BuildDirect Reports Second Quarter 2022 Financial Results
BuildDirect.com Technologies Inc. (“BuildDirect” or the “Company”) a growing omnichannel building material retailer, announced its financial results for the Second Quarter 2022 (“Q2 2022”).
“I am pleased to report that BuildDirect continues to grow its Pro Customer base, increasing Pro revenue 6% quarter over quarter, and improving its overall profitability” said David Lazar, interim CEO of BuildDirect. “Our strategic execution is delivering value with revenues reaching $24.1 million, of which 82.6% are Pro-based. We also achieved positive adjusted EBITDA, largely due to our push to reallocate resources to Pro and drive acquisition synergies. Further, at the end of Q2 2022 and subsequent to quarter end, the Company made further cost reductions that will allow the Company to recognize approximately US $2 million in annualized operating expense savings. The cost reductions were primarily focused within the BuildDirect ecommerce business as the Company continues to shift its focus to the Pro market segment. 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.”
Q2 2022 Highlights
- Q2 2022 revenues reaching $24.1 million, decreasing 1.4% quarter-over-quarter and increasing slightly year-over-year. The decrease QoQ is as a result in a change in strategy as part of which the Company is spending less on digital marketing and focusing more on the Pro business.
- Q2 2022 Pro revenue reached $19.9 million, representing 82.6% of total revenue at the quarter end. Pro revenues grew 6% quarter-over-quarter and 21.9% year-over-year due to increased strategic focus on driving Pro market share.
- Gross profit at $8.4 million in Q2 2022, a decrease of 3.4% over the previous quarter, and 3.8% year-over-year
- Gross margin in Q2 2022 decreased slightly by 80bps to 35% compared to Q1 2022.
- Adjusted EBITDA in Q2 2022 reached $0.6 million. BuildDirect achieved improvements in the adjusted EBITDA primarily by reallocating resources to the Pro market.
- In June 2022, the Company closed a secured debt financing pursuant to which it issued, via its wholly owned subsidiary BuildDirect Operations Limited, secured notes to Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Investments Ltd. in an aggregated amount of US $1.5 million.
BuildDirect’s unaudited condensed interim consolidated financial statements and accompanying notes, and the Management’s Discussion and Analysis, for the three and six months ended June 30, 2022 are available on the Company’s website at www.BuildDirect.com. and on the Company’s SEDAR profile available at www.sedar.com.
For the full second quarter results, click here.
BuildDirect (TSXV: BILD) is a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect’s growth trajectory, strong product offering, and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry. For more information, visit www.BuildDirect.com.
Ethan Rudin – CFO – email@example.com – (778) 382-7748
Source: BuildDirect.com Technologies Inc.