WILMINGTON, DE — Onfolio Holdings Inc. (NASDAQ: ONFO, ONFOW) announced financial results for the first quarter of 2023.
Recent Corporate Highlights
- Completed the acquisition of Contentellect, a provider of software that allows small and midsize businesses to scale their content with blog writing and link building, in February 2023
- Ravi Jayagopal as CEO of WPFolio, a WordPress plugin development company
- Tanya Vaughn as CEO of Proofread Anywhere, an online provider of resources for those looking to become professional proofreaders
First Quarter 2023 Financial Highlights
- First quarter 2023 revenue grew 250% year-over-year to $1.35 million vs. $0.39 million in the first quarter of 2022
- First quarter 2023 gross profit grew 361% to $0.74 million (representing gross margin of 55.0%) vs. $0.16 million in the prior year period (representing gross margin of 41.8%)
- First quarter 2023 total operating expenses increased 128% to $2.09 million vs. $0.92 million in the prior year period
- First quarter 2023 net loss to common shareholders expanded to $1.34 million vs. $0.79 million in the prior year period
- Cash at 3/31/23 was $4.66 million vs. $6.70 million at 12/31/22
“In the first quarter of 2023, we continued to integrate our three acquisitions from October 2022 – BWPS, Proofread Anywhere, and SEOButler Ltd – and continued with our Onfolio 2.0 strategy with the additional acquisition and early integration of Contentellect,” commented Onfolio CEO, Dominic Wells. “Collectively, these acquisitions bring several favorable attributes that should help build a stronger foundation for the Company. As previously announced, we are deliberately moving away from smaller content websites and towards more service businesses, agencies, online education, and digital products that are less subject to changes in the Google search ranking algorithm. These businesses also bring higher revenues and a higher recurring revenue stream than many of our previous Onfolio 1.0 acquisitions and managed websites.
“Combined with our decision last fall to decentralize our organizational structure, we believe we are in a much stronger position to grow sustainably over the coming years, especially as we are always evaluating additional acquisitions that could accelerate our path to profitability. The recent appointments of Ravi Jayagopal as CEO of WPFolio and Tanya Vaughn as CEO of Proofread Anywhere should help us optimize these two subsidiaries that were acquired last October and are at the heart of our decentralization strategy.
“Total revenue in the first quarter of 2023 of $1.35 million grew approximately 20% sequentially, and we recognized sequentially higher revenue each month since December, culminating in March representing our highest monthly revenue total ever, thanks to primarily the four acquisitions we have made since our IPO. We recognized approximately $300,000 in expenses, such as acquisitions costs related to our fourth quarter 2022 acquisitions, higher than normal legal and professional fees, including some tied to our IPO, and one-time growth expenses for newly acquired businesses, in the first quarter that are not expected to recur moving forward. It is also worth noting that, beginning with the start of 2023, some expenses that were previously classified as SG&A expenses are now considered part of cost of goods sold.
“Cost advantages from our decentralization efforts at the corporate level, along with general costs control efforts, are beginning to show positive results. Moreover, we expect lower expenses throughout the remainder of 2023 and, along with expected increasing revenue, improving operating leverage. Ultimately, we anticipate further acquisitions will bring us to profitability,” concluded Mr. Wells.
Visit www.onfolio.com for more information.
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