Creatd
Creatd is a publicly traded holding company focused on growth and innovation in the creator economy, listed on Upstream under the ticker symbol $VOCL. Its flagship platform, Vocal, is a social media and publishing platform aimed at enhancing user engagement and monetization.
Services
Creatd is focused on growing and innovating within the creator economy. The company's flagship platform, Vocal, serves as a social media and publishing platform designed to enhance user engagement and monetization. Creatd aims to drive growth through strategic acquisitions and by extending its reach into emerging markets such as sports betting. The company also plans to acquire TAMI Ventures Inc., which holds a diverse portfolio of assets across technology, advertising, media, and information sectors.
Stock Information
Creatd is publicly traded and dually listed on Upstream under the ticker symbol $VOCL. Despite its operations being nearly cash flow positive, Creatd does not plan to declare or pay cash dividends on its capital stock in the foreseeable future. The company has successfully managed to reduce its cost of revenue and operating expenses significantly over the past year.
Financial Performance
Creatd has demonstrated remarkable financial improvement. In 2023, the company managed to reduce its cost of revenue by 83%, bringing it down to $1 million from $6 million in the previous year. Operating expenses were also decreased by 63% to $8.6 million from $23.5 million in 2022. These adjustments led to a significant historic improvement in gross margins, turning them positive to $900K in 2023 from a negative $1.3 million in 2022. Additionally, net cash used in operating activities was substantially reduced by 131%, dropping to $3.4 million in 2023 from $16.6 million in 2022.
Growth Initiatives
Creatd is actively pursuing growth opportunities, including the planned acquisition of TAMI Ventures Inc. in a transaction valued at $23 million. TAMI Ventures has a diverse portfolio in the technology, advertising, media, and information sectors. Post-acquisition, the combined entity will focus on the rapidly evolving sports betting market. The transaction also involves issuing 2-year restricted preferred shares to TAMI Ventures shareholders at an aggregate valuation of $23 million. Furthermore, Creatd has extended the deadline for finalizing these agreements to April 23, 2024, to ensure a thorough and strategic integration.
Operational Highlights
Creatd has achieved significant milestones in its operational efficiency. The company managed to bring its core operational business nearly to cash flow positive status. Cost-cutting measures resulted in an 83% reduction in the cost of revenue, down to $1 million from $6 million. Operating expenses were also trimmed by 63%, amounting to $8.6 million from $23.5 million in 2022. These efforts led to positive gross margins of $900K in 2023, a striking improvement from the negative $1.3 million recorded in 2022. Moreover, net cash used in operating activities was reduced to $3.4 million in 2023, marking a 131% decrease from $16.6 million in the previous year.