Haverford, PA, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Investview, Inc. ( INVU), a diversified financial technology company that through its subsidiaries and global distribution network provides financial technology, education tools, content, research, and management of digital asset technologies with a focus on Bitcoin mining, and a leader in supporting and securing the Bitcoin ecosystem, headquartered in Haverford, PA, is pleased to announce its financial results for the three and six month periods ended June 30, 2023.
Summary Consolidated Financial Highlights:
Results of Operations-Three Months Ended June 30, 2023 vs June 30, 2022
- Gross Revenue (a Non-GAAP measure) increased 16.9% to $18.6 million for the three months ended June 30, 2023, compared to $15.9 million for the comparable prior year period.
- Net Revenue increased 16.9% to $17.3 million for the three months ended June 30, 2023, compared to $14.8 million for the comparable prior year period.
- Net cash provided by operating activities increase 945.3% to $4.4 million for the three months ended June 30, 2023, compared to $0.4 million for the comparable prior year period.
- Net income from operations decreased 24.4% to $1.2 million for the three months ended June 30, 2023, compared to a net income from operations of $1.6 million for the comparable prior year period. The second quarter results for 2023 and 2022, respectively, were negatively impacted by $1.1 million and $1.5 million of depreciation expense.
Results of Operations-Six Months Ended June 30, 2023 vs June 30, 2022
- Gross Revenue (a Non-GAAP Measure) decreased 4.6% to $33.4 million for the six months ended June 30, 2023, compared to $35.0 million for the comparable prior year period.
- Net Revenue decreased 5.2% to $30.8 million for the six months ended June 30, 2023, compared to $32.5 million for the comparable prior year period.
- Net cash provided by operating activities decreased 11.1% to $4.0 million for the six months ended June 30, 2023, compared to $4.5 million for the comparable prior year period.
- Net income from operations decreased 72.8% to $1.6 million for the six months ended June 30, 2023, compared to net income from operations of $5.9 million for the comparable prior year period. The six-month results for 2023 and 2022, respectively, were negatively impacted by $2.1 million and $2.4 million of depreciation expense.
Balance Sheet Data-June 30, 2023 vs December 31, 2022
- Cash and cash equivalents at June 30, 2023 was $21.4 million, up $1.0 million or 4.7% from $20.5 million at December 31, 2022. Total assets were increased by 1.2 million or 3.5% to $36.8 million. Our current ratio remains strong at 2.04 as of June 30, 2023.
- Outstanding debt decreased by $1.3 million to $9.2 million at June 30, 2023, down from $10.5 at December 31, 2022, with total liabilities also decreasing by $0.8 million or 4.2% during the period.
- Total stockholders’ equity at June 30, 2023 was $36.8 million, an increase of $1.2 million, or 3.5%, from $35.6 million at December 31, 2022.
Operating Subsidiaries
iGenius net revenue in the second quarter of 2023 was $14.4 million, an increase of $2.8 million or 24.2% over the comparable period in 2022; with the increase attributable to a $3.2 million or 29.2% increase in subscription revenue, partially offset by a $0.4 million decrease in ndau sales. Net revenue for the six months ended June 30, 2023 was $25.9 million, an increase of $0.1 million or 0.4% over the comparable period in 2022.
SAFETek net revenue in the second quarter of 2023 was $2.8 million, a decrease of $0.3 million or 10.1% over the comparable period in 2022. Net revenue for the six months ended June 30, 2023 was $4.9 million, a decrease of $1.8 million or 26.8% over the comparable period in 2022. The 10.1% and 26.8% decrease in net revenue was the result of the decrease in the value of Bitcoin, an increase in mining difficulty levels, the migration of mining serves to a new data center and increased hosting costs, partially offset by the replacement of older less efficient Bitcoin mining equipment with new generation higher performing miners.
