Vertically integrated blockchain infrastructure and service provider TAAL Distributed Information Technologies Inc. (TAAL) has reported an over 9x jump in its top line for the first quarter.
Gross hashing revenue jumped over 900% year-over-year to C$8.7 million. Despite this revenue growth, higher operating expenses led to a net loss per share of C$0.33 as compared to a net income per share of C$0.09 in the year-ago period.
At the end of March, the company’s treasury held 23,000 BSV, 600 BCH, and 0.5 BTC.
Management Weighs In
TAAL has been navigating a challenging environment amid the Russia-Ukraine conflict and sliding crypto prices. The company owns and manages hashing operations in Russia and clarified that its Russian operations continue and are compliant with all international sanctions.
During the quarter it processed around 232.8 million transactions in 9,590 blocks on the BSV network. In comparison, it had processed around 18.4 million transactions in 4,270 blocks in the year-ago period.
Richard Baker, the CEO of TAAL, commented, “During Q1 we experienced a significant level of uncertainty and change in our market. For the most part, these are global headwinds that are out of our direct control, but that we must recognize and address responsibly with a focus on long-term opportunities that will provide a sustainable future for TAAL.”
In sync with this vision, the company has been in talks with service providers in North America to host its current and future deployments. Furthermore, it has also launched the TAAL console platform and the TAAL API Transaction processing service, which marks a shift toward a transaction fee-based model from a block reward subsidy model.
Analyst’s Take
While the crypto market is facing major price headwinds, Noble Financial’s Joe Gomes continues to see the stock favorably.
The analyst has reiterated a Buy rating on the stock alongside a C$5.08 price target, implying a 207.88% potential upside. That’s after a 51% slide in its share price so far this year.
Closing Note
Despite a challenging macro backdrop and industry-specific challenges, TAAL has delivered robust revenue growth for the quarter. Moreover, the company’s continued software development focus on enterprise blockchain infrastructure and services coupled with the launch of new platforms should bear fruit in the coming periods.
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