BLBX - Blackboxstocks Announces Third Quarter 2022 Financial Results
Conference Call Tuesday, November 15, 2022 at 10:30am EST / 9:30am CST
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 third quarter and nine months of 2022, ended September 30, 2022.
Third Quarter 2022 Financial and Operating Highlights:
- Total revenue for the third quarter was $1,219,150 as compared to $1,471,814 for the same period in 2021. Nine month revenue was $3,890,951 compared to $4,425,088 for the same period in 2021.
- The average member count for the quarter and nine months ended September 30, 2022 was 5,197 and 5,695 compared to 5,535 and 5,503 for the quarter and nine months ended September 30, 2021, respectively.
- Adjusted EBITDA was $(1,075,690) and $(27,230) for the three months ended September 30, 2022 and 2021, respectively. Adjusted EBITDA for the nine months ended September 30, 2022 and 2021 was ($3,006,273) and $10,085 respectively.
- Cash and marketable securities totaled $5.4 million at September 30, 2022.
- During the first nine months of 2022, the Company repurchased 615,748 shares of BLBX common stock at a total cost of $1,065,216 under the Company’s $2.5 million share repurchase program that was announced in January 2022.
Gust Kepler, Chief Executive Officer, commented, “In the third quarter, our financial results were again negatively impacted by uncertain economic conditions and volatile stock market activity. However, our subscriber base remains strong and loyal, and we continue to invest in the development of new products as well as feature upgrades to our existing platform to ensure it remains best in class.”
“We are particularly excited about one of our new products, Stock Nanny, which is expected to be released in the first quarter of 2023. Stock Nanny 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 parallel, we are also developing an enhanced version of the Blackbox platform designed for professional traders and financial institutions, including broker dealers, RIA’s, family offices, and hedge funds. We are extremely excited about these new products as well as the ongoing platform enhancements. We believe that these initiatives will position us well for growth and better insulate the Company’s revenue from market turbulence in the future.”
Robert Winspear, Chief Financial Officer, added, “Our promotions during the year have resulted in slightly higher average subscriber counts, although the discounts negatively impacted revenue for the year to date, and this quarter in particular. The lower revenue, combined with additional expenditures for new product development, upgrades to our platform, and other operational expenses, drove the decline in EBITDA for the third quarter and first nine months of the year.”
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 November 14, 2022 for additional information.
Conference Call and Webcast Information
Blackboxstocks will hold a quarterly conference call to discuss its third quarter 2022 financial results today, Tuesday November 15, 2022 at 10:30am EST / 9:30am CST. To participate, please call (877) 317- 6789 at least 10 minutes prior to the start of the call and ask to join the Blackboxstocks call.
A simultaneous webcast of the call may be accessed through the Company's website, www.blackboxstocks.com , or at https://event.choruscall.com/mediaframe/webcast.html?webcastid=JlDd17yz
A replay of the call will be available at (877) 344-7529, access code 1349731, through November 22, 2022. The call will also be available for replay on the Company’s website, www.blackboxstocks.com , for one year.
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: www.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.
