RESEARCH TRIANGLE PARK, NC / ACCESSWIRE / May 16, 2023 / (via IBN) Data443 Risk Mitigation, Inc. (OTCPK:ATDS) ("Data443" or the "Company"), a data security and privacy software company for "All Things Data Security," today announces operating results for the first quarter ended March 31, 2023.
Financial Highlights for the First Quarter 2023:
- Increased revenue by 125% year over year.
- Increased gross profit by 184% year over year.
- Decreased net loss by 60% year over year.
Business Highlights for the First Quarter 2023:
- Achieved 98% customer renewals.
- Data443® Antivirus Protection Manager™ received its VB100 certification.
- Data443's Ransomware Recovery Manager named "Best of Inexpensive Protection" and "Best for Kiosks" in "The Best Ransomware Protection for 2023."
- Secured an additional contract win from one of its largest fintech clients, which processes over 75 billion transactions amounting to more than $9 trillion annually.
- Secured an additional contract win with a long-time, multinational fintech client that provides payment technology and services to merchants, issuers and consumers, annually transferring over 10 million sensitive files for thousands of partners.
- Secured an additional contract win of $484,000 from one of the "Big Four" U.S.-based banks and largest fintech companies.
- Released the latest update to its award-winning Ransomware Recovery Manager product, offering more advanced features designed to help businesses and individuals quickly and easily recover from ransomware attacks
First Quarter 2023 Financial Results:
- Total revenues were $1,380,000 during the three months ended March 31, 2023, compared to $613,000 of revenue for the three months ended March 31, 2022 - an increase of 125%. Existing customer organic growth, new customer acquisitions and the Company's high renewal rate drove the revenue increase.
- Gross profit was $1,171,000 during the three months ended March 31, 2023, compared to $413,000 of gross profit for the three months ended March 31, 2022 - an increase of 184%. Gross margin was 85% in the first quarter of 2023 versus 67% in the first quarter of 2022.
- General and administrative expenses for the three months ended March 31, 2023, were $1,401,000, compared to $974,000 for the three months ended March 31, 2022 - an increase of $427,000. The increase in general and administrative expenses was primarily due to an increase in professional service fees.
- Sales and marketing expenses were $32,000 for the three months ended March 31, 2023, compared to $120,000 for the three months ended March 31, 2022. The decrease in sales and marketing expenses was primarily due to a decrease in trade show events, related travel and marketing activity.
- The net loss for the three months ended March 31, 2023, was $738,000, compared to a loss of $1,833,000 for the three months ended March 31, 2022 - a decrease of 60%. The decrease in net loss was primarily due to the increase in recognized revenue and a decrease in interest expense.
- During the three months ended March 31, 2023, the Company generated $360,000 from operating activities, compared to $156,000 generated during the three months ended March 31, 2022.
- During the three months ended March 31, 2023, the Company used funds in investing activities of $81,000 to acquire property and equipment and advance payment for acquisition. During the three months ended March 31, 2022, the Company used funds in investing activities of $258,000 to acquire property and equipment.
- During the three months ended March 31, 2023, the Company had net cash outflows for financing activities of $171,000. By comparison, during the three months ended March 31, 2022, the Company had net cash outflows for financing activities of $920,000.
- As of March 31, 2023, the Company had cash in the amount of $109,000 and other current assets in the amount of $2,891,000.
Jason Remillard, Data443's founder and chief executive officer, commented: "Our first quarter results are a testament to our team's relentless drive, passion and commitment to better serving our existing enterprise clients and expanding our market reach. Our 125% revenue growth from a year ago clearly indicates that our efforts are resonating with our clients and the trust they place in us. We have attracted new customers while retaining existing ones, and we are further validated by our high customer renewal rates and eagerness to renew with larger and longer-term contracts. This has always been the ultimate vote of confidence in our company. We are proud of the relationships we have built with our customers and will continue to nurture these partnerships in the years to come.
"While we believe these strong Q1 results reflect that our business plan is working, we recognize that there is still work to be done. As we announced yesterday, we entered into a definitive agreement to acquire select assets from Cyren Ltd. We certainly understand what it takes to integrate acquisitions and onboard new customers to Data443, and we are very excited about the opportunities ahead of this important transaction.
"I want to thank our dedicated team, our customers and our shareholders for your unwavering support and belief in our vision. We are committed to unlocking our potential and seizing the opportunities ahead."
To learn more about Data443, please watch the video introduction on the Company's YouTube channel: https://youtu.be/1Fp93jOxFSg
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTC: ATDS) provides software and services to enable secure data across devices and databases, at rest and in flight/in transit, locally, on a network or in the cloud. We are All Things Data Security™. With over 10,000 customers in over 100 countries, Data443 provides a modern approach to data governance and security by identifying and protecting all sensitive data regardless of location, platform or format. Our framework helps customers prioritize risk, identify security gaps and implement effective data protection and privacy management strategies.
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by use of terms such as "expect," "believe," "anticipate," "may," "could," "will," "should," "plan," "project," "intend," "estimate," "predict," "potential," "pursuant," "target," "continue" or the negative of these words or other comparable terminology. Statements in this press release that are not historical statements, including statements regarding Data443's plans, objectives, future opportunities for Data443's services, future financial performance and operating results, and any other statements regarding Data443's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance, or regarding the anticipated consummation of any transaction, are forward-looking statements. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and assumptions, many of which are difficult to predict or are beyond Data443's control. These risks, uncertainties and assumptions could cause actual results to differ materially from the results expressed or implied by the statements. They may relate to the outcome of litigation, settlements and investigations; actions by third parties, including governmental agencies; volatility in customer spending; global economic conditions; inability to hire and retain personnel; loss of, or reduction in business with, key customers; difficulty with growth and integration of acquisitions; product liability; cybersecurity risk; anti-takeover measures in the Company's charter documents; and the uncertainties created by global health issues, such as the ongoing outbreak of COVID, and political unrest and conflict, such as the invasion of Ukraine by Russia. These and other important risk factors are described more fully in the Company's reports and other documents filed with the Securities and Exchange Commission ("the SEC"), including in Part I, Item 1A of the Company's Annual Report on Form 10-K filed with the SEC on Feb. 24, 2023, and subsequent filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the Company on the date hereof. Except as otherwise required by applicable law, Data443 undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
"DATA443" is a registered trademark of Data443 Risk Mitigation, Inc.
All product names, trademarks and registered trademarks are property of their respective owners. All company, product and service names used in this press release are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.
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SOURCE: Data443 Risk Mitigation, Inc.