Investview, Inc. (“INVU”) Reports Financial Results, Current Operational and Financial Highlights for the Third Quarter Ended September 30, 2023
Haverford, PA, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Investview, Inc. (OTCQB: INVU), a diversified financial technology company that through its subsidiaries and global distribution network provides financial technology, education tools, content, research, and management of digital asset technologies with a focus on Bitcoin mining, is pleased to report its financial and operational results for the three and nine month periods ended September 30, 2023.
Summary Consolidated Financial Highlights:
Results of Operations-Three Months Ended September 30, 2023 vs September 30, 2022
Gross Revenue (a Non-GAAP measure) increased 28.1% to $20.7 million for the three months ended September 30, 2023, compared to $16.1 million for the comparable prior year period.
Net Revenue increased 27.8% to $19.2 million for the three months ended September 30, 2023, compared to $15.0 million for the comparable prior year period.
Net cash provided by operating activities decreased 36.4% to $1.8 million for the three months ended September 30, 2023, compared to $2.8 million for the comparable prior year period.
Net income from operations increased 328.8% to $2.2 million for the three months ended September 30, 2023, compared to a net income from operations of $0.5 million for the comparable prior year period. The third quarter results for 2023 and 2022, respectively, were negatively impacted by $1.2 million and $1.8 million of depreciation expense.
Results of Operations-Nine Months Ended September 30, 2023 vs September 30, 2022
Gross Revenue (a Non-GAAP Measure) increased 5.7% to $54.1 million for the nine months ended September 30, 2023, compared to $51.2 million for the comparable prior year period.
Net Revenue increased 5.2% to $50.0 million for the nine months ended September 30, 2023, compared to $51.2 million for the comparable prior year period.
Net cash provided by operating activities decreased 20.9% to $5.8 million for the nine months ended September 30, 2023, compared to $7.3 million for the comparable prior year period.
Net income from operations decreased 40.0% to $3.8 million for the nine months ended September 30, 2023, compared to net income from operations of $6.4 million for the comparable prior year period. The nine-month results for 2023 and 2022, respectively, were negatively impacted by $3.3 million and $4.3 million of depreciation expense.
Balance Sheet Data-September 30, 2023 vs December 31, 2022
Cash and cash equivalents at September 30, 2023 was $22.5 million, up $2.2 million or 10.8% from $20.3 million at December 31, 2022. Total assets increased by 3.0 million or 8.5% to $38.6 million. Our current ratio remains strong at 2.01 as of September 30, 2023.
Outstanding debt decreased by $1.9 million to $8.6 million at September 30, 2023, down from $10.5 at December 31, 2022, with total liabilities increasing by $1.7 million or 9.5% during the period.
Total stockholders’ equity at September 30, 2023 was $18.6 million, an increase of $1.3 million, or 7.3%, from $17.4 million at December 31, 2022. During the third quarter, we repurchased and cancelled 302,919,223 shares of our common stock for a purchase price of $2,922,380 or an average of $0.00964739 per share, resulting in an 11.5% decrease in common shares issued and outstanding. The purchase price balance is payable in a series of equal quarterly payments over eight (8) consecutive quarters.
Operating Subsidiaries
iGenius net revenue in the third quarter of 2023 was $16.3 million, an increase of $4.1 million or 33.6% over the comparable period in 2022; with the increase attributable to a $4.3 million or 36.3% increase in subscription revenue, partially offset by a $0.2 million decrease in ndau sales. Growth in the third quarter was attributable to continued product enhancements and expansion into new markets globally, resulting in substantial growth in our membership. Net revenue for the nine months ended September 30, 2023 was $42.2 million, an increase of $4.2 million or 11.1% over the comparable period in 2022.
SAFETek net revenue in the third quarter of 2023 was $2.9 million, an increase of $0.1 million or 3.0% over the comparable period in 2022. Net revenue for the nine months ended September 30, 2023 was $7.8 million, a decrease of $1.7 million or 18.0% over the comparable period in 2022. The nine month decrease of 18.0% in net revenue was the result of a 17% decrease in the average value of Bitcoin, a 67% increase in the average Bitcoin mining difficulty levels, the migration of mining servers to a new data center and increased power and hosting costs, partially offset by the replacement of older less efficient Bitcoin mining equipment with new generation higher performing miners.
