What Do Investview’s Risk Factors Indicate?

Diversified financial technology company Investview Inc. (INVU) offers financial education, research, investment tools, advisory services and technology to individual investors. It also provides codeless algorithmic trading technologies, crypto mining, and adaptive blockchain technologies.

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Investview’s subsidiary iGenius enables educated participation in blockchain, AI, DeFi, and the global markets.

Let’s take a look at the company’s financial performance and what has changed in its key risk factors that investors should know.

Investview Risk Factors

According to the new Tipranks Risk Factors tool, Investview’s main risk category is Finance & Corporate, which accounts for 48% of the total 25 risks identified. The next two major risk factor contributors are Legal & Regulatory and Tech & Innovation at 20% and 16%, respectively. Since March, the company has added two new risk factors.

Under the Finance & Corporate category, the company highlights that in case of liquidation, dissolution, or winding-up, the net remains after clearing all debts and liabilities will be distributed among common stockholders on a pro-rata basis. The company states that there is no assurance that the assets will be available in such a situation to pay to investors and they could lose some or all of their investment.

Under the Legal & Regulatory category, Investview acknowledges that climate change and related regulatory and legislative development may materially impact its business and financial conditions.

Cryptocurrency miners require large amounts of electrical power to operate. This industry may become a target for future environmental and energy regulations and legislation. These may also affect Investview’s ability to compete with companies that are not subject to such regulations.

Financial Performance

On the back of increased cryptocurrency mining operations, Investview’s revenue jumped 58% year-over-year to $38.3 million in fiscal 2021.

Along with higher mining operations, Investview’s cost of sales and service increased three-fold year-over-year to $7.6 million in fiscal 2021. This increase was offset by lower impairment charges during the year, which meant total operating expenses remained relatively flat during this period. This also helped the company generate net income of $344 thousand for fiscal 2021 against net loss of $21.3 million in fiscal 2020. (See Investview stock chart on TipRanks)

In June, the company generated $2.2 million in Bitcoin mining revenue, a year-over-year jump of 263%. At a 68.2% gross margin, its gross profit soared 389% year-over-year to $1.5 million.

Investview’s subsidiary iGenius generated $5 million in revenue in June. Its subscription revenue at $2.2 million was up 100% from January. The company also witnessed a 64% jump in the total number of iGenius memberships during the same period.

CEO of Investview Joe Cammarata said, “During the quarter, our strategies led to strong global customer demand for our high-quality financial education tools, research, and digital asset technology products.”

Bottom Line

The Finance & Corporate risk factor’s sector average is 37%, compared to Investview’s 48%. Shares are up 369.5% over the past year.