Data443 Reports 125% Increase in Revenues, 184% Increase in Gross Profit for Q1 2023

RESEARCH TRIANGLE PARK, NC / ACCESSWIRE / May 16, 2023 / (via IBN) Data443 Risk Mitigation, Inc. (OTCPK:ATDS) ("Data443" or the "Company"), a data security and privacy software company for "All Things Data Security," today announces operating results for the first quarter ended March 31, 2023.

Financial Highlights for the First Quarter 2023:

• Increased revenue by 125% year over year.
• Increased gross profit by 184% year over year.
• Decreased net loss by 60% year over year.

Business Highlights for the First Quarter 2023:

• Achieved 98% customer renewals.
• Data443® Antivirus Protection Manager™ received its VB100 certification.
• Data443's Ransomware Recovery Manager named "Best of Inexpensive Protection" and "Best for Kiosks" in "The Best Ransomware Protection for 2023."
• Secured an additional contract win from one of its largest fintech clients, which processes over 75 billion transactions amounting to more than $9 trillion annually.
• Secured an additional contract win with a long-time, multinational fintech client that provides payment technology and services to merchants, issuers and consumers, annually transferring over 10 million sensitive files for thousands of partners.
• Secured an additional contract win of $484,000 from one of the "Big Four" U.S.-based banks and largest fintech companies.
• Released the latest update to its award-winning Ransomware Recovery Manager product, offering more advanced features designed to help businesses and individuals quickly and easily recover from ransomware attacks

First Quarter 2023 Financial Results:

• Total revenues were $1,380,000 during the three months ended March 31, 2023, compared to $613,000 of revenue for the three months ended March 31, 2022 - an increase of 125%. Existing customer organic growth, new customer acquisitions and the Company's high renewal rate drove the revenue increase.
• Gross profit was $1,171,000 during the three months ended March 31, 2023, compared to $413,000 of gross profit for the three months ended March 31, 2022 - an increase of 184%. Gross margin was 85% in the first quarter of 2023 versus 67% in the first quarter of 2022.
• General and administrative expenses for the three months ended March 31, 2023, were $1,401,000, compared to $974,000 for the three months ended March 31, 2022 - an increase of $427,000. The increase in general and administrative expenses was primarily due to an increase in professional service fees.
• Sales and marketing expenses were $32,000 for the three months ended March 31, 2023, compared to $120,000 for the three months ended March 31, 2022. The decrease in sales and marketing expenses was primarily due to a decrease in trade show events, related travel and marketing activity.
• The net loss for the three months ended March 31, 2023, was $738,000, compared to a loss of $1,833,000 for the three months ended March 31, 2022 - a decrease of 60%. The decrease in net loss was primarily due to the increase in recognized revenue and a decrease in interest expense.

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