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II

Investview, Inc. (INVU)·Q1 2021 Earnings Summary

Executive Summary

  • Q4 FY2021 (calendar Q1 2021) delivered record preliminary results: net revenue $16.10M (+258% YoY), gross revenue $18.00M (+291% YoY), and net income $6.00M, driven by the ramp in Bitcoin mining; March set an all-time high monthly revenue and operating profit margin .
  • Full-year FY2021 preliminaries: gross revenue $40.10M (+53% YoY), net revenue $37.70M (+56% YoY), and net income $1.60M vs. a $(21.3)M loss in FY2020; cash and equivalents rose to $6.7M, with $6.2M in digital assets as of March 31, 2021 .
  • Business mix is shifting toward mining (Q4 mining gross revenue $8.30M) while subscription softness persisted earlier in the year due to COVID and bonus plan changes; by Q3 (Dec) mining revenue had surpassed subscriptions .
  • No formal top-line or margin guidance; company broadened capital allocation/treasury strategy with a further $1.0M investment in NDAU and enabled preferred dividend payments in cash, Bitcoin, or NDAU (next quarterly dividend set at $0.81 per Series B preferred share) .

What Went Well and What Went Wrong

  • What Went Well

    • Record quarter and year: “It was a historic, record-breaking year and quarter,” with Q4 gross revenue $18.0M, net revenue $16.1M, and net income $6.0M; March achieved an all-time high monthly operating profit margin .
    • Mining scale-up: Q4 Bitcoin mining gross revenue hit $8.30M; by Q3 FY21, quarterly mining revenue ($4.03M) exceeded subscriptions ($3.84M), evidencing a structural mix shift .
    • Liquidity and treasury: Cash, cash equivalents, and restricted cash rose by $6.5M YoY to $6.7M, with $6.2M of digital currency holdings at FY-end; management highlighted new NDAU product packages and positioning in digital assets .

  • What Went Wrong

    • Subscription attrition: Earlier FY2021 quarters saw subscription revenue fall YoY due to COVID impacts and compensation plan changes; Q3 subscription revenue declined to $3.84M vs. $4.58M YoY .
    • Legacy APEX program unwind: APEX was discontinued and replaced with a buyback via promissory notes, elevating notes payable (e.g., $17.14M long-term notes related to APEX buybacks as of Dec 31, 2020) and contributing to leverage .
    • Ongoing risks: Management cited regulatory risk for digital assets, mining difficulty/op costs, and COVID-related uncertainties; the company’s working capital deficit persisted as of Dec 31, 2020 (–$4.71M) even as it improved YoY .

Financial Results

Note: Q4 FY2021 (calendar Q1 2021) is preliminary and unaudited; figures may differ in the 10-K .

MetricQ1 FY2021 (Jun-20)Q2 FY2021 (Sep-20)Q3 FY2021 (Dec-20)Q4 FY2021 (Mar-21, prelim)
Net Revenue ($M)$5.59 $7.75 $7.88 $16.10
Gross Revenue ($M)———$18.00
Net Income ($M)$(4.91) $(1.19) $1.73 $6.00
Diluted EPS ($)$(0.00) $(0.00) $0.00 N/A (not disclosed)
Net Income Margin (%)(87.9%) (15.3%) 21.9% 37.3%

Revenue mix (subscriptions vs. mining) – net unless noted:

Revenue Mix ($M)Q1 FY2021 (Jun-20)Q2 FY2021 (Sep-20)Q3 FY2021 (Dec-20)Q4 FY2021 (Mar-21)
Subscriptions (net)$4.24 $5.26 $3.84 N/A
Mining (net)$1.34 $2.49 $4.03 N/A
Bitcoin Mining (gross)———$8.30

KPI snapshots:

KPIQ3 FY2021 (Dec 31, 2020)Q4 FY2021 (Mar 31, 2021)
Cash, cash equivalents & restricted cash ($M)$1.55 $6.70
Digital currency holdings ($M)$0.66 $6.20

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/MarginsFY2021/Q4 and beyondNoneNoneMaintained: no formal guidance
Series B Preferred DividendRecord date Jun 30, 2021Cash/BTC option$0.81 per share; option to receive via cash, Bitcoin, or NDAU (subject to $100 minimum) Updated payment options

Earnings Call Themes & Trends

Note: No earnings call transcript found for Q4 FY2021; themes derived from filings and press releases.

