PowerBand Solutions' DRIVRZ™ products delivered 31% month-over-month revenue growth in June 2021
TORONTO, ON / ACCESSWIRE / July 12, 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 June 2021 financial results demonstrate continuation of robust month-over-month growth, positioning the Company for another strong quarter.
Gross revenue increased to CDN $1.8 million in June 2021 from CDN $1.4 million in May 2021, representing a 31% increase month-over-month. Cumulative year-to-date gross revenue was CDN $7.2 million with a gross margin of 54%.
Growth continues to be strong as lease originations have increased to 216 in June 2021 from 69 in December 2020. The Company has now onboarded 468 dealers since inception, including 51 new dealer agreements that were signed in June 2021. A robust sales funnel is well positioned to onboard more dealers throughout 2021 and into 2022. DRIVRZ is targeting two originations per dealer, per month by year-end 2021. Jon Lamb, DRIVRZ Financial CEO stated - "Momentum is strong as we continue to scale the business and we see an inventory replenishment cycle in coming months that should drive step changes in our sales trajectory. We are focused on onboarding new dealers and dealer groups, improving on sales volumes and engaging OEMs to secure captive formations."
The closing of the most recent CDN $12.8 million brokered private placement, with Desjardins Capital Markets and Scotiabank acting as co-lead agents, allows PowerBand to accelerate the rollout of its North American business strategy. These funds will enable Powerband to continue executing on key strategic growth initiatives of its other two business segments, DrivrzXchange and DrivrzLane. 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 Nashville and will expand into additional U.S. markets in the coming months. DrivrzLane is a digital retail solution connecting consumers, dealers, and finance sources online. Development continues with a target launch by September 2021. These two business segments are expected to contribute to revenue and earnings starting in 2022.
Kelly Jennings, PowerBand CEO stated - "We are seeing more dealers embracing the DRIVRZ™ platform resulting in higher volumes month over month in 2021. Due to the weekly increases of our dealer partners, we are looking forward to meeting our targets for the year. Our lease origination portfolio is nearing CDN $100 million and that is a milestone we are excited to announce as we accelerate our growth. We are strong in our conviction that our asset light model will produce better shareholder value than similar entities in this space."
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:
Chief Executive Officer
E: [email protected]
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.
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.