Crowd Media continues in the green with another profitable quarter

Crowd Media ASX CM8 March 2022 Talking Head Mobile
Commercialisation of Crowd Media’s Talking Head platform is progressing ahead of schedule.

Crowd Media (ASX: CM8) has achieved positive operating cash flow for the March quarter (Q3 FY2022), after revealing it was in the green for the first time in the December period.

For Q3 FY2022, Crowd Media’s operational cash flow was $20,000 – bringing its year-to-date number to $30,000.

The company attributed the ongoing profitability to its mobile subscription division, along with optimisation measures and new processes that have been initiated.

Advancing Talking Head technology

Meanwhile, development of Crowd Media’s flagship Talking Head platform and technology continued during Q3 FY2022.

The company expanded its development team in readiness for the phased deployment of the platform with commercialisation activities progressing ahead of schedule.

Crowd Media’s South Africa-based MedTech partner PangeaMed has signed a 12-month licensing agreement – with the main objective of deploying the platform for its patients.

Other strategic partnerships were formed during Q3 FY2022 to look at integrating the Talking Head technology in the NFT and Metaverse (Web 3.0) worlds, along with legacy media and advertisement technology.

Soft launch

In parallel, Crowd Media’s mobile subscription division is working on commercialising the Talking Head technology in the gaming and entertainment space.

As part of this, Crowd Media is aiming to launch a scaled entertainment first Talking Head subscription product by the end of the June quarter.

“Crowd Media continues to build extraordinary technology and optimise its existing business, pushing new tech commercialisation ahead of schedule and ‘soft-launching’ products to scale the system sensibly,” Crowd Media chief executive officer Idan Schmorak said.

“The demand and willingness that is coming from third parties and potential customers to participate in commercialising the Talking Head technology strengthens our core vision and confirms that we are on the right track.”

He added the company was resizing its teams to support commercialisation, while maintaining a responsible cash flow regime – enabling the company to post its second cash flow positive quarter in a row.

“[This is] an exceptional situation for a company in a growth stage.”

Profitability

Crowd Media’s profits are driven by the mobile subscription division, with optimisation measures continuously implemented across personnel, sales and marketing functions.

Compared to Q2 FY2022, the average revenue per user increased 3% in Q3 FY2022 from this division.

To facilitate long-term revenue growth and encourage innovation, Crowd Media established an in-house media buying process during the period.

This is expected to result in “accelerated long-term growth prospects” and lessen dependence on third parties – building new revenue streams alongside increasing margins.

Crowd Media closed out Q3 FY2022 with $1.29 million in the bank.

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