TopicQ-2 (Q2 FY2021, Sep-20)Q-1 (Q3 FY2021, Dec-20)Current (Q4 FY2021, Mar-21 prelim)Trend
Digital asset/mining rampMining revenue $2.49M; mix shifting toward mining Mining $4.03M > subscriptions $3.84M Mining gross revenue $8.30M; key growth driver Strong acceleration
APEX programAPEX paused; buyback program initiated; liabilities restructured into notes APEX cancellation/buyback continues; notes recognized Not directly referenced in Q4 release; prior restructuring in place Wind-down completed; debt service ongoing
Subscriptions$5.26M; COVID and comp plan changes pressured demand $3.84M; ongoing pressure Not disclosed; focus on new NDAU packages and mining Stabilization pending
COVID/macroCited headwinds and uncertainty Cited headwinds; working capital deficit improved Not emphasized in Q4 release Diminishing in commentary
Regulatory/legal (crypto)Highlighted regulatory risk and mining difficulty risk Reiterated risks; going concern factors Not highlighted in Q4 release Background risk persists
Treasury/digital assetsCrypto holdings $0.16M (Sep) Crypto holdings $0.66M (Dec) Crypto holdings $6.20M; cash $6.70M; NDAU product push Materially higher balances

Management Commentary

  • “It was a historic, record-breaking year and quarter… Global gross revenues for the year and the fourth quarter were $40.1 million and $18 million respectively… driven by strong business momentum across all business verticals including worldwide subscription growth from iGenius… and the establishment and optimization of our Bitcoin mining operations, further enhanced by… NDAU” — Mario Romano, Director of Finance .
  • “By nearly every measure 2021 was our best year ever… our team is… executing on our commitment to growth as we strive to deliver continued record results” — Joe Cammarata, CEO .
  • “Financial education, transparency and trust remain a driving force… leading to increased demand and rapid growth… our expanding line of products – including the newly announced NDAU digital currency product packages – will continue to define Investview as a… Fintech brand” — Joe Cammarata, CEO .

Q&A Highlights

  • No earnings call transcript was identified for Q4 FY2021; analysis is based on the Item 2.02 press release and prior 10-Qs .

Estimates Context

  • Wall Street consensus (S&P Global) for revenue/EPS in Q1 2021 (Q4 FY2021) was unavailable; coverage appears limited for this OTC-listed microcap. Comparisons to estimates are therefore not presented .

Key Takeaways for Investors

  • The quarter marks an inflection: net revenue doubled sequentially to $16.10M and net income reached $6.00M, with a 37.3% net margin on prelim numbers; sustainability hinges on mining throughput and crypto economics .
  • Revenue mix is pivoting toward mining; Q3 data already showed mining outpacing subscriptions, and Q4 mining gross revenue of $8.30M underscores this shift .
  • Liquidity improved materially (cash $6.70M; digital assets $6.20M), offering more flexibility in product development and treasury management (e.g., NDAU) .
  • Legacy APEX exposure has been restructured into notes payable; while the lease liability was removed, note service remains a headwind to free cash flow until amortized/retired .
  • Subscriptions require re-acceleration; COVID and prior compensation plan changes weighed on earlier quarters—watch for stabilization initiatives within iGenius .
  • Near-term catalysts: audited 10-K confirmation of prelims, further mining capacity gains, clarity on subscription growth trajectory, and execution on NDAU/DeFi initiatives and preferred dividend options .

References:

  • Q4 FY2021 (calendar Q1 2021) 8-K/press release: .
  • Q3 FY2021 8-K/10-Q (Dec 31, 2020): .
  • Q2 FY2021 10-Q (Sep 30, 2020): .
  • Q1 FY2021 10-Q (Jun 30, 2020): .
  • NDAU press release (May 21, 2021): .