DATA443 REPORTS THIRD QUARTER 2020 RESULTS, CONTINUING RECORD
GROWTH AND OPERATIONAL IMPROVEMENTS; QUARTER ALSO INCLUDES RECORD
CUSTOMER GROWTH AND INCREASING ANNUAL RECURRING REVENUE
RESEARCH TRIANGLE PARK, NC -- November 18, 2020 --
InvestorsHub NewsWire -- Data443 Risk Mitigation, Inc. (“Data443”
or the “Company”) (OTCPK:
ATDS), a leading data security and privacy software company for
ALL THINGS DATA SECURITY™, is pleased to announce
results for its third quarter and nine months ended September 30,
2020, with continued accelerated growth in all facets of the
business. The Company filed its quarterly report on Form 10-Q with
the Securities & Exchange Commission on Monday, November 16,
2020, which can be found at:
https://www.sec.gov/Archives/edgar/data/1068689/000149315220021394/form10-q.htm
MANAGEMENT COMMENTARY
Jason Remillard, CEO of Data443, commented, “We are extremely
pleased with our third quarter and nine-month results, especially
given the unprecedented conditions throughout the year. Despite
these challenges, Data443 continues to adapt and focus on improving
and enhancing all facets of our business, strengthening our
positioning in the marketplace, and growing our service offerings
to meet the rapidly changing needs of our customers.”
"We see this positive performance as being driven by a number of
factors, including meeting the demand of our clients to meet the
enhanced data compliance issues they face due to the abundance of
remote working environments. In addition, the rapidly growing
regulatory environment in California (an influential proxy for the
rest of the United States), continues to escalate the importance of
data compliance for SMEs, requiring our highly sophisticated
solutions. The results for the quarter also demonstrate our ability
to successfully continue to address this demand, while making
strategic acquisitions and incorporating these technologies within
our growing stack. All of this, combined with our initiatives to
strengthen our sales and marketing efforts, led to our strong
operational performance during the quarter.”
"I’d be remiss if I didn’t mention our strong customer
retention, which is extremely close to 100 percent, as well as our
expanding impressive customer base. We have continued to deliver
the high level of customer service that is essential to building
brand loyalty, ensuring ‘Data443’ is the answer to the challenges
posed by our customers. We believe this has helped drive referrals
and word-of-mouth demand, and we look forward to building on this
momentum. We will be announcing some major new customers in the
next few weeks.”
“In closing, I would like to remind everyone to join us tomorrow
for our Business Update Call, where I will outline our plans for
the rest of this year and our fiscal 2021.”
FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER OF 2020 AND
YEAR-TO-DATE:
-
Nearly $3,000,000 of toxic convertible debt paid-off or
converted 9-months ended and counting
-
Paid down over $500,000 in acquisition-related notes in cash
-
Company historic quarterly record bookings of $835,000
-
Best revenue quarter in Company’s history
-
Reduction of G&A expenses of 35%
-
Deferred revenues continue to increase, this quarter up 21%
-
Net reduction of debt increased equity by $12,500,000
-
Reached shareholder-friendly forbearance agreements for
outstanding convertible notes
OPERATIONAL HIGHLIGHTS FOR THE THIRD QUARTER OF 2020 AND
YEAR-TO-DATE:
-
Completed Payments to Modevity, LLC for the
ARALOC™ platform, the secure private data storage,
protection, and enablement platform
-
Released Data443 Chat History Scanner, the
latest advance in our cloud Global Privacy Manager product line
-
Secured contract with the NFL’s Pittsburgh
Steelers to provide the ARALOC™ Secure
Sports Management platform
-
Welcomed Mr. Omkhar Arasaratnam, cybersecurity
expert and strategic consultant to venture capitalists, to our
Advisory Board
-
Completed the acquisition of SAAS data analytics and content
migration company – FileFacets®
-
Completed the acquisition of Silicon Valley based SAAS data
access control & SSO company, Resilient Network
Systems
-
Completed the acquisition of IntellyWP, an
Italy-based developer that produces WordPress plug-ins that enhance
the overall user experience for webmaster and end users
-
Released enhancement of flagship data transfer, transformation,
and delivery product, DataExpress®, which addresses
market need for two factor authentication services
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2020
-
Recognized $700,000 of revenue during the three months ended
September 30, 2020, compared to $628,000 during the three months
ended September 30, 2019.
-
Net billings for the three months ended September 30, 2020 of
$835,000, compared to $1,129,000 in the prior year period.
-
Deferred revenues were $1,469,000 as of September 30, 2020, an
increase of $515,000 from $954,000 as of December 31, 2019.
