LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, today disclosed its preliminary revenue for the first quarter of 2024, which reached a record $36 million.
This figure does not include $3 million from the operations of its subsidiary Ault Global Real Estate Equities, Inc. (AGREE), whose assets were previously listed as held for sale but will now be reclassified as continuing operations.
The company's revenue surge was significantly driven by Sentinum, Inc., its data center and Bitcoin mining arm, which saw a 51% increase in revenue from the same period last year.
This growth is largely attributed to the rising price of Bitcoin. Circle 8 Crane (NYSE:CR) Services, LLC, another subsidiary specializing in heavy equipment rental services, maintained steady earnings, contributing approximately $13 million to the quarter's revenue.
Milton "Todd" Ault III, the Founder and Executive Chairman of Ault Alliance, expressed enthusiasm about the company's performance, crediting their strategic focus and team effort. He also hinted at upcoming announcements regarding the company's growth initiatives.
Ault Alliance is known for its strategy of acquiring undervalued businesses and technologies with potential global impact. Its operations span various sectors, including data centers, artificial intelligence, defense, aerospace, and more. The company also offers financial support to selected entrepreneurial ventures through a licensed lending subsidiary.
The information shared in this article is based on a press release statement from Ault Alliance.
InvestingPro Insights
Ault Alliance, Inc. (NYSE American: AULT) has shown a remarkable surge in its preliminary revenue for the first quarter of 2024, reaching a record $36 million. In light of this announcement, several metrics and tips from InvestingPro may offer additional context to investors considering Ault Alliance's financial health and market position:
Despite the positive revenue figures, Ault Alliance is operating with a significant debt burden, which may pose challenges in making interest payments on its debt, as indicated by InvestingPro Tips. This is a crucial consideration for investors, as the ability to service debt is a key factor in a company's long-term sustainability.
From a valuation standpoint, Ault Alliance is trading at a low Price / Book multiple of 0.19, as of the last twelve months ending Q4 2023. This could suggest that the market is undervaluing the company's assets relative to its share price, which might be an opportunity for value investors.
Key metrics from InvestingPro Data reveal that while Ault Alliance has experienced a robust 32.99% revenue growth in the last twelve months as of Q1 2023, the company is not currently profitable, with an operating income margin of -56.25%. Additionally, the stock has experienced significant price volatility, with a 1 Year Price Total Return of -99.94%, reflecting the high-risk nature of the investment.
For those interested in a deeper dive into Ault Alliance's prospects and challenges, InvestingPro offers additional tips on the company's financials and stock performance. Use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights. In total, there are 16 InvestingPro Tips available for Ault Alliance, providing a comprehensive analysis for informed decision-making.
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