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VI

Viewbix Inc. (VBIX)·Q4 2022 Earnings Summary

Executive Summary

  • Q4 2022 delivered record revenue of $30.49M (+43% YoY) and stronger profitability: EBITDA $2.08M (+68% YoY) and operating income $1.32M (+125% YoY), driven by digital content growth and Cortex acquisition synergies .
  • Sequentially, Q4 revenue rose 34% vs Q3 2022 ($22.78M), with EBITDA margin expanding to 6.8% (from 5.1%), reflecting improved operating leverage .
  • Non-GAAP metrics strengthened: Q4 adjusted EBITDA $2.15M (+51% YoY) and non-GAAP net income $1.90M (+41% YoY), supported by normalization adjustments (SBP, acquisition-related items, taxes) .
  • Cash from operations declined YoY in Q4 to $1.06M (vs $2.80M), a watchpoint despite full-year cash generation remaining positive ($3.24M) .
  • No formal guidance was provided; Wall Street consensus estimates were unavailable via S&P Global at time of retrieval. Investors should watch estimate revisions post print given accelerating YoY growth and margin expansion . Values from S&P Global were unavailable due to retrieval limits.

What Went Well and What Went Wrong

What Went Well

  • Record quarterly performance: “Viewbix Reports its Financial Results for 2022 with a 114% Growth in Revenues Totaling $97 Million… In the fourth quarter of 2022, revenues amounted to a record of $30,488 thousand” .
  • Profitability inflection: Q4 2022 operating income $1.32M (+125% YoY) and EBITDA $2.08M (+68% YoY), demonstrating operating leverage as scale increased .
  • Strategic execution: CEO emphasized acquisition-driven growth—“The acquisition of Cortex and the continued focus on our main activities have been instrumental in driving our growth… pursue strategic opportunities… expand into new segments” .

What Went Wrong

  • Operating cash flow softness: Q4 2022 CFO $1.06M, down 62% YoY from $2.80M; full-year CFO down 26% YoY ($3.24M vs $4.37M), requiring tighter working capital discipline .
  • Earlier-period comparability and shareholder EPS dynamics: Q3 2022 showed positive GAAP net income ($71k), but EPS attributed to shareholders was negative due to non-controlling interest allocations (basic/diluted -$0.01), highlighting consolidation effects .
  • Pre-merger legacy operations were minimal and raised going-concern concerns (revenues $2k in Q2; stockholders’ deficit; reliance on financing), underscoring the importance of the Gix/Cortex consolidation to the investment case .

Financial Results

P&L Comparison vs Prior Periods

Metric ($USD Thousands)Q4 2021Q3 2022Q4 2022
Revenues21,350 22,778 30,488
EBITDA1,237 1,163 2,077
Operating Income (EBIT)585 427 1,319
GAAP Net Income503 71 1,147
Adjusted EBITDA1,428 1,281 2,153
Non-GAAP Net Income1,346 844 1,896

Margins

MetricQ4 2021Q3 2022Q4 2022
EBITDA Margin %5.8% (1,237/21,350) 5.1% (1,163/22,778) 6.8% (2,077/30,488)
EBIT Margin %2.7% (585/21,350) 1.9% (427/22,778) 4.3% (1,319/30,488)
Net Income Margin %2.4% (503/21,350) 0.3% (71/22,778) 3.8% (1,147/30,488)

EPS (reported)

MetricQ4 2021Q3 2022Q4 2022
Basic/Diluted EPS (attributed to shareholders)N/A-$0.01 N/A

KPIs / Cash Flow

KPI ($USD Thousands)Q4 2021Q3 2022Q4 2022
Net Cash from Operations2,802 1,577 1,062

Note: Q2 2022 legacy Viewbix 10-Q showed revenues of $2k and minimal operations (pre-Gix consolidation), making Q2 not comparable for trend analysis with consolidated Q3/Q4 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
All metricsN/AN/ANo formal guidance providedMaintained (no guidance)

Earnings Call Themes & Trends

No Q4 2022 earnings call transcript was available in the document catalog (none found) [List: earnings-call-transcript=0].

TopicPrevious Mentions (Q2 2022)Previous Mentions (Q3 2022)Current Period (Q4 2022)Trend
Digital content platformLegacy entity with minimal activity; going concern highlighted “Entered the field of digital content through acquisition of Cortex… proven financially and synergistic” Content activity cited as key driver of 2022 performance Strengthening
Acquisition synergiesN/AFirst results post-Gix/Cortex consolidation; revenue/EBITDA surge CEO: Cortex acquisition instrumental in growth; continuing strategic opportunities Positive
ProfitabilityOperating loss/minimal revenue Q3: EBITDA $1.16M, operating income $0.43M Q4: EBITDA $2.08M, operating income $1.32M Improving
Cash generationNegative CFO in legacy Q2; reliance on financing Q3 CFO $1.58M Q4 CFO $1.06M; full-year CFO $3.24M Positive YoY full-year, but Q4 YoY down

Management Commentary

  • “The acquisition of Cortex and the continued focus on our main activities have been instrumental in driving our growth… pursue strategic opportunities… expand into new segments” — Amihay Hadad, CEO .
  • “We… present significant growth… working diligently to continue the positive trend… considering entering into additional activities… acquisition of Cortex… proven financially and synergistic” — Amihay Hadad, CEO (Q3 release) .

Q&A Highlights

No Q4 2022 earnings call transcript available; therefore Q&A highlights and clarifications cannot be provided (none found) [List: earnings-call-transcript=0].

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2022 and prior quarters could not be retrieved due to API request limits at time of query; comparisons versus estimates are unavailable. Values from S&P Global were unavailable due to retrieval limits.

Key Takeaways for Investors

  • Scale and profitability are inflecting: Q4 revenue +43% YoY to $30.49M with EBITDA +68% YoY to $2.08M; margins broadened sequentially (EBITDA margin 6.8%) as operating leverage improved .
  • Strategic M&A has been accretive: Cortex integration and digital content growth are key drivers of 2022 performance, with management signaling continued pursuit of strategic opportunities .
  • Non-GAAP strength validates core economics: Q4 adjusted EBITDA $2.15M and non-GAAP net income $1.90M show sustained underlying profitability after normalizing adjustments .
  • Watch cash conversion: Q4 CFO declined YoY to $1.06M; monitor working-capital discipline and cash conversion in subsequent quarters .
  • Comparability caveat: Q2 2022 legacy results are not a clean base; trend analysis should focus on consolidated Q3 and Q4 trajectories .
  • No guidance and no estimates at print: With no formal guidance and consensus unavailable, expect estimates to be reassessed as coverage stabilizes post-consolidation .
  • Near-term trading implication: Momentum narrative (record revenue, margin expansion) is supportive; cash flow softness is the key counterpoint to watch in subsequent prints .