Financial Data and Key Metrics Changes - Total revenue for Q2 of fiscal 2020 was $4.84 million, down 13% from $5.56 million in the same quarter in 2019, largely due to a decrease in one-time revenue [15] - Recurring revenue for Q2 of 2020 grew 3% to $4.04 million, up from $3.89 million in the same quarter of fiscal 2019, with recurring revenue as a percentage of total revenue increasing to 83% [16] - Year-to-date total revenue decreased from $11.51 million to $9.64 million, down 16% from the same period of fiscal 2019, attributed to a decline in one-time revenue [17] - Net income for Q2 of fiscal 2020 was $517,000, or $0.03 per diluted share, compared to $1.5 million or $0.08 per diluted share in the prior year [21] - Total cash as of December 31, 2019, reached $19 million, with $2.7 million generated in cash from operations for the first six months of fiscal 2020, a 46% increase from the prior year [14][18] Business Line Data and Key Metrics Changes - The company added 42 new Tier 2 hubs since June 30, 2019, bringing the total to 90 as of December 31, 2019, an increase of 88% [10] - The supplier network grew from 23,000 unique participants to over 27,000, a 16% increase, largely driven by the addition of Tier 2 hubs [12] - The marketplace grew 13% year-over-year, although it remains largely transactional and difficult to predict [13] Market Data and Key Metrics Changes - The company anticipates a significant increase in the number of customers, projecting nearly 12,000 new customers this year, which would represent a 50% increase from the beginning of the year [41] - The exit rate for monthly recurring revenue increased to 8% by the end of December, doubling the rate from the previous quarter [42] Company Strategy and Development Direction - The company aims to grow recurring revenue and reduce reliance on one-time revenue, with a focus on maintaining flat annual operating expenses and increasing profitability [8] - The strategy includes expanding the network, cross-selling, and upselling within the supply chain offering [9] - The company is focused on further penetrating its current customer base and enhancing its sales force to support growth initiatives [33][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transition to a recurring revenue model, indicating that revenue declines from this transition are transient and already abating [28] - The company expects to achieve double-digit growth in recurring revenue by the end of fiscal 2020, with a strong line of sight for future growth [30][74] - Management highlighted the importance of maintaining a strong balance sheet and generating cash, which is critical for customer confidence [32] Other Important Information - The company has repurchased a total of 342,170 shares of common stock at an average price of $5.37 per share under its stock buyback program [24] - The Out-of-Stock management solution has been endorsed by the Food Marketing Institute, which is expected to enhance the company's market position [46] Q&A Session Summary Question: Impact of global events on Park City Group - Management noted that the coronavirus has heightened awareness of food safety issues, which could benefit the company's business model [60] - There has been increased interest in the marketplace for sourcing products that are not stuck in ports due to supply chain disruptions [61] Question: Structure of the sales force - The company has two different sales organizations, one focused on compliance and the other on supply chain, both of which have been expanded recently [62] Question: Return to revenue growth - Management expressed optimism about achieving positive revenue growth before the end of the fiscal year, with expectations for double-digit growth in the following year [70][71] Question: Key initiatives for the year - The focus remains on the Tier 2 initiative, growing the network, and enhancing customer service, with expectations for significant growth in the number of participants [78]

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 December 31, 2019 ☐ 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 001-34941 PARK CITY GROUP, INC. (Exact name of small business issuer as specified in its charter) (State or other juris ...