Operational Highlights
The Company continues to expand on its Bitcoin mining operations. During the six-month period ended June 30, 2023, SAFETek, our Blockchain technology subsidiary, purchased 1,350 new next-generation mining servers. This expansion extends the Company’s initiative to use low-carbon and renewable energy sources in its mining operations. With the new mining server expansion completed and fully deployed, SAFETek has all of its mining servers operating from 100% renewable energy sources and the latest generation and highest efficiency mining technology. This expansion increased SAFETek’s total operational hash rate capacity to approximately 480+ Petahash per Second (equal to .480 EH/s Exahash per Second), representing a nearly 50% increase in operational hash rate to SAFETek’s online hash rate capacity.
SAFETek’s mining server expansion increased the Company’s mining fleet operating at its Bitcoin mining farm in Europe, which operates on 100% renewable energy sources of hydro and geothermal energy. SAFETek has significantly reduced its direct operational costs since relocating all of its miners to Europe, aided by the abundance of renewable and clean energy sources and favorable climate conditions available from areas which have year-round average temperatures below 50 degrees F.
Investview Chief Executive Officer Victor M. Oviedo commented, “The second quarter of 2023 marked a period of strong momentum marked by several transformational milestones for Investview; with SAFETek and the Bitcoin industry emerging from the depths of the downturn and macro conditions became incrementally more favorable; and iGenius measurable increases of $3.2 million or 29% in our subscription revenue, due to significant product enhancements and expansion into new markets globally, resulting in substantial growth in our membership. As we progress in 2023, we remain committed to preserving our balance sheet while adopting a more opportunistic approach to capitalize on compelling value propositions in the market. Moving forward, we will continue to focus on what we can control and setting the stage for long-term value creation for all Investview stakeholders.
"After a bit of a slow start to the year, we accelerated our progress in the second quarter primarily due to a few key factors: (i) growth in SAFETek's overall hash rate(ii) SAFETek execution of cost reductions and improved efficiency strategies (iii) increased marketing for iGenius and (iv) growth of 29% in the iGenius's subscription revenue, due to product enhancements and expansion into new markets globally, resulting in substantial growth in our subscription business,” said Ralph Valvano, Investview's CFO. In addition to our operational progress, we also improved our financial position during the quarter. We exited the quarter with $21.4 million in unrestricted cash and cash equivalents and net cash provided by operating activities of $4.0 million for six months ended 2023.
Ralph Valvano, added, “We have experienced significant revenue growth this quarter and continue to recognize positive net income from operations and an increase in stockholders’ equity, despite industry headwinds and significant non-recurring operating costs. We continue to manage our balance sheet by investing in new next-generation equipment, paying down debt, while maintaining a strong liquid cash position. Throughout the quarter, we remained laser focused on optimizing our operations across both our SAFETek mining and high performance computing and iGenius business operations. Our conservative approach to managing our balance sheet continues to be paramount for us at Investview, Inc. We remain steadfastly committed to effectively managing capital in today’s challenging environment and believe we are well positioned to deliver shareholder value going forward in 2023 and beyond.”
About Investview, Inc.
Investview, Inc., a Nevada corporation , a financial technology (FinTech) services company, operates several different businesses, including a Financial Education and Technology business that delivers a series of products and services involving financial education, digital assets and related technology, through a network of independent distributors; a Blockchain Technology and Crypto Mining Products and Services business including leading-edge research, development and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets; and a Brokerage and Financial Markets business model that is currently in the early stages but seeks to expand by potential acquisitions within the investment management and brokerage industries in order to, among other things, commercialize on the proprietary trading platform we acquired in September 2021. For more information on Investview, please visit: www.investview.com.
