Executive Summary

Q3 2021 net revenues were $1.18M, up 178% year-over-year and 22% quarter-over-quarter; basic/diluted loss per share improved to $(0.71) versus $(3.81) in Q3 2020 .
Marketing expense dropped >50% sequentially (from $4.2M in Q2 to $1.8M in Q3), as the company shifted from R&D-heavy customer acquisition to more efficient execution .
Guidance: FY 2021 revenue reaffirmed at $4.5–$4.7M; FY 2022 revenue initiated at $10–$15M; Q4 2021 revenue guided to $1.6–$1.8M; management targets cash-flow breakeven by Q3 2022 and pre-marketing breakeven by Q2 2022 .
Capital and liquidity: October registered direct offering raised $3.4M; warrant exercises and note conversions further strengthened the balance sheet and reduced liabilities .
Potential stock catalysts: explicit FY22 revenue growth outlook, acquisition integration (WHE Agency; Dune Glow Remedy) and subscription KPI momentum (Vocal+ gross subs revenue $620k in Q3) .

What Went Well and What Went Wrong

What Went Well

Material revenue acceleration: net revenues rose to $1.18M; Q/Q +22%, Y/Y +178%, driven by creator subscriptions (Creatd Labs) and agency growth (Creatd Partners) .
Marketing efficiency improved: marketing costs fell >50% sequentially to $1.81M, contributing to a 21% reduction in operating loss versus Q2 2021 .
Strategic execution and pipeline: completed WHE acquisition integration; announced Dune majority purchase; vocalized cross-pillar synergies and upcoming Ventures/Studios contributions .
- “We continue to experience double digit quarterly growth... completed our second agency acquisition, and we have expanded our footprint with new offices in New York and Miami.” — Jeremy Frommer .
- “Our business development efforts are yielding visibility for a strong and growing revenue pipeline…” — Laurie Weisberg .

What Went Wrong

Gross margin remained negative: Q3 gross margin dollars were $(0.24)M as cost of revenues exceeded net revenues .
Overall losses persisted: Q3 operating loss $(6.91)M; net loss $(9.74)M, reflecting ongoing investment and non-cash charges (e.g., stock comp, derivative changes) .
Execution risks and external headwinds: management cited global e-commerce supply chain challenges impacting Q4 planning; legal/legacy obligations and debt conversions continued to complicate reported results .

Financial Results

Metric	Q3 2020	Q1 2021	Q2 2021	Q3 2021
Revenue ($USD)	$424,814	$743,913	$970,857	$1,179,620
Basic/Diluted EPS ($)	$(3.81)	$(0.68)	$(0.81)	$(0.71)
Gross margin ($USD)	$(306,495)	N/A	N/A	$(238,593)
Total operating expenses ($USD)	$6,717,369	$6,689,910	$9,351,652	$6,672,381
Loss from operations ($USD)	$(7,023,864)	$(5,945,997)	$(8,380,795)	$(6,910,974)
Net loss ($USD)	$(16,178,698)	$(6,643,237)	$(8,562,476)	$(9,736,534)

Segment revenue breakdown (disclosed for Q1 and Q2 2021):

Segment ($USD)	Q1 2021	Q2 2021
Agency (Managed Services + Branded Content)	$428,300	$488,836
Platform (Creator Subscriptions)	$306,902	$451,965
eCommerce	$—	$5,526
Affiliate Sales	$8,008	$7,798
Other	$703	$16,732

KPIs:

KPI	Q1 2021	Q2 2021	Q3 2021
Freemium creators (approx.)	>900,000	>1,000,000	~1,200,000
Vocal+ paid subscribers (approx.)	>25,000 (subsequent to Q1)	>30,000	—
Vocal+ gross subscription revenue ($USD)	$319,000	$479,000	$620,000

Balance sheet snapshot (Q3 2021):

