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II

Investview, Inc. (INVU)·Q4 2020 Earnings Summary

Executive Summary

  • Revenue of $7.88M rose 59% year over year (vs. $4.96M prior year) as Bitcoin mining scaled; net income swung to $1.73M from a $3.83M loss, while operating income was a loss of $1.57M given higher operating costs .
  • Segment mix shifted decisively toward mining (51% of Q4 revenue), with subscription revenue down year over year as COVID impacted distribution; management emphasized operational progress and diversification across mining, education and fintech tools .
  • Balance sheet actions reduced future debt obligations by $45.6M through APEX lease buybacks; current liabilities declined $12M over nine months, and cash/restricted cash rose by ~$1.4M to $1.55M .
  • Post-quarter, SAFETek reported record monthly mining revenue ($1.88M Dec; $2.77M Jan) and announced a facility relocation projected to cut operating costs by 25% ($4M+ annualized), potential catalysts for margin trajectory .

What Went Well and What Went Wrong

What Went Well

  • Record quarterly performance and positive GAAP net income: “Consolidated net revenue increased $2.9 million, or 59%… Consolidated net income increased $5.5 million, or 145%” in the quarter ended Dec 31, 2020 .
  • Mining momentum: “This is a testament to Investview… diversify into profitable sectors” (CEO); revenue growth supported by digital currency activities; December mining revenue +33.5% m/m to $1.88M and January +47.3% m/m to $2.77M (EVP) .
  • Capital structure improvement: Lease buyback reduced future debt obligations by $45.6M; $3.86M gain on settlement with third parties and $117.8K gain with related parties contributed to results .

What Went Wrong

  • Operating loss despite net income: operating costs rose (cost of sales/professional fees), driving a $(1.57)M operating loss in Q4; professional fees surged to $1.85M, partly from stock-based services .
  • Distribution headwinds: subscription revenue fell year over year due to COVID’s impact on in-person sales and prior compensation plan overhaul; commissions still significant at 44% of revenue YTD .
  • APEX program discontinued amid supply chain constraints; management cites risks including digital currency regulation and Bitcoin halving; working capital deficit remained at $4.71M .

Financial Results

MetricQ4 2019 (Three months ended Dec 31, 2019)Q3 2020 (Three months ended Sep 30, 2020)Q4 2020 (Three months ended Dec 31, 2020)
Revenue ($USD)$4,963,611 $7,753,337 $7,875,038
Net Income ($USD)$(3,827,928) $(1,187,760) $1,725,779
Diluted EPS ($USD)$(0.00) $(0.00) $0.00
Cost of Sales ($USD)$560,145 $1,724,809 $2,055,379
Gross Profit ($USD)$4,403,466 (calc; 4,963,611−560,145) $6,028,528 (calc; 7,753,337−1,724,809) $5,819,659 (calc; 7,875,038−2,055,379)
Gross Margin (%)88.7% (calc) 77.8% (calc) 73.9% (calc)
EBIT ($USD)$(1,739,296) (“Net income (loss) from operations”) $571,017 (“Net loss from operations” line shows positive 571,017) $(1,573,661) (“Net income (loss) from operations”)
EBIT Margin (%)−35.0% (calc) 7.4% (calc) −20.0% (calc)
Net Income Margin (%)−77.1% (calc) −15.3% (calc) 21.9% (calc)

Segment revenue breakdown:

SegmentQ4 2019Q3 2020Q4 2020
Subscription Revenue ($USD)$4,578,623 $5,255,888 $3,844,722
Mining Revenue ($USD)$380,871 $2,493,739 $4,027,364
Fee Revenue ($USD)$4,117 $3,710 $2,952
Total Revenue ($USD)$4,963,611 $7,753,337 $7,875,038

KPIs:

KPIPeriodValue
Bitcoins ProducedDecember 2020~86 BTC; ~2.77 BTC/day
Monthly Mining RevenueDecember 2020~$1.88M (+33.5% m/m)
Monthly Mining RevenueJanuary 2021~$2.77M (+47.3% m/m)
Projected Annual Cost ReductionPost-relocation25% ($4M+ annualized)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating cost run-rateFY2021 onward (post relocation)N/AReduce 25% ($4M+ annualized) Raised (new cost-cut target)
Distribution brand/productJanuary 2021N/ARebrand to iGenius and pre-launch ndau packages New initiatives
Series B Preferred dividendsQ4 2020 and subsequent13% per annum rate $58,421 paid subsequent to 12/31/20; ongoing accrual Maintained policy