-
General and administrative expenses for the three months ended
September 30, 2020 amounted to $858,000, as compared to $1,328,000
for the three months ended September 30, 2019, which is a decrease
of $470,000, or 35%,
-
Net loss of $1,500,000 for the three months ended September 30,
2020, compared to $3,196,000 for the three months ended September
30, 2019. The net loss for the three months was mainly derived from
a loss on change in fair value of derivative liability of $420,000,
associated with convertible notes payable and gross margins of
$592,000, offset in part by general and administrative, and sales
and marketing expenses incurred.
RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2020
-
$1,644,000 of revenue during the nine months ended September 30,
2020, compared to $1,129,000 of revenue during the nine months
ended September 30, 2019.
-
Net billings for the nine months ended September 30, 2020 of
$2,370,000, compared to $2,066,000 in the prior year period.
-
General and administrative expenses for the nine months ended
September 30, 2020 of $3,950,000, compared to $3,200,000 for the
nine months ended September 30, 2019, which is an increase of
$749,000, or 23%.
-
Sales and marketing expense for the nine months ended September
30, 2020 amounted to $151,000, compared to $461,000 for the nine
months ended September 30, 2019, which is a decrease of $310,000,
or 67%.
-
The net loss for the nine months ended September 30, 2020 was
$14,254,000 as compared to a net income of $4,027,000 for the nine
months ended September 30, 2019. The net loss for the nine months
ended September 30, 2020 was mainly derived from a loss on change
in fair value of derivative liability of $420,000 and $9,698,000,
respectively, associated with convertible notes payable and gross
margins of $592,000 and $1,482,000, respectively, offset in part by
general and administrative, and sales and marketing expenses
incurred. The net gain for the nine months ended September 30, 2019
was primarily a result of a gain on change in fair value of
derivative liability of $7,267,000, offset in part by an operating
loss of $2,623,000 by increased general and administrative costs,
and sales and marketing expenses incurred.
BUSINESS UPDATE CONFERENCE CALL
Data443 will hold a Business Update Conference Call and Webcast
on Thursday, November 19, 2020 at 4:30pm ET.
Investors and other interested parties may submit their
questions ahead of time by emailing Investor Relations
at ir@data443.com.
Online registration is available at: https://info.data443.com/2020q3-business-update
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTCPK:
ATDS), is the de facto industry leader in Data Privacy
Solutions for 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)
ARALOC™, which is 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; (ii)
DATAEXPRESS®, the leading data transport, transformation
and delivery product trusted by leading financial organizations
worldwide; (iii) ArcMail™, which is a leading provider
of simple, secure and cost-effective email and enterprise archiving
and management solutions; (iv) ClassiDocs® the
Company’s award-winning data classification and governance
technology, which supports CCPA, LGPD, and GDPR compliance; (v)
ClassiDocs™ for Blockchain, which provides an
active implementation for the Ripple XRP that protects blockchain
transactions from inadvertent disclosure and data leaks; (vi)
Data443® Global Privacy Manager, the privacy
compliance and consumer loss mitigation platform which is
integrated with ClassiDocs™ to do the delivery
portions of GDPR and CCPA as well as process Data Privacy Access
Requests – removal request – with inventory by
ClassiDocs™; (vii) Resilient AccessTM, which
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; (viii) Data443™ Chat History
Scanner, which scans chat messages for Compliance, Security, PII,
PI, PCI & custom keywords; (ix) the CCPA Framework WordPress
plugin, which enables organizations of all sizes to comply with the
CCPA privacy framework; (x) FileFacets™, 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; (xi) the GDPR Framework WordPress plugin, with over 30,000
active users and over 400,000 downloads it enables organizations of
all sizes to comply with the GDPR and other privacy frameworks; and
(xii) IntellyWP, a leading purveyor of user experience enhancement
products for webmasters for the world’s largest content management
platform, WordPress. 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 17 April 2020;
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, ALL THINGS DATA SECURITY™,
ClassiDocs™ logo, ARALOC™ logo and
DATAEXPRESS® are registered trademarks of Data443
Risk Mitigation, Inc.
All product names, trademarks and registered trademarks are
property of their respective owners. All company, product and
service names used in this website are for identification purposes
only. Use of these names, trademarks and brands does not imply
endorsement.
All other trademarks cited herein are the property of
their respective owners.
For Further Information:
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Follow us on LinkedIn: https://www.linkedin.com/company/data443-risk-mitigation-inc
Signup for our Investor Newsletter: https://www.data443.com/investor-relations
Investor Relations Contact:
Matthew Abenante
ir@data443.com
919.858.6542
DATA443 Risk Mitigation (PK) (USOTC:ATDS)
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