AnalytixInsight Inc. (“AnalytixInsight”, or the “Company”) (TSX-V: ALY; OTCQB: ATIXF), a financial content and enterprise software solutions provider, reports financial results for the year ended December 31, 2021, and provides an update on its FinTech affiliate MarketWall.
Key Highlights:
- Expanded AI-driven research initiative with Refinitiv and published 27,239 research reports during 2021. Total published research reports under the Refinitiv initiative at December 31, 2021 was 37,235, which compares to 9,996 at December 31, 2020;
- Launched ESG Analytics and ESG scoring summaries on the approximately 9,000 global companies who report their ESG metrics;
- Received regulatory approval for InvestoPro as online financial broker;
- Launched InvestoPro, together with Intesa Sanpaolo, as a content-rich European online trading platform which also allows Intesa Sanpaolo customers to activate their trading account using their banking login credentials. Intesa Sanpaolo has over 8.1 million active mobile banking app users;
- Announced a strategic plan supported by Intesa Sanpaolo for the transition of certain Investo stock trading accounts to InvestoPro. MarketWall developed the Investo stock trading app, which was licensed by Intesa Sanpaolo and launched in 2018. Intesa Sanpaolo reports the number of active Investo app customers has grown to 761,000 at year-end 2021, and during the 2021 year the customers of the retail division completed almost 54% of their online trading transactions using the Investo app;
- Announced InvestoPro content additions including AnalytixInsight’s AI-based stock quality metrics and machine-created research reports, and Morningstar’s financial research and market data;
- Announced InvestoPro intends to add payment processing capabilities, subject to regulatory approvals;
- Launched GEMINA, a multi-device B2B trading platform that offers banks and brokers a digital transformation of their traditional trading platforms;
- Launched Morningstar Global Market together with Morningstar as a GEMINA-powered, cloud-based research and market data offering for enterprise clients;
- Announced GEMINA is now utilized by a second leading European bank, which has over 100,000 employees, under the Morningstar Global Market initiative;
- AnalytixInsight’s Workforce Management division announced partnerships and implemented key customer installations and the Company has commenced a review of strategic opportunities of this division considering the Company’s increasing FinTech industry focus.
Key Financial Highlights:
- During the 2021 year, AnalytixInsight completed a brokered public offering raising gross proceeds of $9,257,500;
- AnalytixInsight’s revenue for 2021 was $3,001,326 which compares to $3,178,767 for 2020. Gross profit for 2021 was $651,793 which compares to $411,700 for 2020. Net loss per share for 2021 was $(0.05) which compares to $(0.03) for 2020 and includes certain one-time non-cash expense items;
- MarketWall consolidated financial results are comprised of MarketWall and InvestoPro. MarketWall consolidated revenue for 2021 was $5,769,195 (MarketWall $5,769,195, InvestoPro $0) which compares to $6,483,007 for 2020. MarketWall consolidated net loss for 2021 was $270,311 (MarketWall net income $849,702, InvestoPro net loss $1,120,013) which compares to net income of $896,235 for 2020 and reflects InvestoPro development and start-up costs. AnalytixInsight’s ownership of MarketWall is 49% and thus not consolidated in AnalytixInsight’s financial results.
Business Review and MarketWall Update
AnalytixInsight is an established AI-driven content supplier with the ability to offer scalable machine-created research content on approximately 50,000 worldwide stocks and North American ETFs through its CapitalCube platform. CapitalCube provides AI-driven research reports to Refinitiv, an LSEG (London Stock Exchange Group) business and one of the world’s largest providers of financial markets data and infrastructure. Under the Refinitiv initiative, CapitalCube has published 37,235 reports on company earnings, dividend quality, and pre-revenue company analysis.
During 2021, the Company launched ESG Analytics research reports which embed ESG scores and ESG metrics into its proprietary analysis and narratives. ESG (Environmental, Social, and Governance) is commonly used as a generic term by investors and regulators to evaluate corporate behaviors. CapitalCube also performs robo-analysis of stocks and North American ETFs, allowing robo-portfolio selection based on broad market metrics, dividend quality, Efficient Frontier computations, and more.
MarketWall
AnalytixInsight’s affiliate, MarketWall, is a FinTech joint venture company 49%-owned by AnalytixInsight and 33%-owned by Intesa Sanpaolo. Intesa Sanpaolo is one of the soundest and most profitable banks in Europe and has subsidiaries operating in 12 countries in Central-Eastern Europe, the Middle East and North Africa, as well as an international network supporting corporate customers in 25 countries. Intesa Sanpaolo has approximately 12.9 million multi-channel customers and 8.1 million customers using the Intesa Sanpaolo App. Intesa Sanpaolo reported 2021 net income of €4,185 million which compares to €3,277 million for 2020. Intesa Sanpaolo’s 2022-2025 business plan projects significant investments of €5 billion in technology and a strong commitment to digital channels.
