Data443 Risk Mitigation, Inc. reported a revenue of $4.87 million for the fiscal year ending December 31, 2024, reflecting a 13% decrease from the previous year's revenue of $5.58 million. The company's gross profit also declined by 26%, from $3.85 million in 2023 to $2.85 million in 2024, resulting in a gross profit margin of 58%. The net loss for the year increased by 43% to $6.09 million, compared to a net loss of $4.24 million in 2023. This deterioration in financial performance is attributed to a combination of one-time payments related to the acquisition of assets from Cyren Ltd. and a general reluctance among customers to engage in new business opportunities amid economic uncertainty.
In terms of operational developments, Data443 has made significant strides in expanding its product offerings and customer base. The company now serves over 10,000 customers across various sectors, including financial services, healthcare, and technology. The acquisition of Cyren's assets, which included proprietary technology and a client base, is expected to enhance Data443's competitive position and broaden its product portfolio. The company has also focused on increasing its sales capacity, particularly targeting organizations with 500 or more users, which are more likely to adopt its data security solutions.
The company reported a working capital deficiency of $16.78 million as of December 31, 2024, compared to $13.38 million the previous year, indicating a worsening liquidity situation. Current assets decreased significantly from $423,805 in 2023 to $199,984 in 2024, while current liabilities rose from $13.80 million to $16.98 million. This financial strain has raised concerns about the company's ability to continue as a going concern, as highlighted by its independent auditors.
Looking ahead, Data443 plans to pursue additional acquisitions to bolster its growth strategy and expand its market presence. The company aims to increase its research and development spending to innovate and improve existing products. However, it acknowledges the need for additional capital to sustain operations and execute its business plan, with no assurance that it will be able to secure necessary funding on favorable terms. The management's outlook remains cautious, emphasizing the importance of strategic acquisitions and the need to adapt to the evolving landscape of data security and privacy management.
About Data443 Risk Mitigation, Inc.
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