Mr. Shawn Wilson reports

BUILDDIRECT REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

Builddirect.com Technologies Inc. has released its financial results for the first quarter 2023 (Q1 2023).

Builddirect.com reports in United States dollars and in accordance with IFRS (International Financial Reporting Standards).

"During Q1 2023, Builddirect produced strong financial results, as highlighted by our fifth consecutive quarter of positive adjusted EBITDA [earnings before interest, taxes, depreciation and amortization], which increased to $1.04-million for the three months ended March 31, 2023," said Shawn Wilson, chief executive officer of Builddirect.com.

First quarter 2023 financial results conference call

Builddirect.com will host a conference call to discuss the company's financial results at 10 a.m. (PT) (1 p.m. (ET)) on Wednesday, May 17, 2023. To access the conference call, participants need to register on-line.

The replay will be available approximately 24 hours after the completion of the conference call. In addition, an archived replay will be available on the investor relations section of the company's website.

Among other things, Builddirect.com will discuss the long-term financial outlook on the conference call, and related materials will be available on the company's website. Investors should carefully review the factors, assumptions, risks and uncertainties included in such related materials concerning such long-term financial outlook.

First quarter 2023 highlights:

• Total revenue was $17.8-million for Q1 2023, a decrease of 26.8 per cent year-over-year and 21.6 per cent quarter-over-quarter. The decrease in revenue year-over-year is primarily driven by Builddirect.com's e-commerce business. Historically, Builddirect.com's e-commerce business has produced negative EBITDA, which was offset by strong positive EBITDA from its brick-and-mortar businesses. In Q2 2022, Builddirect.com scaled-back its e-commerce business and began implementing efficiency initiatives to improve the profitability of the e-commerce model. The decrease in revenue quarter-over-quarter is due to more in-transit e-commerce sales at quarter-end and the timing of installation projects moving into Q2 2023. Builddirect.com's Q1 deferred revenue has grown quarter-over-quarter and the company expects this to decrease in Q2. At this point, Builddirect.com believes it is close to completing its efficiency initiatives and will soon be ready to grow its e-commerce business profitably.
• Gross margin was 39.2 per cent for Q1 2023, an increase of 340 bps (basis points) year-over-year and 280 bps quarter-over-quarter. The increase in gross margin is mostly the result of significant improvements Builddirect.com made in the business, including operational efficiency initiatives for the e-commerce operations.
• Pro revenue as a percentage of total revenue was 86.1 per cent for Q1 2023, an increase of 9.6 per cent year-over-year. The increase in pro revenue as a percentage of total revenue was driven by an overall shift in strategy to focus on the more profitable pro customer base.
• Adjusted EBITDA was $1.04-million for Q1 2023, an increase of approximately $1-million year-over-year. The increase is largely attributed to the company's focus on profitability and running efficient operations.

First quarter 2023 operational highlights:

• On Jan. 3, 2023, Builddirect.com announced the close of the second tranche of the non-brokered private placement of common shares as previously announced on Dec. 30, 2022. In connection with the second tranche, the company issued a total of 1,121,622 common shares at a price of 37 cents per common share for total gross proceeds of $415,000.
• On Jan. 24, 2023, Builddirect.com announced that its wholly owned U.S. subsidiary, Superb Flooring Covering LLC has integrated RFMS Inc.'s enterprise resource planning software.
• On Jan. 26, 2023, Builddirect.com announced that the company has entered into a marketing partnership with Maverick Design, the award-winning interior design studio at Wedgewood Homes, a division of Wedgewood LLC, to launch a white-label marketing program for a collection of quality Maverick-branded engineered wood floors -- The Maverick Design Wood Flooring Collection.
• On Feb. 6, 2023, Builddirect.com announced that it appointed Eyal Ofir to its audit committee. With over 20 years of investment banking and capital markets experience, Mr. Ofir is currently a director of Builddirect.com, having been appointed in March, 2022.

Subsequent events to first quarter 2023:

• On April 3, 2023, Builddirect.com announced that it has appointed Jay Allen as general manager. Mr. Allen has 25 years of experience in building e-commerce and digital divisions across fashion, home goods and flooring, and consumables companies such as Starbucks, Lowe's and Stainmaster.
• On April 6, 2023, Builddirect.com confirmed that it will hold its 2023 annual general and special meeting of shareholders on June 8, 2023.

"We are looking to scale our e-commerce and brick-and-mortar operations, and potentially expand our product suite to include value-added services that are designed to serve pros in growing their respective businesses," continued Mr. Wilson. "In addition, we intend to continue identifying areas in our business where we can achieve more operational efficiencies and ensure optimal resource utilization to improve our overall bottom line. Most notably, we plan to explore opportunities to integrate the fulfilment operations for our e-commerce business into our acquired brick-and-mortar locations, which could potentially reduce fulfilment costs and increase inventory utilization by sharing inventory between our e-commerce platform and brick-and-mortar locations."

Mr. Wilson added, "We remain optimistic on our growth outlook for the remainder of 2023, as we will continue to pursue expansion of our business while streamlining our operations to improve our overall profitability."

Builddirect.com's unaudited condensed interim consolidated financial statements and accompanying notes, and the management's discussion and analysis for the three months ended March 31, 2023, and March 31, 2022, are available on the company's website and on the company's SEDAR profile.

About Builddirect.com Technologies Inc.

Builddirect.com is a growing omnichannel building material retailer. Builddirect.com connects North American home improvement B2B (business-to-business) and B2C (business-to-customer) organizations, and homeowners with quality building materials and services through its robust global supply chain network. Builddirect.com's growth trajectory, strong product offering and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry.

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