TECH - TAAL Distributed Information Technologies (TAALF) - Strong 3Q21 Raising PT
3Q21 Results. TAAL had previously pre-announced 3Q revenue in the $11.5-$12.0 million (CAD) range. Actual revenue came in at $12.4 million, with income before value adjustments of $8.0 million, adjusted EBITDA of $3.9 million, and net income of $2.1 million, or $0.05 per share. We had projected revenue of $8 million, income before value adjustments of $4.8 million, and a net loss of $725,000, or $0.02 per share. Transactions. TAAL processed over 52 million transactions on BSV in the quarter, earning $411,000 from transaction processing fees in the quarter, or 3% of total revenue. While mining continues to be the near-term revenue driver, we expect transaction fees to be the long-term value driver of the stock.Additional Power Coming. The Company expects to begin receiving the first of the additional 4,000 mining units this quarter, with the units coming on-line in stages between December and April of next year. The additional units should drive a significant increase in revenues in 2022. The equipment should fit in nicely with the just announced facility in New Brunswick.Updated Projections. Given the strong 3Q performance, we are raising our Q4 estimates. For Q4 we are now projecting revenue of $13.6 million, up from our prior $11.0 million, and our EPS estimate of $2.6 million, or $0.06 per share, up from a previous $1.075 million, or $0.03 per share. For the full year, we are now at $33.5 million of revenue and a net loss of $0.9 million, or $0.02 per share. With the additional mining units coming on-line in 2022, we believe 2022 revenue could jump to $85.2 million, with net income of $25.3 million, or $0.55 per share, if our operating leverage expectations are met.Maintaining Outperform. We are maintaining our Outperform rating and raising our 12-month price target to US$7.00, up from a previous US$6.00. 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 >>