LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, has reported a 30% increase in its preliminary revenue for the fiscal year ended December 31, 2023. The revenue rose to a record $153.0 million, up from $117.6 million in the previous year.
The company's revenue growth excludes the results from discontinued operations at Ault Global Real Estate Equities, Inc. (AGREE). However, if AGREE's figures were included, the total revenue would have been $169.2 million.
Significant growth was noted across the company's subsidiaries, with Sentinum, Inc., which focuses on data center operations and Bitcoin mining, seeing a 97% increase in revenue from $17.8 million to $34.5 million. Circle 8 Crane Services, LLC experienced a substantial revenue increase of approximately 1696%, from $2.7 million to $49.2 million, attributed to a full year of ownership. Additionally, Giga-tronics, Inc., operating in the defense industry, reported a 25% increase in revenue from $30.3 million to $37.8 million.
Milton "Todd" Ault III, Founder and Executive Chairman of Ault Alliance, commented on the growth, emphasizing the company's strategic positioning through its subsidiaries, Sentinum and Ault Capital Group.
Ault Alliance plans to focus on monetizing its assets and streamlining operations to enhance profitability across its entities.
Ault Alliance, Inc. operates in various sectors, including data center management, Bitcoin mining, crane services, and defense/aerospace, among others. The company also extends credit to selected entrepreneurial businesses through a licensed lending subsidiary.
The information in this article is based on a press release statement from Ault Alliance, Inc.
InvestingPro Insights
As Ault Alliance, Inc. (NYSE American: AULT) celebrates a significant revenue increase, a closer look at the company's financial health through InvestingPro data reveals a complex picture. With a market capitalization of just $1.1 million and a strikingly high revenue growth rate of 75.93% over the last twelve months as of Q1 2023, Ault Alliance is navigating through a period of rapid expansion. Yet, this growth comes with its challenges, as indicated by the company's Price / Book multiple of 0.01, suggesting a market valuation that is considerably low relative to the company's book value.
An InvestingPro Tip points out that Ault Alliance operates with a significant debt burden, which may pose difficulties in making interest payments. This is reflected in the company's substantial negative operating income margin of -49.29% over the same period. Furthermore, the stock's performance has been underwhelming, with a 1 Year Price Total Return of -99.94%, emphasizing the volatility and the high-risk nature of the investment.
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