Cash: $1.51M; Total assets: $8.25M; Total liabilities: $6.13M; Shareholders’ equity: $2.13M .
Liquidity actions: $3.4M registered direct offering at $4.50; subsequent note conversions ($640k) reduced liabilities; fully diluted shares ~23M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2021	$4.5–$4.7M	$4.5–$4.7M	Maintained
Revenue	FY 2022	—	$10–$15M	Initiated
Revenue	Q4 2021	—	$1.6–$1.8M	Initiated
Marketing expense	Q4 2021	—	Under $2M	Set
Cash-flow breakeven	Target	—	By Q3 2022	Set
Pre-marketing OpEx breakeven	Target	—	By Q2 2022	Set
General OpEx	Near term	—	Remain consistent with Q3	Maintained
Segment ramp	Ventures/Studios	—	Ventures contribute Q4 2021; Studios in Q2 2022	Set

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Subscription & platform strategy	Vocal+ growth; >900k freemium; >20k subs (surpassed 25k post-Q1)	~1.2M freemium users; $620k Vocal+ gross subs revenue in Q3; feature releases (Subscribe, Quick Edit, safety/report, Bonuses)	Positive momentum
Supply chain & macro	Not prominent	Q4 planning accounts for global e-commerce supply chain disruptions	Cautious
Agency & influencer	Seller’s Choice operations; pipeline building	WHE Agency integration; influencer roster expansion to 68M followers; brand relationships (Subway, Hulu, P&G, etc.)	Strengthening
Acquisitions (DTC)	Plant Camp majority stake in Q2	Dune Glow Remedy majority purchase closed; Creatd Ventures framework in place	Expanding
Regulatory/legal	Litigation regarding Seller’s Choice (ongoing) and PPP loan matters noted earlier in the year	Focus shifted to liability reduction via conversions and offerings; continued disclosures	Improving balance sheet
NFT/OG Gallery	Exploratory OG Collection monetization in prior commentary	First NFT art offering completed; partnership announced for marketplace development	Emerging

Management Commentary

“Having completed our Nasdaq uplisting... we continue to experience double digit quarterly growth... completed our second agency acquisition, and... expanded our footprint.” — Jeremy Frommer, Co-CEO .
“Our business development efforts are yielding visibility for a strong and growing revenue pipeline... recruiting incredible industry talent...” — Laurie Weisberg, Co-CEO .
“Having made progress on... payables... our company now has in excess of $5 million in cash plus... vendor credits... to support our strategic growth plans.” — Jeremy Frommer .
“Our third and fourth quarter 2021 revenue expectations factor in the supply chain challenges that have disrupted e-commerce on a global scale.” — Laurie Weisberg .

Q&A Highlights

Not available — no Q3 2021 earnings call transcript was found in the document catalog [ListDocuments: earnings-call-transcript returned 0 for VOCL].

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable due to missing CIQ mapping for VOCL; therefore, comparisons to consensus (Revenue, EPS) could not be made [SpgiEstimatesError from GetEstimates].

Key Takeaways for Investors

Revenue trajectory is favorable (Q/Q +22%, Y/Y +178%) with creator subscriptions and agency work as primary drivers; subscription monetization (Vocal+) shows steady growth ($620k gross in Q3) .
Operating discipline improved (marketing spend down >50% sequentially), but gross margin remained negative and absolute losses are still significant; continued focus on efficiency is critical .
FY22 revenue guidance ($10–$15M) and explicit breakeven timelines (Q2/Q3 2022) provide clarity; monitoring Q4 revenue delivery ($1.6–$1.8M) will validate momentum .
Balance sheet/liquidity strengthened with capital raise ($3.4M), warrant exercises, and conversions; liabilities reduced; watch cash burn versus guidance and execution pace .
Strategic assets (WHE influencer network; Dune/Camp DTC brands; OG Collection/NFT initiatives) can expand revenue mix and improve margin profile over time if integrated efficiently .
Near-term trading implications: delivery on Q4 revenue guidance and continued subscription KPI growth are likely to drive sentiment; medium-term thesis hinges on executing the four-pillar model to scale revenues while achieving breakeven as guided .

Creatd, Inc. (VOCL)·Q3 2021 Earnings Summary