Reports 70% Increase in Revenue – Strong Customer Retention
RESEARCH TRIANGLE PARK, NC, Aug. 04, 2021 — Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, today announced operating results for the second quarter and first half ended June 30, 2021.
Significant Accomplishments and Highlights for the Second Quarter of 2021:
- Launched Data443 Ransomware Recovery Manager™, which enables organizations to recover thousands of infected machines to the last known business-operable state, without any end-user or IT Administrator efforts.
- Entered into a new one-year contract with a major global merchant and payment processing provider, part of one of the world’s largest banks.
- Entered into a new multi-year recurring agreement with Fortune 500 FinTech company that employs over 60,000 people in over 100 countries, processing trillions of dollars in transactions annually.
- Renewed contract for its Access Control Manager™ platform (formerly “Resilient Access for Box.net”) with one of the world’s largest cable TV, home internet and telephone providers.
- Extended contract for its Sensitive Content Manager™ platform (formerly “ARALOC Secure Sports Management”) with the Pittsburgh Steelers of the National Football League.
Management Commentary:
Jason Remillard, Data443’s founder and Chief Executive Officer, commented, “I’m pleased to report our financial results, proof that we continue to deliver on the promise of compounding and sustaining revenue growth. Even in these choppy times, our continued focus on delivering for our customers has enabled us to continue to post historic results. Because of these efforts, I am proud to report that our customer retention rate thus far in 2021 has exceeded 98%.”
“As our clients continue to subscribe via our cloud-based service offerings, they are able to consume more from our expanding product offerings a la carte due simply to efficient pricing and cost certainties. Most organizations, and even the federal government now, are adopting a multi-cloud approach for their IT services. Since Day 1 we have engineered and designed for a multi-cloud scenario, which is why we are having continued success and growth in finding, identifying, and protecting data. This is where we’ve positioned Data443 to be.”
Remillard concluded by stating, “The accelerated tailwinds of greater digital transformation and data security demands positions us exceedingly well to deliver to our customers over the long term, which will certainly benefit our shareholders. We plan to further capitalize on the market opportunities ahead of us every day, from the pursuit of new business opportunities to the steady flow of acquisition candidates that we evaluate on a regular basis. I’m very proud of the trust we’ve earned from our customers, our partners and our strategic relationships, which includes some of the largest and most essential institutions in the world. We do not take this lightly. I would like to thank all of our key stakeholders, including our loyal shareholders, for their continued support.”
First Half 2021 Financial Highlights:
- We recognized $762,000 and $1,600,000 of revenue during the three and six months ended June 30, 2021, respectively, compared to $466,000 and $944,000 of revenue during the three and six months ended June 30, 2020 – representing an increase of 64% and 70%, respectively
- General and administrative expenses for the six months ended June 30, 2021, were $2,745,000, compared to $3,091,000 for the six months ended June 30, 2020, a decrease of $346,000 – representing a decrease of 11%. The decrease in general and administrative expense was primarily due to a decrease in amortization of intangible assets.
- The net loss for the six months ended June 30, 2021 was $3,722,000 compared to a net loss of $12,754,000 for the six months ended June 30, 2020, representing a reduction of 71%. The net loss for the six months ended June 30, 2021 was mainly derived from an operating loss of $1,553,000 and interest expense of $1,577,000. The net loss for the six months ended June 30, 2020 was mainly derived from an operating loss of $2,349,000; interest expense of $1,072,000; and, a loss on change in fair value of derivative liability of $9,279,000.
The Form 10-Q filing is available at the SEC: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001068689/000149315221018448/form10-q.htm
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTCPK: ATDS), is an industry leader in All Things Data Security™, providing software and services to enable secure data across local devices, network, cloud, and databases, at rest and in flight. Its suite of products and services is highlighted by:
(i) Data443® Ransomware Recovery Manager™, built for the modern enterprise, its capabilities are designed to recover a workstation immediately upon infection to the last known business-operable state, without any end user or IT Administrator efforts;
(ii) Data Identification Manager™ (previously marketed as ClassiDocs™ and FileFacets®), the Company’s award-winning data classification and governance technology, which supports CCPA, LGPD and GDPR compliance in a Software-as-a-Service (SaaS) platform that performs sophisticated data discovery and content search of structured and unstructured data within corporate networks, servers, content management systems, email, desktops and laptops;
(iii) Data Archive Manager™ (previously marketed as ArcMail®), a leading provider of simple, secure and cost-effective enterprise data retention management, archiving and management solutions;
(iv) Sensitive Content Manager™ (ARALOC™), a market leading secure, cloud-based platform for the management, protection and distribution of digital content to the desktop and mobile devices, which protects an organization’s confidential content and intellectual property assets from leakage – malicious or accidental – without impacting collaboration between all stakeholders;
(v) Data Placement Manager™ (previously marketed as DATAEXPRESS®), the leading data transport, transformation and delivery product trusted by leading financial organizations worldwide;
(vi) Access Control Manager™ (previously marketed as Resilient Access™), enables fine-grained access controls across myriad platforms at scale for internal client systems and commercial public cloud platforms like Salesforce, Box.Net, Google G Suite, Microsoft OneDrive and others;
(vii) Data Identification Manager™ (previously marketed as ClassiDocs™) for Blockchain, provides an active implementation for the Ripple XRP that protects blockchain transactions from inadvertent disclosure and data leaks;
(viii) Data443® Global Privacy Manager™, the privacy compliance and consumer loss mitigation platform which is integrated with Data Identification Manager to do the delivery portions of GDPR and CCPA as well as process Data Privacy Access Requests – removal request – with inventory enables the full lifecycle of Data Privacy Access Requests, Remediation, Monitoring and Reporting;
(ix) IntellyWP, a leading purveyor of user experience enhancement products for webmasters for the world’s largest content management platform, WordPress;
(x) Data443® Chat History Scanner, which scans chat messages for Compliance, Security, PII, PI, PCI & custom keywords; and
(xi) GDPR Framework, The CCPA Framework and LGPD Framework WordPress plugins, with over 30,000 active site owners combined, enables organizations of all sizes to comply with European, California and Brazilian privacy rules and regulations.
For more information, please visit http://www.data443.com.
Forward-Looking Statements
The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements. The 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 that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties, and assumptions, many of which are beyond Data443’s control, and which could cause actual results to differ materially from the results expressed or implied by the statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, and include, without limitation, results of litigation, settlements and investigations; actions by third parties, including governmental agencies; volatility in customer spending; global economic conditions; ability 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 our charter documents; and, the uncertainties created by the ongoing outbreak of a respiratory illness caused by the 2019 novel coronavirus that was recently named by the World Health Organization as COVID-19. These and other important risk factors are described more fully in our reports and other documents filed with the Securities and Exchange Commission (“the SEC”), including under (i) “Part I, Item 1A. Risk Factors”, in our Registration Statement on Form 10 filed with the SEC on January 11, 2019 and amended on April 24, 2019; (ii) “Part I, Item 1A. Risk Factors”, in our Annual Report on Form 10-K filed with the SEC on March 23, 2021; and, (iii) subsequent filings. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. Except as otherwise required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
The Data443™ logo, ClassiDocs™ logo, ARALOC™ logo, ARCMAIL®, DATAEXPRESS® and FILEFACETS® are all registered trademarks of Data443 Risk Mitigation, Inc.
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