Financial Data and Key Metrics Changes - In Q1 of fiscal 2020, revenue was $4.8 million, down 19% from $5.9 million in the same quarter in 2019, primarily due to a decrease in non-recurring revenue [14] - Recurring revenue grew 4% to $4.1 million, up from $3.9 million in the same quarter of 2019, with total recurring revenue increasing from 66% to 85% of total revenue [14][15] - Net income for Q1 of fiscal 2020 was $32,000 or $0.00 per diluted share, compared to $820,000 or $0.04 per diluted share in the prior year [18] Business Line Data and Key Metrics Changes - Non-recurring revenue was $700,000 in Q1 of fiscal 2020, down from over $2 million in the same quarter last year [16] - Total operating expenses decreased by 5% to $4.7 million, largely due to lower sales and marketing expenses [17] - Customer churn remained below 2%, indicating strong customer retention [15] Market Data and Key Metrics Changes - As of September 30, the company had approximately 340,000 total connections, a 13% increase year-over-year [30] - Tier 2 revenue increased 8% year-over-year for the quarter, with a run rate at the end of the quarter 35% higher than the same point last year [31] Company Strategy and Development Direction - The company is focused on transitioning to a more predictable and profitable recurring revenue model, aiming to increase the percentage of recurring revenue to 80% or more [10][55] - The strategy includes expanding the network of blue-chip customers and enhancing the MarketPlace solution to drive transactional business [10][41] - The company plans to grow its Tier 2 initiative significantly, targeting a 400% increase in Tier 2 hubs by the end of the fiscal year [38][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by online retailers like Amazon and emphasized the importance of their out-of-stock management capabilities [44][82] - The management expressed confidence in the company's ability to grow recurring revenue and improve forecasting for Wall Street [55][70] - The company aims to maintain a strong balance sheet while continuing to buy back shares without additional borrowing [56] Other Important Information - Cash flow from operations for Q1 of fiscal 2020 was $713,000, down from $1.6 million in the prior year [19] - The company repurchased 79,955 shares of common stock at an average price of $6.47 per share during the quarter [20] Q&A Session Summary Question: Update on hiring specialists for Tier 2 or MarketPlace - Management confirmed two specialists are focused on Tier 2 conversions, with plans to add more personnel in the future [60][61] Question: Any large license deals in upcoming quarters that could create lumpiness? - Management indicated that there are license deals in the next quarter, but the focus is on avoiding such transactions moving forward [66][67] Question: How are cross-selling efforts performing? - Management reported better-than-expected results, with examples of compliance hubs transitioning to supply chain services [77] Question: Impact of Amazon's free delivery for grocery on the industry - Management highlighted that Amazon's quick delivery poses a significant threat to physical retail, emphasizing the importance of addressing out-of-stock issues [82] Question: What might margins look like when recurring revenue targets are met? - Management stated that the margins for recurring revenue would be similar to those for one-time revenue, with a strong cash flow structure in place [87][88]

Revenue Performance - Revenue for the three months ended September 30, 2019, was $4,800,084, a 19% decrease from $5,941,994 in the same period of 2018, primarily due to a reduction in transactional one-time revenue[92]. - Net other income increased by 152% to $62,133 for the three months ended September 30, 2019, compared to $24,651 in 2018, contributing 1% to total revenue[102]. Expenses - Cost of services and product support increased by 6% to $1,828,114 for the three months ended September 30, 2019, compared to $1,728,526 in 2018, representing 38% of total revenue[94]. - Sales and marketing expenses decreased by 26% to $1,414,863 for the three months ended September 30, 2019, down from $1,908,024 in 2018, accounting for 29% of total revenue[96]. - General and administrative expenses rose by 7% to $1,222,212 for the three months ended September 30, 2019, compared to $1,143,311 in 2018, making up 25% of total revenue[98]. - Depreciation and amortization expense increased by 33% to $193,677 for the three months ended September 30, 2019, from $145,375 in 2018, representing 4% of total revenue[101]. - The company expects cost of services and general and administrative expenses to grow in absolute terms, while sales and marketing expenses are anticipated to remain flat in subsequent periods[95][100]. Cash Flow - Cash and cash equivalents decreased by 2% to $18,295,443 as of September 30, 2019, from $18,609,423 on June 30, 2019[105]. - Net cash provided by operating activities decreased by 56% to $712,594 for the three months ended September 30, 2019, down from $1,606,792 in 2018[106]. - Net cash used in investing activities for the three months ended September 30, 2019 was $353,706, a significant increase from $1,492 for the same period in 2018, primarily due to maintenance on equipment[107]. - Net cash used in financing activities totaled $672,868 for the three months ended September 30, 2019, compared to $46,543 in the prior year, reflecting a 1,346% increase mainly due to stock buybacks and cash dividends[108]. Working Capital and Assets - Working capital decreased by $497,341 to $17,248,916 as of September 30, 2019, compared to $17,746,257 at June 30, 2019, driven by a decrease in prepaid expenses and cash[109]. - Current assets as of September 30, 2019 were $25,866,109, down 3% from $26,548,874 as of June 30, 2019, primarily due to cash used for stock buybacks[111]. - Current liabilities decreased by $185,424 to $8,617,193 as of September 30, 2019, compared to $8,802,617 at June 30, 2019, mainly due to a reduction in accrued liabilities[112]. Debt and Obligations - The company had a total debt of $5,803,502 as of September 30, 2019, with 20% being fixed rate debt and 80% variable rate debt[128]. - Total contractual obligations as of September 30, 2019 included finance lease obligations of $1,143,502 and operating lease obligations of $842,689[114]. - Cash fair value as of September 30, 2019 was $18,295,443, with a weighted average interest rate of 2%[128]. - The company does not have any off-balance sheet arrangements that could materially affect its financial condition or results of operations[113]. New Initiatives - The company released a new Out of Stock Management Solution in August 2019, aimed at addressing critical challenges for food retailers[90]. Accounting Standards - The company adopted new accounting standards for revenue recognition effective July 1, 2018, which did not materially change its revenue recognition practices[120].

