Reports 70% Increase in Revenue – Strong Customer Retention
RESEARCH TRIANGLE PARK, NC, August 4, 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.
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
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