Blackboxstocks Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

Blackboxstocks Inc. (NASDAQ: BLBX) reported second quarter 2022 revenue of $1,399,315, down from $1,463,608 in Q2 2021 but up from $1,272,486 in Q1 2022. Average member count increased to 6,181 from 5,482 year-over-year. Adjusted EBITDA stood at $(1,036,737) versus $(112,141) in the prior year. The company holds $7.1 million in cash and marketable securities. Blackbox launched its mobile app in April and continues to develop new products, including the upcoming Stock Nanny, targeting self-directed investors.

Positive

• Revenue increased 10% compared to Q1 2022.
• Average member count rose to 6,181 from 5,709 in Q1 2022.
• Launch of mobile app in April 2022.
• Strong cash position with $7.1 million in cash and marketable securities.

Negative

• Revenue decreased from $1,463,608 in Q2 2021.
• Adjusted EBITDA loss increased to $(1,036,737) from $(112,141) year-over-year.
• Expenses were higher due to increased product development and marketing.

Conference Call Monday, August 15, 2022 at 4:30pm EST / 3:30pm 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 second quarter and six months ended June 30, 2022.

Second Quarter 2022 Financial and Operating Highlights:

• Total revenue for the second quarter was $1,399,315 as compared to $1,463,608 for the same period in 2021 and $1,272,486 for the first quarter of 2022.
• The average member count for the quarter ended June 30, 2022 was 6,181 compared to 5,482 for the quarter ended June 30, 2021 and 5,709 for the quarter ended March 31, 2022.
• Adjusted EBITDA was $(1,036,737) and $(112,141) for the three months ended June 30, 2022 and 2021, respectively.
• Cash and marketable securities totaled $7.1 million at June 30, 2022.
• During the first six months of 2022, the Company repurchased 499,028 shares of BLBX common stock at a total cost of $945,449 under the Company’s $2.5 million share repurchase program announced in January 2022.
• The mobile application of the Blackbox platform for iOS and Android phones and devices was released in April.

Gust Kepler, Chief Executive Officer, commented, “The economy in the second quarter of 2022 saw continued difficulties which created significant headwinds for the entire financial industry. Despite these challenges we grew our revenue by 10% over the first quarter.

“With the launch of our mobile app completed in April, we continue to invest in the development of new products, refocused marketing efforts, as well as continued improvements to our existing platform to ensure it is best in class.

"We are particularly excited about one of our new products Stock Nanny. This product, which is currently in development, is a mobile application for the self-directed investor, a market demographic that is exponentially larger market than the day trader market we currently serve. In parallel, we are also developing an enhanced version of the Blackbox platform designed for the professional trader segment and financial institutions. We are extremely excited about these new products as well as the ongoing platform enhancements. We believe these new products and the continual upgrades to our core product will contribute significantly to our growth in 2022 and beyond,” continued Mr. Kepler.

Robert Winspear, Chief Financial Officer, added, “Expenses were higher in the second quarter, reflecting investments in product development and marketing initiatives. With $7.1 million in cash and securities and low long-term debt, we believe that we have the balance sheet strength to fund our growth and navigate current industry and economic conditions as we remain focused on continuing to introduce new and innovative products to the market and growing our core business.”

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 August 15, 2022 for additional information.

Conference Call and Webcast Information

Blackboxstocks will hold a quarterly conference call to discuss its second quarter 2022 financial results today, Monday, August 15, 2022 at 4:30pm EST / 3:30pm 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=p6jSB6sx.

A replay of the call will be available at (877) 344-7529, access code 8848750, through August 22, 2022. A replay will also be archived on the Company’s website for one year.

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.

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.

Blackboxstocks Inc.
Summary Statements of Operations
For the Three and Six Months Ended June 30,2002 and 2021
(Unaudited)
		For the three months ended									For the six months ended
		June 30,									June 30,
		2022				2021					2022				2021
Revenue		$	1,399,315			$	1,463,606				$	2,671,801			$	2,953,274
Cost of revenue			499,427				409,577					1,079,389				805,352
Gross margin		$	899,888			$	1,054,029				$	1,592,412			$	2,147,922
Operating expenses:			2,068,654				1,171,551					3,782,332				2,120,312
Operating income (loss)		$	(1,168,766	)		$	(117,522	)			$	(2,189,920	)		$	27,610
Other expense			147,333				125,814					368,622				258,391
Net loss		$	(1,316,099	)		$	(243,336	)			$	(2,558,542	)		$	(230,781	)
Adjusted EBITDA		$	(1,036,737	)		$	(112,141	)			$	(1,930,583	)		$	37,315
Adjusted EBITDA Calculation
Net loss		$	(1,316,099	)		$	(243,336	)			$	(2,558,542	)		$	(230,781	)
Adjustments:
Depreciation and amortization expense			5,850				5,381					11,125				9,705
Interest and financing expense			42,266				125,814					84,823				258,391
Investment loss			105,067				-					283,799				-
Stock based compensation			126,179				-					248,212				-
Total adjustments		$	279,362			$	131,195				$	627,959			$	268,096
Adjusted EBITDA		$	(1,036,737	)		$	(112,141	)			$	(1,930,583	)		$	37,315

Blackboxstocks Inc.
Summary Balance Sheet Data
As of June 30, 2022 and December 31, 2021
(Unaudited)
		June 30, 2022				December 31, 2021
Assets
Cash		$	335,106			$	2,426,497
Marketable securities			6,734,720				8,015,882
Other current assets			139,795				259,592
Total current assets		$	7,209,621			$	10,701,971
Property and equipment, net			437,600				448,143
Total assets		$	7,647,221			$	11,150,114
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	807,465			$	585,615
Unearned subscriptions		$	910,636			$	1,302,036
Other current liabilities		$	74,774			$	69,174
Note payable, current portion		$	938,621			$	971,851
Total current liabilities		$	2,731,496			$	2,928,676
Long term liabilities:
Note payable, net of current portion		$	54,016			$	68,347
Lease liability right of use, long term		$	300,038			$	335,641
Total long term liabilities		$	354,054			$	403,988
Total stockholders' equity		$	4,561,671			$	7,817,450
Total liabilities and stockholders' equity		$	7,647,221			$	11,150,114

 

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Investors@blackboxstocks.com



PCG Advisory

Stephanie Prince

(646) 863-6341

sprince@pcgadvisory.com

Source: Blackboxstocks Inc.

FAQ

What were Blackboxstocks' second quarter 2022 earnings results?

Blackboxstocks reported second quarter 2022 revenue of $1,399,315, a decrease from $1,463,608 in Q2 2021 but an increase from $1,272,486 in Q1 2022.

What is the future outlook for Blackboxstocks after the Q2 2022 report?

Blackboxstocks aims to grow through new product developments, including the Stock Nanny app, and enhancements to its existing platform.

How did the average member count change in Q2 2022 for Blackboxstocks?

The average member count increased to 6,181 in Q2 2022, up from 5,482 in Q2 2021.

What is Blackboxstocks' cash position as of June 30, 2022?

As of June 30, 2022, Blackboxstocks had $7.1 million in cash and marketable securities.

What challenges did Blackboxstocks face in the second quarter of 2022?

Blackboxstocks faced continued economic difficulties impacting the financial industry, resulting in higher expenses.