Ault Alliance Announces Record Preliminary 2023 Revenue of $153 Million, up 30% from 2022
- Record revenue of $153.0 million for 2023, a 30% increase from the previous year
- Significant growth in Sentinum's data center and Bitcoin mining revenue (97% increase)
- Impressive revenue growth in Circle 8 Crane Services (1696% increase)
- Giga-tronics, Inc. experienced a 25% revenue growth
- Strategic positioning of Sentinum and Ault Capital Group for future growth
- Focus on monetizing assets and optimizing operations for profitability
- None.
Insights
The reported 30% increase in annual revenue for Ault Alliance is a significant indicator of the company's growth trajectory. This performance is particularly noteworthy given the exclusion of AGREE's discontinued operations. The revenue growth is not merely incremental but also reflects the company's strategic refocusing, as seen with the 97% growth in Sentinum's data center and Bitcoin mining operations and the massive 1696% increase in Circle 8's revenue.
From a financial perspective, the diversified nature of Ault Alliance's portfolio, including its presence in the defense industry through GIGA's 25% revenue growth, suggests a robust business model capable of weathering sector-specific downturns. This diversification could be appealing to investors looking for a blend of stability and high-growth potential.
Moreover, the company's mention of an uptick in Bitcoin prices and its impact on Sentinum's future prospects highlights a volatile but potentially lucrative aspect of its operations. However, it is essential to note that reliance on cryptocurrency markets introduces a degree of risk and unpredictability that should be considered when evaluating the company's long-term financial health.
The strategic reorganization of Ault Alliance into two subsidiaries, Sentinum and Ault Capital Group, is a move that could streamline operations and sharpen the company's focus. For stakeholders, this reorganization might signal a more efficient allocation of resources and a clearer narrative for the company's growth strategy, potentially leading to better market performance.
However, it is crucial to consider the broader market context. The impressive growth in Circle 8's revenue, attributed to a full year of ownership, suggests successful integration of acquisitions. This is a positive sign for investors, as it demonstrates the company's ability to effectively scale its operations post-acquisition. Yet, the sustainability of such high growth rates will be a key factor to watch in subsequent financial periods.
The substantial growth in revenue from Sentinum's Bitcoin mining operations reflects the increasing relevance of cryptocurrency in the broader economy. The company's performance in this area is likely influenced by the fluctuating price of Bitcoin, which has historically shown significant volatility. While the current uptick in Bitcoin prices has been beneficial, future revenue projections in this segment should account for potential cryptocurrency market fluctuations.
Furthermore, as Bitcoin mining becomes more competitive and complex and concerns about its environmental impact grow, companies like Ault Alliance may face increased operational costs and regulatory scrutiny. These factors could affect profitability and should be factored into any long-term strategic planning.
Full year 2023 highlights include:
-
Preliminary revenue for the year ended December 31, 2023 increased by
$35.4 million 30% , to a record$153.0 million $117.6 million - Revenue excludes results from discontinued operations at Ault Global Real Estate Equities, Inc. (“AGREE”) as Company’s real estate properties, which include recently renovated hotels and land, met the criteria for classification as held for sale;
-
Revenue for the year ended December 31, 2023 would have been
$169.2 million -
Sentinum, Inc. (“Sentinum”) data center and Bitcoin mining revenue grew approximately
97% from the prior period from$17.8 million $34.5 million -
Circle 8 Crane Services, LLC (“Circle 8”) revenue growth of approximately
1696% from the prior period from$2.7 million $49.2 million -
Giga-tronics, Inc. (“GIGA”), a defense industry company, had revenue growth of approximately
25% from the prior fiscal year from$30.3 million $37.8 million
Revenues by segment for the twelve months ended December 31, 2023, were as follows:
Segment |
|
2023 |
|
|
2022 |
|
Sentinum |
$ |
34,523,000 |
$ |
17,798,000 |
||
Ault Capital Group |
|
118,488,000 |
|
|
99,839,000 |
|
Total revenue |
$ |
153,011,000 |
|
$ |
117,637,000 |
|
AGREE (discontinued operations) |
$ |
16,161,000 |
|
$ |
16,697,000 |
|
Total including AGREE |
$ |
169,172,000 |
|
$ |
134,334,000 |
|
Milton “Todd” Ault III, Founder and Executive Chairman of Ault Alliance, reflected on the year-over-year growth, saying, “The Company continues to post strong year-over-year revenue growth. This year, we are pleased to announce that our operations now report under two subsidiaries, Sentinum and Ault Capital Group, to better reflect our diverse and strategic interests. Sentinum’s focus on data center operations and Bitcoin mining, along with Ault Capital Group’s management of our varied operating companies and investments, positions us to better capitalize on the opportunities for our asset base.”
“Additionally, the recent uptick in Bitcoin prices has positively impacted our outlook, enhancing the future prospects for Sentinum and, by extension, the company as a whole. We have previously announced plans to focus on properly monetizing our existing asset base and unlocking the true value of our assets through streamlining operations and maintaining a focus on profitability at each entity. The Company has experienced massive growth over the last three years and will concentrate on digesting this growth and optimizing operations while being attentive stewards of our asset base.”
For more information on Ault Alliance and its subsidiaries, Ault Alliance recommends that stockholders, investors, and any other interested parties read Ault Alliance’s public filings and press releases available under the Investor Relations section at www.Ault.com or at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, Ault Alliance owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including a metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. In addition, Ault Alliance extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240,
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the
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Ault Alliance Investor Contact:
IR@Ault.com or 1-888-753-2235
Source: Ault Alliance, Inc.
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