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2020)Previous Mentions (Q3 2020)Current Period (Q4 2020)Trend
Digital asset mining growthInitiated mining; revenue $1.34M; scaling plans Mining $2.49M; increased billings; growing contribution Mining $4.03M; majority of quarterly revenue; record monthly mining Accelerating
APEX program & debtAPEX sales/leaseback liability grew; later discontinuation signaled APEX ceased; buyback under consideration Buyback executed; $45.6M future obligations reduced; debt gains recorded Resolved/derisking
COVID and distributionEarly COVID disruption; shift to virtual; subscription down Subscription down; commissions % reduced Subscription down further; COVID still cited Persistent headwind, improving comp structure
Regulatory/legal (crypto)Noted regulatory risks; BTC halving impact Ongoing risks noted Risks reiterated (regulatory/difficulty) Stable risk
Cost structure and marginsHigh interest expense; merchant debt costs Interest expense elevated; other expense notable Cost of sales/pro fees up; relocation to lower costs Margin actions underway
Branding/product——Rebrand to iGenius; ndau package launch plan New growth vector

Note: No public earnings call transcript was available for Q4 2020; themes are drawn from the 10‑Q and press releases .

Management Commentary

  • “It was a strong third quarter across our product portfolio with consistent month over month growth… diversify into profitable sectors and provide education and access to leading edge technology” — Joe Cammarata, CEO .
  • “Our third quarter results demonstrate the impact of the changes we have made over the last twelve months. We are accelerating our revenue growth and increasing our productivity” — Mario Romano, Director of Finance .
  • “Revenue growth of 33.5% to $1.88 million and profits expanding by nearly 30% to $1.06 million in December” — Rob Walther, EVP of Crypto Operations .
  • “Relocation… anticipated to be as much as 25% or $4+ million on an annualized basis” — Joe Cammarata, CEO .
  • “We have made significant changes across all of our subsidiaries… Distributing our products through the iGenius brand is part of our broad plan” — Joe Cammarata; “We have completely replaced our product suite and platform…” — Chad Garner, President, iGenius .

Q&A Highlights

  • The company did not publish an earnings call transcript for Q4 2020; no Q&A disclosures were available in filings or press releases [ListDocuments, none] .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2020 revenue/EPS was unavailable through our data access during this review; Investview trades OTC and has limited coverage. Explicitly, SPGI estimates retrieval failed (daily limit exceeded), so consensus estimates could not be incorporated into this recap [GetEstimates error]. Values retrieved from S&P Global would normally be used; however, consensus was unavailable for inclusion in this report.

Key Takeaways for Investors

  • Mining-led growth is re-rating the mix: mining revenue rose to ~$4.03M in Q4 (51% of total), with record monthly prints continuing post-quarter; this supports revenue momentum and potential margin expansion as relocation lowers cost per BTC .
  • Structural de-risking: APEX lease buybacks eliminated $22.89M net lease liabilities and reduced future obligations by $45.6M, materially improving the liability profile and reducing future interest burden .
  • Margins still in transition: gross margin compressed to ~74% on higher mining costs and professional fees; relocation aims to restore margins; watch cost-of-sales and opex normalization in coming quarters .
  • Distribution and product evolution: rebranding to iGenius and ndau package launch create new monetization avenues that may stabilize subscription trends post-COVID .
  • Liquidity improving but tight: cash/restricted cash increased to $1.55M, yet working capital deficit is $4.71M—monitor financing (preferred, notes) and operating cash flow sustainability .
  • Risk factors remain: regulatory developments in crypto and mining difficulty can affect output and economics; management explicitly flags these exposures .
  • Near-term trading implications: momentum press releases (Dec/Jan mining revenue, cost-reduction relocation) are positive sentiment drivers; absence of consensus coverage may amplify reaction to company-issued updates .