Data443 Risk Mitigation Inc (OTCMKTS:ATDS) bounce back from one-year lows continues to gather steam as investors take note of the company’s product line. The unveiling of the industry’s first privacy badge is the latest development that continues to strengthen the stock’s sentiments in the market.
OTCMKTS:ATDS Price Analysis
OTCMKYS:ATDS confirming it is yet to experience contract loss due to the COVID-19 pandemic is another development that underscores the company’s core business amidst a challenging environment. Robust revenue growth is another development that affirms the company’s growth metrics amidst a challenging environment.
Conversely, it does not come as a surprise that OTCMKTS:ATDS has exploded from one-year lows on a huge turnover of traded shares. A 100% plus rally in recent trading sessions affirms renewed investor interest as underlying fundamentals allude to an impressive year for the data privacy company.
The stock is currently trading in a steep uptrend, bulls having assumed control from the bears. Over the past month, the stock has rallied by more than 300% after coming under immense bearish pressure in the first quarter.
With price action pointing to further upside action, the $0.09 is the immediate resistance level standing in the way of further rallies. A rally followed by a close above the resistance level should open the door for the stock to make a run for the $0.12 level.
On the downside, the $0.02 level is the immediate support level above which Data443 remains bullish and likely to continue powering higher. However, a breach of the support level could open the door for short sellers to come back into the fold and continue pushing the stock lower.
In our view, Data443 remains well supported to continue edging higher.
What Does OTCMKTS:ATDS Do?
Data443 bills itself as an industry leader in everything data security. The company develops and provides software and services that enable secure data across local devices as well as networks, cloud, and databases. Its flagship product is DATAEXPRESS, a leading data transport, transformation, and delivery product.
Data443 has taken the market by storm on the unveiling of industry-first privacy badge. Privacy Safe Badge is the latest addition in the array of the company’s security products that clients can place on their website to show they are using Privacy Compliance services.
Upon clicking the badge, website users would be presented with Data443 branding. The high visual badge updates with each scan ensuring customers’ websites are protected all the time. Just like McAfee SECURE, Privacy Safe Badge accords a sense of privacy Comfort while representing a level of compliance capabilities.
Data443 expects thousands of subscriptions this year, the security badge having already attracted over 250 clients a week after launch.
“The continued growth of our product lines are anchored by the Classics™ product line that drives unique, industry-leading capabilities around data classification, sensitivity analysis, and detection capabilities, “said CEO Jason Remillard.
In addition to the product launch, Data443 is building on an impressive quarter that saw the company incur greater costs due to intense strategic planning and development. During the quarter, the company recorded over $1 million in gross deferred revenues.
Likewise, the company recorded a 234% increase in revenues that came in at $478,000 compared to $143,000 reported a year earlier. The company’s core business also remained immune to the COVID-19 shocks as the company was able to operate at full blast, having retained all staff and business operations.
The launch of a new data center in the Raleigh-Durham Research Triangle marked yet another important milestone in Data443 evolution. With the new data center, the company is poised to reduce it’s spend on the public cloud as well as provide customers more options for high capacity spend options. In addition, Data443 also continues to refine its product line all in the effort of facilitating growing data privacy capabilities.
OTCMKTS:ATDS is in a phase of robust growth amidst the challenges created by the COVID-19 pandemic that appear to be fuelling a new wave of business opportunites. With most operations shifting online in the wake of the stay at home policy, the data security company remains well-positioned to generate significant value.
The company’s data security and privacy products are at the heart of supporting the work from home policy. The launch of a new data center is also poised to strengthen the company’s bottom line.
That said, Data443 looks set to continue edging higher after bottoming out given the improving underlying fundamentals.
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Disclosure: We have no position in OTCMKTS:ATDS and have not been compensated for this article.