PowerBand Reporting Consistent Growth in July 2021

Rhea-AI Summary

PowerBand Solutions reported a significant 31% month-over-month revenue growth for its DRIVRZ™ products in July 2021, achieving CDN $2.4 million in gross revenue. Year-to-date gross revenue has exceeded CDN $10 million with a 52% gross margin. Lease originations also rose by 21% to 261 in July, driven by strong performance in California. With initiatives in place to enhance originations, including the addition of 64 dealerships and a growing sales team, the company is optimistic about continued growth through the rest of 2021.

Positive

• 31% month-over-month revenue growth for July 2021.
• Gross revenue reached CDN $2.4 million in July.
• Year-to-date gross revenue exceeded CDN $10 million.
• Lease originations increased by 21% to 261 in July.
• Significant growth in California with 42% month-over-month increase in originations.

Negative

• Historically low used car inventory levels impacting growth.
• Hurricane in Florida affected originations.

PowerBand Solutions' DRIVRZ™ products delivered 31% month-over-month revenue growth for the second consecutive month in July 2021

TORONTO, ON / ACCESSWIRE / August 5, 2021 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF)(FSE:1ZVA) ("PowerBand", "PBX" or the "Company"), a comprehensive e-commerce solution transforming the online experience to sell, trade, lease, and finance vehicles, is pleased to announce that the Company's July 2021 financial results demonstrate continuation of momentum following a record Q2 2021.

Gross revenue increased to CDN $2.4 million in July 2021, representing 31% growth month-over-month. Cumulative year-to-date gross revenue has now exceeded CDN $10 million with a gross margin of 52%. Lease originations counts increased to 261 in July 2021, up 21% from June 2021. DRIVRZ Financial highlighted significant milestones with 57 originations in California, representing 42% growth month-over-month. For context, California is a nascent market where sales and marketing resources were deployed in April 2021. Also, significant progress has been made increasing market share inside dealerships, as 41% of producing dealers booked four or more deals in July.

In August, DRIVRZ Financial will benefit from several initiatives that should produce strong growth in originations. As press released on July 19, 2021, DRIVRZ Financial added 64 dealerships through one dealer group onto the DRIVRZ Financial platform. The Company has also bolstered its workforce by hiring sales professionals in New York and New England, two new geographies with large total addressable markets.

Jon Lamb, CEO of DRIVRZ Financial commented, "Despite historically low used car inventory levels and a hurricane in Florida which impacted originations, we still generated greater than 30% revenue growth sequentially for a second consecutive month. We see growth accelerating in the Fall when used car inventory levels are replenished. We have broadened our sales outreach to several new markets and have increased sales density in existing markets. Market acceptance for our products is unequivocal, and our conviction is growing stronger to achieve our 2021 and 2022 objectives."

Kelly Jennings, CEO and Founder of PowerBand Solutions states, "The DRIVRZ sales team is in the field driving the momentum, we see incredible opportunity and massive room to grow. We had a good second quarter and expect to have an even better third quarter."

About PowerBand Solutions Inc.

PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric and non-electric vehicles, on any phone, tablet or PC connected to the internet. PowerBand's transaction platform - being trademarked under DRIVRZ™ - is being made available across North American and global markets.

For further information, please contact:

Kelly Jennings
Chief Executive Officer
E: info@powerbandsolutions.com
P: 1-866-768-7653

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Non-IFRS Measures:

This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.

SOURCE: PowerBand Solutions Inc.

View source version on accesswire.com:
https://www.accesswire.com/658494/PowerBand-Reporting-Consistent-Growth-in-July-2021

FAQ

What was PowerBand Solutions' revenue growth in July 2021?

PowerBand Solutions reported a 31% month-over-month revenue growth in July 2021.

How much revenue did PowerBand Solutions generate in July 2021?

PowerBand Solutions generated CDN $2.4 million in gross revenue in July 2021.

What are the lease originations for PowerBand Solutions in July 2021?

PowerBand Solutions had 261 lease originations in July 2021, a 21% increase from June.

How did the California market perform for PowerBand Solutions?

In July, PowerBand Solutions reported a 42% month-over-month growth in originations in California.

What challenges did PowerBand Solutions face in July 2021?

PowerBand Solutions faced challenges due to historically low used car inventory levels and a hurricane in Florida impacting originations.