Clubhouse Media Group, Inc. (CMGR)·Q2 2022 Earnings Summary

Executive Summary

• Q2 2022 revenue accelerated to $1.90M (+104% YoY), with gross margin expanding to ~28.8% as operating expenses fell 79% YoY; however, GAAP net loss remained high at $(4.93)M, driven largely by non-operating items (derivative fair value changes and debt extinguishment) .
• Management cited stronger brand/agency deal flow and growth of Honeydrip as revenue drivers; a Q2 change to gross presentation for Honeydrip subscriptions likely also lifted reported revenue versus Q1 (which was net) .
• Liquidity and capital structure remain key risks: cash was $0.08M at quarter-end, with $6.86M in convertible notes outstanding (gross) and a $4.79M derivative liability; the company disclosed substantial doubt about going concern .
• Organizational/strategic updates: new CFO (Scott Hoey) in late May and a 51% JV with The Reiman Agency announced pre-results in August, intended to strengthen enterprise brand relationships and pipeline .
• No earnings call transcript or S&P Global consensus estimates were available; investors should anchor on reported trends and balance sheet/financing trajectory. S&P Global consensus unavailable for CMGR.

What Went Well and What Went Wrong

• What Went Well

  • Revenue growth and mix: Q2 net revenue rose 104% YoY to $1.90M; management attributed this to a higher quantity/quality of brand and agency deals and Honeydrip growth .
  • Cost discipline: Operating expenses decreased 79% YoY to $1.04M, reflecting the prior shutdown of high-cost physical content houses and lower marketing/consulting spend (built through 2021–Q1 2022) .
  • Margin improvement: Gross profit improved to $0.55M in Q2 from $0.06M in Q2’21, with gross margin rising from ~7% to ~28.8%, evidencing better unit economics as mix shifted and revenue recognition for Honeydrip moved to gross .

• What Went Wrong

  • Non-operating drag on GAAP: Despite a much smaller operating loss (Q2 operating loss $(0.49)M), large non-operating expenses (loss on debt extinguishment $1.19M, change in fair value of derivatives $2.79M, amortization of debt discounts $0.64M) kept net loss elevated at $(4.93)M .
  • Liquidity stress and dilution risk: Cash was $78k at 6/30/22; the company relied on multiple convertible note financings with variable conversion features and recognized a $4.79M derivative liability, signaling ongoing dilution/financing overhang .
  • Going concern: Management disclosed substantial doubt about the company’s ability to continue as a going concern, given losses, working capital deficit, and need for external funding .

Financial Results

• Key non-operating items (Q2 2022): loss on debt extinguishment $1.19M; change in fair value of derivative liability $2.79M; amortization of debt discounts $0.64M; interest expense $0.20M; partially offset by other income $(0.81)M .
• Balance sheet context (6/30/22): cash $78,038; convertible notes (net) $6,277,202; derivative liability $4,793,892; stockholders’ deficit $(14,011,381) .

Segment breakdown

• CMGR does not report segments. Revenue streams include managed services (brand/influencer campaigns) and subscription-based Honeydrip.com; in April 2022, Honeydrip revenue recognition changed from net to gross, indicating more platform control and likely boosting reported revenue in Q2 .

KPIs

• No quantitative KPIs (e.g., Honeydrip subscribers, average deal size) were disclosed in Q2 filings/press release -.

Guidance Changes

No formal quantitative guidance was provided in Q2 materials -.

Earnings Call Themes & Trends

No Q2 earnings call transcript was available in our repository (none found). Thematic evolution synthesized from press releases and filings.

Management Commentary

• CEO on Q2: “We are pleased with our second quarter results... The revenue growth was driven mainly by both the higher quantity and quality of brand and agency deals with creators, as well as 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.” — Amir Ben-Yohanan, CEO .
• CFO on Q2: “We were able to close numerous brand promotional deals with some large and well-known brands and talent... I’m confident in the growth opportunities moving forward.” — Scott Hoey, CFO .
• Strategic JV: “We have formed a JV with The Reiman Agency... In the past year alone, The Reiman Agency has brokered deals for CMGR with Walmart, Target, Playboy, Mike Tyson, Mandy Moore, and Rob Gronkowski.” .
• Leadership transition: “Scott has been a valuable member of the CMGR team this past year and will be able to hit the ground running as CFO.” — Amir Ben-Yohanan (May 27) .

Q&A Highlights

• No earnings call transcript was located for Q2 2022, and we found no Q&A to summarize (none found in our document set) [ListDocuments: earnings-call-transcript (0 results)].

Estimates Context

• Wall Street consensus (S&P Global) for Q2 2022 revenue and EPS was unavailable for CMGR (no CIQ mapping; likely no active analyst coverage). As a result, we cannot compute beats/misses versus consensus at this time.

Key Takeaways for Investors

• Revenue inflection with expanding gross margin: Q2 revenue doubled YoY and margins improved meaningfully; the shift to gross recognition for Honeydrip and stronger enterprise deals helped (but also boosts reported revenue vs Q1’s net presentation) .
• Operating improvement masked by financing costs: Operating loss narrowed to $(0.49)M, but derivative fair value changes and debt actions kept GAAP net loss high; monitor path to reducing non-operating charges .
• Liquidity risk is central: $78k cash and heavy reliance on variable-price convertible notes/derivative liabilities raise dilution and financing overhang concerns; going concern is disclosed .
• Execution catalysts: New CFO (May) and the Reiman JV (Aug) may improve deal flow with large brands; near-term proof points would be sustained revenue growth and cash collections .
• Watch for: further sales team traction; Honeydrip monetization metrics (if disclosed); movement toward non-dilutive financing; stabilization of derivative liability; and any formal guidance or KPI disclosures in future quarters .
• No consensus coverage: With no visible S&P Global estimates, the stock is likely to trade on reported trends, liquidity events, and partnership announcements rather than “beat/miss” headlines.

---

Supporting detail and disclosures:

• Q2 2022 press release (Item 2.02 8-K and Exhibit 99.1) .
• Q2 2022 10-Q financial statements and notes .
• Q1 2022 10-Q and press release for sequential comparisons .
• FY 2021 press release for operating narrative .
• CFO transition press release and 8-K .
• JV press release with The Reiman Agency .