Siebert Achieves Strong 2023 Q1 Results

Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a diversified provider of financial services, today reported financial results for the first quarter ended March 31, 2023.

First Quarter 2023 Financial Highlights

• Revenue of $16.2 million compared to $10.3 million in the first quarter of 2022
• Pretax income* of $4.4 million compared to a pretax loss* of $1.4 million in the first quarter of 2022
• Net income available to common stockholders of $3.2 million compared to net loss available to common stockholders of $1.0 million in the first quarter of 2022
• Earnings per share of $0.10 compared to loss per share of $0.03 in the first quarter of 2022

Recent Business Highlights

• Kakao Pay, a fintech subsidiary of Korean-based conglomerate Kakao Corp., announced an agreement to purchase a 19.9% stake of Siebert of newly issued shares for approximately $17 million on April 27, 2023, and subject to shareholder and regulatory approval, Kakao Pay will acquire an additional 31.1% of Siebert of newly issued shares.
• Kakao Pay will leverage its technology expertise in the financial services sector and work in partnership with Siebert to strengthen the company’s business and growth strategy, while providing an enhanced user experience and additional benefits for users who invest in foreign stocks.

Management Commentary

“We are extremely excited about our results in the first quarter of 2023 and our new partnership with Kakao Pay” said Gloria E. Gebbia, controlling shareholder and board member of Siebert. “We welcome this strong start to 2023 with great results from our current business lines and the beginning of our partnership with one of the leading global financial services innovators to expand our reach and enhance our offerings. We look forward to working with Kakao Pay as we chart the next phase of our evolution and continue to build on Muriel Siebert’s legacy while modernizing our offerings to meet evolving client demand.”

Andrew Reich, CFO of Siebert, commented: “We delivered very strong results for revenue and pretax income this quarter which demonstrates our ability to navigate volatile market conditions with a diversified model. Revenue grew 56% year-over-year and was driven primarily by higher interest income and an unrealized gain on our U.S. government securities portfolio. Our Securities Finance division continues to be a strong business line with another great quarter of results as well. Pretax income for the first quarter included a temporary unrealized gain of $1.0 million on our U.S. government securities portfolio compared to a temporary unrealized loss of $2.2 million in the first quarter of 2022. We also delivered an improvement to both our pretax income and margins as we continue to improve profitability. Looking ahead, we remain focused on profitable growth with a strong balance sheet and a diversified business model.”**