AnalytixInsight Reports Third Quarter 2020 Financial Results

AnalytixInsight Inc.
·10-min read

TORONTO, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Artificial Intelligence company, AnalytixInsight Inc. (“AnalytixInsight”, or the “Company”) (TSX-V: ALY; OTCQB: ATIXF), reports its financial results for the third quarter ended September 30, 2020.

Highlights:

  • The Company’s CapitalCube AI-driven research pursuant to the distribution agreement with Refinitiv continued to witness strong readership during the quarter as users embrace the use of AI in fundamental financial analysis.

  • Continued development of robo-based ETF and equity analysis to create and develop proprietary indices to be featured in a new version of index driven products in CapitalCube.

  • Workforce Optimization initiatives continue to advance. The Company is pursuing strategic transformation in this rapidly growing business opportunity and will develop AI-based solutions tailored for the Field Service Management (FSM) industry for integration under the Company’s partnership with global enterprise software vendor IFS, as well as other FSM software solutions providers. The initial design of these solutions is targeted to meet the needs of customers in the Energy and Utilities industry verticals using cybernetic methods of human-machine intelligent interaction.

  • MarketWall made strong progress in its online brokerage initiative, InvestoPro, in preparation of becoming a European online financial broker. InvestoPro has been constituted with a seven-member board of directors, and the development of the online brokerage platform is materially complete. During the quarter, the InvestoPro stock trading platform was expanded to allow trading of options and derivatives.

  • MarketWall has launched MarketWall Lite as a multi-device progressive web app. Several new features have also been launched such as virtual trading, price alerts, custom stock selector, company profiles and a learning academy that offers specialized investor education content.

  • AnalytixInsight’s revenue for the three- and nine-month periods ended September 30, 2020, was $0.9 million and $2.3 million, respectively, and net loss was $0.8 million and $1.6 million, respectively.

  • MarketWall revenue for the nine-month period ended September 30, 2020 increased 27% over the prior year comparable period to $4.4 million. MarketWall remained profitable with net income of $0.9 million for the nine-month period, a 40% increase over the prior year comparable period. (MarketWall is 49% owned by AnalytixInsight and not consolidated in AnalytixInsight’s financial results).

  • The Company completed a non-brokered private placement raising gross proceeds of $1.7 million subsequent to the end of the third quarter.

AnalytixInsight Selected Financial Information:

AnalytixInsight
$ Canadian (unaudited)

Nine months ended
September 30, 2020

Nine months ended
September 30, 2019

Revenue

2,295,885

2,852,177

Basic net loss per share

(0.02

)

(0.01

)

September 30, 2020

December 31, 2019

Total assets

4,837,786

5,546,267

Total liabilities

1,083,963

523,853

MarketWall Selected Financial Information:

AnalytixInsight owns 49% of MarketWall which is considered an associated company as its financial results are not consolidated in AnalytixInsight’s financial results.

MarketWall
(Associated investment of AnalytixInsight, $ Canadian)

Nine months ended
September 30, 2020

Nine months ended
September 30, 2019

Revenue

4,399,134

3,452,697

Net income

882,609

628,265

September 30, 2020

December 31, 2019

Total assets

6,075,044

5,206,824

Total liabilities

1,878,535

2,139,151

CapitalCube

AnalytixInsight is an established AI-driven content supplier with ability to offer research content on small & mid-cap companies worldwide through its CapitalCube platform which delivers scalable, machine-created content. Its powerful analytics engine is capable of 100 billion daily computations and currently provides analysis on approximately 50,000 worldwide stocks and North American ETFs.

CapitalCube provides AI-driven research to Refinitiv on North American pre-revenue companies and dividend-paying companies worldwide. CapitalCube’s dividend analysis report provides powerful insights, analysis and scoring regarding a company’s dividend quality, yield, coverage, flexibility, payment history, peer comparisons and sustainability. Report readership continued to increase during the quarter as users rapidly embrace the use of AI in fundamental financial analysis.

AnalytixInsight believes that its ability to create scalable financial content on companies worldwide is being recognized with increasing importance as global industry leaders embrace analytics within the financial industry. The London Stock Exchange has agreed to buy Refinitiv in a US$27 billion transaction to create a global financial markets infrastructure provider with leading data and analytics to Refinitiv’s 40,000 institutions in over 190 countries.

During the quarter, CapitalCube continued development of robo-based ETF and equity analysis designed to develop proprietary indices and specialized portfolio criteria selection based on Efficient Frontier computations. The Company is engaged in discussions with professional portfolio managers relating the use of CapitalCube’s robo-analysis and AI to be featured in new versions of index-driven products in CapitalCube.

Workforce Optimization

AnalytixInsight’s Workforce Optimization division joined the IFS Partner Network in 2018 and is advancing its sales initiatives in the Field Service Management (FSM) industry. IFS is a world leader in developing workforce optimization enterprise software for global customers who manage service-focused operations. The COVID-19 pandemic has disrupted many North American businesses and is disrupting the traditional operations of service-based organizations. They are now seeking innovative solutions for field dispatch, job tracking, and workflow efficiency. Data analytics plays an important role in this shift, which is more easily enabled now that most service technicians use digital-based solutions.