Operational Highlights
The Company continues to expand its Bitcoin mining operations. During the nine-month period ended September 30, 2023, SAFETek, our Blockchain technology subsidiary, completed the expansion of its mining operations through the deployment of its new next-generation of miners. By doing so, the Company continued to deliver on its initiative to use low-carbon and renewable energy sources in its mining operations. With the new mining server expansion completed and fully deployed, SAFETek has all its mining servers operating from 100% renewable energy sources and the latest generation and highest efficiency mining technology. This expansion not only increased SAFETek’s total operational hash rate capacity to approximately 480+ Petahash per Second (equal to .480 EH/s Exahash per Second), representing a nearly 50% increase in operational hash rate to SAFETek’s online hash rate capacity; but also significantly reduced its direct operating costs.
iGenius also continued to gain momentum during the third quarter as a result of product and sales training events in the U.S., Canada, and Europe. These distributor-led events were attended by thousands of iGenius community members and promoted the iGenius platform of education to the self-directed investor. The primary goal of these events is to invite people from around the world to learn firsthand about iGenius, which leads to stronger customer acquisition.
In the fourth quarter, iGenius expects to continue to deliver on its growth strategy, with plans to launch a new innovative product that it believes will resonate in its global markets and align with consumer trends and preferences.
Company CFO, Ralph Valvano, commented, "After a bit of a slow start to the year, we accelerated our progress in the second and third quarters primarily due to a few key factors: (i) growth in SAFETek's overall hash rate(ii) SAFETek’s execution of cost reductions and improved efficiency strategies (iii) increased marketing for iGenius and (iv) growth of 33.6% in the iGenius's subscription revenue, due to product enhancements and expansion into new markets globally, resulting in substantial growth in our subscription business. In addition to our operational progress, we also improved our financial position during the quarter. We exited the quarter with $22.5 million in unrestricted cash and cash equivalents up $2.2 million or 10.8%, and net cash provided by operating activities of $5.8 million for the nine months ended 2023.”
Mr. Valvano added, “We have experienced significant revenue growth this quarter and continue to recognize positive net income from operations and an increase in stockholders’ equity, despite industry headwinds and non-recurring operating costs. We continue to manage our balance sheet by investing in new next-generation equipment, paying down debt, while maintaining a strong liquid cash position. In addition, during the third quarter, we continued to use our capital opportunistically by repurchasing and cancelling 302,919,223 shares of our common stock for a purchase price of $2,922,380, or an average of $0.00964739 per share, resulting in an 11.5% decrease in common shares issued and outstanding. We continue to remain laser focused on optimizing operations across both our SAFETek mining and high-performance computing, as well as our iGenius business. Our conservative approach to managing our balance sheet continues to be paramount for us at Investview. We remain steadfastly committed to effectively managing capital in today’s challenging environment and believe we are well positioned to deliver shareholder value going forward in the fourth quarter of 2023 and beyond.”
Investview Chief Executive Officer Victor M. Oviedo commented, “During the third quarter of 2023 we experienced a period of strong momentum marked by several transformational milestones for Investview; with SAFETek and the Bitcoin industry emerging from the depths of the downturn as macro conditions became incrementally more favorable. As we progress in 2023, we remain committed to sustaining a strong balance sheet while adopting a more opportunistic approach to capitalize on compelling value propositions in the market. As part of our 2023-24 growth initiatives, we plan to introduce new business channels which we intend on delivering from both internally developed business channels as well as from potential new acquisitions, which are expected to complement and be highly synergistic to our existing assets and business channels. Moving forward, we will continue to focus on what we can control and setting the stage for long-term value creation for all Investview stakeholders.”
About Investview, Inc.
Investview, Inc., a Nevada corporation , a financial technology (FinTech) services company, operates two different businesses, including a Financial Education and Technology business that delivers a series of products and services involving financial education, digital assets and related technology, through a network of independent distributors; and a Blockchain Technology and Crypto Mining Products and Services business including leading-edge research, development and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets. We also intend to develop a Brokerage and Financial Markets business by identifying potential acquisitions within the investment management and brokerage industries in order to, among other things, commercialize on the proprietary trading platform we acquired in September 2021. For more information on Investview, please visit: www.investview.com.
