Core Insights - The performance of Information Services Group's (III) international operations is critical for understanding its financial strength and growth potential [1][2] - The company's reliance on international markets influences its earnings durability and growth capabilities [2][3] Revenue Performance - For the quarter ending September 2024, III's total revenue was $61.28 million, a decline of 14.6% year over year [4] - European revenues amounted to $16.2 million, representing 26.43% of total revenue, which was a surprise decline of -6.34% compared to Wall Street's expectation of $17.3 million [5] - Asia Pacific contributed $4.93 million, or 8.05% of total revenue, with a surprise decline of -8.8% against the expected $5.41 million [6] Revenue Forecasts - Analysts project III's total revenue for the current fiscal quarter to be $61.07 million, reflecting a decline of 7.7% year over year, with Europe expected to contribute $17.12 million (28%) and Asia Pacific $5.35 million (8.8%) [7] - For the full year, total revenue is projected at $251.18 million, a decrease of 13.7% from the previous year, with Europe expected to account for $71.05 million (28.3%) and Asia Pacific $21.87 million (8.7%) [8] Market Context - The reliance on global markets presents both opportunities and challenges for III, making the analysis of international revenue trends essential for forecasting future performance [9] - Wall Street analysts monitor these trends closely, considering the impact of international presence on earnings forecasts [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33287 INFORMATION SERVICES GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware 20-5261587 (State or other juri ...

Financial Data and Key Metrics Changes - The company reported revenues of $61 million for Q3 2024, down 15% year-over-year, but at the top of expectations [9][25] - Adjusted EBITDA was $7.1 million, down from $10.6 million in the prior year, resulting in an EBITDA margin of 11.6% compared to 14.8% a year ago [25][27] - Operating income decreased to $4.3 million from $6.2 million in the previous year [26] - Net cash provided by operations was nearly $9 million, significantly up from $3.2 million last year [10][30] Business Line Data and Key Metrics Changes - Recurring revenues represented 45% of total revenues, up 175 basis points from the same period last year [9] - Utilization reached a record high of 77%, up 400 basis points year-over-year [10][30] - The automation unit was sold for $27 million, which is expected to enhance the company's balance sheet and investment capabilities [13] Market Data and Key Metrics Changes - In the Americas, revenues were $40 million, down 5% year-over-year, but showed stability quarter-over-quarter [16][25] - European revenues were $16 million, down 27% year-over-year, reflecting a challenging discretionary spending environment [19][25] - Asia Pacific revenues were $5 million, down 32% year-over-year, primarily due to reduced Australian government spending [22][25] Company Strategy and Development Direction - The company plans to leverage its strong cash flow to reduce debt and accelerate share repurchases [13][30] - Focus areas include AI, advisory platforms, and mid-market expansion, with expectations for significant growth in these segments in 2025 [12][15] - The company aims to enhance its market influence through a holistic approach combining research, advisory, and training services [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand in the U.S. market and anticipated a recovery in Europe in the coming quarters [23][24] - The company expects to see a significant uptick in business confidence and sales cycles starting in Q4 2024 [40] - AI is seen as a major growth driver, with expectations for revenue acceleration in 2025 and beyond [42][43] Other Important Information - The company reduced its debt by $8 million during the quarter, ending with a debt balance of $66.2 million [30][31] - The headcount as of September 30, 2024, was 1,467, down from the previous year [29] Q&A Session Summary Question: Why is revenue expected to decline sequentially from Q3 to Q4 despite improving demand? - Management clarified that the decline is due to the absence of automation revenue in Q4, which accounted for $7 million to $8 million [34] Question: Is the mid-size market percentage continuing to grow? - Management confirmed that the mid-size market is growing, with expectations for significant acceleration in 2025 [36] Question: Will the company be more aggressive in the stock repurchase program? - Management indicated that they plan to be more aggressive with share buybacks following the automation sale [37][38] Question: Are there signs of improvement in sales cycles in the Americas? - Management expects to see improvements starting in Q4, driven by increased business confidence post-elections [40] Question: What segments are expected to monetize the quickest? - Management highlighted strong growth in the consumer and manufacturing segments, while the BFSI segment has been slower [53] Question: What challenges are faced in Europe and Asia Pacific? - In Asia Pacific, challenges are driven by Australian government spending, while Europe faces a difficult discretionary spending environment [58][59]

