Artificial intelligence company AnalytixInsight Inc. (“AnalytixInsight”, or the “Company”) (TSX-V: ALY), a financial content and enterprise software solutions provider, reports its financial results for the third quarter ended September 30, 2023, and provides a corporate update including that of MarketWall S.R.L. (“MarketWall”), the Company’s 49%-owned fintech affiliate. MarketWall continued its growth trajectory, increasing its revenue to $8,141,879 for the nine months ended September 30, 2023, representing an increase of 99% over the comparative period. MarketWall also reported a net profit of $2,105,287 for the nine months ended September 30, 2023, in its strongest period to date.
Key Business Highlights:
- Vincent Kadar, current CEO of Polymath Research Inc., appointed to the Board of Directors as of July 20, 2023;
- Approximately 92,780 machine-created company research reports have been published across 40 countries under the Company’s AI-driven research initiative with Refinitiv;
- The InvestoPro GO trading platform launched a new mobile app purposefully designed for Samsung device users under the MarketWall collaboration agreement with Samsung Italia;
- InvestoPro users grew under increased marketing efforts for the platform alongside the cooperation agreement with Samsung Electronics Italia S.p.A. to profile the InvestoPro digital trading platform to Samsung device users; and
- InvestoPro has shown growth in its assets under custody (“AUC”) to EUR 83 million.
Q3 2023 Key Financial Highlights:
- AnalytixInsight’s revenue for the three and nine-month periods ended September 30, 2023, was $93,932 and $457,730, respectively, which compares to $928,320 and $1,611,052, respectively, in the prior year comparable periods. Net loss per share for the quarter was $(0.01) which compares to $(0.00) for the prior year comparable period;
- AnalytixInsight had cash and cash equivalents of $2,054,227 as at September 30, 2023, with positive working capital of $1,592,467; and
- MarketWall continued its profitability into Q3 2023, growing revenue to $8,141,879 for the nine months ended September 30, 2023, and increased net profit to $2,105,287, which compares to revenue of $4,099,127 and net loss of $540,953, respectively, in the prior year comparable periods, primarily driven by a new license agreement entered into with Intesa Sanpaolo in Q1 2023.
AnalytixInsight owns a 49% equity interest in MarketWall and is thus not consolidated in AnalytixInsight’s financial results. Further, MarketWall’s financial results include the consolidation of its wholly owned subsidiary InvestoPro.
Management Commentary
“We are pleased to see MarketWall consistently posting strong financial results with another record quarter in Q3, positioning that company on a consistent trajectory of profitability and growth for the business,” commented Prakash Hariharan, Chairman and CEO of AnalytixInsight. “InvestoPro has been focusing on marketing and customer acquisition efforts alongside continued product development with the launch of the InvestoPro GO app. Additionally, we’ve been focused on strategically positioning our CapitalCube product to meet the needs of B2B and B2B2C customers, in terms of product features and AI functionalities.”
InvestoPro
InvestoPro is the digital online stock trading platform launched by MarketWall and Intesa Sanpaolo through MarketWall’s wholly owned subsidiary, InvestoPro SIM S.p.A.. InvestoPro SIM S.p.A. has developed its leading-edge platform, trade execution functions, and user applications in partnership with Intesa Sanpaolo. InvestoPro’s AUC and customer onboarding grew during the quarter alongside increased marketing efforts for the platform, including new customer promotions and short video advertisement spots for television and digital marketing. In addition, InvestoPro EVO has been developed as a comprehensive multi-device trading platform (e.g., mobile, wearables, smart-TV) that offers online stock trading and fintech-enabled services combined with research and financial education.
InvestoPro GO has been developed as a simplified version of InvestoPro that has been purposefully designed for Samsung users in conjunction with InvestoPro’s agreement with Samsung Electronics Italia. InvestoPro GO launched a new mobile app in September 2023. The app is available for Italian users in the Google Play and Apple App Store. InvestoPro increased marketing efforts for InvestoPro GO during the quarter, including banner advertisements on Samsung Wallet, Samsung’s mobile payment and digital wallet app, providing users of Samsung Wallet access to download the app.