Forward-Looking Statement
All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may,” “should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. These forward-looking statements are based on Investview’s current beliefs and assumptions and information currently available to Investview and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Statements made by the Company regarding the operating speed and capacity of its mining servers are based solely on the Company’s reliance on the manufacturer’s technical specifications. Our forward-looking statements also assume that we will be able to develop an investment management and brokerage businesses through acquisitive efforts, although there can be no assurance that we will be able to locate, or secure financing sufficient to acquire, one or more suitable acquisition targets within this business sector; particularly given the inability to secure FINRA consent on an aborted acquisition within the brokerage industry during 2022. More information on potential factors that could affect Investview’s financial results is included from time to time in Investview’s public reports filed with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year-ended December 31, 2021, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements made in this release speak only as of the date of this release, and Investview, Inc. assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
Investor Relations
Contact: Ralph R. Valvano
Phone Number: 732.889.4300
Email: pr@investview.com
Reconciliation of Gross Revenue to Net Revenue
(unaudited)
As used in this report, Gross Revenues are not a measure of financial performance under United States Generally Accepted Accounting Principles (“GAAP”). Gross Revenues are presented as they are used by management to understand the total revenue before certain items such as refunds, incentives, credits, chargebacks, and amounts paid to third party providers. The non-GAAP Gross Revenue measure is a supplement to the GAAP financial information. A reconciliation between Gross Revenue (non-GAAP) and Net Revenue is presented in the table below.
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the nine months ended September 30, 2023 is as follows:
|
| Subscription |
|
| Cryptocurrency Revenue |
|
| Mining Revenue |
|
| Miner Repair Revenue |
|
| Total |
| |||||
Gross billings/receipts |
| $ | 45,284,739 |
|
| $ | 990,785 |
|
| $ | 7,798,279 |
|
| $ | 23,378 |
|
| $ | 54,097,181 |
|
Refunds, incentives, credits, and chargebacks |
|
| (3,625,554 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (3,625,554 | ) |
Amounts paid to providers |
|
| - |
|
|
| (477,500 | ) |
|
| - |
|
|
| - |
|
|
| (477,500 | ) |
Net revenue |
| $ | 41,659,185 |
|
| $ | 513,285 |
|
| $ | 7,798,279 |
|
| $ | 23,378 |
|
| $ | 49,994,127 |
|
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the nine months ended September 30, 2022 is as follows:
|
| Subscription |
|
| Cryptocurrency Revenue |
|
| Mining Revenue |
|
| Miner Repair Revenue |
|
| Digital Wallet Revenue |
|
| Total |
| ||||||
Gross billings/receipts |
| $ | 39,087,141 |
|
| $ | 2,548,316 |
|
| $ | 9,412,751 |
|
| $ | 123,621 |
|
| $ | 7,157 |
|
| $ | 51,178,986 |
|
Refunds, incentives, credits, and chargebacks |
|
| (2,428,351 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (2,428,351 | ) |
Amounts paid to providers |
|
| - |
|
|
| (1,239,507 | ) |
|
| - |
|
|
| - |
|
|
| (1,289 | ) |
|
| (1,240,796 | ) |
Net revenue |
| $ | 36,658,790 |
|
| $ | 1,308,809 |
|
| $ | 9,412,751 |
|
| $ | 123,621 |
|
| $ | 5,868 |
|
| $ | 47,509,839 |
|
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended September 30, 2023 is as follows:
|
| Subscription |
|
| Cryptocurrency Revenue |
|
| Mining Revenue |
|
| Total |
| ||||
Gross billings/receipts |
| $ | 17,499,805 |
|
| $ | 258,466 |
|
| $ | 2,905,182 |
|
| $ | 20,663,453 |
|
Refunds, incentives, credits, and chargebacks |
|
| (1,381,813 | ) |
|
| - |
|
|
| - |
|
|
| (1,381,813 | ) |
Amounts paid to providers |
|
| - |
|
|
| (112,000 | ) |
|
| - |
|
|
| (112,000 | ) |
Net revenue |
| $ | 16,117,992 |
|
| $ | 146,466 |
|
| $ | 2,905,182 |
|
| $ | 19,169,640 |
|
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended September 30, 2022 is as follows:
|
| Subscription |
|
| Cryptocurrency Revenue |
|
| Mining Revenue |
|
| Miner Repair Revenue |
|
| Digital Wallet Revenue |
|
| Total |
| ||||||
Gross billings/receipts |
| $ | 12,638,375 |
|
| $ | 673,933 |
|
| $ | 2,777,634 |
|
| $ | 43,511 |
|
| $ | - |
|
| $ | 16,133,454 |
|
Refunds, incentives, credits, and chargebacks |
|
| (814,794 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (814,794 | ) |
Amounts paid to providers |
|
| - |
|
|
| (322,500 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (322,500 | ) |
Net revenue |
| $ | 11,823,581 |
|
| $ | 351,433 |
|
| $ | 2,777,634 |
|
| $ | 43,511 |
|
| $ | - |
|
| $ | 14,996,159 |
|
