DALLAS--(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 fourth quarter and year ended December 31, 2022.
Fourth Quarter and Year End 2022 Financial and Operating Highlights:
- Total revenue for the fourth quarter was $1,068,158 compared to $1,687,236 for the same period in 2021. Revenue for the year ended December 31, 2022 was $4,959,109 compared to $6,112,324 for the prior year.
- The average member count for the fourth quarter and year ended December 31, 2022 was 4,607 and 5,420 compared to 5,749 and 5,565 for the fourth quarter and year ended December 31, 2021, respectively.
- Adjusted EBITDA was $(1,034,565) and $(4,140,195) for the three months and year ended December 31, 2022, respectively. Adjusted EBITDA for the three months and year ended December 31, 2021 was $(848,373) and $(1,784,723), respectively.
- Cash and marketable securities totaled $3.6 million at December 31, 2022.
Gust Kepler, Chief Executive Officer, commented, “2022 proved to be a challenging year for equity markets, fintech companies and NASDAQ micro-cap companies, all three of which apply to Blackbox. A recent Wall Street Journal article cited a significant decline in revenue for subscription model businesses as consumer’s budgets tightened due to inflation. The poor macro-economic environment not only adversely impacted our revenue and overall business, but our stockholders were also impacted by declines in the microcap market. Despite the challenges we faced in 2022, we remain optimistic about our prospects for 2023.”
“We plan to implement a new strategy in 2023 which includes marketing our existing technology on an enterprise level to brokerages and other fintech platforms. We believe that this new B2B strategy will allow us to leverage our existing relationships with our brokerage partners as well as with new prospects, providing us a new opportunity for growth outside of our current B2C market. We are particularly excited about our new product Stock Nanny, which is a mobile application for the self-directed investor, a market demographic that is exponentially larger than the day-trader segment we currently serve. We have invested a significant amount of working capital in the development of this product as well as improvements to our core product.”
Robert Winspear, Chief Financial Officer, added, “Blackbox ran several promotions with deep discounts on our subscriptions during 2022 which helped keep the average subscriber count only slightly below the 2021 count, although they had a much larger impact on revenue and gross margin which, when combined with our strong investment in development, led to a decline in EBITDA. We project improved results in 2023 based on our new products, revised marketing and reductions in expenses, including software development.”
Summary financial data is presented in the tables below. Please see the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission on April 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 Statements of Operations |
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For the Years Ended December 31, 2002 and 2021 |
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For the three months ended |
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For the year ended |
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December 31, |
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December 31, |
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2022 |
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2021 |
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2022 |
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2021 |
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| Revenue | $ |
1,068,158 |
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$ |
1,687,236 |
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$ |
4,959,109 |
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$ |
6,112,324 |
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| Cost of revenue |
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508,499 |
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576,402 |
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2,080,879 |
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1,851,355 |
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| Gross margin | $ |
559,659 |
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$ |
1,110,834 |
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$ |
2,878,230 |
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$ |
4,260,969 |
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| Operating expenses: |
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1,717,464 |
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2,917,354 |
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7,424,256 |
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6,538,808 |
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| Operating income (loss) | $ |
(1,157,805 |
) |
$ |
(1,806,520 |
) |
$ |
(4,546,026 |
) |
$ |
(2,277,839 |
) |
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| Other expense |
|
(4,907 |
) |
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72,459 |
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|
473,856 |
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337,897 |
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| Net loss | $ |
(1,152,898 |
) |
$ |
(1,878,979 |
) |
$ |
(5,019,882 |
) |
$ |
(2,615,736 |
) |
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| Adjusted EBITDA | $ |
(1,034,565 |
) |
$ |
(848,373 |
) |
$ |
(4,140,195 |
) |
$ |
(1,784,723 |
) |
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| Adjusted EBITDA Calculation | ||||||||||||||||
| Net loss | $ |
(1,152,898 |
) |
$ |
(1,878,979 |
) |
$ |
(5,019,882 |
) |
$ |
(2,615,736 |
) |
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| Adjustments: | ||||||||||||||||
| Depreciation and amortization expense |
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6,082 |
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5,256 |
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16,646 |
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14,465 |
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| Interest and financing expense |
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18,976 |
|
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84,171 |
|
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145,138 |
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383,014 |
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| Investment (income) loss |
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(23,883 |
) |
|
21,693 |
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352,601 |
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- |
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| Stock based compensation |
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117,158 |
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919,486 |
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365,302 |
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433,534 |
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| Total adjustments | $ |
118,333 |
|
$ |
1,030,606 |
|
$ |
879,687 |
|
$ |
831,013 |
|
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| Adjusted EBITDA | $ |
(1,034,565 |
) |
$ |
(848,373 |
) |
$ |
(4,140,195 |
) |
$ |
(1,784,723 |
) |
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Blackboxstocks Inc. |
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Summary Balance Sheet Data |
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As of December 31, 2022 and 2021 |
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December 31, 2022 |
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December 31, 2021 |
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| Assets | ||||||||
| Cash | $ |
425,578 |
$ |
2,426,497 |
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| Marketable securities |
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3,216,280 |
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8,015,882 |
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| Other current assets |
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265,197 |
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259,592 |
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| Total current assets | $ |
3,907,055 |
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$ |
10,701,971 |
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| Property and equipment, net |
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428,726 |
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448,143 |
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| Total assets | $ |
4,335,781 |
|
$ |
11,150,114 |
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| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
730,099 |
|
$ |
585,615 |
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| Unearned subscriptions | $ |
1,022,428 |
|
$ |
1,302,036 |
|
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| Other current liabilities | $ |
71,615 |
|
$ |
69,174 |
|
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| Note payable, current portion | $ |
28,733 |
|
$ |
971,851 |
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| Total current liabilities | $ |
1,852,875 |
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$ |
2,928,676 |
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| Long term liabilities: | ||||||||
| Note payable, net of current portion | $ |
39,614 |
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$ |
68,347 |
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| Lease liability right of use, long term | $ |
265,639 |
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$ |
335,641 |
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| Total long term liabilities | $ |
305,253 |
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$ |
403,988 |
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| Total stockholders' equity | $ |
2,177,653 |
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$ |
7,817,450 |
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| Total liabilities and stockholders' equity | $ |
4,335,781 |
|
$ |
11,150,114 |
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