BuildDirect Reports First Quarter 2022 Financial Results

BuildDirect.com Technologies Inc. (“BuildDirect” or the “Company”) a growing omnichannel building material retailer, announced its financial results for the First Quarter 2022 (“Q1 2022”).

“I am pleased to report that BuildDirect achieved the Q1 2022 guidance we outlined at the previous quarter,” said David Lazar, interim CEO of BuildDirect. “Our strategic execution is delivering value with revenues reaching $24.4 million, growing by 1.6% quarter-over quarter, of which 76.6% are Pro-based. We also reached break even adjusted EBITDA, largely due to our push to reallocate resources to Pro and drive acquisition synergies. Looking forward to the second quarter, we will continue to focus our efforts on growing Pro customer market share to maximize value.”

• Q1 2022 revenues reaching $24.4 million, increasing 1.6% quarter-over-quarter and 16.8% year-over-year.
• Q1 2022 Pro revenue reached $18.7 million, representing 76.6% of total revenue at the quarter end. Pro revenues grew 14.7% quarter-over-quarter due to increased strategic focus on driving Pro market share.
• Gross profit at $8.7 million in Q1 2022, an increase of 15.4% over the previous quarter, and 18.1% year-over-year
• Gross margin in Q1 2022 increased by 430bps to 35.8% compared to Q4 2021. The positive impact of price increases on margins was slightly offset due to lower margins from the Superb acquisition.
• Adjusted EBITDA in Q1 2022 reached $0.1 million. BuildDirect achieved break even adjusted EBITDA primarily by reallocating resources to the Pro market.
• In February 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 $3 million.

• On April 4, 2022, BuildDirect announced that it appointed Eyal Ofir to its Board of Directors, and that John Farlinger and Andrew Elbaz had stepped down from their roles as Directors of the Board.

Ethan Rudin, CFO of BuildDirect said, “To execute on our strategy, we will continue to invest in the Pro market, extract financial and operational synergies from our acquisitions, and leverage our heavyweight omnichannel business model to drive Pro market share. Moving forward into the remainder of 2022, we expect to maintain positive adjusted EBITDA as Pro customer sector trends look set to continue.”

Actual results may differ materially from BuildDirect’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

BuildDirect’s audited consolidated financial statements for the years ended December 31, 2020 and December 31, 2021 and the unaudited condensed interim consolidated financial statements and accompanying notes and the Management’s Discussion and Analysis for the three months ended March 31, 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 complete press release, click here.

About BuildDirect

BuildDirect (TSXV: BILD) is an innovative technology platform for purchasing and selling building materials online. The BuildDirect platform connects homeowners and home improvement professionals in North America with suppliers and sellers of quality building materials from around the world, including flooring, tile, decking and more. BuildDirect’s growth, proprietary heavyweight delivery network, and digital reach have served to solidify its role as a ground-breaking-player in the home improvement industry. For more information, visit www.BuildDirect.com.

Source: BuildDirect.com Technologies Inc.