ALY AnalytixInsight Inc

Artificial Intelligence company, AnalytixInsight Inc. (“AnalytixInsight”, or the “Company”) (TSX-V: ALY; OTCQB: ATIXF), is pleased to announce its financial results for the year ended December 31, 2019.

Highlights

• AnalytixInsight’s revenue for 2019 was $3.7 million which compares to revenue of $4.8 million for 2018, representing a decrease of 24%.
• AnalytixInsight’s net loss for 2019 was $1.7 million which compares to net loss of $2.3 million for 2018, representing an improvement of 27%.
• Marketwall’s revenue for 2019 was $6.2 million which compares to revenue of $3.8 million for 2018, representing an increase of 65%.
• Marketwall’s net income for 2019 was $1.5 million which compares to net income of $0.4 million for 2018, representing an increase of 259% (Marketwall is 49% owned by AnalytixInsight and not consolidated in AnalytixInsight’s financial results).
• The Company is well positioned to continue operations during the COVID-19 pandemic and believes its strategic initiatives – Artificial Intelligence, Workforce Optimization, and FinTech (via Marketwall) – have additional advantage as corporations increase their reliance on digital and data-driven solutions.

During the year, the Company expanded its CapitalCube AI-driven research distribution with Refinitiv to provide research coverage on approximately 3,000 dividend-paying companies in Canada, US, and UK. AI-driven content is becoming increasingly important as investors seek additional financial analysis during times of market turbulence and as financial businesses move to embrace AI and analytics as the content cornerstones for their client offerings.

AnalytixInsight’s 49%-owned FinTech subsidiary, Marketwall, is a developer of innovative online solutions. The Company believes the need for online banking and online trading platforms will increase as a result of consumer behavior shifts caused by the COVID-19 pandemic and expects Marketwall’s business will additionally benefit from this trend shift. Marketwall has applied to become an online financial broker in Europe and following completion of regulatory approvals, Marketwall expects to initiate a formal process to determine its appropriate valuation within a peer-based context of online brokerage firms with innovative technology and partnerships with world-leading banks. Marketwall has advised the Company that following such process, Marketwall will then raise suitable funds to enable its global growth expansion plans. Completion of this process will allow AnalytixInsight to move forward with a spinout to unlock the value of its Marketwall holdings in an IPO or other such strategies.

AnalytixInsight expanded its Workforce Optimization sales and development team during 2019 and is now actively sourcing new opportunities that are emerging as a result of COVID-19 impacts on certain industries. Organizations with field service personnel are increasingly seeking innovative technology solutions to optimize workflow and improve efficiency of on-site visits. The Company believes the use of analytics in the field service management industry is a growing trend, and is designing smart work applications to address this rapidly developing industry trend.

Management Commentary

Prakash Hariharan, President & CEO of AnalytixInsight, commented: “We made significant progress during 2019. We expanded our AI-driven research initiative with world-leading data provider Refinitiv, as investors embrace AI as an integral part of their expectations for financial information. We expanded our sales team in our Workforce Optimization division which we believe will be fruitful in the coming months. Our subsidiary, Marketwall, experienced record-breaking growth during 2019 as it advances its FinTech offerings, and we are eagerly awaiting regulatory approvals for Marketwall to become a European financial broker.”

AnalytixInsight Selected Annual Financial Information:

AnalytixInsight$ Canadian (audited)	2019		2018
Revenue	3,672,715		4,837,809
Basic net income (loss) per share	(0.02	)	(0.03	)
Total assets	5,546,267		5,096,567
Total liabilities	518,101		663,754

Marketwall Selected Financial Information:

AnalytixInsight owns 49% of Marketwall which is considered an associated company as its financial results are not consolidated in AnalytixInsight’s financial results.

Marketwall (Associated investment of AnalytixInsight, $ Canadian)	2019	2018
Revenue	6,219,613	3,759,255
Net income	1,450,076	403,375
Total assets	5,206,824	3,919,233
Total liabilities	2,139,151	2,250,174

CapitalCube

AnalytixInsight is an established AI-driven content supplier to Refinitiv with ability to provide content on small & mid-cap companies worldwide through its CapitalCube platform, which provides machine-created content with ability to scale. The platform is a powerful analytics engine capable of 100 billion daily computations and currently provides analysis on approximately 50,000 worldwide stocks and North American ETFs.

The Company entered an AI-driving research distribution agreement with Refinitiv in 2018 to provide machine-created research on pre-revenue North American companies. During 2019, this strategic initiative was expanded to include reports on pre-revenue companies in Italy, Germany, Hong Kong, and Japan, and to include dividend analysis reports on approximately 3,000 companies in Canada, the US and the UK. CapitalCube’s dividend analysis report provides powerful insights, analysis and scoring regarding a company’s dividend quality, yield, coverage, flexibility, payment history, peer comparisons and sustainability. 

AnalytixInsight is pleased to be an AI-driven content provider to Refinitiv and believes that its ability to create scalable financial content on worldwide companies is being recognized with increasing importance as global industry leaders embrace analytics within the financial industry. On August 1, 2019, the London Stock Exchange agreed to buy Refinitiv in a US$27 billion transaction to create a global financial markets infrastructure provider with leading data and analytics to Refinitiv’s 40,000 institutions in over 190 countries.

