Ramat Gan, Israel, November 22, 2022 – Viewbix Inc. (OTC: VBIX) (“Viewbix” or the “Company”), a global developer of mar-tech and ad-tech innovative technologies, today announced record financial consolidated results for the third quarter of 2022, ending September 30, 2022. These are the Company’s first reported financial results following its completion of the previously announced transaction with Gix Media Ltd. (“Gix Media”), which resulted in Gix Media becoming a wholly-owned subsidiary of the Company
The results refer to Gix Media’s consolidated financials for the three and nine months ending September 30, 2022, in comparison to the same period of the 2021.
Key highlights for Q3 2022 include:
- Revenues for the nine months ended September 30, 2022, reached a record high of $66,115 thousand an increase of 176% compared to the nine-month period ended September 30, 2021. In the three months ended September 30, 2022, revenues amounted to a record of $22,778 thousand, an increase of 182% compared to the three months ended September 30, 2021.
- EBITDA (Earnings Before Interest, Taxes, Depreciations, Amortizations) for the nine-month period ended September 30, 2022, amounted to $3,458 thousand, an increase of 178% compared to the corresponding period in 2021. For the three-month period ended September 30, 2022, EBITDA amounted to $1,163 thousand, an increase of 260% compared to the corresponding period in 2021.
- Operating income. Viewbix reached an operating income of $1,407 thousand in the nine months ended September 30, 2022 compared to an operating loss of $44 thousand in the corresponding period in 2021. In the third quarter of 2022 the operating income amounted to $427 thousand compared to an operating loss of $111 thousand in the third quarter of 2021.
- Net cash from operating activities for the nine-month period ended September 30, 2022 amounted to $2,175 thousand, an increase of 40% compared to the corresponding period in 2021. For the three-month period ended September 30, 2022, net cash from operating activities amounted to $1,577 thousand, an increase of 202% compared to the corresponding period in 2021.
“We are proud to report our first results as Viewbix. In this period, we managed to present significant growth that demonstrates the strength of Viewbix and the ability to navigate our numerous activities intelligently. We are working diligently to continue the positive trend and are considering entering into additional activities in the fields of advertise and marketing technologies to enable greater growth to provide additional value to our shareholders. In the last year we expanded to the field of digital content through the acquisition of Cortex by Gix Media in October 2021, a purchase that has proven itself, financially and synergistic and it is our intention to continue pursue opportunities to leverage our growth,” said Amihay Hadad, CEO of Viewbix.
Third Quarter 2022 Financial Highlights
| U.S. dollars in thousands | For the nine months ended September 30 | For the three months ended September 30 | ||||
| 2022 | 2021 | % | 2022 | 2021 | % | |
| Revenue | 66,115 | 23,874 | 177% | 22,778 | 8,079 | 182% |
| Operating income (loss) | 1,407 | (44) | 3,298% | 427 | (111) | 485% |
| EBITDA | 3,458 | 1,245 | 178% | 1,163 | 316 | 268% |
| Adjusted EBITDA | 3,619 | 1,233 | 194% | 1,281 | 339 | 278% |
| GAAP Net Income (loss) | (30) | 88 | (134%) | 71 | 91 | (22%) |
| Non- GAAP Net Income | 1,950 | 1,365 | 43% | 838 | 541 | 55% |
| Net Cash from Operations | 2,175 | 1,564 | 39% | 1,577 | 522 | 202% |
Financial Comparison for the Third Quarter of 2022
Revenue: Our revenues were $22,778 thousand for the three months ended September 30, 2022, compared to $8,079 thousand during the same period in the prior year.
The reason for the increase in the three months ended September 30, 2022, is due to the Cortex Acquisition on October 13, 2021, therefore, the financial statements of the Company for the three months ended September 30, 2022, include Cortex’s financial statements as compared to the same period in the prior year which does not include Cortex’s financial statements.
Operating Income: Operating Income was $427 thousands, in the third quarter of 2022, an increase of 485% compared to operating loss of $111 thousands, in the third quarter of 2021.
Adjusted EBITDA: Adjusted EBITDA was $1,281 thousands, in the third quarter of 2022, an increase of 278% compared to $339 thousands, in the third quarter of 2021. A reconciliation of GAAP Net Income to Adjusted EBITDA is included in this press release.
Non-GAAP Net Income: Non-GAAP net income increased by 55% to $838 thousand, in the third quarter of 2022, compared to $541 thousand, in the third quarter of 2021. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Cash and Cash Flow from Operations: Net cash provided by operating activities in the third quarter of 2022 was $1,577 thousand, compared with $522 thousand, in the third quarter of 2021.
Non-GAAP Measures
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude stock-based compensation expenses, acquisition related expenses, amortization of acquired intangible assets and the related taxes thereon. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is defined as operating income excluding stock-based compensation expenses, depreciation, acquisition related items consisting of amortization of intangible assets, acquisition related expenses.
About Viewbix Inc.
Viewbix, through its subsidiaries Gix Media Ltd. and Cortex Media Group Ltd., operates in the field of digital advertising. The Group has two main activities search and digital content. The search develops a variety of technological software solutions, which perform automation, optimization and monetization of internet campaigns, for the purposes of acquiring and routing internet user traffic to its customers. The digital content is engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo and Apple, by utilizing such content to obtain internet user traffic for its advertisers. Viewbix’s technological tools allow advertisers and website owners to earn more from their advertising campaigns and generate additional profits from their websites.
For more information about Viewbix, visit https://corp.viewbix.com/
Use of non-GAAP Measures
Viewbix’s financial statements are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and represent earnings as reported to the U.S. Securities and Exchange Commission (the “SEC). Viewbix has provided in this release certain financial information that has not been prepared in accordance with GAAP. Viewbix’s management believes that the non-GAAP EBITDA described in the release, which includes adjustments for specific items that are generally not indicative of our core operations, provides additional information that is useful to investors in understanding Viewbix’s underlying performance, business and performance trends, and helps facilitate period-to-period comparisons and comparisons of its financial measures with other companies in Viewbix’s industry. However, the non-GAAP financial measures that Viewbix uses may differ from measures that other companies may use. Non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Viewbix’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release.
The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Viewbix undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Viewbix is not responsible for the contents of third-party websites.