PowerBand Solutions' DRIVRZ™ products delivered 88% increase in revenue to CDN $8.8 million as compared to the second quarter revenue of CDN $4.7 million at 50% gross margin.
TORONTO, ON / ACCESSWIRE / October 14, 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 DRIVRZ products demonstrated strong revenue growth, originations and gross margins in the third quarter of 2021.
Gross revenue for the third quarter ended September 30, 2021, increased 88% to CDN $8.8 million as compared to the second quarter revenue of CDN $4.7 million. Gross revenue for the month of September was down sequentially with originations due to historically low inventory levels and business interruption from flooding in the U.S. Northeast. Cumulative year-to-date gross revenue has now exceeded CDN $16 million with a gross margin of 50% year-to-date and for the third quarter. Management expects to release third quarter financial results by the second week of November 2021.
Drivrz Financial continued to capture a steady increase in applications, despite the depressed inventory environment. Originations were 230 for September 2021. We expect to continue to widen the dealer network into year-end and throughout 2022, that will allow for continued expansion of lease originations. This is the first month that origination count decoupled from applications, however, the strong correlation is expected to hold in future periods. While low inventory levels are negative for industry-wide volumes, record prices and unchanged residual values also impact Drivrz Financial. This is a short-term aberration and will provide a strong tailwind to originations when prices recede to normal levels upon delivery of 2021 and 2022 models. Dealer count increased appreciably since August, hitting 909, which was propelled by new enterprise customers. Drivrz Financial expects a significant contribution from these dealers by December given the expectation for a systematic approach to setting monthly targets for its leasing program.
In terms of DrivrzLane and DrivrzXchange, both platforms are anticipated to be generating revenues in the first quarter of 2022, providing the company with more opportunities to monetize the industry revenue stack. DrivrzLane will provide dealers with an ecommerce solution to capture multiple streams of revenue, while DrivrzXchange will be the first multi-sided marketplace available to the auto industry in the U.S. The cross-selling capabilities and synergistic opportunities with more than 900 dealers already online with Drivrz Financial will underpin PowerBand's ability to create a network effect and further bolster revenue growth in 2022.
Jon Lamb, CEO of Drivrz Financial commented. "We had set a dealer target of 1,000 by year-end 2021 and are tracking to outpace that KPI. Notwithstanding a short-term impact to September originations, we see growth resuming in fourth quarter, despite the dire inventory situation. Our new enterprise customers will drive incremental origination growth into year-end and throughout 2022, however, the full scaling capability of the business will not be appreciated by the market until inventory levels normalize. We cannot keep up with dealer onboarding and are hiring sales and support staff to improve adoption rates. Drivrz Financial plans to roll out auto term-loan and refinancing offerings in the first quarter of 2022 to expand its product lines and accelerate growth.
Kelly Jennings, founder and CEO commented. "Our goal is to bring all three business units to the market in 2022 which will drive strong synergies and significant growth for our shareholders. We are also in the process of bringing Drivrz Financial Canada online by the end of the year. We have never been more enthusiastic about our prospects and are seeing awareness and engagement levels accelerating every month. We will update the market frequently as we scale the business".
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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SOURCE: PowerBand Solutions Inc.