Blackboxstocks Announces Fourth Quarter and Year End 2022 Financial Results

Rhea-AI Summary

Blackboxstocks Inc. (NASDAQ: BLBX) reported its financial results for Q4 and the full year ended December 31, 2022. In Q4, total revenue decreased to $1,068,158 from $1,687,236 in Q4 2021, marking a decline for the full year as well, where revenue fell to $4,959,109 from $6,112,324. The company’s average member count also dropped, averaging 4,607 in Q4 2022, down from 5,749 in Q4 2021. Adjusted EBITDA showed losses of $(1,034,565) for Q4 and $(4,140,195) for the year. As of December 31, 2022, cash and marketable securities totaled $3.6 million. Despite these challenges, the CEO expressed optimism for 2023, indicating a shift towards a B2B strategy and the launch of a new app targeted at self-directed investors.

Positive

• CEO expressed optimism for 2023 with plans for a new B2B strategy.
• Expected launch of Stock Nanny, a mobile app targeting self-directed investors.

Negative

• Total revenue decreased by 37.4% in Q4 and 19% for the year.
• Average member count declined from 5,749 in Q4 2021 to 4,607 in Q4 2022.
• Adjusted EBITDA losses increased significantly year-over-year.

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
For the Years Ended December 31, 2002 and 2021
		For the three months ended								For the year ended
		December 31,								December 31,
		2022				2021				2022				2021
Revenue		$	1,068,158			$	1,687,236			$	4,959,109			$	6,112,324
Cost of revenue			508,499				576,402				2,080,879				1,851,355
Gross margin		$	559,659			$	1,110,834			$	2,878,230			$	4,260,969
Operating expenses:			1,717,464				2,917,354				7,424,256				6,538,808
Operating income (loss)		$	(1,157,805	)		$	(1,806,520	)		$	(4,546,026	)		$	(2,277,839	)
Other expense			(4,907	)			72,459				473,856				337,897
Net loss		$	(1,152,898	)		$	(1,878,979	)		$	(5,019,882	)		$	(2,615,736	)
Adjusted EBITDA		$	(1,034,565	)		$	(848,373	)		$	(4,140,195	)		$	(1,784,723	)
Adjusted EBITDA Calculation
Net loss		$	(1,152,898	)		$	(1,878,979	)		$	(5,019,882	)		$	(2,615,736	)
Adjustments:
Depreciation and amortization expense			6,082				5,256				16,646				14,465
Interest and financing expense			18,976				84,171				145,138				383,014
Investment (income) loss			(23,883	)			21,693				352,601				-
Stock based compensation			117,158				919,486				365,302				433,534
Total adjustments		$	118,333			$	1,030,606			$	879,687			$	831,013
Adjusted EBITDA		$	(1,034,565	)		$	(848,373	)		$	(4,140,195	)		$	(1,784,723	)

Blackboxstocks Inc.
Summary Balance Sheet Data
As of December 31, 2022 and 2021
		December 31, 2022				December 31, 2021
Assets
Cash		$	425,578			$	2,426,497
Marketable securities			3,216,280				8,015,882
Other current assets			265,197				259,592
Total current assets		$	3,907,055			$	10,701,971
Property and equipment, net			428,726				448,143
Total assets		$	4,335,781			$	11,150,114
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	730,099			$	585,615
Unearned subscriptions		$	1,022,428			$	1,302,036
Other current liabilities		$	71,615			$	69,174
Note payable, current portion		$	28,733			$	971,851
Total current liabilities		$	1,852,875			$	2,928,676
Long term liabilities:
Note payable, net of current portion		$	39,614			$	68,347
Lease liability right of use, long term		$	265,639			$	335,641
Total long term liabilities		$	305,253			$	403,988
Total stockholders' equity		$	2,177,653			$	7,817,450
Total liabilities and stockholders' equity		$	4,335,781			$	11,150,114

Tags:SOFTWARE-APPLICATION TECHNOLOGY

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Investors@blackboxstocks.com

PCG Advisory

Stephanie Prince

(646) 863-6341

sprince@pcgadvisory.com

Source: Blackboxstocks Inc.

FAQ

What were Blackboxstocks' Q4 2022 earnings results?

Blackboxstocks reported Q4 2022 revenue of $1,068,158, down from $1,687,236 in Q4 2021, with a net loss of $1,152,898.

How did Blackboxstocks perform in 2022?

In 2022, Blackboxstocks generated $4,959,109 in revenue, a decline from $6,112,324 in 2021, resulting in a net loss of $5,019,882.

What is Blackboxstocks' future outlook for 2023?

The company plans to focus on a new B2B strategy and launch the Stock Nanny app, aiming for growth in the self-directed investor market.

What is Blackboxstocks' stock symbol?

Blackboxstocks trades under the stock symbol BLBX on NASDAQ.