Blackboxstocks Gains 20% on Strong Revenues & Margins

Blackboxstocks Inc. (NASDAQ: BLBX) shares reached the sky closing almost 20% higher on April 1, after the company reported outstanding results for the fourth quarter and full-year of FY2021. Robust membership growth leading to strong revenues and margins drove the results.

Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels.

Importantly, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second, the company’s web-based software employs “predictive technology” enhanced by artificial intelligence (AI) to find volatility and unusual market activity, which may result in the rapid change in the price of a stock or option.

Strong Q4 Numbers

Notably, revenues jumped 62% year-over-year to $1.69 million and marked the highest-ever quarterly revenue in the company’s history.

On top of that, gross margin improved a whopping 1380 bps to 65.8% in the quarter compared to 52.0% in the prior-year quarter.

However, the company is yet to turn profitable and reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $(891,516) versus $(266,423) reported for the same quarter of 2020.

Looking at the annual figures, total revenue grew 82% year-over-year to $6.1 million, while gross margin improved 540 bps to 69.7% for 2021 compared to 64.3% for 2020.

CEO Comments

Blackboxstocks CEO, Gust Kepler, commented “2021 was a pivotal year for Blackbox. We nearly doubled our revenue from 2020, and we have set our sights on continuing this trajectory in 2022.”

He further added, “Armed with the proceeds from our initial public offering last November, we are focused on growing our core business and continuing to introduce new and innovative products to the market.”

Wall Street’s Take

The stock has picked up a rating from one analyst in the past three months.

Following the impressive Q4 results, Noble Financial analyst Joe Gomes reiterated a Buy rating on the stock with a price target of $4.50 (40.62% upside potential).

Investors Weigh In

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Blackboxstocks, with 2.1% of investors increasing their exposure to BLBX stock over the past 30 days.

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