Investo and InvestoPro
MarketWall developed the Investo stock trading app, which was licensed by Intesa Sanpaolo and launched in 2018 as part of the Intesa Sanpaolo App constellation. Intesa Sanpaolo reports the number of active Investo app customers has grown to 761,000 at year-end 2021, and during the year the customers of the retail division completed almost 54% of their online trading transactions using the Investo app.
In 2020, MarketWall established InvestoPro as its wholly owned content-rich European online broker to allow users to trade stocks, options, and derivatives. InvestoPro received regulatory approval by the Italian financial markets regulator in March 2021, and was introduced by Intesa Sanpaolo as an online digital trading platform where customers can activate their InvestoPro account using their Intesa Sanpaolo Mobile App login credentials. During 2021, the InvestoPro board of directors approved a strategic plan wherein certain Investo stock trading accounts are to be transitioned to InvestoPro, thanks to the support of Intesa Sanpaolo. InvestoPro is now onboarding user accounts and promoting new user sign-ups through various marketing promotions including Intesa Sanpaolo’s website.
InvestoPro offers users several advantages when compared to Investo. InvestoPro has been established as an AI-assisted, multi-device trading platform that helps investors make better investment decisions by incorporating artificial intelligence and machine-created research reports by CapitalCube, financial research and market data by Morningstar, and additional financial content by other third-party providers.
InvestoPro is also a Samsung Electronics partner and the InvestoPro app is preloaded on certain Samsung devices in Europe. InvestoPro already draws an audience of over 2.5 million monthly visitors through its multi-device platform and social media presence. MarketWall has also requested regulatory approval to add payment processing capabilities to InvestoPro which would permit users to make payments and transfer funds between accounts.
GEMINA
During the 2021 year, MarketWall launched GEMINA as a white label B2B product offering. GEMINA is the technology platform that powers InvestoPro and allows banks or brokers to license the online stock trading solution for deployment under their own brand, interconnected to their existing trading platform. As an emerging financial data infrastructure platform disrupting legacy systems, GEMINA addresses the current market data infrastructure needs of financial institutions by offering managed data services, analytics, and more.
Morningstar, a leading provider of independent investment research, has launched Morningstar Global Market as a cloud-based solution powered by GEMINA. This is the initial product offering under the partnership, where Morningstar will utilize MarketWall’s technology platform to bring a comprehensive suite of innovative and cost-effective cloud-based FinTech products to market in response to the growing demand from its enterprise clients. Morningstar’s wide-ranging financial research information and market data is now also available on InvestoPro. Under the Morningstar Global Market initiative GEMINA is also deployed at a leading European bank which has over 100,000 employees. Morningstar has over 8,500 employees operating in 29 countries and builds products and services that connect people to investing information tools which empower investors.
Corporate
Worldwide interest in online brokers, stock trading and research has recently increased as a new generation of investors got their start in investing and opened online accounts in record numbers. AnalytixInsight is uniquely positioned to provide the FinTech tools investors are now seeking such as AI-assisted financial analysis, market commentaries, ESG scores, training, and education, robo-advisory, stock trading, and more.
AnalytixInsight’s Workforce Management division, Euclides Technologies, continues to advance its sales initiatives in the Field Service Management (FSM) industry and during the 2021 year announced a partnership with Zinier, a leader in field service automation, to power a new era of AI and intelligent automation and announced customer installations with three Certified appliance repair service providers for Whirlpool Corporation. The Company has commenced a strategic review of this division, considering the Company’s increasing focus within the FinTech industry. During the 2021 year, the Company recorded a one-time non-cash impairment charge of the goodwill associated with this division. The impairment charge is an adjustment that does not affect the Company’s cash position or cash flow from operating activities.
Complete details of the Company’s financial and operating results are available under the Company’s profile at www.SEDAR.com.
ABOUT ANALYTIXINSIGHT INC.
AnalytixInsight is a data analytics and enterprise software solutions provider to world-leading institutions across various industries. AnalytixInsight develops and markets cloud-based platforms providing financial content, stock trading, and research solutions for banks, brokers and investors in the financial services industry. AnalytixInsight holds a 49% interest in MarketWall, a developer of FinTech solutions for financial institutions. 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 Company’s business operations and objectives, particularly respecting MarketWall’s plans to add payment processing capabilities to InvestoPro and to migrate certain Intesa Sanpaolo Investo stock trading accounts to the InvestoPro platform; the Company’s anticipated strategic review of opportunities for its Workforce Management division; 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, 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; the Company’s ability to successfully integrate new technologies and employees; InvestoPro’s ability to migrate certain Investo stock trading accounts to its platform; 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.
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