Haverford, PA, Aug. 14, 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 second quarter ended June 30, 2024.
Summary Consolidated Financial Highlights:
Results of Operations-Three Months Ended June 30, 2024 vs June 30, 2023
- Gross Revenue (a Non-GAAP measure) decreased 26.0% to $13.8 million for the three months ended June 30, 2024, compared to $18.6 million for the comparable prior year period.
- Net Revenue decreased 24.1% to $13.1 million for the three months ended June 30, 2024, compared to $17.3 million for the comparable prior year period.
- Net cash provided by operating activities decreased 87.9% to $0.5 million for the three months ended June 30, 2024, compared to net cash provided by operating activities of $4.4 million for the comparable prior year period.
- Net income from operations decreased 62.4% to $0.5 million for the three months ended June 30, 2024, compared to a net income from operations of $1.2 million for the comparable prior year period.
Results of Operations-Six Months Ended June 30, 2024 vs June 30, 2023
- Gross Revenue (a Non-GAAP measure) decreased 9.4% to $30.3 million for the six months ended June 30, 2024, compared to $33.4 million for the comparable prior year period.
- Net Revenue decreased 6.6% to $28.8 million for the six months ended June 30, 2024, compared to $30.8 million for the comparable prior year period.
- Net cash provided by operating activities increased 33.6% to $5.3 million for the six months ended June 30, 2024, compared to net cash provided by operating activities of $4.0 million for the comparable prior year period.
- Net income from operations increased 45.2% to $2.3 million for the six months ended June 30, 2024, compared to a net income from operations of $1.6 million for the comparable prior year period.
Balance Sheet and Cash Flow Data - June 30, 2024 vs December 31, 2023
- Cash and cash equivalents at June 30, 2024 was $23.7 million, up $2.7 million or 13.1% from $20.9 million at December 31, 2023.
- Total assets remained relatively flat decreasing by 0.2% to $33.6 million. Our current ratio remains very strong at 2.33 as of June 30, 2024.
- Outstanding debt decreased by $0.1 million to $3.5 million at June 30, 2024, down from $3.6 million at December 31, 2023, with total liabilities increasing by $0.9 million, or 5.7% to $15.8 million as of June 30, 2024.
- Total stockholders’ equity at June 30, 2024 was $17.9 million, a decrease of $0.9 million, or 4.8%, from $18.8 million at December 31, 2023. The decrease was, in large part, attributable to the amount paid by the Company for the private repurchase of shares of our common stock during the first quarter of 2024, 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 $2.2 million in net income.
Operating Subsidiaries
iGenius net revenue in the second quarter of 2024 was $12.0 million, a decrease of $2.4 million or 16.7% over the comparable period in 2023; with the decrease mainly attributable to a $2.3 million or 16.2% decrease in subscription revenue. Net revenue for the six months ended June 30, 2024 was $25.1 million, a decrease of $0.5 million or 1.9% over the comparable period in 2023. The decreases were driven by the continued adverse impact of global inflation which caused a general slowdown in the consumer sector, which had an adverse impact on iGenius as it focuses on direct consumer sales and home-based business industry.
SAFETek net revenue in the second quarter of 2024 was $1.1 million, a decrease of $1.7 million or 61.8% over the comparable period in 2023. Net revenue for the six months ended June 30, 2024 was $3.7 million, a decrease of $1.2 million or 23.9% over the comparable period in 2023. The 61.8% and 23.9% decrease in net revenue, respectively, was the result of an increase in Bitcoin Network Difficulty and a mandated power curtailment enforced by the government-controlled utility company in Iceland, partially offset by an increase in the price of Bitcoin. During the second quarter of 2024, on April 19th, “Bitcoin Halving” occurred, which also negatively impacted net revenue.
Operational Highlights
“Despite the downturn in the global economy, we continue to progress on our strategic transformational plan as we move forward with a long-term focus on strategic acquisitions, organic growth, and positioning Investview for sustained financial performance” said Victor Oviedo, Investview CEO. “Our net revenue and net income were slightly lower than expected but in-line with our expectations, given the related macro-economic headwinds in the global economy. The headwinds we encountered in the first half of 2024 included, among others: a preprogrammed Bitcoin network “Halving” event which occurred in April of this year, a preprogrammed event whereby the Bitcoin block subsidy received by miners from the network is cut in half every four years; a continued increase in mining difficulty levels, and a 60%+ power curtailment mandated and enforced by the government-controlled utility companies in Iceland, due to record low rain/snowfall amounts that constrained hydro power production where our mining equipment is hosted.