Workforce Optimization

AnalytixInsight’s Workforce Optimization division joined the IFS Partner Network in 2018, and during 2019 the Company advanced its sales initiatives in this market. IFS is a world leader in developing workforce optimization enterprise software for global customers who manage service-focused operations. AnalytixInsight plans to explore opportunities with IFS to jointly develop machine intelligence solutions to help organizations maximize operational efficiency, increase revenue, reduce costs, and improve customer satisfaction.

The COVID-19 pandemic has disrupted many North American businesses and is disrupting the traditional operations of service-based organizations. They are now seeking innovative solutions for field dispatch, job tracking, and workflow efficiency. Data analytics plays an important role in this shift, which is more easily enabled now that most service technicians use digital-based solutions.

The Company’s Workforce Optimization division is a highly skilled systems integration team and the Company will apply an increased focus on this initiative with new solutions and strategies that are emerging as a result of COVID-19.

Marketwall

Marketwall, a developer of FinTech solutions, is 49%-owned by AnalytixInsight and 33%-owned by Intesa Sanpaolo. On July 15, 2019, the Company announced that Marketwall applied to become an online financial broker (“Marketwall Brokerage”) to offer leading FinTech-enabled services for stock trading, using the Investment Bank of Intesa Sanpaolo as its execution broker. Marketwall Brokerage has requested regulatory approvals for brokerage services initially in Italy with intentions to expand to other European countries. Marketwall Brokerage intends to develop multi-device trading platforms, combining research and financial education.

Marketwall was established in Milan, Italy in 2014 by AnalytixInsight as a FinTech company with a focus on stock-trading and financial apps. In September 2015, Marketwall and Intesa Sanpaolo announced a partnership agreement to develop stock-trading apps, and in April 2016 Intesa Sanpaolo acquired 33% of Marketwall.

Marketwall has developed leading-edge FinTech solutions which include:

Financial portal – marketwall.com offers financial content, news, real-time quotes, and video news stories. As a Samsung Electronics partner, Marketwall’s financial app is pre-loaded on certain devices – such as Smart TVs. Marketwall draws an audience of over 3.5 million monthly views across its digital channels.

Mobile Stock-Trading App – launched as Investo in 2018 by Italy’s leading bank Intesa Sanpaolo and facilitated 20% of their customer trading orders shortly after deployment.

GlobalMarket – a trading & research platform offering analyst research and stock-trading in one common enterprise digital platform. It is marketed and sold by a leading investment research provider and has already been installed by a leading bank in Western Europe for their approximately 4,000 professional users.

Research Portal – an elegant financial research information portal for use by banks and brokerage firms to better serve their institutional buy-side clients. Research reports are organized and summarized in a password-protected portal, allowing a client to quickly search with ease, replacing the cumbersome email-based distribution methods traditionally used.

Intesa Sanpaolo is a leading bank in Europe with approximately 11.9 million customers, a network of approximately 4,400 branches throughout Italy, and has emerged as Italy's first digital bank. Intesa Sanpaolo now reports 8 million multi-channel customers, of which 3 million are now using the Intesa Sanpaolo Mobile banking app with 56 million logins per month on the app alone, and 53 million mobile transactions with the app since the start of 2018. On November 30, 2018, Intesa Sanpaolo announced plans to invest 2.8 billion euros over the following three years to increase the bank’s digitized business to 70%. Mobile is at the heart of the bank's digital ecosystem. The "app constellation" is centered around Intesa Sanpaolo Mobile, which provides access to banking services, financing, savings and is enhanced with the Intesa Sanpaolo Investo app (developed by Marketwall) that enables customers to trade securities and monitor their investment assets using their mobile device.

Complete details of the Company’s financial and operating results are available at SEDAR.com. CONTACT INFORMATION:

Scott UrquhartVP Corporate DevelopmentScott.Urquhart@AnalytixInsight.comTel: (416) 522-3975

ABOUT ANALYTIXINSIGHT INC.

AnalytixInsight Inc. is an Artificial Intelligence, machine-learning company. AnalytixInsight’s financial analytics platform CapitalCube.com algorithmically analyzes market price data and regulatory filings to create insightful actionable narratives and research on approximately 50,000 global companies and ETFs, providing high-quality financial research and content for investors, information providers, finance portals and media. AnalytixInsight also designs and implements Workforce Optimization solutions for large global enterprises. AnalytixInsight holds a 49% interest in Marketwall, a developer of FinTech solutions for financial institutions. For more information, visit AnalytixInsight.com.

Regulatory Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations; the impact of COVID-19 on the Company’s operations; the Company’s financial results; the adoption of AI in various industries; the Company’s ability to spin out or monetize it’s interest in Marketwall, the valuation of Marketwall, Marketwall’s ability to raise adequate capital, Marketwall’s ability to obtain a brokerage licence; the use of the Company’s content by various parties; the impact of the distribution agreement with Refinitiv;  the Company’s ongoing relationship  with IFS and the Company’s ability to enter into commercial transactions with members thereof; the Company’s ability to expand its content distribution; and the Company’s future performance. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AnalytixInsight Inc., as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the Company’s technology and revenue generation; risks associated with operation in the technology sector; ability to successfully integrate new technology and employees; foreign operations risks; and other risks inherent in the technology industry. Although AnalytixInsight has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. AnalytixInsight does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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