OG Collection, Inc. shares to current shareholders, with more details, including a record date, expected before the year's end.
Frommer further added, "As we look to the future, our focus remains on surviving and growing our company through one of the most difficult economic environments I have seen in my career. We will look to enhance shareholder value and capitalize on the growth opportunities before us. The steps we've taken this quarter are just the beginning. We are poised for continued accomplishments and are excited about what lies ahead for our stakeholders."