NEW YORK--(BUSINESS WIRE)--Siebert Financial Corp. (NASDAQ: SIEB) ("Siebert"), a diversified provider of financial services, today reported financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Financial Highlights
- Revenue of $16.2 million compared to $10.3 million in the first quarter of 2022
- Pretax income* of $4.4 million compared to a pretax loss* of $1.4 million in the first quarter of 2022
- Net income available to common stockholders of $3.2 million compared to net loss available to common stockholders of $1.0 million in the first quarter of 2022
- Earnings per share of $0.10 compared to loss per share of $0.03 in the first quarter of 2022
Recent Business Highlights
- Kakao Pay, a fintech subsidiary of Korean-based conglomerate Kakao Corp., announced an agreement to purchase a 19.9% stake of Siebert of newly issued shares for approximately $17 million on April 27, 2023, and subject to shareholder and regulatory approval, Kakao Pay will acquire an additional 31.1% of Siebert of newly issued shares.
- Kakao Pay will leverage its technology expertise in the financial services sector and work in partnership with Siebert to strengthen the company's business and growth strategy, while providing an enhanced user experience and additional benefits for users who invest in foreign stocks.
Management Commentary
"We are extremely excited about our results in the first quarter of 2023 and our new partnership with Kakao Pay" said Gloria E. Gebbia, controlling shareholder and board member of Siebert. "We welcome this strong start to 2023 with great results from our current business lines and the beginning of our partnership with one of the leading global financial services innovators to expand our reach and enhance our offerings. We look forward to working with Kakao Pay as we chart the next phase of our evolution and continue to build on Muriel Siebert's legacy while modernizing our offerings to meet evolving client demand."
Andrew Reich, CFO of Siebert, commented: "We delivered very strong results for revenue and pretax income this quarter which demonstrates our ability to navigate volatile market conditions with a diversified model. Revenue grew 56% year-over-year and was driven primarily by higher interest income and an unrealized gain on our U.S. government securities portfolio. Our Securities Finance division continues to be a strong business line with another great quarter of results as well. Pretax income for the first quarter included a temporary unrealized gain of $1.0 million on our U.S. government securities portfolio compared to a temporary unrealized loss of $2.2 million in the first quarter of 2022. We also delivered an improvement to both our pretax income and margins as we continue to improve profitability. Looking ahead, we remain focused on profitable growth with a strong balance sheet and a diversified business model."**
*Pretax income / loss represents the line item captioned "Income (loss) before provision for (benefit from) income taxes" in the statements of operations in Siebert's 2023 Q1 10-Q.
**Refer to Siebert's 2023 Q1 10-Q, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Notice to Investors
This communication is provided for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States or elsewhere.
About Siebert Financial Corp.
Siebert is a diversified financial services company and has been a member of the NYSE since 1967 when Muriel Siebert became the first woman to own a seat on the NYSE.
Siebert operates through its subsidiaries Muriel Siebert & Co., Inc., Siebert AdvisorNXT, Inc., Park Wilshire Companies, Inc., RISE Financial Services, LLC, Siebert Technologies, LLC and StockCross Digital Solutions, Ltd. Through these entities, Siebert provides a full range of brokerage and financial advisory services including securities brokerage, investment advisory and insurance offerings, securities lending, and corporate stock plan administration solutions. For over 55 years, Siebert has been a company that values its clients, shareholders, and employees. More information is available at www.siebert.com.
About Kakao Pay
Kakao Pay is a TechFin subsidiary of Kakao Corp., spun off in April 2017. Kakao Pay has been building a lifestyle financial platform leading the transition into a wallet-less society where all we need is a smartphone to pursue any economic activity at any time in any place.
Since Kakao Pay launched the first mobile payment service in Korea in 2014, Kakao Pay has grown into the industry's leading innovator, offering a diverse lineup of innovative financial services including online/offline payment, money transfer, membership, bill payment, and authentication. Starting with the investment service in November 2018, Kakao Pay has expanded its services from credit rating to loans and insurance providing easy access to financial services for everyone. The company is alleviating multiple inconveniences by offering daily financial services and accomplishing remarkable growth.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release, that are not historical facts, including statements about our beliefs and expectations, are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend" and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.
These forward-looking statements, which reflect our management's beliefs, objectives, and expectations as of the date hereof, are based on the best judgement of our management. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: economic, social and political conditions, global economic downturns resulting from extraordinary events such as the COVID-19 pandemic and other securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with risks and uncertainties detailed in our filings with the SEC, including our most recent filings on Forms 10-K and 10-Q.
We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.
Contacts
Investor Relations:
Alex Kovtun and Matt Glover
Gateway Group, Inc.
949-574-3860
sieb@gatewayir.com
