DRVD - Driven Deliveries Announces Preliminary Record Second Quarter 2020 Revenue of $5.6 million an Increase of 158% Sequentially
LOS ANGELES, July 22, 2020 /PRNewswire/ -- Driven Deliveries Inc. (the "Company" or "Driven") (OTCQB: DRVD), one of California's fastest growing online cannabis retailers and direct-to-consumer logistics companies, today announced preliminary unaudited revenue results of $5.6 million for the second quarter ended June 30, 2020, an increase of 158% sequentially as compared with the first quarter of 2020.
The Company's online retail divisions, Ganjarunner and Budee, now represent more than 244,600 registered cannabis consumers, compared with 230,300 at the end of March 2020. The Company also reported it acquired more than 14,000 new customers, compared with 13,000 new customers in the first quarter, and delivered more than 74,300 orders to consumer doorsteps, representing an increase of 103% over the first quarter.
"We experienced record-breaking sales for the quarter ended June 30, 2020 as we continued to acquire new customers while experiencing repeat orders from existing customers, driving a $3.4 million increase in revenue in the second quarter of 2020 compared with Q1 2020. We are proud that our technical and operational platforms have seamlessly absorbed this increase in demand, and we have maintained our 4.8 star customer experience rating as we ramped operations. We expect this strong sales momentum to continue into the second half of the year," said Christian Schenk, CEO Driven Deliveries.
"In parallel, we started to see the impact of our initiatives to improve operational efficiencies. The second quarter was the first full quarter that the operational and technical integrations of all three acquisitions, Ganjarunner, Mountain High Recreation and Budee, were complete. This positioned us to scale the business and capture new demand for cannabis products, while also growing repeat sales to our loyal customers. We expect our improved operational efficiency to contribute to improved bottom line results in the second quarter," Christian Schenk added.
Consolidated Cost of Acquisition (COA) for new customers also improved for the fifth straight month. The average COA for June was $9.64. New customer orders represented $721,463 in incremental revenue and accounted for 35% of total revenue. Customer retention, calculated as the amount of newly acquired customers who purchased a second time, remained strong to 88% over the previous month at 89%. Ontime order percentage, calculated based on the number of deliveries that are executed in under 90 minutes, exceeded 71% in June, compared with 88% in May.
The Company also increased brand participation of its BrandBudee Program to 21, following its launch in May / June 2020. These brands have contributed to more than 2355 new customer sign-ups and 2516 new customer orders since the widget launched. The BrandBudee widget enables brands to sell directly to consumers via their own website, shopping products available to purchase based on their location. BrandBudee provides consumers direct access to some of the most renowned cannabis brands in the space with delivery in under 90 minutes across the State of California.
The Company will announce the reporting date for its complete second quarter 2020 results and earnings conference call as soon as possible.
Preliminary Financial Information
The preliminary information in respect of the Company's second quarter of 2020 performance and financial position set forth herein constitute forward-looking statements, upon which you should not place undue reliance because such information may prove to be materially inaccurate. The preliminary information has not been compiled or examined by the Company's independent auditors and such information is subject to revision as the Company prepares its quarterly financial statements, and as the Company's auditors conduct their review thereof. While the Company believes that such preliminary information is based on reasonable assumptions, actual results may vary, and such variations may be material.
About Driven:
Driven Deliveries, Inc., is the first publicly traded cannabis delivery service operating within the United States. Founded by experienced technology and cannabis executives, the company provides e-commerce solutions, online sales, and on-demand cannabis delivery, in select cities where allowed by law. Driven offers legal cannabis consumers the ability to purchase and receive their marijuana in a fast and convenient manner. By 2020, legitimate cannabis revenue in the U.S. market is projected to hit $23 billion. By leveraging consumer trends, and offering a proprietary, turnkey delivery system to its customers, management believes it is uniquely positioned to best serve the needs of the emerging cannabis industry and capture notable market share within the sector. For more information, please visit www.DRVD.com and review Driven's filings with the U.S. Securities and Exchange Commission.
Forward-looking Statements:
This press release contains certain forward-looking statements. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that we will achieve these plans, objectives, expectations or intentions. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact:
KCSA Strategic Communications
Valter Pinto or Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
IR@DRVD.com
SOURCE Driven Deliveries, Inc.