Company Summary - DATA443 RISK MITIGATION, INC.

Business Overview

DATA443 Risk Mitigation, Inc. is a provider of data security and privacy management solutions aimed at protecting enterprise data across various environments, including cloud, on-premises, and hybrid setups. They focus on delivering visibility and control over data to ensure compliance with evolving global data privacy regulations and to mitigate data breaches and cyber threats.

Core Offerings and Product Portfolio

• Data Security & Privacy Solutions: Protect sensitive data such as files, emails, personal information, financial records, intellectual property, and proprietary content.
• Threat Detection & Response: Provides threat intelligence, email security, malware detection, and ransomware recovery.
• Data Governance & Compliance: Platforms support compliance with laws like GDPR (Europe), CCPA (California), LGPD (Brazil), and offer data discovery, classification, and retention management.
• Flexible Modular Products: Includes solutions such as threat intelligence service (Cyren), ransomware recovery manager, data classification (ClassiDocs/FileFacets), data archiving (ArcMail), access control (Resilient Access), blockchain protection, privacy management (Global Privacy Manager), and WordPress plugins for privacy compliance.
• Integration with Major Cloud Vendors: Works in conjunction with Microsoft Azure, Google Cloud Platform, AWS, and virtualization platforms like VMWare, Citrix, and Oracle.
• Data Centers: Operates data centers in the US, Germany, and Israel to support services.

Market and Customers

• Customer Base: Over 10,000 commercial enterprise customers spanning industries such as financial services, healthcare, manufacturing, retail, technology, and telecommunications.
• Customer Segments:
  • Large enterprises (from 500+ employees up to 150,000+)
  • About 20 customers in the financial tech sector with multi-year subscriptions
  • Approximately 2,500 mid-market organizations with 1-3 year subscription terms
  • Over 200,000 open-source consumers using free plugins or paying for premium features, mainly for GDPR, CCPA, and LGPD compliance.
• OEM & Partnership: Provides threats and web security services to security providers and managed service providers, processing over 3 billion security-related transactions monthly.

Revenue & Financials (2024)

• Total Revenue: Approximately $4.87 million (down from $5.58 million in 2023, a 13% decrease).
• Gross Profit: About $2.85 million with a gross margin of 58%.
• Net Loss: Approximately $6.09 million, an increase of 43% from $4.24 million in 2023.
• Expenses: Operating expenses of about $5.91 million, including general and administrative, sales, and marketing costs.
• Cash & Assets:
  • Cash on hand as of December 31, 2024: $168,208
  • Total current assets: $199,984
  • Total current liabilities: $16.98 million
  • Working capital deficiency of approximately $16.78 million.
• Special Notes: The company operates as an emerging growth company with a history of operating losses and a substantial accumulated deficit of approximately $61.74 million as of December 31, 2024.

Key Strategic Initiatives

• Focus on organic growth by targeting organizations with 500+ users adopting cloud services
• Increasing research & development to enhance and expand product offerings
• Pursuing acquisitions of complementary cybersecurity and data management companies
• Expanding sales through increased capacity, channel partnerships, and cloud marketplace onboarding

In summary:
DATA443 Risk Mitigation, Inc. develops and sells advanced data security, privacy, threat detection, and compliance solutions to enterprise customers worldwide. The company has over 10,000 customers across various industries, with a significant presence in the financial technology sector. Despite revenue decline in 2024, it continues to operate with a substantial net loss and a large working capital deficiency, emphasizing growth through product innovation, acquisitions, and expanded sales efforts.