Forward-Looking Statement
All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may,” “should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. These forward-looking statements are based on Investview’s current beliefs and assumptions and information currently available to Investview and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Statements made by the Company regarding the operating speed and capacity of its mining servers are based solely on the Company’s reliance on manufacturer’s technical specifications. Our forward-looking statements also assume that we will be able to develop our nascent business within the investment management and brokerage businesses through acquisitive efforts, although there can be no assurance that we will be able to locate, or secure financing sufficient to acquire, one or more suitable acquisition targets within this business sector; particularly given the inability to secure FINRA consent on an aborted acquisition within the brokerage industry during 2022. More information on potential factors that could affect Investview’s financial results is included from time to time in Investview’s public reports filed with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year-ended December 31, 2021, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements made in this release speak only as of the date of this release, and Investview, Inc. assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
Investor Relations
Contact: Ralph R. Valvano
Phone Number: 732.889.4300
Email: [email protected]
Reconciliation of Gross Revenue to Net Revenue
(unaudited)
As used in this report, Gross Revenues are not a measure of financial performance under United States Generally Accepted Accounting Principles (“GAAP”). Gross Revenues are presented as they are used by management to understand the total revenue before certain items such as refunds, incentives, credits, chargebacks and amounts paid to third party providers. The non-GAAP Gross Revenue measure is a supplement to the GAAP financial information. A reconciliation between Gross Revenue (non-GAAP) and Net Revenue is presented in the table below.
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the six months ended June 30, 2023 is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Total | ||||||||||||||||
| Gross billings/receipts | $ | 27,784,934 | $ | 732,319 | $ | 4,893,097 | $ | 23,378 | $ | 33,433,728 | ||||||||||
| Refunds, incentives, credits, and chargebacks | (2,243,741 | ) | - | - | - | (2,243,741 | ) | |||||||||||||
| Amounts paid to providers | - | (365,500 | ) | - | - | (365,500 | ) | |||||||||||||
| Net revenue | $ | 25,541,193 | $ | 366,819 | $ | 4,893,097 | $ | 23,378 | $ | 30,824,487 | ||||||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the six months ended June 30, 2022 is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Digital Wallet Revenue | Total | |||||||||||||||||||
| Gross billings/receipts | $ | 26,448,766 | $ | 1,874,382 | $ | 6,635,117 | $ | 80,110 | $ | 7,157 | $ | 35,045,532 | ||||||||||||
| Refunds, incentives, credits, and chargebacks | (1,613,557 | ) | - | - | - | - | (1,613,557 | ) | ||||||||||||||||
| Amounts paid to providers | - | (917,006 | ) | - | - | (1,289 | ) | (918,295 | ) | |||||||||||||||
| Net revenue | $ | 24,835,209 | $ | 957,376 | $ | 6,635,117 | $ | 80,110 | $ | 5,868 | $ | 32,513,680 | ||||||||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended June 30, 2023 is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Total | |||||||||||||
| Gross billings/receipts | $ | 15,632,412 | $ | 173,019 | $ | 2,822,278 | $ | 18,627,709 | ||||||||
| Refunds, incentives, credits, and chargebacks | (1,283,330 | ) | - | - | (1,283,330 | ) | ||||||||||
| Amounts paid to providers | - | (86,500 | ) | - | (86,500 | ) | ||||||||||
| Net revenue | $ | 14,349,082 | $ | 86,519 | $ | 2,822,278 | $ | 17,257,879 | ||||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended June 30, 2022 is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Digital Wallet Revenue | Total | |||||||||||||||||||
| Gross billings/receipts | $ | 11,754,793 | $ | 1,035,960 | $ | 3,058,144 | $ | 80,110 | $ | 7,157 | $ | 15,936,164 | ||||||||||||
| Refunds, incentives, credits, and chargebacks | (650,254 | ) | - | - | - | - | (650,254 | ) | ||||||||||||||||
| Amounts paid to providers | - | (519,000 | ) | - | - | (1,289 | ) | (520,289 | ) | |||||||||||||||
| Net revenue | $ | 11,104,539 | $ | 516,960 | $ | 3,058,144 | $ | 80,110 | $ | 5,868 | $ | 14,765,621 | ||||||||||||