Core Viewpoint - Information Services Group (ISG) reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share, and down from $0.11 per share a year ago, indicating a -16.67% earnings surprise [1][2] Financial Performance - ISG's revenues for the quarter ended September 2024 were $61.28 million, missing the Zacks Consensus Estimate by 0.50%, and down from $71.77 million year-over-year [2] - Over the last four quarters, ISG has surpassed consensus EPS estimates only once [2] Stock Performance - ISG shares have declined approximately 28.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current Zacks Rank for ISG is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $61.07 million, and for the current fiscal year, it is $0.20 on revenues of $251.18 million [7] - The trend for estimate revisions for ISG is currently unfavorable, which may impact future stock performance [6] Industry Context - The Consulting Services industry, to which ISG belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

| --- | --- | --- | |-------------|---------------|---------------------------------------------------------------------------------------| | | | Exhibit 99.1 | | | | Press Contact: Will Thoretz +1 203 517 3119 will.thoretz@isg-one.com | | | | Investor Contact: Michael Sherrick +203 517 3104 michael.sherrick@isg-one.com | | | | | | Information | Services | Group Announces | | | Third-Quarter | 2024 Results | ● Reports third-quarter GAAP revenues of $61 million ● Reports third-quarter net income of $1.1 mill ...

Information Services Group (III) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be release ...

VANCOUVER, British Columbia, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (“Imperial”) (TSX:III) reports quarterly copper and gold production from Mount Polley and Red Chris mines. Imperial’s production was 15.515 million pounds copper and 13,551 ounces gold, with copper production up slightly from 15.501 million pounds of copper and gold production down slightly from the second quarter production of 13,768 ounces for gold. Metal production included 9.822 million pounds copper and 9,527 oun ...

Investment Outlook - Information Services Group (ISG) reported Q2 2024 financial results, missing revenue but beating earnings consensus estimates [2] - Revenue has not picked up due to macroeconomic pressures negatively impacting client spending [2] - The stock is considered overvalued, leading to a Sell recommendation [2] ISG's Market And Approach - ISG provides technology research and digital transformation consulting services internationally [3] - Key service offerings include ISG Inform, ISG GovernX, ISG Executive Insights, ISG ProBenchmark, and ISG Enterprise Change [3] - The global market for digital transformation services was estimated at $880 billion in 2023 and is expected to reach $4.8 trillion by 2030, with a CAGR of 27.6% [3][4] - The consulting industry segment is expected to reach $235 billion by 2031, growing at a CAGR of 13.3% [5] U.S. Digital Transformation Market - The U.S. digital transformation market size by solution is projected to grow from $109.9 billion in 2020 to $95.1 billion in 2030 [6] - Major players in the industry include EPAM, Globant, Accenture, Slalom, McKinsey & Co., Deloitte Digital, Ideao, BCG, Cognizant, and Capgemini [6] Recent Financial Trends - Total revenue dropped 13.8% year-over-year, while operating income improved due to reduced headcount and higher utilization rates [7] - Gross profit margin rose year-over-year due to higher employee utilization, and selling and G&A expenses as a percentage of total revenue trended lower [8] - Earnings per share (Diluted) turned positive after two previous quarters of negative results, primarily due to cost reductions and lower headcount [10] Balance Sheet and Cash Flow - ISG ended the quarter with $11.8 million in cash and equivalents and $74.2 million in total long-term debt [12] - Free cash flow generated over the trailing twelve months was $12.9 million, with capital expenditures of $4.4 million [12] - Stock-based compensation paid in the last four quarters was $7.8 million [12] Stock Performance and Valuation - ISG's stock price has fallen by 37.1% over the past year, compared to a 12.2% gain in the SPDR® S&P Software & Services ETF (XSW) [13] - Key financial metrics include an EV/Sales (FWD) of 0.9, EV/EBITDA (FWD) of 8.4, and a Price/Sales (TTM) of 0.6 [13] - Revenue growth (YoY) was -10.0%, with a net income margin of -0.4% and an EBITDA margin of 3.9% [13] Industry Challenges and Outlook - The consulting industry is experiencing challenged demand as clients focus on cost-takeout and non-discretionary projects rather than lucrative discretionary engagements [14] - ISG has reduced its headcount by 64 employees sequentially, reflecting the strain on the industry [14] - The industry is in the middle of a significant demand reduction post-pandemic, with ongoing macroeconomic softness and client scrutiny [16] Valuation and Future Prospects - A discounted cash flow (DCF) calculation indicates that ISG's stock is overvalued at its current price of around $3.15 per share, even with a generous 8% discount rate [18] - The industry is pinning hopes on AI-related engagements, but these are currently limited to pilot projects focused on cost-takeout functions [19] - Given the stock's overvaluation and anemic revenue growth, investor funds are recommended to be deployed elsewhere [20]

VANCOUVER, British Columbia, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the "Company") (TSX:III) reports financial results for the three and six months ended June 30, 2024. QUARTER HIGHLIGHTS "Operationally, the second quarter was aligned with guidance, driven largely by higher through-put and copper grades at both Mount Polley and Red Chris," said Brian Kynoch, President. "With consolidated production totalling 27,854,171 pounds copper and 26,629 ounces gold through the first half of th ...

Have you evaluated the performance of Information Services Group's (III) international operations for the quarter ending June 2024? Given the extensive global presence of this market advisory service company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth. In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and ...