Bright Mountain Media, Inc Announces Third Quarter 2023 Revenue increased 192% to $15.3 million compared to $5.3 million in the prior year period
Boca Raton, FL, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM) (“Bright Mountain” or the “Company”), a global holding company with current investments in digital publishing, advertising technology, consumer insights, and creative media services, today announced its unaudited financial results for the three and nine months ended September 30, 2023.
Third Quarter 2023 Highlights
- Revenue increased 192% to $15.3 million compared to $5.3 million in the prior year period
- Gross margin increased 57% to $3.4 million compared to $2.1 million in the prior year period
Mr. Drinkwater concluded: “We are very excited to welcome Deep Focus Agency and Big Village Insights to the Bright Mountain Media family of brands. We are highly encouraged by the addition of these businesses into our portfolio and have started to work together in ways to use our existing ad-tech and owned and operated web properties for our new customers. These are established high margin businesses that will aid in continued creative content creation, help unearth a new generation of data products to bring to market and bring a fresh, innovative perspective to how advertising technology, creative agencies, digital insights, and content publishing can work together. We will continue to work together as one organization to source new opportunities, both organic and inorganic, to inspire our customers and continue to drive growth in this challenged environment.”
Financial Results for the Three Months Ended September 30, 2023
- Revenue was $15.3 million, an increase of $10.0 million or 192% compared to $5.3 million for the same period of 2022, which was driven by the Big Village Acquisition, and was partially offset by macroeconomics factors, coupled with an overall reduction in spending by some partners due to inflationary concerns, which has led to lower than normal rates and lower earnings.
Advertising technology revenue was approximately $3.6 million and digital publishing revenue was approximately $1.0 million. The new offerings we acquired as part of the Big Village Acquisition were consumer insights, creative services, and media services. Creative insights revenue was approximately $8.0 million, creative services revenue was approximately $1.8 million, and media services revenue was approximately $793,000 during the third quarter of 2023.
- Cost of revenue increased to $11.9 million as a result of new cost associated with our new revenue offerings from the Big Village Acquisition, inclusive of direct salary and labor cost of approximately $2.7 million for employees that work directly on customer projects, and direct project costs of approximately $3.5 million for payments made to third-parties that are directly attributable to completion of projects to allow for revenue recognition and $2.9 million for non-direct project cost.
- General and administrative expense was $4.1 million, an increase of 24%, compared to $3.3 million in the same period of 2022.
- Impairment of goodwill and intangibles increased approximately $16.3 million, or 100% compared to the same period of 2022. The Company performed an assessment of its goodwill and intangible assets, the assessment indicated that the carrying value was in excess of its implied fair value, resulting in an impairment charge.
- Gross margin was $3.4 million, an increase of 57%, compared to $2.1 million in the same period of 2022.
- Net loss was $19.8 million, an increase of 786%, compared to a $2.2 million net loss in the same period of 2022.
Adjusted EBITDA profit was $283,000 compared to Adjusted EBITDA loss of $(373,000) in the same period of 2022. See the below section on Non-GAAP Financial Measure for a reconciliation of net loss to EBITDA and Adjusted EBITDA
Financial Results for the Nine Months ended September 30, 2023
- Revenue was $29.4 million, an increase of $15.0 million or 104% compared to $14.4 million for the same period of 2022.
Advertising technology revenue was approximately $6.1 million, digital publishing revenue was approximately $3.4 million, creative insights revenue was approximately $14.9 million, creative services revenue was approximately $3.5 million, and media services revenue was approximately $1.4 million during 2023.
- Cost of revenue increased to $22.1 million and includes direct salary and labor cost of approximately $5.2 million, direct project costs of approximately $6.1 million and non-direct project cost. of approximately $5.3 million.
- General and administrative expense was $14.9 million, an increase of 41%, compared to $10.6 million in the same period of 2022.
- Gross margin was $7.3 million, an increase of 10%, compared to $6.7 million in the same period of 2022.
- Net loss was $29.6 million, an increase of 411%, compared to a $5.8 million net loss in the same period of 2022.
- Adjusted EBITDA loss was $3.6 million compared to Adjusted EBITDA loss of $1.8 million in the same period of 2022. See the below section on Non-GAAP Financial Measure for a reconciliation of net loss to EBITDA and Adjusted EBITDA.