Crowd Media (ASX:CM8) Reduces Net Loss and Improves Cash Flow in FY22 – The Market Herald

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  • Crowd Media (CM8) improves key metrics in fiscal 2022, nearly halving its net loss from the same period a year earlier
  • While the company reports an EBITDA loss of approximately $50,000, this represents an improvement of approximately $1 million over the prior year.
  • Likewise, the company’s net loss after tax of $3.2 million represents a “substantial” improvement from its net loss of $6.2 million in FY21.
  • Crowd credits the improvements to its strict cash management regime as it advances its Talking Head platform through marketing.
  • Crowd Media shares are up 4.35% at 2.4 cents at 10:52 a.m. AEST

Crowd Media (CM8) improved its key metrics in fiscal 2022, nearly halving its net loss from the same period a year earlier.

While the company reported an earnings before interest, tax, depreciation, and amortization (EBITDA) loss of about $50,000, that marked an improvement of about $1 million from the prior year.

Meanwhile, the company posted an after-tax net loss of $3.2 million — a “substantial” improvement from its $6.2 million net loss for FY21, especially given that the company’s FY22 earnings included approximately $2.3 million of non-cash and investment write-downs.

This came as CM8 transformed its operations, recording positive cash flow of $11,804 following $1.16 million in cash outflows in FY21.

Crowd Media attributed the improvements to its strict cash management regime as it moved its Talking Head platform forward through marketing.

CEO Idan Schmorak said the company is ready to capitalize on a range of business opportunities.

“The last few years of COVID have changed the world by increasing online activity, which has spread across all sectors from education, professional services, retail, entertainment and many more” , said Mr. Schmorak.

“At the forefront of conversational AI solutions to meet the growing demand for the digital workforce, Crowd Media is committed to developing a scalable and cost-effective platform.”

He said the company has proven the commercial viability of its technology with commercial contracts, partnerships, agreements and integrations across multiple industries.

“With each of these business deals, Crowd improves its portfolio of products and potential customers, which is why FY23 will be a time of resizing our teams and scaling the platform to meet growing demand for conversational AI solutions,” he said.

Following improved EBITDA and cash flow, Crowd increased its investing activities in FY22, spending $2.12 million, primarily on its technology.

CM8 said it was debt free and would continue with plans to grow its technical and sales teams based on increased workloads and the pipeline of opportunities explored.

The company ended the year with $2.23 million in cash and cash equivalents.

Crowd Media shares rose 4.35% to 2.4 cents at 10:52 a.m. AEST.

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