Blackboxstocks Announces Second Quarter 2023 Financial Results
DALLAS, August 14, 2023--(BUSINESS WIRE)--Blackboxstocks Inc. (NASDAQ: BLBX), ("Blackbox" or the "Company"), a financial technology and social media hybrid platform offering real-time proprietary analytics for stock and options traders of all levels, today announced the Company’s financial results for the second quarter and six months ended June 30, 2023.
Second Quarter Financial and Operating Highlights:
Total revenue for the second quarter of 2023 was $737,398 as compared to $1,399,315 for the same period in 2022. Revenue for the six months ended June 30, 2023 was $1,596,402 as compared to $2,671,801 for the prior year period.
The average member count for the second quarter of 2023 was 3,937 compared to 5,482 for the second quarter of 2022 and 3,555 for the first quarter of 2023. Average member count for the six months ended June 30, 2023 was 3,756 as compared to 5,954 for the prior year period
Operating expenses net of stock-based compensation decreased by $606,385 in the second quarter of 2023 to $1,336,090 as compared to $1,942,472 for the same period in 2022.
Adjusted EBITDA was $(1,014,988) and $(1,036,737) for the three months ended June 30, 2023 and 2022, respectively. Adjusted EBITDA for the six months ended June 30, 2023 and 2022 was $2,183,145 and $1,930,583, respectively.
Gust Kepler, Chief Executive Officer, commented, "We are encouraged by the stabilization of the member base for our core product, which is attributable to a reduction in our churn rate. Recent changes to our marketing team are expected to have a positive impact on our growth trajectory. We have also significantly reduced our operating expenses as we prepare for the launch of StockNanny, which we expect to release later this year. StockNanny is a mobile application for the self-directed investor, a market demographic that is exponentially larger than the day-trader segment we currently serve. In addition to StockNanny, our marketing initiatives that leverage our technology through licensing agreements with financial institutions, offers a potential new revenue stream that is much less costly to operate than our current B2C model.
"In addition, we have made significant progress with our merger with Evtec Group Limited and believe this will provide maximum value for our stakeholders in parallel to our continued operations of Blackbox when it is completed."
Robert Winspear, Chief Financial Officer, added, "We believe that our sustainable expense reductions will enable us to focus on our new product and marketing initiatives as we continue to pursue our planned acquisition of Evtec Group Limited and certain of its related entities."
Summary financial data is presented in the tables below. Please see the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2023 for additional information.
About Blackboxstocks, Inc.
Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs "predictive technology" enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/video feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: https://blackboxstocks.com
Safe Harbor Statement
Our prospects here at Blackbox stocks are subject to uncertainties and risks. This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business, and reflect our beliefs and assumptions based upon information available to us at the date of this press release. In some cases, you can identify these statements by words such as "if," "may," "might," "will, "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," and other similar terms. These forward-looking statements include, among other things, plans for proposed operations, descriptions of our strategies, our product and market development plans, and other objectives, expectations and intentions, the trends we anticipate in our business and the markets in which we operate, and the competitive nature and anticipated growth of those markets. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors including, but not limited to, the risks and uncertainties discussed in our other filings with the Securities Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
Disclosure of Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes the presentation of certain non-GAAP financial measures provides useful information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with the non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company’s ongoing operating performance. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating performance. For all non-GAAP financial measures in this release, we have provided corresponding GAAP financial measures for comparative purposes in the report.
We refer to the term "EBITDA" in various places of our financial discussion. EBITDA is defined by us as net income (loss) from continuing operations before interest expense, income tax, depreciation and amortization expense and certain non-cash expenses including stock-based compensation. EBITDA is not a measure of operating performance under GAAP and therefore should not be considered in isolation nor construed as an alternative to operating profit, net income (loss) or cash flows from operating, investing or financing activities, each as determined in accordance with GAAP. Also, EBITDA should not be considered as a measure of liquidity. Moreover, since EBITDA is not a measurement determined in accordance with GAAP, and thus is susceptible to varying interpretations and calculations, EBITDA, as presented, may not be comparable to similarly titled measures presented by other companies.