The Company is working collaboratively with IFS to design and build machine learning and deep learning solutions that are designed to improve Workforce Optimization and Scheduling in the FSM industry. The initial design of these solutions is targeted to meet the needs of customers in the Energy and Utilities industry verticals using cybernetic methods of human-machine intelligent interaction. Machine learning algorithms based on cybernetics will facilitate insightful learnings from the data currently generated by the FSM industry.

The Company’s Workforce Optimization division is a highly skilled systems integration team experienced in integration of IFS and Salesforce field management solutions. The Company is applying an increased focus on this initiative with new solutions and strategies that are emerging as a result of COVID-19.

MarketWall

MarketWall is a 49%-owned FinTech online digital solutions provider to major financial services firms in Europe. It draws an audience of over 2.5 million monthly users through its multi-device platform and social media presence. As a Samsung Electronics partner, MarketWall’s financial app is preloaded on certain Samsung devices in Europe.

During the quarter, MarketWall advanced development of InvestoPro, its European online brokerage initiative. Options & derivatives trading has been added to the product suite, in addition to stock trading. The editorial team is now producing “Trading Ideas” content which is designed to educate investors by offering weekly stock market summaries, worldwide financial market outlooks, educational content for stocks, bonds, currencies, new emerging industry trend analysis, and more. Several new features have also been added such as Virtual Trading, Price Alerts, Company Profiles, and Academy – an education center that offers webinars and on-demand courses designed to deepen investors knowledge of financial markets. Following regulatory approvals InvestoPro will launch in Italy and then expand to other European countries, using Intesa Sanpaolo as its execution broker. InvestoPro will offer discounted stock trading commissions and other services designed to give individual investors greater control over their investments and trading.

MarketWall has already developed “Investo” which is the stock trading component of the Intesa Sanpaolo App, ranked top 4th App in Europe by Forrester Digital Wave. The number of Intesa Sanpaolo banking app users has increased by approximately 1 million over the past year to 6.2 million.

MarketWall Lite has been launched as a Progressive Web App (PWA). PWAs function like web browsers with the convenience of an app-like format that can be downloaded to the home screen of any device (desktop, mobile, tablet) for quick access. PWAs require less memory space and data usage compared to native apps while offering quicker load times and the ability to use certain features when offline.

Following the completion of MarketWall’s online brokerage initiative InvestoPro, MarketWall expects to initiate a valuation process to determine its appropriate valuation within a peer-based context of online brokerage firms with partnerships with world-leading banks. Completion of this process will allow AnalytixInsight to move forward with a spinout to unlock the value of its MarketWall holdings in an IPO or other such strategies.

MarketWall has also developed GlobalMarket, a trading & research platform offering analyst research and stock trading in one common enterprise digital platform. It is marketed and sold by a leading investment research provider and has already been installed by a leading bank in Western Europe for their approximately 4,000 professional users.

Intesa Sanpaolo owns 33% of MarketWall and is one of the top banking groups in Europe with approximately 11.8 million customers and approximately 3,700 branches throughout Italy. It has emerged as Italy's first digital bank and is investing 2.8 billion euros in a strategic plan to increase the bank’s digitized business to 70%, with mobile being at the heart of the digital ecosystem. S&P Global ranks Intesa Sanpaolo as the 27th largest bank in the world by total assets.

Complete details of the Company’s financial and operating results are available under the Company’s profile at www.SEDAR.com.

CONTACT INFORMATION:

Scott Urquhart
VP Corporate Development
Scott.Urquhart@AnalytixInsight.com
Tel: (416) 522-3975

ABOUT ANALYTIXINSIGHT INC.

AnalytixInsight Inc. is an Artificial Intelligence, machine-learning company. AnalytixInsight’s financial analytics platform CapitalCube.com algorithmically analyzes market price data and regulatory filings to create insightful actionable narratives and research on approximately 50,000 global companies and ETFs, providing high-quality financial research and content for investors, information providers, finance portals and media. AnalytixInsight also designs and implements Workforce Optimization solutions for large global enterprises. AnalytixInsight holds a 49% interest in MarketWall, a developer of FinTech solutions for financial institutions. For more information, 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 growth of the Company’s business operations; the impact of COVID-19 on the Company’s operations; the Company’s financial results; the adoption of AI in various industries; the Company’s ability to spin out or monetize it’s interest in MarketWall, the valuation of MarketWall, MarketWall’s ability to raise adequate capital, MarketWall’s ability to obtain a brokerage licence and complete the development of InvestoPro; the Company’s financial results; the use of the Company’s content by various parties; the impact of the distribution agreement with Refinitiv; the Company’s ongoing relationship with IFS and the Company’s ability to enter into commercial transactions with members thereof; the Company’s ability to expand its content distribution; MarketWall’s and Intesa Sanpaolo’s future performance; 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 Inc., 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; ability to successfully integrate new technology and employees; foreign operations risks; 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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE