BLBX - Earnings call transcript Q2 2022

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Operator

Good day and welcome to the Blackboxstocks Second Quarter 2022 Earnings Conference Call. All participants will be in listen only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Stephanie Prince with PCG Advisory. ahead. go Please

Stephanie Prince

And Cole. everyone us joining Thank welcome today. you, to

with On CEO, me Gust call Kepler; Blackboxstocks CFO. are the Winspear, and Bob

statements those company the in prospects remind any the future The only purposes of made as the constitute to of various Harbor for at occur like events about provisions Safe not may Relations XX, Any speak remarks of forward-looking under available forward-looking to replay indicated differ on A will forward-looking date, everyone today's statements expectations, forward-looking does website that to Monday, August risks Investor through company's subject Securities Act XXXX. statements of are to filings on with described Litigation of conference made that the and today. risks XXXX. results company's Blackboxstocks the Blackboxstocks.com. uncertainties today's circumstances today's Private the or including call statements update cause that this Reform materially actual after to from call conference cautions call that claims section these Blackboxstocks of would be reflect their and SEC. these intend

to Gust? I'd turn over that, Kepler, call CEO. like With Gust to the

Gust Kepler

Thank And for to joining I to us the you, Stephanie. thank welcome everyone today. want call. you everyone

of throughout companies concerned as and consumers aware, end created headwinds and and year the inflation The sector, These is in course, as factors high finances. about saw rebound E-traders to their the our as and QX to QX GDP X%. decline everyone market continued June. As of this for are only investors, declining year of at stock started continued

of This was of to for make and were adapt reflected that first and opportunity month. a count. for end was market. only breakout to effective the ran our sale try promotion say able We March is customers our to new an $X in the subscriber we happy their spring a turbulent designed give I'm at uncertain to and most platform

compared Our average also XXXX subscriber lot count in subscribers for of add as Blackbox. of the from I'll learned this was QX QX XXXX for kind we its a that to the subscribers promotion, which first was XXXX.

run because planning has The trading we in similar March are future. reasons have And changed that consumer of like significantly. to new continue to to current future the this did the in do landscape things ours, that are services changed similar address market. will promotions the employing promotions for marketing one initiatives is We we the and and promotion in

trading our Speaking rooms, on are multitude spawned marketing new services and plethora challenges to one for new market blade. discord a our gurus. the the I last I'll providers, that went over reiterate of that, of XXXX as of biggest come this in endeavors trading doing have the we scanners, traders course along a of education tools, of market that call, bull but platforms, purported the is

new Although and confusion value Nonetheless, we channels opinion and would-be the majority or our the trading services. that they competitors, education traders, new rooms, clutter to there a or services social these there are they is not quality my providers, out provide products. of that I few media create data that services be whether products or believe promote

marketing to amount above to have get in more noise. a significant we So up spend the

that recent and a new six-year software a prospective marketing members, are education our we to tailored we carefully campaigns history. provider have that and best-in-class have We educate

with constantly media, capitalized. that reviews education positive quality that coupled on five-star our well that We rating. tools confident the also extremely we and always services social have We're Google new a upgrading that we with including emphasize fact our community are we're

product core our product core grow be base continue upgrade to experience. We will our user our our best for possible members offer able continue to the user to We to

for our the especially workplace In been mobile and devices and April, return it received well to pandemic. Android base, has the app those user after Apple that released we by a had to

also types and We to new adding and members maximum stock the edge charting market. and our alert options new provide features market are

addition development I significantly that addressable core are In new just our products developing product, discussed market. and our for to we market the marketing, total segments also target new several will initiatives, that increase

not alert encompass One like exponentially larger. current and for of addressable the trader Nanny. It market it investors, Stock self-directed products is system investors, our core the product for is these product, called portfolio is day market this does

version not have our platform. And bring professional working to for for We system are caters pro so tier onboarding the pricing on the We first traders can this deploy our we as pro pro also adding well that market. are and a of which traders, Pro, Blackbox as to do we to currently institutions traders.

because working crypto are a the stable time. is than at less products have it on We third the behind market crypto we initiative, aforementioned put in still line this although

not at but the things all should we done. they the we're we're So prioritizing crypto be abandoning see initiative, way

investing we've to we Today stock continued $X.XX. purchase In average to in program. our new have XXX,XXX purchased price products, buyback of addition our shares at these shares through an

total a of sum $XXX,XXX. For

our we we're product we're is $X.X Our up products under to share our very launch. user total Blackbox feel new well on and with base authorized plan revenue streams and core grow to very positioned bullish significant the million. summarize, purchase for still to program create this To new

our some our And thank all to so details support. their things turn of for I over our want to on can Winspear continued now CFO, Bob financial. I'll shareholders he provide

Robert Winspear

on good touch release. And of earnings afternoon, the going from to the just highlights Gust. some everybody. Thanks, I'm

with the and refer review $X.X quarter please SEC to detail. to Form information for filed a the as financial Revenues second year. complete XX-Q the of statements, our for million greater more quarter additional under significant just today the For were $X.XX last compared for

the first up of quarter which total million from were about had But XX% revenue. So down we just we from $X.XX year. last X% XXXX, were in

that with from growth pleased So perspective. quarter-over-quarter we were very a

And March year. that or counts driven we the higher by And subscriber had this XXXX. ran promotion mentioned of that the at Gust was XXX, in

million six X.X%. revenues compared months, $X.X $X XXXX, about million in were first drop just the For of a to

impact six driven minimal customers That to is range breakout months As by we've XXXX our driven were just promotion. revenue margins little the things. compared having lower lower that they for were about. we've XXXX. from quarter of One sale the by XX% The prices this as in a and XX% throughout and the had ended margins than is the members is bit talked the discussed, the average the quarter spring for two that by we XX% for

in million the little had XXXX, the the our we're bit were we quarter, XX, period. had in $XX,XX,XXX, well XXXX really social expense those over as XXXX. for XXXX, to six as June looking approximately quarter to the from $X.XX months, $X,XXX,XXX operating quarter related million, the for costs six feeds. just compared in Operating $X.X the for prior $X,XXX,XXX, as chat the $X.XX to we're improvements more six of second compared months at months. And $XXX,XXX up year, expenses and some the $X.X data audio And million, as increases or -- the expected. as as to And so million for we to ended compared of of total and we features, also made increase her the Total Expenses in have a continued quarter

are And and the so as XX% those increases expect. we'd going range, in XX%

three So to ended related first, was we're half behind or June the you if in in operating for specifics that's personnel. that, our $XXX,XXX months continuing SG&A. increases, at And the for to those invest of you the capabilities. about XX, And see due additional to look $XXX,XXX of

a still that out. As in increasing you know, headcount to public And company. our filling we've with especially been deal being

had costs increased $XXX,XXX. also development We software about by

the about, to products we've over quarter year. our This that's build out driven for And infrastructure continuing by existing obviously as system. our talking well prior been that new as

Advertising we second and direct this that opposed for advertising by that in advertising about the and was quarter this to $XXX,XXX done for prior advertising increase our to that the quarter, year, TV and And bulk expenditures. about of the that awareness, expense a some is with marketing brand up $XXX,XXX. we the first the And as to generally year. have Marketing had $XXX,XXX quarter, for $XXX,XXX as driven and grew compared of advertising public more of style respect which to marketing cost marketing about relations,

year. as loss and income the the that's in first the date, for of months operating $X,XXX,XXX quarter, a with was as happened our as for that to result, the loss So for see in year, you'll the compared what operating a the about opposed year, income income in the prior expenses. a $X,XXX,XXX slight of loss, small negative to And six quarter to loss, operating were $XXX,XXX prior

changed If be you $X.X We sheet, two marketable $XX.X cash is And comprised is X,XXX,XXX our very down very, million look securities, proxy at drop that from substantially, and is sheets to million with of our million at concern up year which tend finished balance strong. $XX.X in balance about the end. quarter hasn't things.

refer negative by largely losses. driven is the One we EBITDA to operating that the

worth we negative So we bought EBITDA $XXX,XXX just the are. stock earlier mentioned of months, but back still about our as $X we but $X,XXX,XXX. million, in stock, had had the Gust treasury also And for first buybacks, six

moving current economic and like having a gives gives marketable tough of obviously, which cash some times. strong we could quarters strength So us we another some And forward. be couple what and have us significantly position, the securities in environment, of

as of expanding excited increasing existing we doing the investment targeting about as do, well as are market as XXXX. well new Certainly, can products new in looking market functionality of We and market. new the segments new balance XXXX, the what at, remain our that products, our the system the very with

appreciate like for your that, questions. open So to with I'd it time, up

Operator

you. Thank

now today Capital. go from Ascendiant ahead. our with We [Operator session. Please first the begin question-and-answer Edward question Instructions] will And Woo will come

Edward Woo

you. has Yes, My investor taking is, as saw rebounded, the how market interest question thank Thank you you my return? for question.

Gust Kepler

everyone we lets a trading. investor the we little you jump Not the good for memberships yes, back When one knows messaging or people long say always for members sometimes for They're our are to slight pause biggest seen traders. over. make speaking prospective very turbulent have that they're a Turbulent of new subscriptions. Markets I'm investors create get have about know not hurdles new good to But or that's again, sure working but although before want to good longer very markets that are short run, term uptick, And assuming in. interest, diligently bit people, we in you're

answer membership. I have continual a a on that, educate run. your the market money bull there prospective don't to see sustained uptick But think your market diligent that been membership, has market. in we the that don't to to or strong a question, having we to be make efforts bull in a until very trader to surge But Does will said itself in are slight have So a users you as answer question? making proves

Edward Woo

you very Yes, it luck. much. And does. you I Thank you. guys, wish Thank good

Gust Kepler

Thank you.

Operator

question next ahead. come Noble will Capital. Please our Joe And Gomes go from with

Joe Gomes

Good afternoon, gentlemen.

Gust Kepler

afternoon. Good

Joe Gomes

give the became I total is what could quarter there way? actually was? was many Are us the number you you And quant? how wondering and quantify any signups if full Can subscribers? you member of promotional guys,

Gust Kepler

we that's picture Yes, are of users. a of want question. full remaining. quantify end And membership many don't how a of because at don't it's Joe, quarter, an the good to average the We promo have

to best the analytics we get the of the that. of that end determine of by about retain X/X the promotional As use best quarter, we users

So it market way us. is for an effective to

of something learned provider. have we we And before such lower from growth there And this kind we with And pleased for month. $XX We statement, were sort of was very to were didn't the competition and new I'll entry. We had were had very the adapt question were price a much low our enormous to more any markets long we down for to price first because try. a little informational this there to decided were a sales experienced bit reduced never barrier time, never a But never from we and we very, answer as leading of never, a wasn't to we did to extreme it do promotion down, were give turbulent we the the the price. results. we $X offer

than the because maybe And similar, around, users type exact think we we we this plan it, do first we so type so leverage to we which same can something, really the but we learned promotion, that not promotion. do if something did new more this from much of of again, time

us was necessity do subscribers that growth So to or some of never do is the also the bad mother to and how as But the before, to allowed and it of market pivot, they adapt, subscribers say, invention. somewhat learn had loss we marketing loss painful. and and

learned that in and effective we tricks even and next them we future marketing there'll use new So the be more going time learned around. we're some to the we think

Joe Gomes

and Great. from you mean we are talk Blackboxstocks all And that marketing and about focus I self-directed guys say it whether of, think yourself separate the when forefront you out get do the services traders other to promotions, the that I into you mean, know, what or the investors’ minds? separate there can and the be, on

Gust Kepler

question. that asked you glad I'm

we're new we've really asks XXXX. specifically and from a know service we And then the high viewer sites ask review founded the market, created that We're XXXX. a to the how ranked since peers. addresses them who's legit, let tools One ads to industry very live best-in-class were new there. that the services been you we've of history for video reviews we know in with do refer our question, We, them all trading in

So I to from research. them are Services. users XXX, And we of organic, augmented would Google all that Trustpilot, things not the what And that five-star when we remembers do them by ask to by call our And or we services reviews. is their review. there's have And Google point augmented one they're Review reviews tell can augments. own

a on they're they everyone them social conclude, to our they're new look Shepherd, of And through a base educate. to leap thoroughly reviews, at we and that that a Not if market to Google a asked out lot So reviews, investigate there's before what find we've how from bull them turbulent just bull everyone's say knows new as they are of run because they member service genius are, new market. cite really faith and market. services a They to a in our that best-in-class. services. And we, take them coach came our ask history we media

we do that very So well.

the of prove campaigns. ad have our pointing many to testimonials new We And it. to we're in those

Joe Gomes

Okay. or seeing Are E-trade the past? And other from any integration, integrations? benefit, to you did these has the one you ones Blackbox been in two that

Gust Kepler

a see we Yes, benefit.

we're as how dealing behemoth to corporate marketing we own their limitations certain have We departments because with compliance that much and can advertise departments. have

trade has trading our of with been very than of others. to overall, Some because is easier the positive their integration platform. But partners thing, are work a many it users easy

to them and So them now let we're integrated market that with able we to fully know internally are the E-trade.

to of community, that So customers. not we happy a put CNBC integration. the And have traders have allowed even social a are through media. tight lot spreads especially and word we grapevine on we're The very knit E-trade says commercial if an on

of spreads kind word the for us. So

Joe Gomes

might version, know, Okay. the One those released? be man more maybe I when of mentioned if you stock some that the products in in pro you idea development of any

Gust Kepler

XXXX. little iterations, bit The may a Yes, multiple endeavor, in early on we I light much we have Blackbox go may in and a then end before a and is for Beta Pro different Nanny sometime comprehensive run. to second released it more version and do hope do year pro Stock a

So But to we're prior enhanced discussing Pro year-end. users offer internally will system with we features our that access probably now. to some

Joe Gomes

guys. Great, thanks,

Looking to story to seeing continues forward applicants the unfold.