-Tables Follow-
Blackboxstocks Inc. | |||||
Summary Balance Sheet Data | |||||
As of June 30, 2023 and December 31, 2022 | |||||
(Unaudited) | |||||
June 30, 2023 | December 31, 2022 | ||||
Assets | |||||
Cash | $ | 272,564 | $ | 425,578 | |
Marketable securities | 673,174 | 3,216,280 | |||
Other current assets | 450,144 | 265,197 | |||
Total current assets | $ | 1,395,882 | $ | 3,907,055 | |
Property and equipment, net | 374,809 | 428,726 | |||
Investment | 8,424,000 | - | |||
Total assets | $ | 10,194,691 | $ | 4,335,781 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 750,097 | $ | 730,099 | |
Unearned subscriptions | $ | 720,516 | $ | 1,022,428 | |
Other current liabilities | $ | 68,984 | $ | 71,615 | |
Note payable, current portion | $ | 28,877 | $ | 28,733 | |
Total current liabilities | $ | 1,568,474 | $ | 1,852,875 | |
Long term liabilities: | |||||
Note payable, net of current portion | $ | 25,139 | $ | 39,614 | |
Lease liability right of use, long term | $ | 232,667 | $ | 265,639 | |
Total long term liabilities | $ | 257,806 | $ | 305,253 | |
Total stockholders' equity | $ | 8,368,411 | $ | 2,177,653 | |
Total liabilities and stockholders' equity | $ | 10,194,691 | $ | 4,335,781 | |
Blackboxstocks Inc. | |||||||||||||
Summary Statements of Operations | |||||||||||||
For the Three and Six Months Ended June 30,2023 and 2022 | |||||||||||||
(Unaudited) | |||||||||||||
For the three months ended | For the six months ended | ||||||||||||
June | June | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Revenue | $ | 737,398 | $ | 1,399,315 | $ | 1,596,402 | $ | 2,671,801 | |||||
Cost of revenue | 426,975 | 499,427 | 874,606 | 1,079,389 | |||||||||
Gross margin | $ | 310,423 | $ | 899,888 | $ | 721,796 | $ | 1,592,412 | |||||
Operating expenses: | 1,741,722 | 2,068,654 | 4,099,899 | 3,782,332 | |||||||||
Operating loss | $ | (1,431,299 | ) | $ | (1,168,766 | ) | $ | (3,378,103 | ) | $ | (2,189,920 | ) | |
Other income (expense) | (6,805 | ) | 147,333 | (53,241 | ) | 368,622 | |||||||
Net loss | $ | (1,424,494 | ) | $ | (1,316,099 | ) | $ | (3,324,862 | ) | $ | (2,558,542 | ) | |
Adjusted EBITDA | $ | (1,014,988 | ) | $ | (1,036,737 | ) | $ | (2,183,145 | ) | $ | (1,930,583 | ) | |
Adjusted EBITDA Calculation | |||||||||||||
Net loss | $ | (1,424,494 | ) | $ | (1,316,099 | ) | $ | (3,324,862 | ) | $ | (2,558,542 | ) | |
Adjustments: | |||||||||||||
Depreciation and amortization expense | 10,679 | 5,850 | 21,197 | 11,125 | |||||||||
Interest and financing expense | 147 | 42,266 | 312 | 84,823 | |||||||||
Investment (income) loss | (6,952 | ) | 105,067 | (53,553 | ) | 283,799 | |||||||
Stock based compensation | 405,632 | 126,179 | 1,173,761 | 248,212 | |||||||||
Total adjustments | $ | 409,506 | $ | 279,362 | $ | 1,141,717 | $ | 627,959 | |||||
Adjusted EBITDA | $ | (1,014,988 | ) | $ | (1,036,737 | ) | $ | (2,183,145 | ) | $ | (1,930,583 | ) | |
Tags: SOFTWARE-APPLICATION TECHNOLOGY
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