PHOENIX, May 04, 2023 (GLOBE NEWSWIRE) -- Business Warrior Corporation (OTC: BZWR), the cloud-based lending platform for success and long-term business growth, has released its financial results for the quarter ending February 28, 2023. The company has successfully transitioned its business and is operating in its new, enhanced business model focused on sustainable growth and more monthly recurring revenue. This quarterly report shows the baseline of financials for the new business model, which is more sustainable and has less inherent risk compared to the same time last year.
For the three months ending February 28, 2023, its revenue of $877,281 showed a 19% increase compared to the same period last year and a 31% decrease in operating expenses. Most importantly, Business Warrior did not have any singular customer represent over 15% of total revenue compared to the same period last year, where one customer represented over 95% of revenue. The company is signing new clients on its new flagship product, PayPlan, and expects consistent monthly recurring revenue growth for PayPlan each period going forward.
Although Business Warrior's revenue was higher last year, its previous business model had a much lower revenue ceiling and was unpredictable over long periods of time, due to the non-recurring nature of its revenue projects. The company's new monthly recurring revenue model has a lower profit margin in the beginning as it transitions its client base and acquires new customers, but it is a faster path to profitability and consistent revenue growth year over year.
"Our focus on monthly recurring revenue allows us to create long-term relationships with our clients and provides us with a more predictable revenue stream," said Rhett Doolittle, CEO of Business Warrior Corporation. "This shift to a sustainable business model is an important step for the company."
In the latest financial update, Business Warrior reported a 41% decrease in revenue compared to the previous quarter, with a net loss of $2.5 million. This figure takes into account a contingent settlement cost of $2.5 million owed to a partner in March 2024, with the current value of the $3 million liability adjusted for discounting. The company is proactively seeking strategies to support the partner in achieving the related revenue target, as well as exploring potential avenues for a mutual agreement to amend and extend the terms of the partnership.
“After the fallout from an acquisition we made last year, we had less time and fewer resources to bring our ultimate product vision to reality. We are proud to say we weathered the storm and now have a game-changing product in PayPlan, which is a rock-solid foundation for the company's future,” commented CEO, Rhett Doolittle.
The Alchemy transaction was a setback, but the company cut its operating expenses while continuing to improve its operational performance. Business Warrior is executing its new plan, which is a focus on growth and innovation, with revenue expected to increase consistently in PayPlan.
Business Warrior Corporation offers innovative software, technology, and marketing solutions to help lenders capture more qualified borrowers, reduce costs, improve efficiencies, and increase portfolio profits. The company has already signed new clients on PayPlan, which will be reflected in quarterly financials going forward.
The company’s product roadmap is filled with new features that will continue to captivate the lending community and help attract new opportunities for continued growth. Additionally, the company's marketing division, Helix House, continues to evolve its marketing add-on solution for PayPlan customers, which helps lenders find new qualified borrowers.
“Given the current lending climate, lenders are thirsting for qualified borrowers. There is a tremendous amount of opportunity in the lending space as marketing services become deeply integrated with PayPlan.” says Mr. Doolittle.
Business Warrior also restated their fiscal first quarter due to a dividend payment liability associated with their acquisition of Alchemy last year. The Company is disputing the issuance of Series C preferred shares and the related ongoing dividend payments. The dispute stems from issues that arose after the closing of the acquisition of FluidFi, Inc.
About Business Warrior
Business Warrior Corporation (BZWR) is a publicly traded company listed on the OTC Pink Sheets. Their signature product, PayPlan, is a software-as-a-service (SaaS) turnkey lending solution built for lenders and high-growth companies. We are a full-service provider with end-to-end lending technology, including custom software development and customer acquisition marketing services. Founded in 2014, Business Warrior is a SaaS marketing company with a virtual workforce and employees worldwide. The company has worked with over 25,000 global businesses ranging from small to enterprise businesses. Business Warrior acquired Helix House and Alchemy Technologies in 2022. For more information, visit https://businesswarrior.com.
Forward-Looking Statement
This press release and the offering materials may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Forward-looking statements are neither historical facts nor assurances of future performance. They are based on the current beliefs of, assumptions made by, and information currently available to the company’s management regarding the future of the company’s business, future plans and strategies, anticipated events and trends, the economy, and other future conditions. When used in the offering materials, the words “aim,” “estimate,” “project,” “believe,” “anticipate,” “intend,” “envision,” “estimate,” “expect,” “future,” “goal,” “hope,” “likely,” “may,” “plan,” “potential,” “seek,” “should,” “strategy,” “will” and similar references to future periods are intended to identify forward-looking statements, which constitute forward-looking statements. These statements reflect management’s current views with respect to future events and are subject to inherent risks, uncertainties, and changes in circumstances that are difficult to predict (many of which are outside of the company’s control) and could cause the company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements concerning the company, the offering, or other matters, are expressly qualified in their entirety by the cautionary statements above. The company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.
Investor Relations:
John Bailey
Investors@BusinessWarrior.com
(855) 884-5805
