Blackboxstocks Announces Third Quarter 2022 Financial Results

Rhea-AI Summary

Blackboxstocks Inc. (NASDAQ: BLBX) reported its Q3 2022 financial results, revealing a total revenue of $1,219,150, down from $1,471,814 in Q3 2021. For the nine-month period, revenue decreased to $3,890,951 from $4,425,088 in 2021. Average membership slightly declined, with 5,197 for Q3 2022 compared to 5,535 in Q3 2021. Adjusted EBITDA fell sharply to $(1,075,690) versus $(27,230) a year prior. Despite challenges, the CEO expressed optimism regarding new product developments, including the upcoming Stock Nanny app set for Q1 2023, aimed at expanding their market reach.

Positive

• Upcoming launch of Stock Nanny app expected to broaden user base.
• Cash and marketable securities at $5.4 million indicating liquidity.
• Share repurchase program executed, buying back 615,748 shares.

Negative

• Q3 revenue decreased by 17.1% compared to Q3 2021.
• Nine months revenue down 12% year-over-year.
• Adjusted EBITDA significantly negative at $(1,075,690) for Q3 2022.

Conference Call Tuesday, November 15, 2022 at 10:30am EST / 9:30am 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 third quarter and nine months of 2022, ended September 30, 2022.

Third Quarter 2022 Financial and Operating Highlights:

• Total revenue for the third quarter was $1,219,150 as compared to $1,471,814 for the same period in 2021. Nine month revenue was $3,890,951 compared to $4,425,088 for the same period in 2021.
• The average member count for the quarter and nine months ended September 30, 2022 was 5,197 and 5,695 compared to 5,535 and 5,503 for the quarter and nine months ended September 30, 2021, respectively.
• Adjusted EBITDA was $(1,075,690) and $(27,230) for the three months ended September 30, 2022 and 2021, respectively. Adjusted EBITDA for the nine months ended September 30, 2022 and 2021 was ($3,006,273) and $10,085 respectively.
• Cash and marketable securities totaled $5.4 million at September 30, 2022.
• During the first nine months of 2022, the Company repurchased 615,748 shares of BLBX common stock at a total cost of $1,065,216 under the Company’s $2.5 million share repurchase program that was announced in January 2022.

Gust Kepler, Chief Executive Officer, commented, “In the third quarter, our financial results were again negatively impacted by uncertain economic conditions and volatile stock market activity. However, our subscriber base remains strong and loyal, and we continue to invest in the development of new products as well as feature upgrades to our existing platform to ensure it remains best in class.”

“We are particularly excited about one of our new products, Stock Nanny, which is expected to be released in the first quarter of 2023. Stock Nanny is a mobile application for the self-directed investor, a market demographic that is exponentially larger than the day-trader segment we currently serve. In parallel, we are also developing an enhanced version of the Blackbox platform designed for professional traders and financial institutions, including broker dealers, RIA’s, family offices, and hedge funds. We are extremely excited about these new products as well as the ongoing platform enhancements. We believe that these initiatives will position us well for growth and better insulate the Company’s revenue from market turbulence in the future.”

Robert Winspear, Chief Financial Officer, added, “Our promotions during the year have resulted in slightly higher average subscriber counts, although the discounts negatively impacted revenue for the year to date, and this quarter in particular. The lower revenue, combined with additional expenditures for new product development, upgrades to our platform, and other operational expenses, drove the decline in EBITDA for the third quarter and first nine months of the year.”

Summary financial data is presented in the tables below. Please see the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2022 for additional information.

Conference Call and Webcast Information

Blackboxstocks will hold a quarterly conference call to discuss its third quarter 2022 financial results today, Tuesday November 15, 2022 at 10:30am EST / 9:30am 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=JlDd17yz

A replay of the call will be available at (877) 344-7529, access code 1349731, through November 22, 2022. The call will also be available for replay on the Company’s website, www.blackboxstocks.com, 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 Nine Months Ended September 30,2022 and 2021
(Unaudited)
	For the three months ended									For the nine months ended
	September 30,									September 30,
	2022				2021					2022				2021
Revenue	$	1,219,150			$	1,471,814				$	3,890,951			$	4,425,088
Cost of revenue		492,991				469,601					1,572,380				1,274,953
Gross margin	$	726,159			$	1,002,213				$	2,318,571			$	3,150,135
Operating expenses:		1,924,460				1,501,142					5,706,792				3,621,454
Operating income (loss)	$	(1,198,301	)		$	(498,929	)			$	(3,388,221	)		$	(471,319	)
Other expense		110,141				7,047					478,763				265,438
Net loss	$	(1,308,442	)		$	(505,976	)			$	(3,866,984	)		$	(736,757	)
Adjusted EBITDA	$	(1,075,690	)		$	(27,230	)			$	(3,006,273	)		$	10,085
Adjusted EBITDA Calculation
Net loss	$	(1,308,442	)		$	(505,976	)			$	(3,866,984	)		$	(736,757	)
Adjustments:
Depreciation and amortization expense		5,521				4,760					16,646				14,465
Interest and financing expense		41,339				40,452					126,162				298,843
Investment loss		68,802				-					352,601				-
Stock based compensation		117,090				433,534					365,302				433,534
Total adjustments	$	232,752			$	478,746				$	860,711			$	746,842
Adjusted EBITDA	$	(1,075,690	)		$	(27,230	)			$	(3,006,273	)		$	10,085

Blackboxstocks Inc.
Summary Balance Sheet Data
As of September 30, 2022 and December 31, 2021
(Unaudited)
		September 30, 2022				December 31, 2021
Assets
Cash		$	643,528			$	2,426,497
Marketable securities			4,713,028				8,015,882
Other current assets			149,686				259,592
Total current assets		$	5,506,242			$	10,701,971
Property and equipment, net			450,678				448,143
Total assets		$	5,956,920			$	11,150,114
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	738,710			$	585,615
Unearned subscriptions		$	638,305			$	1,302,036
Other current liabilities		$	77,898			$	69,174
Note payable, current portion		$	922,007			$	971,851
Total current liabilities		$	2,376,920			$	2,928,676
Long term liabilities:
Note payable, net of current portion		$	46,823			$	68,347
Lease liability right of use, long term		$	282,625			$	335,641
Total long term liabilities		$	329,448			$	403,988
Total stockholders' equity		$	3,250,552			$	7,817,450
Total liabilities and stockholders' equity		$	5,956,920			$	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' Q3 2022 financial results?

In Q3 2022, Blackboxstocks reported total revenue of $1,219,150, a decline from $1,471,814 in Q3 2021.

What is Blackboxstocks' outlook for new products?

The company is optimistic about launching the Stock Nanny app in Q1 2023, targeting a larger market segment.

How did Blackboxstocks' revenue change in 2022?

Revenue for the nine-month period in 2022 was $3,890,951, down from $4,425,088 in 2021.

What are the adjusted EBITDA figures for Blackboxstocks in Q3 2022?

Adjusted EBITDA for Q3 2022 was $(1,075,690), a significant decline from $(27,230) in Q3 2021.

What is the cash position of Blackboxstocks as of September 30, 2022?

Blackboxstocks reported cash and marketable securities totaling $5.4 million.