Haverford, PA, May 15, 2024 (GLOBE NEWSWIRE) -- Investview, Inc. (OTCQB: INVU), a diversified financial technology (FinTech) company that provides financial education tools, content and research, through a global distribution network; digital asset products and services that support blockchain technologies and Bitcoin mining operations; and is developing a retail brokerage and financial markets business that plans to offer investors an online trading platform focused on enabling self-directed retail brokerage services, is pleased to announce its financial results for the first quarter ended March 31, 2024.
Summary Consolidated Financial Highlights:
Results of Operations-Three Months Ended March 31, 2024 vs March 31, 2023
- Gross Revenue (a Non-GAAP measure) increased 11.4% to $16.5 million for the three months ended March 31, 2024, compared to $14.8 million for the comparable prior year period.
- Net Revenue increased 15.5% to $15.7 million for the three months ended March 31, 2024, compared to $13.6 million for the comparable prior year period.
- Net cash provided by operating activities increased 1,304.0% to $4.8 million for the three months ended March 31, 2024, compared to net cash used in operating activities of ($0.4) million for the comparable prior year period.
- Net income from operations increased 376.7% to $1.9 million for the three months ended March 31, 2024, compared to a net income from operations of $0.4 million for the comparable prior year period.
Balance Sheet Data - March 31, 2024 vs December 31, 2023
- Cash and cash equivalents at March 31, 2024 was $24.4 million, up $3.5 million or 16.8% from $20.9 million at December 31, 2023.
- Total assets increased by $2.1 million or 6.4% to $35.8 million. Our current ratio remains strong at 1.87 as of March 31, 2024.
- Outstanding debt decreased by $0.1 million to $3.5 million at March 31, 2024, down from $3.6 million at December 31, 2023, with total liabilities increasing by $3.8 million, or 25.7% to $18.7 million as of March 31, 2024.
- Total stockholders' equity at March 31, 2024 was $17.1 million, a decrease of $1.7 million, or 8.9%, from $18.8 million at December 31, 2023. The decrease was, in large part, attributable to the amount paid by the Company during the first quarter, when we repurchased and cancelled 472,374,710 shares of our common stock for a purchase price of $3.6 million or an average of $0.007559985 per share, resulting in a 20.2% decrease in common shares issued and outstanding; partially offset by $1.7 million in net income.
Operating Subsidiaries
iGenius net revenue in the first quarter of 2024 was $13.0 million, an increase of $1.6 million or 13.6% over the comparable period in 2023; with the increase attributable to a $1.8 million or 16.4% increase in subscription revenue, partially offset by a $0.3 million decrease in ndau sales, which were discontinued in 2023. Growth in the first quarter was attributable to continued product enhancements and expansion into new markets globally, resulting in significant growth and retention in our membership.
SAFETek net revenue in the first quarter of 2024 was $2.6 million, an increase of $0.5 million or 26.2% over the comparable period in 2023. This increase in mining net revenue was the result of the increase in the value of Bitcoin during the first quarter 2024, as the price range of Bitcoin was between approximately $39,500 and $73,083 with an average price of $53,578 during much of the quarter until late February of 2024 when the value of Bitcoin began to rise above $60K to a high of $73K in March 2024, despite being offset by a 105% increase in the average Bitcoin Mining Difficulty Level and a utility/government mandated partial energy curtailment (caused by low water levels at the fully renewable energy hydropower plant that provides power generation to our Bitcoin mining data center facility) that began in early January 2024, and resulted in mining less coin.
Operational Highlights
Ralph Valvano, Investview CFO, commented, "After a good start to the year, we continue our progress primarily due to several few key factors: (i) SAFETek's execution of cost reductions and enhanced efficiency strategies, (ii) increased marketing for iGenius, and (iii) growth of the iGenius membership base of 16.8%, due to new products, existing product enhancements and the expansion into new markets globally, resulting in significant growth in our subscription revenue. In addition to our operational progress, we also improved our financial position during the quarter. We exited the quarter with $24.4 million in unrestricted cash and cash equivalents up $3.5 million or 16.8%, and net cash provided by operating activities of $4.8 million up 1,304% for the first quarter ended March 31, 2024."