InvestoPro & Samsung
InvestoPro partnered with Samsung Electronics Italia in accordance with a fee per click co-operation agreement and fee per download collaboration agreement entered into in late-2022 and mid-2023, respectively, to profile and recommend the InvestoPro digital trading platform and InvestoPro Go product to Samsung users in Italy. Under the co-operation agreement, Samsung profiled InvestoPro as an exclusive financial app on Samsung’s “Quick Access,” the start page of the Samsung Internet Browser, in exchange for a fee per click payable by InvestoPro. Pursuant to the collaboration agreement, Samsung recommends InvestoPro to users as an exclusive digital trading app as part of its App Installer in exchange for a fee per download payable by InvestoPro. The App Installer guides users during their first device power on procedure and presents recommended apps in popular, useful, and fun categories. App recommendations can be targeted based on age and gender and can easily be downloaded by tapping the download button. The co-operation agreement expired in November 2023; however, the collaboration agreement continues to be in effect.
CapitalCube
Under the Company’s Refinitiv AI-driven research initiative, CapitalCube has published more than 92,780 reports on company earnings, dividend quality, and pre-revenue company analysis across 40 countries since the initiative’s inception in October 2018. The Company believes its ability to generate machine-created research reports and AI-based fundamental financial analysis on virtually all publicly traded companies worldwide is a market differentiator for trading platforms within the industry, wherein we see both regulators and platform providers are seeking tools to automate the alignment of trading permissions that are matched with the investor’s risk appetite.
Euclides
Euclides Technologies Inc. is AnalytixInsight’s workforce management (“WFM”) division. Although at an early stage, Euclides in association with CapitalCube and other third parties have also been involved in the development of zero-touch WFM modules with data analytics and customized machine learning algorithms. The product development has been deferred to 2024 from 2023 with a number of customers, notably utilities and power corporations, who have been long standing enterprise customers of Euclides professional services, deferring their capital expenditures into the following year.
In keeping with the Company’s increasing focus on fintech opportunities, the Company has commenced a strategic review of its WFM-related platform offerings with the view of leveraging value for this business segment.
Complete details of the Company’s financial and operating results are available under the Company’s profile at www.SEDAR.com.
About AnalytixInsight Inc.
AnalytixInsight is a data analytics and enterprise software solutions provider to world-leading institutions across various industries. AnalytixInsight develops and markets cloud-based platforms providing financial content, stock trading, and research solutions for banks, brokers, and investors in the financial services industry. AnalytixInsight holds a 49% interest in MarketWall, a developer of fintech solutions for financial institutions. MarketWall was founded by the Company in 2014. Through a series of transactions, by 2016 the Company’s interest in MarketWall had been diluted to 49%. The Company is entitled to appoint one director to the board of directors of MarketWall. Through this power of appointment, its position as the largest single shareholder, and its historic relationship with MarketWall, the Company has had influence in the strategic planning, direction, and growth of MarketWall, although it does not legally control MarketWall. Visit AnalytixInsight.com.
Regulatory Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the Company’s business operations and objectives, particularly respecting Euclides’ product development deferral and strategic review of its WFM division; MarketWall’s profitability trajectory and growth; InvestoPro’s AUC and customer growth; and the Company’s future performance. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AnalytixInsight and its subsidiaries, and MarketWall and InvestoPro, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the Company’s technology and revenue generation; risks associated with operation in the technology sector; the Company’s ability to successfully integrate new technologies and employees; foreign operations risks; Samsung’s and Intesa Sanpaolo’s willingness and ability of third parties to profile and recommend the products and services of the Company and its subsidiaries, and MarketWall and InvestoPro to their customers; and other risks inherent in the technology industry. Although AnalytixInsight has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. AnalytixInsight does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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