Grom Social Enterprises, Inc. (GROM), a company that operates in the media, technology, and entertainment domain through its subsidiaries, has declined 10.96% during aftermarket trading session. As a result, GROM stock was trading at $4.06 when last checked. The decline has come as a consequence of profit-taking after GROM rallied 28.54% during the mid-day session on Friday and closed the day at $4.56. The surge came after the introduction of In-App safety features for parental control on Grom Social.
Addition of safety features by Grom social
GROM announced on Friday that Grom Social, an app designed for kids under the age group of 13, has added several in-app safety features. The features would give parents of the users much control over their children personal identifiable information (PII). As a result, they would be better able to monitor the activities of their children activity while posting, chatting, and sharing with other users of the app. The controls were previously available in the company’s parental companion app. After the announcement by Darren Marks, Grom’s Chairman and Chief Executive Officer, the controls have become part of the larger framework of Grom Social Commenting on the development, Darren Marks said that Grom social app was created to ensure that the kids could enjoy the fun of social media in a safe and protected environment.
Q2 2021 financials
On 23rd August, GROM reported the financial results for the second quarter of the fiscal year 2021 which ended on 30th June. The company had cash and cash equivalents of $8.16 million on 30th June. The total assets in possession of the company at the time were $24.75 million while the total liabilities stood at $5.91 million. The company generated total sales worth $1.38 million during the quarter against the total sales of $1.74 million for the same period of 2020. The costs of goods sold for the period was $0.83 million against $0.66 million for the same period of 2020. The gross margin for the period was $0.55 million against $1.08 million for the same period of 2020. The operating expenses for the three months were $2.02 million against $1.41 million for the same period of 2020. The company suffered a loss of $1.46 million from operations against $0.32 million for the same period of 2020. The net loss for the period was $2.50 million (or $0.42 per basic and diluted share) against $0.95 million (or $0.18 per basic and diluted share) for the same period of 2020.
What’s ahead for GROM?
During the last three months, GROM has surged more than 75% on the back of excellent quarterly performance and business expansion strategies. The analysts have predicted that with the rising popularity of apps operated by the company, the business would ultimately flourish in the future to come.