| Blackboxstocks Inc. |
| Summary Statements of Operations |
| For the Three and Nine Months Ended September 30,2022 and 2021 |
| (Unaudited) |
| For the three months ended |
| For the nine months ended |
| September 30, |
| September 30, |
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| Revenue |
| $ |
| 1,219,150 |
|
|
| $ |
| 1,471,814 |
|
|
| $ |
| 3,890,951 |
|
|
| $ |
| 4,425,088 |
|
|
| Cost of revenue |
|
|
| 492,991 |
|
|
|
|
| 469,601 |
|
|
|
|
| 1,572,380 |
|
|
|
|
| 1,274,953 |
|
|
| Gross margin |
| $ |
| 726,159 |
|
|
| $ |
| 1,002,213 |
|
|
| $ |
| 2,318,571 |
|
|
| $ |
| 3,150,135 |
|
|
| Operating expenses: |
|
|
| 1,924,460 |
|
|
|
|
| 1,501,142 |
|
|
|
|
| 5,706,792 |
|
|
|
|
| 3,621,454 |
|
|
| Operating income (loss) |
| $ |
| (1,198,301 |
| ) |
| $ |
| (498,929 |
| ) |
| $ |
| (3,388,221 |
| ) |
| $ |
| (471,319 |
| ) |
| Other expense |
|
|
| 110,141 |
|
|
|
|
| 7,047 |
|
|
|
|
| 478,763 |
|
|
|
|
| 265,438 |
|
|
| Net loss |
| $ |
| (1,308,442 |
| ) |
| $ |
| (505,976 |
| ) |
| $ |
| (3,866,984 |
| ) |
| $ |
| (736,757 |
| ) |
| Adjusted EBITDA |
| $ |
| (1,075,690 |
| ) |
| $ |
| (27,230 |
| ) |
| $ |
| (3,006,273 |
| ) |
| $ |
| 10,085 |
|
|
| Adjusted EBITDA Calculation |
| Net loss |
| $ |
| (1,308,442 |
| ) |
| $ |
| (505,976 |
| ) |
| $ |
| (3,866,984 |
| ) |
| $ |
| (736,757 |
| ) |
| Adjustments: |
| Depreciation and amortization expense |
|
|
| 5,521 |
|
|
|
|
| 4,760 |
|
|
|
|
| 16,646 |
|
|
|
|
| 14,465 |
|
|
| Interest and financing expense |
|
|
| 41,339 |
|
|
|
|
| 40,452 |
|
|
|
|
| 126,162 |
|
|
|
|
| 298,843 |
|
|
| Investment loss |
|
|
| 68,802 |
|
|
|
|
| - |
|
|
|
|
| 352,601 |
|
|
|
|
| - |
|
|
| Stock based compensation |
|
|
| 117,090 |
|
|
|
|
| 433,534 |
|
|
|
|
| 365,302 |
|
|
|
|
| 433,534 |
|
|
| Total adjustments |
| $ |
| 232,752 |
|
|
| $ |
| 478,746 |
|
|
| $ |
| 860,711 |
|
|
| $ |
| 746,842 |
|
|
| Adjusted EBITDA |
| $ |
| (1,075,690 |
| ) |
| $ |
| (27,230 |
| ) |
| $ |
| (3,006,273 |
| ) |
| $ |
| 10,085 |
|
|
| Blackboxstocks Inc. |
| Summary Balance Sheet Data |
| As of September 30, 2022 and December 31, 2021 |
| (Unaudited) |
| September 30, 2022 |
| December 31, 2021 |
| Assets |
| Cash |
| $ |
| 643,528 |
| $ |
| 2,426,497 |
| Marketable securities |
|
|
| 4,713,028 |
|
|
| 8,015,882 |
| Other current assets |
|
|
| 149,686 |
|
|
| 259,592 |
| Total current assets |
| $ |
| 5,506,242 |
| $ |
| 10,701,971 |
| Property and equipment, net |
|
|
| 450,678 |
|
|
| 448,143 |
| Total assets |
| $ |
| 5,956,920 |
| $ |
| 11,150,114 |
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
| $ |
| 738,710 |
| $ |
| 585,615 |
| Unearned subscriptions |
| $ |
| 638,305 |
| $ |
| 1,302,036 |
| Other current liabilities |
| $ |
| 77,898 |
| $ |
| 69,174 |
| Note payable, current portion |
| $ |
| 922,007 |
| $ |
| 971,851 |
| Total current liabilities |
| $ |
| 2,376,920 |
| $ |
| 2,928,676 |
| Long term liabilities: |
| Note payable, net of current portion |
| $ |
| 46,823 |
| $ |
| 68,347 |
| Lease liability right of use, long term |
| $ |
| 282,625 |
| $ |
| 335,641 |
| Total long term liabilities |
| $ |
| 329,448 |
| $ |
| 403,988 |
| Total stockholders' equity |
| $ |
| 3,250,552 |
| $ |
| 7,817,450 |
| Total liabilities and stockholders' equity |
| $ |
| 5,956,920 |
| $ |
| 11,150,114 |
Tags:
SOFTWARE-APPLICATION TECHNOLOGY
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PCG Advisory
Stephanie Prince
(646) 863-6341
sprince@pcgadvisory.com