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ANY Nasdaq· Sphere 3D Corporation
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ANY Nasdaq· Sphere 3D Corporation
Earnings report Q3 2023

Strong Revenue Growth Driven by Digital Mining Operation

Segments of revenue

In the latest quarter, ANY reported total revenues of $5.7 million, representing a significant increase compared to the $1.4 million generated in the same quarter of the previous year. The majority of the revenue, $5.1 million, was derived from the digital mining operation. Additionally, the company generated $622,000 in service and product revenue.

Strengths

The notable increase in revenue can be attributed to the growth in revenues from the digital mining operation. This indicates the company's ability to capitalize on the opportunities presented by the digital currency mining market. The termination of the Master Services Agreement with Gryphon Digital Mining, Inc. may have also positively impacted the company's financial performance.

Challenges

While the company experienced strong revenue growth, it is important to note that the cost of revenue also increased significantly. The direct cost of revenues during the latest quarter was $4.5 million, compared to $0.8 million in the same quarter of the previous year. This increase in costs may pose a challenge to the company's profitability and margin expansion.

Noteworthy

In the first nine months of the year, ANY generated revenues of $14.2 million, a substantial increase from the $4.6 million generated in the same period of the previous year. The growth in revenue was primarily driven by the digital mining operation, which accounted for $12.6 million of the total revenue. However, there was a decrease of $0.3 million in product and service revenue.

Summary

ANY delivered a strong financial performance in the latest quarter, with a significant increase in revenue driven by the digital mining operation. The termination of the Master Services Agreement and the company's ability to capitalize on the digital currency mining market were key strengths. However, the increase in the cost of revenue poses a challenge to the company's profitability. Overall, ANY's focus on the digital mining operation has proven to be a successful strategy, driving revenue growth and positioning the company for future opportunities in the digital currency market.

Source documents

Form 10-Q  filed on Nov 13, 2023
171 pages scanned

Reference data

Company financials Q3 revenue 7.7M
Analyst estimates Q3 EPS missed by -∞%
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