Clubhouse Media Group, Inc. Reports Year End 2022 Net Revenue of $6,283,691, A 47% Increase Compared to 2021

Rhea-AI Summary

Clubhouse Media Group, Inc. (OTCMKTS: CMGR) announced its financial results for the year ended 2022, showcasing significant improvements over 2021. Total net revenue surged by 47.7% to $6,283,691, compared to $4,253,765 in 2021. The company successfully reduced operating expenses by 72.6% to $4,251,947 from $15,514,421. The operating loss decreased by 79.9% to $2,965,855 compared to the previous year. Additionally, the gross profit margin grew to 20.5%, up from 18.4%. Total liabilities also decreased by 16.4% to $8,921,990. Management expressed optimism about continued revenue growth and expense reduction in 2023, thanks to a growing digital agency and creator platform.

Positive

• Total net revenue increased 47.7% to $6,283,691.
• Operating expenses decreased 72.6% to $4,251,947.
• Operating loss decreased 79.9% to $2,965,855.
• Gross profit margin increased to 20.5% from 18.4%.
• Total liabilities decreased 16.4% to $8,921,990.

Negative

• None.

LOS ANGELES, April 6, 2023 /PRNewswire/ -- Clubhouse Media Group, Inc. (OTCMKTS: CMGR) ("Clubhouse Media"), a social media firm and digital agency, today announced financial results for year-end 2022 . The company has highlighted some of their financial achievements below.

2022 End of Year Summary Compared to 2021 End of Year Summary

• Total net revenue increased 47.7% to $6,283,691, compared to $4,253,765
• Operating expenses decreased 72.6% to $4,251,947 compared to $15,514,421
• Operating loss decreased 79.9% to $2,965,855 compared to $14,731,518
• Gross profit margin increased to 20.5%, compared to 18.4%
• Total liabilities decreased 16.4% to $8,921,990, compared to $10,668,403

Management Commentary

"2022 was a strong year for us and it's reflected in the numbers" said Scott Hoey, Chief Financial Officer of CMGR. "We were able to make improvements in some key areas. We increased revenue, significantly decreased our expenses, and strengthened our balance sheet by eliminating more of our convertible debt. As we continue to narrow the focus to our key revenue drivers and maximize resources, I'm optimistic that the momentum will continue in 2023."

"2022 was a good year for the company financially and our goal is to continue on this trajectory in 2023 by further increasing revenue and decreasing our expenses" said Amir Ben-Yohanan, Chief Executive Officer of CMGR. "Our digital agency (The Reiman Agency) Is working with new brands and talent every month and our creator platform has been growing In popularity (adding more creators and fans on a weekly basis). As a result of this growth, the company does not need to rely on external financing sources nearly as much."

Visit us @ clubhousemediagroup.com

About Clubhouse Media Group, Inc.

CMGR offers and deal-making services, a management division for brands and individual influencer clients, and an investment arm for joint ventures and acquisitions for companies in the social media influencer space.

FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements". Forward-looking statements also may be included in other publicly available documents issued by CMGR and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance.

Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause CMGR's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for CMGR's products and services, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Forms 10-Q and Current Reports on Form 8-K, which are available on the Securities and Exchange Commission's website at sec.gov. We assume no obligation to update any forward-looking statements contained in this press release.

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SOURCE Clubhouse Media Group, Inc.

FAQ

What were Clubhouse Media Group's 2022 financial results compared to 2021?

Clubhouse Media Group reported a 47.7% increase in net revenue to $6,283,691 for 2022 compared to $4,253,765 in 2021.

How much did Clubhouse Media Group reduce its operating expenses in 2022?

The company reduced operating expenses by 72.6% to $4,251,947 in 2022, down from $15,514,421 in 2021.

What was Clubhouse Media Group's operating loss for 2022?

Clubhouse Media Group reported an operating loss of $2,965,855 for 2022, a decrease of 79.9% from the previous year's loss.

How did Clubhouse Media Group's gross profit margin change in 2022?

The gross profit margin increased to 20.5% in 2022, up from 18.4% in 2021.

What was the total liabilities of Clubhouse Media Group at the end of 2022?

Total liabilities for Clubhouse Media Group decreased by 16.4% to $8,921,990 at the end of 2022.