Blackboxstocks Announces First Quarter 2022 Financial Results

Rhea-AI Summary

Blackboxstocks Inc. (NASDAQ: BLBX) reported a first-quarter revenue of $1,272,486, down from $1,489,668 in 2021. Adjusted EBITDA was $(893,846), a decline from $149,456 a year earlier. Cash and marketable securities stood at $8.6 million. Despite a first-quarter dip in revenue due to promotional campaigns, total member count increased to 7,400. The company launched a mobile app post-quarter and will develop new products targeting a broader market. Operational costs rose due to investments in development and headcount.

Positive

• Increased total member count to 7,400, reflecting successful promotions.
• Launch of mobile application enhances subscriber experience.
• Strong balance sheet with $8.6 million in cash and securities.

Negative

• First-quarter revenue declined by 14.6% year-over-year.
• Adjusted EBITDA fell significantly to $(893,846) from $149,456.

Conference Call Tomorrow, Tuesday, May 17, 2022 at 10:00am EST / 9:00am CST

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 quarter ended March 31, 2022.

First Quarter 2022 Financial and Operating Highlights:

• Total revenue for the first quarter was $1,272,486 as compared to $1,489,668 for the same period in 2021.
• Adjusted EBITDA was $(893,846) and $149,456 for the three months ended March 31, 2022 and 2021, respectively.
• Cash and marketable securities totaled $8.6 million at March 31, 2022.
• During the first quarter, the Company repurchased 436,600 shares of BLBX common stock at an average price of $1.97 per share under our $2.5 million share repurchase program announced in January 2022.
• Total member count as of March 31, 2022 was 7,400. This number includes new members acquired through our discounted promotion that ended March 31^st and full paid subscribers.
• The average member count for the quarter ended March 31, 2022 was 5,709 compared to 5,575 for the quarter ended March 31, 2021 and 5,748 for the quarter ended December 31, 2021.
• Subsequent to quarter end, the mobile application of the Blackbox platform was released for iOS and Android phones and devices.

Gust Kepler, Chief Executive Officer, commented, “The first quarter of 2022 saw volatile markets, soaring inflation and negative GDP growth which created significant headwinds for the entire financial industry. To combat these macro trends, in March we initiated our first promotional campaign offering a $5 one-month subscription. This promotion introduced our platform to new subscribers and grew our subscriber base, as many people continued their membership beyond the initial promotion period, although it negatively impacted our first quarter revenue.”

“Subsequent to quarter end, we introduced our mobile application for iOS and Android phones and devices. This was an important enhancement for our subscribers who are heading back to the office and now have the same breadth of features and real-time capabilities as our original web-based application. We also announced a joint venture with CoinRoutes to create a platform to provide retail traders with proprietary analytics and superior trading execution in the cryptocurrency markets.”

“Looking ahead, we are developing additional new products. This includes a mobile application for the self-directed investor, which comprises an exponentially larger portion of the market than the day trader community we currently serve. We have also begun development of a professional version of the Blackbox platform for the professional trader segment and institutions. We are extremely excited about these new products as well as the ongoing platform enhancements that we continue to make and believe these will contribute significantly to our growth in 2022 and beyond,” continued Mr. Kepler.

Robert Winspear, Chief Financial Officer, added, “Expenses were higher in the first quarter, reflecting investments in development and headcount to grow and support our platform as well as current inflationary realities. Fortunately, with $8.6 million in cash and securities and low long term debt, we have the balance sheet strength to fund our growth and nimbly pivot our marketing strategies to match industry conditions as we remain focused on growing our core business and continuing to introduce new and innovative products to the market.”

Summary financial data is presented in the tables below. Please see the Company’s Form 10-Q filed with the Securities and Exchange Commission on May 16, 2022 for additional information.

Conference Call and Webcast Information

Blackboxstocks will hold a quarterly conference call to discuss its first quarter 2022 financial results tomorrow, Tuesday, May 17, 2022 at 10:00am EST / 9:00am 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=y3jkHSQp.

A replay of the call will be available at (877) 344-7529, access code 9943017, through May 24, 2022.

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.

Blackboxstocks, Inc.
Summary Statement of Operations
Three months ended March 31
(unaudited)
		2022				2021
Revenues		$	1,272,486			$	1,489,668
Cost of revenues			579,962				395,775
Gross margin			692,524				1,093,893
Operating expenses			1,713,678				948,761
Operating income (loss)			(1,021,154	)			145,132
Other expense:			221,289				132,577
Net income (loss)		$	(1,242,443	)		$	12,555
Adjusted EBITDA		$	(893,846	)		$	149,456
Adjusted EBITDA Calculation
Net income (loss)		$	(1,242,443	)		$	12,555
Adjustments:
Depreciation and amortization expense			5,275				4,324
Interest and financing expense			42,557				132,577
Investment loss			178,732				-
Stock based compensation			122,033				-
Total adjustments		$	348,597			$	136,901
Adjusted EBITDA		$	(893,846	)		$	149,456

Blackboxstocks, Inc
Summary Balance Sheet Data
		March 31, 2022			December 31, 2021
Assets
Cash		$	651,518		$	2,426,497
Marketable securities			7,922,244			8,015,882
Other current assets			120,727			259,592
Total current assets		$	8,694,489		$	10,701,971
Property and equipment:			427,639			448,143
Total assets		$	9,122,128		$	11,150,114
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	700,987		$	585,615
Unearned subscriptions			1,177,701			1,302,036
Other current liabilities			73,038			69,174
Notes payable, current portion, net			955,165			971,851
Total current liabilities		$	2,906,891		$	2,928,676
Long term liabilities:
Notes payable			61,262			68,347
Lease liability right of use, long term			316,547			335,641
Total long term liabilities		$	377,809		$	403,988
Total stockholders' equity		$	5,837,428		$	7,817,450
Total liabilities and stockholders' equity		$	8,744,319		$	10,746,126

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005896/en/

Investors@blackboxstocks.com

PCG Advisory

Stephanie Prince

(646) 863-6341

sprince@pcgadvisory.com

Source: Blackboxstocks Inc.

FAQ

What were Blackboxstocks' first-quarter 2022 financial results?

Blackboxstocks reported a revenue of $1,272,486, and an adjusted EBITDA of $(893,846) for Q1 2022.

How many members does Blackboxstocks have as of March 31, 2022?

As of March 31, 2022, Blackboxstocks had a total member count of 7,400.

What improvements did Blackboxstocks announce in their platform?

Blackboxstocks launched a mobile application for iOS and Android devices and plans to develop new products for self-directed and professional traders.

What is the cash position of Blackboxstocks as of March 31, 2022?

As of March 31, 2022, Blackboxstocks had $8.6 million in cash and marketable securities.

When will Blackboxstocks hold their conference call to discuss financial results?

Blackboxstocks will hold a conference call on May 17, 2022, at 10:00 am EST.