Gust Kepler

Joe. you, Thank

Operator

Security go will question with And Brian from our ahead. Associates. Please Research Smith next come

Brian Smith

Thanks.

give these are more and idea other how of with professional you on us the trading maybe and products. to alert on you price Can some question. Nanny we're color and features about plan a of used and at lot there that like Stock Schwab little to systems platforms, in last color the to up mean, terms follow a a Just a I little in

Gust Kepler

in of use and custom platforms. When the Sure, can other our on your And your Nanny Stock opinion. is then does download a alerts, any it's than exist allows that unique based current Stock say thanks, very through stocks that app. my want alert system on. not alerts we set different you that Nanny brokerage brokerage the on technology you portfolio custom technology proprietary alerts Brian. lot set to that from your you I

the or you to use out track their Blackbox for people people options of use platforms brokerage other comprehensive ability I'll best platforms, as that have That's there. why data their the tools to have that As that far instance, options Thinkorswim some of we the give brokerage a flow in own, augment use market.

portfolio stock, So bullish one many the holder. a which useful Nanny to of can the of that one a in very alerts particular Stock is activity options provide is

have That also rapid our a decline We is of of function alert. a algos. one

to applied day on even holder, wrong alert going traders situation. not terribly may particular time can it's alert known. But For early they a most this type a this the or day scalp may traders, of that pre-market short portfolio an that intraday be stocks, use have in to the something's when

proprietary So more are to service we any comprehensive to push the of those user or button two, portfolio holder. hundreds speak with our one download platform, from for stack app. to what are a the with And of integrates in use feel portfolio tech portfolio adapted to alerts and examples their entire the holder. cleanly traders them a into it We've of this significant allowing that brokerage we

As leave they month. year. $XX at not we will to have time, a Right far rid it the loss app. Don't if it's per it price home $X,XXX get it of $XX. saves particular never I investor app, $XX more pricing, strongly And type thing. about now, believe self-directed range, than that a without as $XXX this one

right to system of log out they this alert very people So without on have with of the to getting to the brokerage separately. having of integrations there. unique received out. trade about some And the very, out we Right some excited to we're allow brokerages

Brian Smith

Pro? the About

Gust Kepler

of our It's oriented we The to the world have. But don't systems don't offer of pro other also subscriber have Pro that the watch list enhanced that a some features advanced sets currently has data the Blackbox and medias we that got grid multitude that quote and features tools have. of has lot an base. some systems the quote of more all a quote, charting

a more we're the than combining that these pro these features is along very of what a very lot as feel lot the interface. combination the use. a feel offer. pros with standard will a a we with our doing created user-friendly give we services strengths user-friendly data proprietary those We us features features unique the have of that current one So with in a very, of set a our much That's of we're platforms of large features format and combination large base proprietary subscriber And there. standardized other audience

Brian Smith

Okay, thank you.

Gust Kepler

Thanks, Brian.

Operator

I this at Bob of over would back to point, read Please to kind webcast conference turn questions. ahead. And the like go any to

Robert Winspear

Thank you.

much We looking how us back is we one stock as here have How to bought this allowed. question repeat. and for much

that's total million the we June is is purchased XXX,XXX year. through authorized so, $X.X of program And the end shares. approximately of have And worth $XXX,XXX through this XX, for the stock. And

the the from all Gust we it will that's think questions web. I up. to have be going wrap

Gust Kepler

to us. Again, I'd joining for like thank everybody

user that the to market. in us enhanced that and turbulent, team a pivot to level base a our turbulent in users our to our products, We a our create educators and traders, that us success products, said, market. and easy of the financial But maintain things a in to technology better company. be Like are our market will give in and to the to I new community tough, allows bull are a have technology in to times continue to grow our genius a edge experience are continue more adapt when forward it's products, enabled managed of initiatives has and somewhat

rapidly. market, new going our And and And bull don't everything's of about XXXX. I to but which expect if to think And growing we core are the again. very huge we'll product, a we I have about back excited cyclical. I to another release have in even be crystal accelerate be excited products on don't track ball, able growth the things

and I'll with for attending over I'll thank So call to in support out everyone close it and turn call. their Blackbox the the And today. that, it interest back

Operator

has conference presentation. attending The now Thank concluded. today's you for

this now may disconnect time. your at You lines

Blackboxstocks (BLBX) 15 Aug 222022 Q2 Earnings call transcript