Onfolio Holdings Inc. Reports Third Quarter 2022 Financial Results


76
17 shares, 76 points

MyChesCo

WILMINGTON, DE — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) recently reported recent corporate updates and financial results for the third quarter that ended September 30, 2022.

Management Commentary

“In the third quarter, we became a publicly traded company and advanced our strategy of acquiring and managing a diversified portfolio of online businesses,” said Dominic Wells, CEO of Onfolio. “Consistent with our strategy, the proceeds from our IPO in August are being allocated towards our growth initiatives. We’re excited about our entrance to the public markets and believe our strategy will deliver growth and value creation for our shareholders.

“Following the close of the third quarter, we announced three acquisitions – SEOButler, BWPS, and Proofread Anywhere – each of which we expect to be high-quality, cash flow generating businesses. We believe each acquisition possesses long-term growth opportunities, and we look forward to demonstrating the results of our strategy in our fourth quarter earnings, which will be our first full earnings period as a publicly listed company. SEOButler, BWPS and Proofread Anywhere have proven to have stable revenue and operating income in the past, and we believe their contributions will help lead us to profitability in the future.”

Third Quarter Summary vs Year-Ago Period

  • Third quarter revenue was $352.3 thousand, compared to $390.4 thousand a year ago;
  • Third quarter net loss was $(969.7) thousand, or $(0.31) per diluted share, compared to net loss of $(575.8) thousand, or $(0.30) per diluted share, a year ago; and
  • Cash used in operating activities in the third quarter was $(2.4) million, compared to cash used in operating activities of $(459.9) thousand a year ago.

Recent Corporate Highlights

  • October 17 – completed acquisition of SEOButler, a provider of extensive products within the SEO niche including content, guest posting, social signals, and citations
    • SEOButler has generated approximately $200 thousand and $50 thousand of revenue and operating income, respectively, per quarter
  • October 17 – completed acquisition of Proofread Anywhere from BCP Media, a provider of extensive online resources in the form of courses, workshops and blog posts for readers looking to train and become professional proofreaders
    • Proofread Anywhere has generated approximately $950 thousand and $180 thousand of revenue and operating income, respectively, per quarter
  • October 27 – completed acquisition of BWPS (Prevent Direct Access and Password Protect WordPress), a developer of security plugins that allow bloggers, creators, agencies, and SMBs to protect their digital assets, products, and content
    • BWPS has generated approximately $100 thousand and $80 thousand of revenue and operating income, respectively, per quarter

Third Quarter 2022 Financial Results

Total revenue in the third quarter of 2022 was $352.3 thousand, compared to $390.4 thousand a year ago. The 10% decrease was primarily attributable to decreased services revenue driven by lower advertising, profit share and management fee revenue.

Gross margin in the third quarter of 2022 was 38.4% versus 35.5% in the year-ago quarter. The increase was due to lower revenue from certain services were offset by lower costs.

Operating expenses in the third quarter of 2022 were $1.1 million, up from the $717.3 thousand a year ago. The increase was due to higher labor costs as a result of the Company filling out required roles for the business, an increase in professional fees from the Company’s Initial Public Offering, and an increase in stock-based compensation partially offset by a decrease in advertising costs.

Net loss in the third quarter of 2022 was $(969.7) thousand, or $(0.31) per diluted share, compared to net loss of $(575.8) thousand, or $(0.30) per diluted share, in the year-ago quarter. The increase in net loss was due to the reasons cited above.

Balance Sheet and Cash Flow Summary

At September 30, 2022, the Company had $11.6 million of cash and cash equivalents, compared to $1.7 million as of December 31, 2021. The increase was mainly a result of raising capital from the sale of common stock units in the Company’s initial public offering that closed on August 30, 2022, where it received $12.1 million in net proceeds. Cash used in operating activities increased to $2.4 million, compared to cash used in operating activities of $459.9 thousand a year ago. The increase was primarily a result of the increased general and administrative costs as the Company expanded its operations.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News.

Thanks for visiting! Looking for some Chester County pride? We got you covered! Shop our MyChesCo store and show your love for Chester County, Pennsylvania. We got shirts, hats, and more – all with a unique ChesCo flair. Plus, proceeds from each purchase helps support our mission of bringing reliable information and resources to the people of Chester County.

Share this:

Advertisements

Like it? Share with your friends!

76
17 shares, 76 points

What's Your Reaction?

hate hate
6
hate
confused confused
16
confused
fail fail
11
fail
fun fun
10
fun
geeky geeky
8
geeky
love love
3
love
lol lol
5
lol
omg omg
16
omg
win win
11
win