VANCOUVER, BC, June 2, 2022 /PRNewswire/ – BBTV Holdings Inc. (TSX: BBTV) (OTCQX: BBTVF) (Frankfurt: 64V) (“BBTV” or the “Company”), the leading creator monetization company whose mission is to help creators become more successful, provides a company update on its operations, including a update on Plus Solutions’ revenue growth and the launch of a comprehensive cost optimization initiative for more efficient cash flow and to accelerate the Company’s path to profitability.
BBTV began the second quarter of 2022 with continued strong momentum in its Plus Solutions revenue performance, with April reflecting over 40% year-over-year growth. BBTV recently announced record revenue results and its Plus Solutions now represents 30-40% of the Company’s overall gross profit in the first quarter of 2022. The Company also raised its outlook for its Plus Solutions revenue for the year.
“With record revenues for Plus Solutions in the first quarter of this year, we are steadily improving our gross margins and increasing Plus Solutions’ contribution to total revenues and gross margin,” said Shahrzad Rafati, President and CEO of BBTV. “Based on Plus Solutions’ trajectory, we believe we have sufficient working capital to achieve cash flow positive. Our goal is to accelerate towards cash flow positive, so we are embarking on a cost optimization program that will review and optimize our growth investments in the near term.”
The company’s internal review includes maximizing cross-functional synergies between departments, allocating resources to maximize the performance of higher-margin revenue streams, and optimizing investments in future markets. Shareholders can expect to see the results of these measures from the third quarter of 2022.
“Given the market conditions, we believe it is important that the business demonstrates its ability to achieve profitability,” said Ben Groot, Chief Financial Officer, BBTV. “BBTV’s convertible debt arrangements are spread over a number of years and the company’s cash resources exceed $20 million from the first quarter, providing a strong balance sheet as we seek to move towards profitability. We believe our cost optimization program will improve the resilience of the business in the short and long term.”
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 complete end-to-end solutions to increase viewership and generate revenue through its innovative technology, while allowing creators to focus on their core competency: content creation. In December 2021BBTV had the fourth most unique monthly viewer among digital platforms with over 600 million worldwide, who consumed over 35 billion minutes of video content1. (www.bbtv.com)
1 Calculations and classifications made by BBTV based on data from “Top 12 Countries = December 2021 comScore Video Metrix Media Trend – Multi-Platform – Top 100 Video Properties Report”; The top 12 countries represent around 50% of the world’s digital population.
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 rather represents the Company’s intentions, beliefs, plans, goals, objectives and strategies regarding future events and results, and includes certain financial outlooks. The financial outlook, in particular, is provided to assist in understanding management’s objectives and expectations regarding future financial matters and, for all the reasons set forth below, may not be achieved. This financial outlook may not be suitable for other purposes. Forward-looking information in this press release includes statements that the Company has initiated a cost optimization program for more efficient cash flow and to accelerate the Company’s path to profitability; based on the trajectory of Plus Solutions, the Company believes that it has sufficient working capital to generate positive cash flow; the Company’s objective is to accelerate towards positive cash flow, so it is embarking on a cost optimization program which will examine and optimize its growth investments in the short term; that shareholders can expect to see the results of these measures from the third quarter of 2022; that the Company seeks to evolve towards profitability; and that the Company believes that its cost optimization program will improve the Company’s resilience in the short and long term. Forward-looking information is necessarily based on a number of estimates and assumptions that the Company believed to be appropriate and reasonable on the date such information is provided, including, but not limited to, the Company’s assumptions. that its current growth plans will not change materially. ; that its internal financial forecasts and models, including cost and revenue estimates, 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 rate will remain low; that the Company will continue to sign contracts with new content creators and receive more and more Views; that the Company will enter into an increasing number of strategic direct advertising sales and content management agreements; timely receipt of required regulatory approvals and support from strategic partners; the absence of new laws, regulations, rules or policies from governments, platforms and other strategic partners, which could negatively impact BBTV’s business; our ability to grow our market share, enter new markets and maintain and expand our geographic reach; our ability to attract and retain key personnel and execute our growth plans; our ability to obtain and maintain financing on acceptable terms on a timely basis; that YouTube shorts will soon be monetized; as well as the Company’s assumptions regarding exchange rates. Forward-looking information is subject to known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause actual results, performance or achievements to differ materially from those expressed or implied. -understood by this forward-looking information. 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 not achieve expected results or may not show results by the third quarter of 2022 or later; the effect of competition; that the Company has a history of losses and negative cash flows; that the Company’s agreements with platforms, creators or others may terminate early or may not be renewed either on similar terms or not at all; that the Company’s Solutions Plus may no longer be attractive to creators and may not meet our expectations; the regulatory environment and in particular government regulation of the Internet as well as regulations relating to the protection of privacy which are both evolving and unfavorable could have an adverse impact on the results of operations of the Company; litigation risk; intellectual property risks; the Company’s need for timely performance from its founders and strategic partners; the Company’s need for additional capital, which is not met in a timely manner or at all; the Company’s significant reliance on its relationship with a 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 other documents filed by the Company with the Canadian securities authorities at www.sedar.com. The Company undertakes no obligation to update forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Marketing and PR Manager
Oak Hill Financial Inc.
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SOURCEBBTV Holdings Inc.