NASDAQ$MARK

Remark Holdings Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Remark Holdings' financial performance significantly improved, marked by substantial revenue growth and a shift to net income.

Remark Holdings reported a 285% increase in revenue to $2.6 million and a net income of $4.4 million, or $0.04 per share, for the third quarter of 2020. This improvement was driven by strong growth in China and the US, as well as a $5.6 million non-cash gain from the change in fair value of warrant liability.

  • Revenue increased by 285% year-over-year, reaching $2.6 million.
  • Net income totaled $4.4 million, or $0.04 per share, a significant turnaround from the previous year's net loss.
  • Revenue in China more than tripled, reaching $2.1 million due to the resumption of projects after COVID-19 lockdowns.
  • The company delivered smart kiosks to approximately 200 China Mobile stores and smart retail bank branch solutions to 80 Bank of China branches.

Headline financials

Total Revenue

$2.65M

Previous: $686K+285.7%
EPS (adj)

$0.70

No prior period
Capital Expenditures

-$171K

Previous: -$5K-3320.0%
Free Cash Flow

-$14.7M

Previous: -$17.9M+17.9%
Net Income

$4.41M

Previous: -$4.94M+189.3%
Operating Income

-$3.1M

Previous: -$4.27M+27.4%
Gross Profit

$967K

Previous: $497K+94.6%
Cash & Equivalents

$2.09M

Previous: $656K+218.6%
Total Assets

$16.1M

Previous: $21.5M-25.1%
Stock-Based Comp

-$414K

No prior period

Revenue & EPS history

Remark Holdings · Revenue · Quarterly

$2.65M

Q3 2020+285.7%vs Q3 2019
Beat estimate in 2 of 4 quarters(50%)
ActualEstimate

Revenue by segment

Remark Holdings · $2.5M total across 2 segments · Q3 2020

  • China
    $2.1M
  • US-Based Biosafety
    $400K

Forward guidance

Remark Holdings anticipates continued revenue growth from China and the US, driven by the expansion of its AI platform and strategic partnerships. The company expects to monetize its stake in Sharecare, providing ample capital for growth opportunities, potential share repurchases, and maintaining a strong balance sheet.

Tailwinds

  • Anticipates another doubling of revenue from China in the fourth quarter.
  • Expects to close additional deals in the fourth quarter in the United States.
  • Remains on track to fulfill the initial $50 million China Mobile contract by the end of 2021.
  • Confident that the company will have the opportunity to monetize their stake in Sharecare.
  • Poised to report significant revenue growth from China while simultaneously addressing large total addressable market opportunities, and signing up new channel partners.

Headwinds

  • The company's future performance is subject to risks and uncertainties, including those discussed in its SEC filings.
  • The forward-looking statements are based on current views and assumptions, which are subject to change.
  • The company's actual results may differ materially from those projected in the forward-looking statements.
  • The company undertakes no obligation to update or revise publicly any forward-looking statements.
  • The company's business is subject to risks associated with the COVID-19 pandemic and its impact on the global economy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-4.8%

Avg return

Earnings day

-5.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

28%

11 / 39 earnings

Positive

+19.1%

Q3 2020

Best reaction

-94.3%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025-94.3%+0.0%+2.0%
Q4 2024+0.0%+5.8%+26.9%
Q3 2024-7.7%-13.3%-21.9%
Q2 2024+8.6%+2.9%+9.8%
Q1 2024-16.0%-11.9%-23.3%
Q4 2023-1.9%-4.2%+152.4%
Q3 2023-9.4%-13.5%-21.4%
Q2 2023-10.6%-15.1%-34.9%
Q4 2022-14.0%+4.3%+0.0%
Q1 2023-14.0%-19.6%-18.2%
Q3 2022+0.0%-4.2%-39.8%
Q2 2022-5.9%-16.7%-30.7%
Q4 2021-10.5%+8.5%-6.2%
Q1 2022-10.5%-12.1%-33.2%
Q2 2021-10.5%-12.1%-33.2%
Q3 2021-3.8%-16.0%+99.1%
Q1 2021+9.6%+0.0%+6.9%
Q4 2020-7.5%-6.5%+55.8%
Q3 2020+19.1%+21.7%+72.2%
Q1 2020+9.7%-30.9%-28.4%
Q2 2020-0.4%+2.2%-40.7%
Q3 2019-1.3%-13.3%-24.9%
Q2 2019-10.5%-25.1%+18.5%
Q1 2019-0.8%-9.2%-26.8%
Q3 2018-6.0%-52.4%-55.3%
Q2 2018+2.8%+5.4%-10.3%
Q1 2018-13.9%-18.3%-3.7%
Q3 2017+0.8%+63.0%+119.0%
Q2 2017-1.9%-2.5%-1.1%
Q1 2017+4.7%+0.0%-14.7%
Q3 2016-1.4%+5.0%-19.6%
Q2 2016+1.3%+2.7%-6.2%
Q1 2016
Q3 2014
Q4 2012+3.1%
Q2 2011+0.4%
Q1 2011-2.2%
Q4 2010-0.5%
Q3 2010+13.9%
Q2 2010-2.5%
Q1 2010-3.7%

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