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AnalytixInsight Reports Second Quarter 2019 Financial Results

TORONTO, Aug. 28, 2019 (GLOBE NEWSWIRE) -- Artificial Intelligence company, AnalytixInsight Inc. (“AnalytixInsight”, or the “Company”) (TSX-V: ALY; OTCQB: ATIXF), is pleased to announce its financial results for the three and six months ended June 30, 2019.  

During the quarter, the Company expanded its AI-driven, machine-created content distribution agreement with Refinitiv, to now provide research coverage on approximately 3,000 dividend-paying companies in Canada, US and the UK. AI-driven content is becoming increasingly important as financial corporations move to embrace AI and analytics as the content cornerstones for their client offerings. AnalytixInsight’s financial analytics platform is a powerful analytics engine capable of 100 billion daily computations, and currently provides analysis on approximately 50,000 worldwide stocks and North American ETFs.

Marketwall grew revenues by 42% to $2.6 million during the six-month period ended June 30, 2019 and increased profit by 159% to $0.7 million. Marketwall has made application to become an online financial broker in Europe and, upon approval of the brokerage application, will evaluate funding opportunities to enable the company’s global growth expansion plans. During its short four-year operating history, Marketwall has developed leading-edge FinTech stock-trading solutions that have been embraced by dominant banks in Europe.

AnalytixInsight believes its key strategic initiatives - Artificial Intelligence and FinTech – are well positioned to capitalize on the market trends occurring in the industry.

AnalytixInsight Highlights:

  • Revenue for the three months ended June 30, 2019 was $1,150,392 compared to revenue of $1,325,814 during the same period in the previous year.
  • Revenue for the six-month period ended June 30, 2019 was $2,097,474 compared to revenue of $2,341,100 during the same period in the previous year.
  • At June 30, 2019, the Company had current assets of $3,463,365, working capital of $2,826,962 and no long-term debt.
  • Expanded AI-driven research distribution agreement with Refinitiv to provide dividend analysis coverage on approximately 3,000 dividend-paying companies in Canada, US and the UK, and expanded the scope of pre-revenue analysis reports already in production to include pre-revenue companies in Italy, Germany, Hong Kong and Japan.  
  • Completed a private placement financing of $1.6 million.
  • Developed a Robo-Advisor on the CapitalCube platform and completed a new graphical user interface for CapitalCube which contains several updated improvements and ease-of-use features.

Marketwall Highlights:

  • Marketwall, a developer of FinTech solutions, is an associated company 49%-owned by AnalytixInsight.
  • Marketwall revenue for the six-month period ended June 30, 2019 was $2,588,742, an increase of 42% compared to $1,818,605 during the same period in the previous year. Marketwall’s revenue is not included in AnalytixInsight’s consolidated revenue.
  • Marketwall net income for the six-month period was $691,302, an increase of 159% compared to $267,173 during the same period in the previous year.
  • Marketwall’s board of directors approved a new strategic plan whereby Marketwall will be established as an online financial broker in Italy, with plans to expand to other European countries.

AnalytixInsight Selected Financial Information:

AnalytixInsight
$ Canadian (unaudited)
Three months ended June 30
  Six months ended June 30
 
  2019   2018   2019   2018  
Revenue 1,150,392   1,325,814   2,097,474   2,341,100  
Basic net income (loss) per share  (0.00 )  (0.00 ) (0.01 ) (0.01 )
  June 30,
2019
  December 31,
2018
     
Total assets 6,665,758   5,096,567      
Total liabilities 636,403   663,754      
             

Marketwall Selected Financial Information:

AnalytixInsight owns 49% of Marketwall which is considered an associated company as its financial results are not consolidated in AnalytixInsight’s financial results.

     
Marketwall
(Associated investment of AnalytixInsight, $ Canadian)
Six months ended
June 30, 2019
Six months ended
 June 30, 2018
Revenue 2,588,742 1,818,605
Net income (loss) 691,302 267,173
  June 30, 2019 December 31, 2018
Total assets 4,335,493 3,919,233
Total liabilities 1,975,663 2,250,174
     

Management Commentary

Prakash Hariharan, President & CEO of AnalytixInsight, commented: “We advanced our strategic initiatives during the quarter. Our CapitalCube content delivery to Refinitiv is expanding, Marketwall had a strong quarter with plans to become an online financial broker, we raised $1.6 million and we continue to develop our technical capabilities across all of our business divisions.”

