BuildDirect (TSXV: BILD) announces 2nd Quarter 2022 Financial Results

BuildDirect.com Technologies Inc. (TSXV: BILD) a growing omnichannel building material retailer, has reported its financial results for the 2nd Quarter of 2022.

Highlights of BuildDirect Q2 Financial Results:

  • 0.03% year-over-year increase in Q2 2022 revenues of $24.1 million
  • Company’s pro customer revenue increased to 82.6% of Q2 2022 total revenues
  • Pro customer revenue increased 6% quarter-over-quarter and 21.9% year-over-year
  • Posted adjusted EBITDA of $0.6 million as a positive note

The company’s revenue has increased and it posted improved profitability ratios. The company’s revenue has reached $24.1 million by 6% increase. The company was able to reallocate resources to Pro and drive acquisition synergies.

BuildDirect aims to invest in the Pro market, extract financial and operational synergies from its acquisitions, and leverage the omnichannel business model.

Cost Reductions by BuildDirect

BuildDirect has made further cost reductions which help the company in saving $2 million in annualized operating expense savings. The company’s cost reductions lied mostly within its eCommerce business to stay engaged with the Pro Market segment.

Further Details of BuildDirect Q2 Financial Results

The company’s revenue has decreased 1.4% quarter-over-quarter and increased slightly year-over-year basis to $24.1 million as a change in strategy. With this aim, the company is spending less on digital marketing and focusing more on the Pro business.

The company’s Pro revenue has increased 6% quarter over quarter and 21.9% year-over-year to $19.9 million during the 2nd quarter, being 82.6% of total revenue after increased strategic focus on driving Pro Market share.

The company saw a 3.4% decrease on a QoQ basis and 3.8% on a YoY basis gross profit to $8.4 million and gross margin decreased to 35%.

The company has reported that it secured debt financing pursuant and secured notes to Pelecanus Investments Lt., Lyra Growth Partners Inc, and Beedie Investments Ltd. in an aggregated amount of US $1.5 million.

Statement of BuildDirect CEO

David Lazar, interim CEO of BuildDirect said “Looking forward to the third quarter, we will continue to invest in the Pro market, extract financial and operational synergies from our acquisitions, and leverage our heavyweight omnichannel business model.”

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