Mr. Valvano added, "We experienced good revenue growth this quarter and continue to recognize positive net income from operations, despite industry headwinds. We continue to manage our balance sheet by investing in our business lines, paying down debt and repurchasing our common stock at significant discounts to the market, all while maintaining a strong liquid cash position. Our current balance sheet position not only gives us flexibility, but it also allows us to continue to invest in and expand our business lines, as well as the ability to complete strategic acquisitions when the right opportunities present themselves.
''As part of our strategic common stock repurchase initiative, we executed and announced during the third quarter of 2023 and first quarter of 2024, the cumulative repurchase of over 775 million common shares, or a decrease of 29.4%, at a blended discount rate of 54.40% to the then contemporaneous trading market. The repurchases reduced Investview's issued and outstanding common shares from 2,636 million to 1,861 million.
"iGenius net revenue in the first quarter of 2024 was $13.0 million, an increase of $1.6 million or 13.6% over the comparable period in 2023; with the increase attributable to a $1.8 million or 16.4% increase in subscription revenue, partially offset by a $0.3 million decrease in ndau sales. Growth in the first quarter was attributable to continued product enhancements and expansion into new markets globally, resulting in significant growth and retention in our membership.
"Over the next three quarters, iGenius expects to continue to deliver on its growth strategy, with preliminary plans in process to launch new innovative product offerings that it believes will resonate in its domestic and global markets and align with consumer trends and preferences."
Jim Bell, Investview President and COO stated, ''SAFETek foresees both challenges and the potential for opportunities ahead. As Bitcoin halved on April 19th, 2024, the reward for mining Bitcoin transactions was cut in half from 6.25 bitcoins mined every 10 minutes to 3.125 bitcoins. Halving reduces the rate at which new bitcoins are created and thus lowers the available amount of new supply. Historically, over each of the three previous halving cycles that occurred between 2012-2020, the halving effect on the Bitcoin price was similar and displayed a pattern: a rally leading up to the halving, followed by a brief correction and period of consolidation before a major bull-run. Historically, the peak occurred approximately 16 - 18 months after halving each time. This is a highly simplified yet accurate description of the previous three cycles. The Bitcoin price halving in 2024 is unique in that it coincided with the approval of a spot Bitcoin ETF in the United States. There is also the matter of interest rates. Bitcoin has historically done well in a lower-rate environment, although 2023 has proven Bitcoin can also do well during times of higher interest rates. Many market observers believe the Fed is done raising rates and may begin to cut rates in the later part 2024, which could be beneficial to Bitcoin price performance,'' stated Jim Bell, Investview President and COO.
Mr. Bell added, ''As we approached the halving, we remained diligently focused on streamlining our operations and running as efficiently as possible. Reducing hash cost via improving efficiency and cost management is a key component to our continued success. This includes decommissioning older less efficient mining equipment, reducing inefficient energy capacity with more efficient capacity, and deploying more efficient latest generation machines, continues to be the key drivers for our Company. For example, on May 3rd, the Company reduced capacity at one of its northern Europe facilities by 67% to mitigate the impact of the lower Bitcoin mining reward revenue and energy cost. We intend to keep that in effect until it becomes economically compelling to mine further Bitcoin relative to the cost of purchasing additional electricity.
We recognize the industry challenges that lie ahead for many mining companies with insufficient balance sheet strength to navigate these headwinds. Many mining companies have power purchase agreement contracts structured in a manner, where such miners are forced to buy power through their PPA/ESA contract at a negative margin, adding further to pressures relating to potential financing obligations. We are fortunate that we did not incur any debt on the purchases of our machines and are not affected by the issue of financing obligations!
''As we navigate the post-halving market conditions and execute our restructuring plan, the Company may consider the potential to acquire certain opportunistic hosting infrastructure projects that are accretive and move us toward lower production costs. Such decisions will depend largely on the opportunity set and corresponding return profile."
Victor Oviedo, Investview CEO stated ''We continue to actively assess the strengths of the organization and consider strategic initiatives by which we can build on those strengths to diversify and grow our business. As we have disclosed, in the first quarter of 2024, we acquired Opencash Securities, LLC ("Opencash"), an early stage FINRA registered broker dealer. This acquisition is the first step in the planned expansion of Investview's business into the retail brokerage and financial markets industry, as it positions itself to take advantage of the retail equity and equity options trading market by way of the Opencash online brokerage trading platform. In addition, the acquisition establishes a path for Investview to integrate the Opencash investment platform application with the proprietary algorithmic trading platform we acquired in September 2021.