CapitalCube

AnalytixInsight is an established AI-driven content supplier to Refinitiv with ability to provide content on small & mid-cap companies worldwide through its CapitalCube platform, which provides machine-created content with ability to scale. CapitalCube began publishing pre-revenue research reports to Refinitiv’s Eikon users in November 2018. On June 17, 2019, the Company expanded the scope of the pre-revenue analysis reports to now include companies located in Italy, Germany, Hong Kong and Japan in response to the increasing Refinitiv client usage of the North American reports currently in production.

During the quarter, the Company also expanded the scope of its Refinitiv agreement to begin providing dividend analysis coverage on approximately 3,000 dividend-paying companies in Canada, US and the UK. The CapitalCube dividend analysis report provides powerful insights, analysis and scoring regarding a company’s dividend quality, yield, coverage, flexibility, payment history, peer comparisons and sustainability. 

AnalytixInsight is pleased to be an AI-driven content provider to Refinitiv and believes that its ability to create scalable financial content on worldwide companies is being recognized with increasing importance as global industry leaders embrace analytics within the financial industry. On August 1, 2019, London Stock Exchange agreed to buy Refinitiv in a US$27 billion transaction to create a global financial markets infrastructure provider with leading data and analytics to Refinitiv’s 40,000 institutions in over 190 countries.

During the quarter the Company completed a new graphical user interface for CapitalCube which contains several updated improvements and ease-of-use features. The Company has also developed a Robo-Advisor on the CapitalCube platform, which it expects to commercially deploy to clients and money managers in the future. The performance results of the Company’s Robo-Advisor are displayed on the CapitalCube website home page.

Workforce Optimization

AnalytixInsight’s Workforce Optimization division joined the IFS Partner Network during 2018, and during the quarter, the Company continued to advance its sales initiatives in this market. IFS is a world leader in developing workforce optimization enterprise software for global customers who manage service-focused operations. AnalytixInsight plans to explore opportunities with IFS to jointly develop machine intelligence solutions to help organizations maximize operational efficiency, increase revenue, reduce costs and improve customer satisfaction.

Marketwall

Marketwall, a developer of FinTech solutions, is 49% owned by AnalytixInsight, and 33% owned by Intesa Sanpaolo. Marketwall revenue for the six-month period ended June 30, 2019 was $2,588,742, an increase of 42% compared to $1,818,605 during the same period in the previous year. Marketwall’s revenues are not included in AnalytixInsight’s consolidated revenue.

On July 15, 2019, the Company announced that Marketwall made application to become an online financial broker (“Marketwall Brokerage”) to offer leading FinTech-enabled services for receiving, transmitting and executing stock trading orders, using the Investment Bank of Intesa Sanpaolo as its execution broker.  Marketwall Brokerage has requested regulatory approvals for brokerage services initially in Italy with intentions to expand to other European countries. Marketwall Brokerage intends to develop multi-device trading platforms, combining research and financial education.

During its four-year operating history, Marketwall has developed leading-edge FinTech solutions including financial portal www.marketwall.com, trading & research platforms for leading financial institutions, and mobile stock-trading applications for Intesa Sanpaolo. Intesa Sanpaolo is a leading bank in Europe with approximately 11.9 million customers, a network of approximately 4,400 branches throughout Italy, and has emerged as Italy's first digital bank.

CONTACT INFORMATION:

Scott Urquhart
VP Corporate Development
Scott.Urquhart@AnalytixInsight.com
Tel: (416) 522-3975

ABOUT ANALYTIXINSIGHT INC.

AnalytixInsight Inc. is an Artificial Intelligence, machine-learning company. AnalytixInsight’s financial analytics platform CapitalCube.com algorithmically analyzes market price data and regulatory filings to create insightful actionable narratives and research on approximately 50,000 global companies and ETFs, providing high-quality financial research and content for investors, information providers, finance portals and media. AnalytixInsight also designs and implements Workforce Optimization solutions for large global enterprises. AnalytixInsight holds a 49% interest in Marketwall, a developer of FinTech solutions for financial institutions. For more information, visit AnalytixInsight.com.

Regulatory Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations;  the Company’s ability to spin out or monetize it’s interest in Marketwall, the use of the Company’s content by various parties; the impact of the distribution agreement with Refinitiv;  the impact of the agreement with IFS and the Company’s ability to enter into commercial transactions with members thereof; the Company’s ability to expand its content distribution; and the Company’s future performance. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AnalytixInsight Inc., as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the Company’s technology and revenue generation; risks associated with operation in the technology sector; ability to successfully integrate new technology and employees; foreign operations risks; and other risks inherent in the technology industry. Although AnalytixInsight has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. AnalytixInsight does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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