TORONTO–(BUSINESS WIRE)–STEER Technologies Inc. (“STEER” or the “Company”) (TSXV: STER), (OTCQX: STEEF), an integrated ESG technology platform, today announced and filed its Q1 interim financial statements for the quarter ended March 31, 2023 (“Q1 2023“). All financial results are reported in Canadian dollars, unless otherwise stated.1
Highlights include a Company quarterly revenue record of $15,229,000 in Q1 2023, up from $10,734,500 in Q1 2022, representing 41.9% year-over-year growth. All revenue growth was organic. STEER’s subscription-based revenues grew to $795,100 in Q1 2023, up from $758,100 in Q1 2022 while STEER’s on-demand revenues grew to $14,433,900, up from $9,976,400 in Q1 Fiscal 2022. Net profit was $30,300,000 compared to a net loss of $8,182,000 in Q1 2022, due to successful sale of a minority portion of the Company’s Digital Restaurant Supply business and its spinoff into a new entity, FoodsUp Inc. (“FoodsUp”), as announced in STEER’s press releases dated January 23, 2023, March 7, 2023, March 24, 2023, and March 30, 2023.
Q1 2023 Interim Financial and Operational Highlights
- Revenue for Q1 2023 was $15,229,000, up from $10,734,500 in the same period a year earlier.
- STEER’s subscription revenue was $795,100 in Q1 2023, up from $758,100 in the same period a year earlier.
- STEER’s on-demand revenue was $14,433,900 in Q1 2023, up from $9,976,400 in the same period a year earlier.
- Net profit was $30,300,000 in Q1 2023, as compared to a net loss of $8,182,000 in the same period a year earlier, due to sale of a minority portion of STEER’s Digital Restaurant Supply business.
- General and administration expenses were $1,409,200 in Q1 2023, down from $2,004,400 in the same period a year earlier.
“At STEER, our commitment to innovation and sustainability continues to drive exceptional results. We are thrilled to announce record-breaking Q1 2023 revenues of $15,229,000, reflecting a remarkable 41.9% year-over-year growth. Such growth, bolstered by robust subscription-based and on-demand revenues, showcases the strength and resilience of our integrated ESG technology platform. Moreover, the successful sale of a minority portion of our Digital Restaurant Supply business contributed to a net profit of $30,300,000, a remarkable turnaround from the net loss of $8,182,000 in Q1 2022. These outstanding achievements demonstrate our ability to deliver value to our stakeholders while maintaining a lean and efficient operation. We remain dedicated to advancing our mission and driving sustainable solutions in the ever-evolving landscape of ESG technology,” said Suman Pushparajah, Chief Executive Officer of the Company.
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1 All figures are accurate to the hundreds
Selected Financial Highlights
The following provides a summary of the Financial Results of the Company. For detailed information please refer to Facedrive’s Q1 2023 Interim Financial Statements and its Management’s Discussion and Analysis of Financial Condition and Results of Operations for the quarter-ended March 31, 2023 (the “Q1 2023 MD&A“), filed on SEDAR at www.SEDAR.com.
| For the three months ended March 31 | Notes | 2023 | 2022 | ||||
| REVENUE | $ | 15,229,021 | $ | 10,734,515 | |||
| Cost of revenue | 15,434,020 | 11,745,485 | |||||
| General and administration | 1,409,195 | 2,004,384 | |||||
| Operational support | 2,116,529 | 3,701,208 | |||||
| Research and development | 278,814 | 737,478 | |||||
| Sales and marketing | 551,083 | 591,115 | |||||
| Amortization | 196,869 | 664,538 | |||||
| Depreciation | 458,868 | 356,788 | |||||
| Total operating expenses | 20,445,378 | 19,800,996 | |||||
| OPERATING LOSS | (5,216,357) | (9,066,481) | |||||
| OTHER INCOME (EXPENSES) | |||||||
| Government grants | – | 1,022,814 | |||||
| Foreign exchange gain (loss) | (31,599) | (7,945) | |||||
| Interest expenses | (444,026) | (240,328) | |||||
| Interest income | 4,525 | 56 | |||||
| Gain from sale of equipment | (24,770) | 19,570 | |||||
| Gain on lease termination | 96,596 | 86,774 | |||||
| Fair value loss on investment | (30,704) | 132 | |||||
| Gain from Spin off B2B Marketplace | 35,946,312 | – | |||||
| PROFIT BEFORE INCOME TAXES | $ | 30,299,977 | $ | (8,185,408) | |||
| Deferred income tax recovery | – | 3,369 | |||||
| NET PROFIT | 30,299,977 | (8,182,039) | |||||
| Cumulative translation adjustment | (23,931) | (22,988) | |||||
| NET PROFIT AND COMPREHENSIVE PROFIT | 30,276,046 | (8,205,027) | |||||
| NET PROFIT FROM CONTINUED OPERATION | 31,569,288 | – | |||||
| NET LOSS FROM DISCONTINUED OPERATION | (1,293,242) | – | |||||
| Profit per share – Basic and diluted | $ | 0.24 | $ | (0.08) | |||
| Weighted average shares outstanding – Basic and diluted | 123,902,409 | 98,310,931 | |||||
Although the Company retains a 62.5% equity ownership stake in FoodsUp, the Company has currently accounted for the sale of 37.5% of FoodsUp on March 30, 2023 as a loss of control of FoodsUp on that date and therefore the Company expects to account for the activities and performance of FoodsUp using the equity method from that date forward (as opposed to the consolidation method), as reflected in the Company’s Q1 2023 financial statements. However, the Company is working with its accounting advisors and is reviewing IFRS 10 “Consolidated Financial Statements” which outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities it controls. Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee. The Company will provide another update about these accounting determinations as they apply to the facts involving the Company and FoodsUp if an alternate determination is made. For more information, see the Company’s Q1 2023 MD&A.
About the Company
STEER is an integrated ESG technology platform that moves people and delivers things through subscription and on-demand services. The Company’s goal is to build a one-of-a-kind ecosystem that aggregates conscientious users, through a series of connected offerings, and enables them to buy, sell, or invest with the same platform, STEER. The Company’s offerings generally fall into two categories: subscription-based offerings led by its flagship electric vehicle subscription business, STEER EV, and on-demand services incorporating delivery, B2B marketplace, Delivery-as-a-Service (DaaS) and rideshare businesses. The Company’s platform is also powered by EcoCRED, its big data, analytics and machine learning engine which seeks to capture, analyze, parse and report on key data points in ways that measure the Company’s impact on carbon reductions and offsets.
For more about the Company, visit www.steeresg.com.
Suman Pushparajah, CEO
[email protected]
STEER
100 Consilium Pl, Unit 400
Scarborough, ON
Canada M1H 3E3
www.steeresg.com
Forward-Looking Information
Certain information in this press release contains forward-looking information, including with respect to the Company’s business, operations and condition, management’s objectives, strategies, beliefs and intentions, and the company’s forward plans to rebrand. This information is based on management’s reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Actual results and the timing of events, such as those pertaining to success of the Company’s financial performance going forward from the above Q1 2023 results, may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.
See “Forward-Looking Information” and “Risk Factors” in the Company’s Annual Management Discussion & Analysis (MD&A) for the year ended December 31, 2022 (filed on SEDAR on May 1, 2023) and its interim MD&A for the period ended March 31, 2023 (filed on SEDAR on May 30, 2023) for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.