“We remain focused on our long-term strategic transformation plan which seeks, to expand and develop the company as a premier muti integrated emerging financial technology, beauty, health, wellness and lifestyle ecosystem focused on market leading high-growth, high margin businesses with complementary technology and financial characteristics. Our attention will continue to be on high-growth and high-value opportunities in sectors with steady long-term secular growth trends where our global innovation and leadership provides us with a competitive advantage.
“As we progress in 2024 and into 2025, 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 remain very optimistic about Investview’s future long-term growth prospects as we remain 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”, said Victor Oviedo, Investview Chief Executive Officer.
Jim Bell, Investview President and COO added, “Relative to our operating units we remain bullish that we will be able to address the headwinds we faced during the second quarter of 2024. Beginning in the 4th quarter of 2024 and into the 1st quarter of 2025, our iGenius unit expects to launch a platform of new and innovative product offerings, that it believes will resonate in its domestic and global markets and align with consumer trends and preferences.
“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.
“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. 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 that compels our competitors 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 purchase of our machines and are not affected by the issue of financing obligations.
“As we navigate the post-halving market conditions and execute on our strategic transformational plan, the Company may consider the potential to acquire certain opportunistic hosting infrastructure projects that could be accretive and could move us toward lower production costs. Such decisions will depend largely on the opportunity set and corresponding return profile”, said Jim Bell, Investview President and COO.
Ralph Valvano, Investview Chief Financial Officer stated, “We continue to refine our financial model as we navigate industry headwinds. Fortunately, we are small enough to be nimble in our financial approach and have a strong balance sheet that will support our transformational plans. We exited the quarter with $23.7 million in unrestricted cash and cash equivalents up $2.7 million or 13.1%, with net cash provided by operating activities increasing 33.6% to $5.3 million for the six months ended June 30, 2024, compared to net cash provided by operating activities of $4.0 million for the comparable prior year period. The $23.7 million in cash and cash equivalents at quarter end and our quarterly net cash provided by operating activities 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. At the same time, during our transformation, we will remain diligent in pursuing cost saving initiatives going forward, including additional product portfolio optimization, along with expense management. We continue to remain on track with our cost efficiency program as reflected by our reductions in total operating costs and expenses, helping to protect profitability despite downward revenue pressures.”
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. Our forward-looking statements also contemplate that we will ultimately be able to expand and develop the product offerings within our iGenius unit to include tangible beauty, health, wellness and lifestyle products that will offer high margin characteristics and that resonate with consumers. These expectations have been reasonably developed by us based upon acquisition inquiries and initiatives that involve early-stage opportunities that we believe are reasonably likely to materialize; although we cannot assure that these opportunities will mature to the point where we can presume any particular revenue level or scope of future operations. Furthermore, our consumer penetration and margin expectations have been developed based on market analysis that we have extrapolated from industry information, but that we cannot assure. Despite our best efforts, there ultimately can be no assurance that we will be able to achieve any or a substantial portion of our forward-looking objectives on a timely basis, if at all, as: (i) 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; and (ii) the development of an early-stage consumer products business involves inherent uncertainties, including the uncertain ability to develop products that are commercially accepted, which itself is subject to significant marketing, formulation and product manufacturing risks of execution; nor can we assure that we will yield profit margins that will meet our objectives and support the growth assumptions we believe are possible. 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 six months ended June 30, 2024 is as follows:
| Subscription Revenue | Mining Revenue | Total | ||||||||||
| Gross billings/receipts | $ | 26,557,528 | $ | 3,721,376 | $ | 30,278,904 | ||||||
| Refunds, incentives, credits, and chargebacks | (1,500,306 | ) | - | (1,500,306 | ) | |||||||
| Net revenue | $ | 25,057,222 | $ | 3,721,376 | $ | 28,778,598 | ||||||
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 three months ended June 30, 2024 is as follows:
| Subscription Revenue | Mining Revenue | Total | ||||||||||
| Gross billings/receipts | $ | 12,706,234 | $ | 1,078,777 | $ | 13,785,011 | ||||||
| Refunds, incentives, credits, and chargebacks | (678,330 | ) | - | (6,78,330 | ) | |||||||
| Net revenue | $ | 12,027,904 | $ | 1,078,777 | $ | 13,106,681 | ||||||
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 | ||||||||
