RDE, Inc. (OTCQB:RSTN) the owner of Restaurant.com, the nation's largest restaurant-focused digital deals brand, announced unaudited financial results for the year ending December 31, 2020. Despite pandemic related headwinds, RDE said it recorded revenue of $2.9 million with net income of $332,000, or $0.06 in earnings per share. Those results compare to a loss per share of ($1.37) in 2019.
RDE noted that the revenue figure reflects business recorded from March 1, 2020, the effective date of RDE's acquisition of Restaurant.com, rather than the full year 2020. Thus, the twelve months revenue for Restaurant.com was $4.4 million. All financials results are subject to the audit.
Guidance was also strong. In a startement, management said,
RDE believes its B2B business remains robust and looks to expand among Fortune 500 clients.As the COVID-19 pandemic abates, RDE believes it is positioned for major sales expansion. During the year, our B2B segment secured Fortune 500 and Fortune 1000 customers that used our offerings for loyalty and customer acquisition campaigns. A number of these clients will continue these campaigns throughout 2021 as well. These include T-Mobile, Florida Power, Progressive Insurance, Hertz, AFLAC and others. This segment accounted for the single largest contribution to revenue, and we expect this trend to continue in the coming quarters.
Quarterly Details
A breakdown of the results showed Net income from continuing operations of $531,000, demonstrating marked improvement compared with a loss of $2.1 million in 2019. On a per share basis, RDE delivered EPS of $0.06 as compared with a negative EPS of ($1.37) in 2019. Notably, the 2020 net income and EPS include a positive non-cash change in derivative liability due to the accounting of convertible notes.
Shareholder's equity for the year also had a major turn for the positive. Equity jumped from a ($7.8 million) deficit to $1.1 million in equity for the year. With the removal of all institutional convertible debt, management expects this figure to continue to demonstrate meaningful increases, going forward.
Guidance Into 2021
Ketan Thakker, Chief Executive Officer of RDE, Inc., commented on the year's results and the future for the Company:
"We are very pleased with our sales and operating performance for 2020 which would have been even greater had we been able to consolidate our Restaurant.com results for the full year. We anticipate filing our audited financial statements in March ."
"Our entire team succeeded against all odds during the pandemic and we are already beginning to see improvements in our underlying markets as cities' restaurants are opening up and B2B clients are planning to use our cards for future customer acquisition campaigns. We are optimistic that restauranters and their families, who have been substantially impacted these past 12 months, will enjoy a major return to growth, which in turn will have a positive impact on our top-line results, particularly later in the year. In the meantime, as the number of vaccinated citizens increases, warm weather approaches, and the recent reduction trends in COVID-19 cases continue, we believe that a measurable rise in business for RDE could begin to occur as early as the second quarter of this year."
"In anticipation of higher growth rates, we launched our Reg A+ fundraising offering. We plan to use the funds for sales, marketing, and product expansion in new and existing markets. We believe that the future is bright for RDE, and our management team looks forward to expanding our reach among our current customers and toward younger demographics as well.
Shares of RDE, Inc. are higher by more than 100% YTD.
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