BBTV Provides Corporate Update
BBTV Holdings Inc. has reported strong momentum in Q2 2022, with Plus Solutions revenue growth exceeding 40% year-over-year in April. The company has raised revenue guidance and noted that Plus Solutions contributed 30-40% to Q1 gross profit. To enhance cash flow and expedite profitability, BBTV has initiated a cost optimization program aimed at maximizing resource allocation. CEO Shahrzad Rafati expressed confidence in achieving positive cash flow, supported by over $20 million in cash resources as of Q1. Shareholders can expect results from these initiatives by Q3 2022.
- Plus Solutions revenue growth exceeded 40% year-over-year in April 2022.
- Plus Solutions represented 30-40% of overall gross profit in Q1 2022.
- The company raised guidance on Plus Solutions revenues for the year.
- $20 million in cash resources as of Q1 2022, indicating balance sheet strength.
- The company has a history of losses and negative cash flow.
- There is uncertainty regarding the effectiveness of the cost optimization program.
VANCOUVER, BC, June 2, 2022 /PRNewswire/ - BBTV Holdings Inc. (TSX: BBTV) (OTCQX: BBTVF) (Frankfurt: 64V) ("BBTV" or the "Company"), the leading creator monetization company with a mission to help creators become more successful, provides a corporate update on its operations including an update on Plus Solutions revenue growth and the launch of a comprehensive cost optimization initiative for more efficient cash flow and to expedite the Company's path to profitability.
BBTV began Q2 2022 with continued strong momentum in its Plus Solutions revenue performance with April reflecting more than
"With record revenue for Plus Solutions in Q1 this year, we are steadily improving our gross margins and increasing Plus Solutions contribution to total revenues and gross profit," said Shahrzad Rafati, Chairperson and CEO of BBTV. "Based on the trajectory in Plus Solutions, we believe that we have sufficient working capital to get to positive cashflow. Our objective is to accelerate towards positive cashflow, so we are embarking on a cost optimization program that will examine and optimize our growth investments in the short-term."
The Company's internal review includes maximizing cross-functional synergies between departments, allocating resources to maximize performance of higher margin revenue streams, and optimizing investments in future markets. Shareholders can expect to see results of these measures from Q3 2022 onwards.
"Given market conditions we believe it's important that the company demonstrates its ability to achieve profitability," said Ben Groot, CFO, BBTV. "BBTV's convertible debt arrangements are termed out for a number of years and the company's cash resources exceed
About BBTV
BBTV is a global media and technology company headquartered in Vancouver, Canada. The Company's mission is to help content creators become more successful. With creators ranging from individuals to global media brands, BBTV provides comprehensive, end-to-end Solutions to increase viewership and drive revenue powered by its innovative technology, while allowing creators to focus on their core competency – content creation. In December 2021, BBTV had the fourth most unique monthly viewers among digital platforms with more than 600 million globally, who consumed more than 35 billion minutes of video content1. (www.bbtv.com)
1 Calculations and classifications made by BBTV based on data from Comscore's "Top 12 Countries = December 2021 comScore Video Metrix Media Trend – Multi-Platform – Top 100 Video Properties Report"; Top 12 countries represent ~ |
Forward Looking Statements
This press release contains "forward–looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking information"). Forward-looking information is not information about historical facts but instead represents the Company's intentions, beliefs, plans, goals, objectives and strategies regarding future events and results, and includes certain financial outlooks. Financial outlooks, in particular, are provided to aid in understanding management's goals and expectations regarding future financial matters, and, for all the reasons set out below, may not be achieved. Such financial outlooks may not be appropriate for other purposes. Forward-looking information contained in this press release includes statements that the Company has launched a cost optimization program for more efficient cash flow and to expedite the Company's path to profitability; based on the trajectory in Plus Solutions, the Company believes that it has sufficient working capital to get to positive cashflow; the Company's objective is to accelerate towards positive cashflow, so it is embarking on a cost optimization program that will examine and optimize its growth investments in the short-term; that shareholders can expect to see results of these measures from Q3 2022 onwards; that the Company seeks to scale towards profitability; and that the Company believes that its cost optimization program will improve the Company's resilience in the near and long term. Forward-looking information is necessarily based on a number of estimates and assumptions that the Company considered appropriate and reasonable as of the date such information is given, including but not limited to the Company's assumptions that its current growth plans will not change in any material respect; that its internal financial forecasts and models, including its estimates of costs and revenue, are accurate; that its assumptions regarding continued growth, changes and trends in the Company's industry and the global economy will be met; the Company's churn will continue to remain low; that the Company will continue to contract with new content creators and to continue to receive increasing Views; that the Company will enter into an increasing number of Direct Advertising Sales Strategic Deals and Content Management agreements; the timely receipt of required regulatory approvals and strategic partner support; the absence of new laws, regulations, rules or policies of governments, platforms and other strategic partners, that may negatively impact the business of BBTV; our ability to build our market share, enter new markets and maintain and expand geographic scope; our ability to attract and retain key personnel and to execute on our growth plans; our ability to obtain and maintain financing on acceptable terms on a timely basis; that YouTube Shorts will be monetized soon; as well as the Company's assumptions regarding foreign exchange rates. Forward-looking information is subject to known and unknown risks, uncertainties, and other factors, many of which are beyond the Company's control, that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk that the Company's assumptions on which its forward-looking information is based may not be accurate; that the Company's cost optimization program may fail to achieve expected results or to show results by Q3 2022 or later; the effect of competition; that the Company has a history of losses and negative cash flow; that the Company's agreements with platforms, creators or others may terminate early or not be renewed either on similar terms or at all; that the Company's Plus Solutions may not continue to be attractive to creators and may not realize our expectations; the regulatory environment and in particular, government regulation of the Internet as well as privacy regulation which are both evolving and unfavourable developments could have an adverse impact on the Company's operating results; litigation risk; intellectual property risks; the Company's need for timely performance by its creators and strategic partners; the Company's need for additional capital, which is not assured on a timely basis or at all; the Company's significant reliance on its relationship with one digital platform; and the impact of the continuing COVID-19 pandemic; as well as the factors discussed under "Risk Factors" in the Company's Annual Information Form dated March 29, 2022 filed on sedar at www.sedar.com and in the Company's other filings with the Canadian securities regulatory authorities at www.sedar.com. The Company does not undertake any obligation to update any forward–looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Contacts:
Media Relations
Mark Funston
Head of Marketing and PR
778-288-4950
mfunston@bbtv.com
Investor Relations
ir@bbtv.com
Ron Shuttleworth
Partner
Oak Hill Financial Inc
(647)–500–7371
rshuttleworth@oakhillfinancial.ca
BBTV-C
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SOURCE BBTV Holdings Inc.
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