Viewbix Reports Third Quarter 2022 Financial Results with a 176% Growth in Revenues Totaling $66 Million

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Viewbix reached an operating income of $1.4 million

Amihay Hadad, Viewbix, CEO: “We entered the field of digital content through a
purchase that has proven itself, financially and synergistic and it is our intention to
continue pursue opportunities to leverage our growth”

Ramat Gan, Israel, Nov. 22, 2022 (GLOBE NEWSWIRE) — 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 2021.

Key highlights for the three and nine mounts ended September 30, 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 268% 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 (Including EBITDA Reconciliation):

U.S. dollars in thousands   For the nine months ended
September 30
    For the three months ended
September 30
 
    2022     2021     %     2022     2021     %  
Revenues   66,115     23,874     176 %   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   1,954     1,365     43 %   844     541     56 %
Net Cash from Operations   2,175     1,564     40 %   1,577     522     202 %

U.S. dollars in thousands   For the nine months ended
September 30
    For the three months ended
September 30
 
    2022     2021     2022     2021  
GAAP Net Income (loss)     (30 )     88       71       91  
Financial (income) expenses, net     1,374       (91 )     301       (121 )
Taxes on income     63       (41 )     55       (81 )
Depreciation and amortization     2,051       1,289       736       427  
EBITDA     3,458       1,245       1,163       316  
Other expenses     121       26       86       26  
Share-based compensation, expenses (income)     40       (38 )     32       (3 )
Adjusted EBITDA     3,619       1,233       1,281       339  
Financial income (expenses), net     (1,374 )     91       (301 )     121  
Taxes on income     (63 )     41       (55 )     81  
Deferred tax income in connection with amortization of intangible assets     (228 )           (81 )      
Non- GAAP Net Income     1,954       1,365       844       541  


Financial Comparison for the Third Quarter of 2022

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 56% to $844 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.

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.Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-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/

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.

INVESTOR RELATIONS CONTACTS:

Michal Efraty
Investor Relations
+972-(0)52-3044404
michal@efraty.com


VIEWBIX INC
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

U.S. dollars in thousands (except share data)


    As of
September 30
    As of
December 31
 
    2022     2021  
             
ASSETS                
                 
CURRENT ASSETS                
                 
Cash and cash equivalents     3,609       5,208  
Restricted deposits     223       234  
Accounts receivable     16,398       16,415  
Loan to parent company     7,096       6,384  
Other receivables     814       1,004  
                 
Total current assets     28,140       29,245  
                 
NON-CURRENT ASSETS                
Severance pay funds     73       83  
Deferred taxes     62       133  
Property and equipment, net     317       334  
Operating lease right-of-use assets     505       569  
Intangible assets, net     15,762       8,414  
Goodwill     17,615       12,483  
                 
Total non-current assets     34,334       22,016  
                 
Total assets     62,474       51,261  


VIEWBIX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Cont.)

U.S. dollars in thousands (except share data)


    As of
September 30
    As of
December 31
 
    2022     2021  
             
LIABILITIES AND SHAREHOLDERS’ EQUITY                
                 
CURRENT LIABILITIES                
Current maturities of long-term loan     1,500       1,500  
Loan from parent company     2,527       2,116  
Accounts payable     16,144       16,676  
Other payables     1,862       1,386  
Short-term loans     5,000       5,000  
Operating lease liabilities – short term     93       91  
                 
Total current liabilities     27,126       26,769  
                 
NON-CURRENT LIABILITIES                
                 
Accrued severance pay     176       188  
Long-term loan     3,225       4,270  
Operating lease liabilities – long term     433       491  
Deferred taxes     1,853       1,026  
                 
Total non-current liabilities     5,687       5,975  
                 
SHAREHOLDERS’ EQUITY                
                 
Share Capital                
Common stock of $0.0001 par value – Authorized: 490,000,000 shares; Issued and outstanding: 14,783,964 shares as of September 30, 2022 and December 31, 2021, respectively (*)     3       3  
Additional paid-in capital     27,564       16,074  
Accumulated deficit     (4,043 )     (2,366 )
Equity attributed to the company’s shareholders     23,524       13,711  
Non-controlling interests     6,137       4,806  
Total equity     29,661       18,517  
                 
Total liabilities and shareholders’ equity     62,474       51,261  

(*) Retroactively adjusted to reflect the reverse stock split effected on August 31, 2022, for all periods presented and to reflect the equivalent number of shares corresponding to the combined financial information of the Company and Gix Media Ltd. for all periods preceding the Reorganization Transaction.


VIEWBIX INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

U.S. dollars in thousands (except share data)


    For the nine months
ended September 30
    For the three months
ended September 30
 
    2022     2021     2022     2021  
Revenues     66,115       23,874       22,778       8,079  
                                 
Costs and Expenses:                                
Traffic-acquisition and related costs     56,400       19,582       19,464       6,738  
Research and development     2,957       1,530       987       471  
Selling and marketing     1,853       584       628       215  
General and administrative     1,326       907       450       313  
Depreciation and amortization     2,051       1,289       736       427  
Other expenses     121       26       86       26  
                                 
Operating income (loss)     1,407       (44 )     427       (111 )
                                 
Financial income (expenses), net     (1,374 )     91       (301 )     121  
                                 
Income before income taxes     33       47       126       10  
                                 
Taxes on income     (63 )     41       (55 )     81  
                                 
Net income (loss)     (30 )     88       71       91  
                                 
Net income (loss) for the period is attributable to:                                
Shareholders     (677 )     88       (147 )     91  
Non-controlling interests     647             218        
Net income (loss)     (30 )     88       71       91  
                                 
Net income (loss) per Share – Basic and Diluted attributed to shareholders:     (0.05 )     0.01       (0.01 )     0.01  
                                 
Weighted average number of shares (*) – Basic:     14,783,964       14,783,964       14,783,964       14,783,964  
                                 
Weighted average number of shares (*) – Diluted:     14,783,964       15,044,630       14,783,964       15,044,630  

(*) Retroactively adjusted to reflect the reverse stock split effected on August 31, 2022 for all periods presented and to reflect the equivalent number of shares corresponding to the combined financial information of the Company and Gix Media Ltd. for all periods preceding the Reorganization Transaction.

Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. IndiaShorts takes no editorial responsibility for the same.

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