Paltalk, Inc. (PALT) stock soared 28.46% in the current-market trading session at the price of $10.78 despite no fundamental reason. The last reported news on the website was its second quarter of 2021 financial results. PALT is a leader in communications software that powers social applications. Paltalk and Camfrog, video-based collections, are the company’s famous product portfolios.
PALT Second Quarter 2021 Financial Results
On 10th August 2021, PALT published its second-quarter 2021 financial and operational results. CEO of PALT, Jason Katz, remarked that they are delighted to achieve a significant milestone of common stock uplisting. The Nasdaq uplisting has the potential to raise liquidity that enlarges the institutional stockholder base and improves long-term stockholder value.
Their second-quarter results were stable compared to the prior-year second quarter due to the COVID-19 pandemic. The company has a substantial balance sheet with high liquidity, less long-term debt, and $6.5 million in cash and cash equivalents. PALT has built strong momentum over the last couple of quarters. They believe that the company is well-positioned for continued growth, he added.
Second Quarter 2021 Financial Highlights
For the three months ended 30th June 2021, PALT reported an increase in revenue by 1% to $3.4 million compared to the three months ended 30th June 2020. This growth resulted from $0.1 million increments in technology service revenue. For the six months ended 30th June 2021, the revenue raised by 11% to $6.8 million, compared to the six months ended 30th June 2020.
PALT reported income from operations of $0.6 million for the three months ended on 30th June 2021. It includes $0.2 million in non-cash impairment, an increase of $46 thousand compared to the second quarter of 2020. For the six months ended 30th June 2021, income from operations improved by $0.8 million compared to the same period of the previous year.
For the three months ended on 30th June 2021, net income was $0.8 million. It is $0.3 million higher compared to the three months ended 30th June 2020. PALT reported net income of $1.7 million for the six months ended on 30th June 2021. It represents an increase of $1.6 million compared to the same period of 2020.
PALT Liquidity and Capital Resources
For the six months ended on 30th June 2021, PALT achieved a positive cash flow of $0.6 million from operations. An improvement of $189 thousand compared to the six months ended 30th June 2020. Cash and cash equivalents totaled $6.5 million as of 30th June 2021. It represents an increase of $0.9 million as of 31st December 2020.