''We continue to look at all aspects of our business with a focus on driving top-line growth and expanding our margins. Given our momentum, and the differentiators we are building with our business-channel stack, we are optimistic that the most exciting times for our organization are still to come.
"As we progress in 2024, we remain committed to sustaining a strong balance sheet while adopting a more opportunistic approach to capitalize on compelling value propositions in the market. As part of our 2024-25 growth initiatives, we are actively exploring new business channels which we would like to deliver from both internally developed business channels as well as from potential additional acquisitions, which could complement and be highly synergistic to our existing assets and businesses. Moving forward, we will continue to focus on what we can control and setting the stage for long-term value creation for Investview shareholders.
"Looking ahead, I am optimistic about Investview's future long-term growth prospects. Our executive leadership remains committed to finding the right mix of growth initiatives that will leverage the strengths of our organization and, on a long-term basis, add value to our loyal shareholder base. We believe material opportunities lie ahead of us.''
About Investview, Inc.
Investview, Inc., a Nevada corporation, operates a financial technology (FinTech) services company, offering several different lines of business, 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; and 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. In addition, we are in the process of creating a Brokerage and Financial Markets business within the investment management and brokerage industries by, among others, commercializing on a proprietary trading platform we acquired in September 2021. For more information on Investview, please visit: www.investview.com.
About Opencash Securities LLC
Brokerage services are provided by Opencash Securities LLC, a member of FINRA and SIPC. Options involve risk and are not suitable for all investors. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading. Opencash Securities LLC does not provide investment advice. Please consult with investment, tax, or legal professionals before making any investment decisions. All investments involve risks, including the possible loss of capital. Check the background of this investment professional on BrokerCheck. Opencash Securities LLC is a wholly-owned subsidiary of Investview, Inc.
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. Our forward-looking statements expect that we will ultimately be able to develop retail brokerage operations at Opencash, although it is currently in the pre-revenue and early stage of its operations. We plan to do this by, among others, investing the funds we believe are necessary to develop the infrastructure necessary to achieve retail operations. This includes, among others, the on-boarding of customer support personnel and software developers, the development and implementation of a marketing strategy, the securing of necessary securities clearing arrangements, and the continued development of the online Opencash trading platform and completing its integration with the proprietary algorithmic trading platform we acquired in September 2021. Despite our best efforts, there can be no assurance that we will be able to achieve these objectively on a timely basis, if at all, as the development of an early-stage securities brokerage business involves inherent regulatory and operational risks and uncertainties, including the uncertain ability of us to integrate the Opencash investment platform application with the proprietary algorithmic trading platform we acquired in September 2021, particularly as the platform we acquired in 2021 has not been placed in commercial service since 2021; thus, any such integration could be subject to IT-related and commercial risks. 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 most recent Annual Report on Form 10-K, 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: pr@investview.com
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 three months ended March 31, 2024 is as follows:
| Subscription Revenue | Mining Revenue | Total | ||||||||||
| Gross billings/receipts | $ | 13,851,294 | $ | 2,642,599 | $ | 16,493,893 | ||||||
| Refunds, incentives, credits, and chargebacks | (821,976 | ) | - | (821,976 | ) | |||||||
| Net revenue | $ | 13,029,318 | $ | 2,642,599 | $ | 15,671,917 | ||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended March 31, 2023 is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Total | ||||||||||||||||
| Gross billings/receipts | $ | 12,152,522 | $ | 559,300 | $ | 2,070,819 | $ | 23,378 | $ | 14,806,019 | ||||||||||
| Refunds, incentives, credits, and chargebacks | (960,411 | ) | - | - | - | (960,411 | ) | |||||||||||||
| Amounts paid to providers | - | (279,000 | ) | - | - | (279,000 | ) | |||||||||||||
| Net revenue | $ | 11,192,111 | $ | 280,300 | $ | 2,070,819 | $ | 23,378 | $ | 13,566,608 | ||||||||||
