Powerband Solutions' DRIVRZ™ products are delivering strong growth in the second quarter.
TORONTO, ON / ACCESSWIRE / June 8, 2021 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF)(Frankfurt: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 May 2021 financial results demonstrate continuation of strong month-over-month growth, positioning the Company for another strong quarter.
Gross revenue increased to CDN $1.4 million in May 2021 from CDN $1.3 million in April 2021. Cumulative year-to-date gross revenue was CDN $5.6 million with a gross margin of 54%. Sales growth in June 2021 and subsequent months is expected to accelerate.
Gross revenue is being derived predominantly from DRIVRZ Financial as the Company continues to ramp its new and used vehicle leasing and lending business in the U.S.. Momentum is strong as originations have increased to 175 in May 2021 from 69 in December 2020. The Company has now onboarded 417 dealers since inception, with 264 dealer agreements signed YTD and the sales funnel is robust to onboard more dealers throughout 2021 and into 2022. With the recent addition of a Chief Revenue Officer, a VP of Sales and 7 Dealer Sales Managers, DRIVRZ is targeting two originations per dealer, per month by the Q4 of 2021. Jon Lamb, DRIVRZ Financial CEO stated - "Our platform is one of the few that addresses retention and margin compression. As we expand outreach, I anticipate retailer adoption to accelerate."
As highlighted in previous announcements, DRIVRZ Financial has US$2B of lease lines secured with an ability to expand lines as originations ramp up. As of May 2021, the Company has utilized less than 3% of the lease lines available, demonstrating the long runway for growth.
The Company expects its DRIVRZ Financial business unit to achieve profitability in June 2021 and for PowerBand Solutions, to achieve profitability in 2H 2021. These are key milestones and an inflection point as the Company advances to a self funding model in 2022.
PowerBand Solutions continues to execute on key strategic initiatives of launching its other two business segments DrivrzXchange and DrivrzLane by the end of 2021. DrivrzXchange is a unique auction and sales platform that combines wholesale, retail and consumer sales into a single source. DrivrzXchange is currently in pilot in NW Arkansas and will expand into additional U.S. markets in Q3 2021. DrivrzLane is a digital retail solution connecting consumers, dealers and finance sources online. Development continues with a target launch in Q3 2021. These two business segments will contribute to revenue and earnings starting in 2022.
Kelly Jennings, PowerBand CEO stated - "Retailers and OEM's are embracing the DRIVRZ™ platform. As more recognize our ability to scale without sacrificing profit, I anticipate adoption will accelerate."
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.
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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 withIFRS. 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.