Last week was a good one for Data433 Risk Mitigations, Inc. (OTC Pink: ATDS). By Friday, shares rose 23% and closed at their highs following reports of a massive hack to the Microsoft Exchange. That attack has affected at least 30,000 users in the US and more than 250,000 worldwide. In response, investors started bidding shares of data security companies higher, and Data433 is one.
To its credit, Data443 Risk Mitigation, Inc. is also taking advantage of an opportunity. On Wednesday, they offered a free targeted trial program of its hack-free email resiliency services that allows clients to experience the added degree of privacy, protection, and overall upgraded services and capabilities offered by Data443. The offer extends to organizations impacted by the hack and those who would have an interest in potentially better security solutions.
Already, Data443’s mass privacy, discovery, and archiving product, Data Archive Manager®, is trusted and used by hundreds of organizations to manage and protect petabytes of stored data. And with email security being the focus, it’s notable that IT managers have long embraced Data Archive Manager’s® ability to store all forms of data content in segregated repositories that are not subject to the current vulnerabilities announced by Microsoft. Further, the platform protects against the execution of any virus, macro vulnerabilities, or ransomware packages embedded in datasets.
The excellent news for ATDS is that the attention back to the sector may help expose the broader products and services offered by Data433 and send shares back toward 52-week highs of $0.24, representing a more than 1867% increase from current levels. The companies extensive product portfolio could help ignite the rally.
Impressive Product And Services Portfolio
By all measures, Data443 Risk Mitigation, Inc. has become a unique one-stop-shop that offers leading Data Privacy Solutions for All Things Data Security™. That depth of service may be its most attractive feature since it positions them to target massive market opportunities through business, individual, and government market demand. Moreover, because of its product diversification, ATDS can exploit tremendous opportunities in multiple market segments.
Better still, unlike some of its competitors, ATDS builds tailored software and services solutions that enable clients to facilitate secure data transfer across local devices, networks, the cloud, and/or databases. That difference can be a game-changer going forward from a revenue-generating perspective, especially as hackers become more sophisticated in designing malware. Many of its competitors can’t make the same claim, and most offer only a one size fits all platform. That could be a valuable advantage to Data433.
The company is also on the acquisition hunt. Most recently, Data433 acquired all rights to the data archiving platform, ArcMail, a pioneer and leader in the enterprise information and email archiving market. ArcMail is expected to immediately impact its revenues-generating operations by capitalizing on ArcMail’s expertise to offer customers an extensive choice of cost-effective, easy-to-use archiving solutions. The ArcMail acquisition adds to an impressive product portfolio.
Other products include ARALOC™, its market-leading, secure, cloud-based platform for managing, protecting, and distributing digital content to desktop and mobile devices. And like its other products and services, it has a global addressable market well into the hundreds of millions. Another product, DATAEXPRESS®, is a leading data transport, transformation, and delivery product trusted by financial organizations worldwide. Its ClassiDocs® is an award-winning data classification and governance technology, which supports CCPA, LGPD, and GDPR compliance. And its ClassiDocs™ for Blockchain provides an active implementation for the Ripple XRP token that protects transactions from inadvertent disclosure and data leaks.
The great news is that each product and service can generate massive value over the long term, especially with security thrust back into the spotlight after the MS Exchange attack. Moreover, the digital revolution, for all intents and purposes, is still in its infancy. Thus, as technology quickens, so will Data433’s ability to leverage its multiple shots on goal that targets numerous business sectors.
Video Link: https://www.youtube.com/embed/MGus0jcli9s
Sector Specific Products And Services
Beyond the products above, Data433 is marketing Data443™ Global Privacy Manager™, a privacy compliance and consumer loss mitigation platform. Also, they are selling Resilient Access™, a product that enables fine-grained access controls across numerous platforms. This specialized product is designed for internal client systems and public cloud platforms like Salesforce, Google G Suite, and Microsoft OneDrive. And while those markets deliver potentially lucrative opportunities, ATDS’s focus on the massive Software-as-a-Service (SaaS) market can be an enormous value driver going forward.
There, ATDS is targeting the booming SaaS market with FileFacets. That platform performs sophisticated data discovery and content search within corporate networks, servers, content management systems, email, desktops, and laptops. Demand for user-based products, like FileFacets®, is on the rise, and Data433 is working to capitalize on that need. The fruits of its efforts are already starting to show.
Its Q3 revenues were the best in its history.
Record Performance And Balance Sheet Improvements
From an investor’s perspective, products are great, but record revenues are better. With that in mind, ATDS is coming off of a record-setting Q3 with momentum going into Q4. Those results (Q4), which are expected in the next week, could help share prices surge, especially if they meet the expectation of another record-setting quarter.
Moreover, beyond posting record-setting revenues in its third quarter, Data433 also eliminated $10 million in derivative liabilities and reduced expenses by 35% in that same period. Those accomplishments change the company’s capital position dramatically, and from an accounting perspective, it could help accelerate positive EBITDA or even bottom-line EPS. That result may come sooner than many think. Here’s why:
Also, in Q3, the company reported an increase in shareholders’ equity of $12.5 million, paid down roughly $500,000 in acquisition debt, and recorded its highest quarterly bookings ever. Thus, by any metric, Data433 is growing its company. Moreover, with the company’s prowess to make deals immediately accretive to cash flow, consecutive record-setting quarters may be in the forecast.
Notably, Data433 growth is happening during one of the most unprecedented and challenging periods of commerce in the past fifty years. The expected near-term return to more normal market conditions could help to accelerate growth at Data433. After all, data security will never go out of style.
Better still, its recent business performance suggests that the best is yet to come. And by capitalizing on opportunities in a data security market whose growth will likely accelerate along with technology advancements, Data433 may be in its best position ever to capitalize on near and long-term business opportunities.
Thus, the 24% rise in share prices last week may the start of a much-deserved rally.
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