Crowd Media (ASX:CM8) ends September quarter debt free and cash flow positive – The Market Herald

• Crowd Media (CM8) Reports Positive Net Operating Cash Flow for the September Quarter of $36,000, a 210% Improvement over the Prior Year
• As of September 30, the company was debt free with $2.57 million in cash in the bank, a substantial increase from its reported $340,000 in the June quarter.
• The company recorded $214,000 of free cash flow from investing activities during the quarter, which was used for further investment in intellectual property
• Commenting on the quarter, CEO Idan Schmorak said the company capitalized on “great work” by expanding subscription products into new markets and regions.
• Crowd Media shares rose 13.6% to close at 2.5 cents

Crowd Media (CM8) achieved positive net operating cash flow for the September quarter of $36,000, a 210% improvement over the prior year.

As of September 30, the company said it had no debt with $2.57 million in cash in the bank, a substantial increase from its reported $340,000 in the June quarter.

The company recorded $214,000 of free cash flow from investing activities during the quarter, which was used for further investment in intellectual property.

Commenting on the quarter, CEO Idan Schmorak said the company capitalized on “great work” by expanding subscription products to new markets and regions and creating greater opportunities for digital avatars.

“This was demonstrated by the five new big tech companies that licensed Crowd’s Talking Head platform for a conversational AI solution to address their business challenges that can be scaled to multiple languages ​​without additional hires and provide humanized interactions. globally,” he said.

“This milestone, along with all of the other business and operational achievements of the past quarter, validates Crowd’s vision.

“Additionally, the insights we gather from customers further support the scaling of our software development.”

The big five anonymous tech companies had purchased three licenses for the Talking Head platform for two years to provide them with digital avatars.

The company believes that the initial license is the cornerstone of Crowd’s relationship with the company and opens up new business opportunities.

During the quarter, the company’s mobile subscription expanded its market with Bedtime Stories now in Oman and Kuwait, AstroVIP in the Czech Republic, Portugal and the Netherlands, and Potion Games in Oman.

Shares of Crowd Media rose 13.6% to close at 2.5 cents.