Data443 Risk Mitigation, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $1.17 million, a decrease of 23% from $1.51 million in the same period last year. The company's gross profit also fell to $793,439, down 12% from $898,100 in Q1 2024. Despite the decline in revenue, the company managed to reduce its net loss significantly, reporting a loss of $676,664 compared to a loss of $1.63 million in the prior year, marking a 58% improvement.
The financial performance reflects a strategic shift following the acquisition of intellectual property from Cyren Ltd., which resulted in one-time catch-up payments. The cost of revenue decreased by 39% to $373,150, attributed to efforts to minimize the operational footprint of the acquired assets. Operating expenses also saw a reduction of 22%, totaling $1.14 million, primarily due to cost-saving measures and a significant decrease in sales and marketing expenses, which dropped by 93% to $18,924.
Operationally, Data443 reported a customer base exceeding 10,000, indicating a stable demand for its data security and privacy management solutions. The company continues to focus on enhancing its product offerings and expanding its market presence, particularly in the cloud services sector. As of March 31, 2025, the company had current assets of $173,037, down from $199,984 at the end of 2024, while current liabilities increased slightly to $17.19 million, resulting in a working capital deficiency of $17.01 million.
Looking ahead, Data443's management emphasized the need for additional capital to sustain operations and support growth initiatives. The company plans to pursue further acquisitions and enhance its research and development efforts to innovate its product suite. However, the management acknowledged the challenges in securing financing, raising concerns about the company's ability to continue as a going concern without adequate funding. The outlook remains cautious, with a focus on stabilizing operations and improving financial health in the coming quarters.
About Data443 Risk Mitigation, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.