Corporate Rebranding and Customer Demand Helps to Lead 113% and 88% Increase in Revenue for Three and Nine Months Ended September 30, 2021
RESEARCH TRIANGLE PARK, NC, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, today announced operating results for the third quarter and nine months ended September 30, 2021.
Significant Accomplishments and Highlights for the Third Quarter of 2021:
Total revenues increased 113% year-over-year
Net loss decreased 35% year-over-year
Significant new customer wins, renewals, and new proofs of concept initiated
Major product releases across the product line, including new capabilities for Covid-19 sensitive and ransomware encrypted documents
Significant progress towards major-market up-list attained
New infosec tier-1 analyst firm onboarding – including individual analyst briefings and roadmap reviews
Completed corporate rebrand, coinciding with analyst first initiation and busy conference season throughout the fourth quarter
Signed letter of intent to acquire ransomware protection innovator, Centurion Technologies
Announced Contract Wins for the Third Quarter of 2021:
Signed largest customer contract for Data44 (to date) with the world’s largest global financial services corporation for a minimum of $1.54 million over three and ½ years for the Company’s market-leading Data Placement Manager™ (formerly marketed as DATAEXPRESS Non-Stop)
Signed education system based in the Caribbean for Data443’s Data Archive Manager™ to provide for on-island and off-island email and data archiving, retention, privacy, and eDiscovery capabilities
Signed contract with Fitness Finders® to utilize Data443 Data Identification Manager® product to protect and comply with the CCPA and other US privacy laws
Expanded services for its Sensitive Content Manager™ platform (formerly “ARALOC”) with a long-standing client, a Fortune 500 non-profit healthcare provider
Signed multi-year deal to provide retention management, e-discovery, and data migration capabilities for one of the largest domestic wholesale electric energy suppliers
Signed multi-year agreement with a local government in the Asia-Pacific region for several components of the Data443 framework
Entered into a new contract with the national self-regulatory organization for a segment of the U.S. financial markets for its Data Archive Manager™ (formerly known as ArcMail)
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, which include extensive revenue increases in the quarter and year-to-date. Our sales and recurring revenue continue to be enabled by the aggressive marketing investments that we have made throughout this year, including the investment into relationships with several analyst firms. We have seen an increase in our multi-year pre-paid subscription sales, higher recurring revenue streams, and increases in the average selling price of our products, along with the pointed success of up-selling opportunities.
“Our technology stack is unique in the industry, enabling us to win deals in a variety of industries and settings. Moreover, we continue to receive inbound opportunities that require a broader product portfolio set – and increasingly require endpoint security capabilities. Our focus on privacy-enabled data security resounds well with these requirements. Data identification is much more valuable when you can protect, move, and remove access to it when it is time, even better when you make any data that happens to be stolen – useless in the hands of thieves—recovering from a ransomware attack - your data, devices and worker productivity - in minutes? These are all capabilities that Data443 provides today and are predominately unique in delivering.
“Our business continues to thrive despite an increasingly challenging economy and the lingering effects of the pandemic. We continue our balanced approach of new product capabilities and integration with partners while delivering our resoundingly 5-star rated support with teams who actually do answer the phone and go over and above to ensure our clients receive value from their purchases and spread the word internally and externally for us. Because of these efforts, I am proud to report that our customer retention rate thus far in 2021 has exceeded 99%. These results are due to the complete professionals we have at Data443.”
Third Quarter 2021 Financial Results:
Total revenues were $1,495,000 during the three months ended September 30, 2021, compared to $700,000 of revenue for the three months ended September 30, 2020 – representing an increase of 113%.
General and administrative expenses for the three months ended September 30, 2021 amounted to $1,061,000, compared to $858,000 for the three months ended September 30, 2020, an increase of $203,000, or 24%.
Sales and marketing expenses for the three months ended September 30, 2021 amounted to $89,000, compared to $3,000 for the three months ended September 30, 2020, an increase of $86,000.
The net loss for the three months ended September 30, 2021 was $974,000, compared to a net loss of $1,500,000 for the three months ended September 30, 2020.
The net loss for the three months ended September 30, 2021 was mainly derived from a loss on change in fair value of derivative liability of $68,000, associated with convertible notes payable and convertible preferred stock and gross margins of $1,346,000, offset in part by general and administrative, and sales and marketing expenses incurred. The net loss for the three months ened September 30, 2020 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.
Nine Months Ended September 30, 2021 Financial Results:
Total revenues were $3,095,000 during the nine months ended September 30, 2021, compared to $1,644,000 of revenue for the nine months ended September 30, 2020 – representing an increase of 88%.
General and administrative expenses for the nine months ended September 30, 2021, were $3,806,000, compared to $3,950,000 for the nine months ended September 30, 2020, a decrease of $143,000 – representing a decrease of 4%. The decrease in general and administrative expenses was primarily due to a decrease in amortization of intangible assets.
Sales and marketing expenses for the nine months ended September 30, 2021 amounted to $234,000, as compared to $151,000 for the nine months ended September 30, 2020, an increase of $83,000, or 55%. The expenses for the nine months ended September 30, 2021 primarily consisted of developing a sales operation, with some previously reported expenses, primarily management costs, reclassified to general and administrative expenses. Expenses for the nine months ended September 30, 2020 consisted of primarily the same items.
The net loss for the nine months ended September 30, 2021 was $4,696,000 compared to a loss of $14,254,000 for the nine months ended September 30, 2020 representing a decrease of 67%.
The net loss for the nine months ended September 30, 2021 was mainly derived from an operating loss of $1,357,000 and interest expense of $2,679,000. The net loss for the nine months ended September 30, 2020 was mainly derived from an operating loss of $2,619,000 interest expense of $1,691,000 and a loss on change in fair value of derivative liability of $9,699,000.
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.
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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