Data443 Risk Mitigation Inc (OTCMKTS:ATDS) Stock Falls After Q3 Earnings Update
Another company that was in the news yesterday after announcing its financial results yesterday was Data443 Risk Mitigation Inc (OTCMKTS:ATDS). The company announced its financial results for the third fiscal quarter and the first nine months of the year, both of which ended on September 30, 2022.
Trading Data
On Tuesday, ATDS stock moved down 10.53% to $1.7000 with more than 11.01K shares, compared to its average volume of 3.15K shares. The stock moved within a range of $1.6000 – 1.8000 after opening trade at $1.8000.
Data443 Reports Third Quarter 2022 Results and Provides Corporate Update
The privacy software and data security company announced yesterday that it had generated revenues of $916,172 in the third fiscal quarter and that reflected a significant drop from the revenues of $1,495,059 in the prior year period. That worked out to a drop of as much as 39% year on year.
Data443 Risk Mitigation noted that the drop had been brought about by the fact that it was making a move from annual contracts to time-based subscriptions. That had resulted in fewer renewals or sales of subscriptions and led to the drop in revenues.
On the other hand, the general and administrative expenses for the third quarter stood at $1,579,529 and that was much higher than the figure of $1,065,619 under the same overhead in the prior year period. That worked out to an increase of as much as 48%. It is going to be interesting to see if the stock moves either way this morning.
Key Quote
Data443 CEO & Founder Jason Remillard observed, “Our results for the third quarter came in largely as expected, and we continue to see high revenue customer retention amidst extremely challenging economic conditions. We continue to focus on realigning our current customer relationships to a subscription and monthly recurring revenue model. While this has affected straight line revenue growth year-over-year, our increased and growing deferred revenues, diverse revenue base, and increased analyst attention all demonstrate the strong momentum of our business.”
Technical Data
ATDS stock is trading below the 20-Day and 50-Day Moving averages of $1.83 and $2.10 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.60.
