Clubhouse Media Group, Inc. (CMGR)·Q1 2022 Earnings Summary

Executive Summary

• Q1 2022 revenue was $0.813M, up 55% year over year, while net loss improved 40% to $3.50M; operating expenses fell 69% year over year as the company exited costly physical content houses. The lack of formal guidance and no earnings call limits visibility, but management highlighted HoneyDrip platform traction and sales team expansion as revenue drivers .
• Sequential context is mixed: revenue is well below Q3 2021’s $1.77M, reflecting deal variability; management noted consecutive net-loss reductions beginning in Q3 2021 and lower cash burn into late 2021, but discrete Q4 2021 quarterly figures were not furnished .
• No Wall Street consensus estimates were available via S&P Global for revenue or EPS, preventing beat/miss assessment for Q1 2022. We attempted retrieval but CIQ mapping for CMGR was unavailable (no data) [GetEstimates error: SpgiEstimatesError].
• Funding capacity expanded via a $15M equity line and multiple convertible notes, but leverage and derivative liabilities increased; current liabilities rose to $10.85M vs. $9.28M at year-end, and stockholders’ deficit widened to $(11.25)M, underscoring financing and dilution risk .

What Went Well and What Went Wrong

What Went Well

• Revenue rose 55% year over year to $0.813M, driven by more and larger brand/agency deals and HoneyDrip growth; CEO: “We are pleased… revenue growth was mainly driven by… brand and agency deals… and the growth of our Honeydrip platform.” .
• Operating expenses fell 69% year over year to $1.36M, with CFO citing house closures, lower marketing, and reduced third-party consultants: “closure of the costly physical content houses… lower marketing expenses… decreased reliance on third party consultants.” .
• Management emphasized improved cost base and consecutive quarterly net-loss reductions starting Q3 2021; FY commentary also highlighted reduced cash burn late in 2021 .

What Went Wrong

• Net loss remained large at $(3.50)M despite year-over-year improvement; gross profit was just $0.142M on $0.813M revenue, reflecting limited gross margin and heavy financing costs (interest expense and debt discount amortization totaled $2.11M) .
• Sequential revenue slippage vs Q3 2021 ($1.77M) suggests variability in brand deals; Q4 2021 quarterly metrics were not disclosed, constraining trend clarity .
• Balance sheet stress intensified: current liabilities $10.85M, derivative liabilities $0.98M, and convertible notes payable (net) $7.52M, with stockholders’ deficit $(11.25)M and cash $0.081M, increasing going-concern risk flagged by management .

Financial Results

Consolidated P&L and EPS (Quarterly comparison; oldest → newest)

Margins (Calculated from reported figures)

Estimates vs Actuals (S&P Global)

Segment/Revenue Sources

Selected KPIs and Balance Sheet Items

Guidance Changes

Earnings Call Themes & Trends

No Q1 2022 earnings call transcript was found. Themes below reflect press releases and filings.

Management Commentary

• CEO: “We are pleased with our first quarter results… revenue growth was mainly driven by… brand and agency deals… and the growth of our Honeydrip platform. We expect that the further expansion of our sales team will be a key driver of revenue growth in future quarters.” .
• CFO: “The closure of the costly physical content houses post-COVID-19, coupled with lower marketing expenses and decreased reliance on third party consultants all contributed to an improved cost base in the first quarter of 2022.” .
• FY overview (CFO): “Net revenues grew 321% versus the prior year to $4.3 million… we reduced our consecutive quarterly net loss each quarter beginning with the quarter ended September 30, 2021… and significantly reduced our monthly cash burn… We believe this will be fully reflected in a lower expense base in 2022 and beyond.” .

Q&A Highlights

No Q1 2022 earnings call transcript or Q&A was available; no analyst Q&A themes or guidance clarifications could be sourced [ListDocuments earnings-call-transcript: 0].

Estimates Context

• S&P Global Wall Street consensus for CMGR Q1 2022 revenue and EPS was unavailable due to missing company mapping in the CIQ system; therefore, we cannot assess beats/misses vs consensus for this quarter (GetEstimates error: SpgiEstimatesError).
• Given absence of consensus, near-term estimate revisions will likely hinge on management’s qualitative drivers (HoneyDrip growth, sales team traction) and visibility into quarterly brand-deal flow communicated in future filings/press releases .

Key Takeaways for Investors

• Revenue inflected positively year over year (+55%), but remains volatile and below Q3 2021 levels; watch for cadence of brand/agency deals and HoneyDrip subscriber growth to sustain momentum .
• Cost base is structurally lower post house closures, enabling operating loss improvements; monitor whether OpEx discipline persists as sales capacity scales .
• Balance sheet risk is elevated: low cash ($0.081M), high current liabilities ($10.85M), sizable convertible debt and derivative liabilities; dilution and financing cost pressure likely near term .
• Absence of formal numerical guidance and no earnings call reduce visibility; investors should rely on subsequent 8‑Ks and 10‑Qs for deal flow and HoneyDrip KPIs .
• Funding optionality exists via the $15M equity line, but heavy reliance on convertibles increases volatility and potential overhang; track maturities and conversion activity in subsequent filings .
• Medium-term thesis depends on execution in influencer marketing (managed services) and platform monetization (HoneyDrip/Magiclytics); proof points include sustained revenue growth and improving gross margins .
• With go‑concern risk disclosed, risk management should prioritize liquidity, debt restructuring, and improved cash generation; watch for any movement toward exchange uplisting or broader capital markets access to refinance obligations .