TECH - TAAL Distributed Information Technologies (TAALF) - Preliminary 3Q21 Revenue well In Excess of Estimate
Preliminary 3Q21 Revenue. Yesterday, TAAL Distributed Information Technologies announced preliminary 3Q21 revenue guidance of $11.5 million to $12 million. The preliminary guidance represents an approximate 70% sequential increase from $6.7 million in 2Q21. The guidance is significantly above our projected 3Q21 revenue estimate of $8.0 million and exceeds our 4Q21 revenue projection of $11.0 million. We will update our model once the Company releases full 3Q21 operating results (which was in November last year).Outperformance Drivers. The revenue increase was driven by strong transaction processing performance and capacity increases. More transactions and larger volumes benefited the quarter. Significantly, transaction fees exceeded block subsidy rewards on several blocks on the BSV network during August, validating the Company's thesis of building the transaction processing and indexing infrastructure for the data-driven economy. Recall, in July TAAL earned 371 BSV from transaction processing fees and 737 in the first three weeks of August, up from 105 and 138, in May and June, respectively.CryptoFights. Blockchain game CryptoFights is driving transaction volume on the BSV network, to the benefit of TAAL. CryptoFights has grown its player base to more than 100,000 and is anticipating doing “millions of transactions very soon” on the BSV network. Many of CryptoFights’ transactions cost less than $0.01, making it incredibly attractive for gamers across the world.WhatsonChain. The first-ever BSV blockchain explorer. WhatsonChain continues to deliver on its promise to be the world’s BSV block explorer and data provider and has attracted a record 156.5 million web and API requests so far in Q3.Maintaining Outperform. We are maintaining our Outperform rating and $6.00 12-month price target. We believe the Company's focus on using blockchain for transaction processing will bring long-term value, while crypto mining services provide near-term revenue and an option on rising prices for Bitcoin SV. Read More >>