Park City Group, Inc. (PCYG) Q4 2019 Results Earnings Conference Call September 12, 2019 4:15 PM ET Company Participants Rob Fink - IR, FNK Randy Fields - Chairman and CEO John Merrill - CFO Conference Call Participants Thomas Forte - D. A. Davidson Operator Greetings, welcome to the Park City Group Fiscal Fourth Quarter and Year End 2019 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Rob Fink with FNK IR. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2019 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes [X] No or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 001-34941 (Commission file number) PARK CITY GROUP, INC. (Exact n ...

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 March 31, 2019 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Sec.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to s ...

Revenue Performance - Revenue for the three months ended December 31, 2018, was $5,724,706, a 3% decrease from $5,565,237 in the same period of 2017[77] - Revenue for the six months ended December 31, 2018, was $11,507,231, reflecting a 10% increase from $10,436,871 in the same period of 2017[89] - Management anticipates revenue growth in subsequent periods driven by new customer acquisition and cross-selling existing services[78] Expenses - Cost of services and product support decreased by 11% to $1,270,659 for the three months ended December 31, 2018, compared to $1,426,351 in 2017[79] - Cost of services and product support for the six months ended December 31, 2018, increased by 5% to $2,999,185 from $2,844,364 in 2017[90] - Sales and marketing expenses dropped by 30% to $1,139,855 for the three months ended December 31, 2018, down from $1,621,149 in 2017[81] - Sales and marketing expenses for the six months ended December 31, 2018, decreased by 5% to $3,047,879 compared to $3,207,089 in 2017[91] - General and administrative expenses increased by 16% to $1,326,735 for the three months ended December 31, 2018, compared to $1,140,085 in 2017[83] - General and administrative expenses rose by 9% to $2,470,046 for the six months ended December 31, 2018, up from $2,275,855 in 2017[92] Net Other Income - Net other income for the three months ended December 31, 2018, was $49,150, a significant increase from a net expense of $7,696 in 2017, marking a 739% change[86] - Net other income for the six months ended December 31, 2018 was $73,801, a significant increase of 347% compared to a net other expense of $29,887 for the same period in 2017[95] Cash Flow and Liquidity - Cash and cash equivalents increased by 12% to $16,682,282 as of December 31, 2018, up from $14,892,439 as of June 30, 2018, primarily due to higher cash flows from operations[99] - Net cash provided by operating activities rose by 34% to $1,830,582 for the six months ended December 31, 2018, compared to $1,368,613 in the same period of 2017[100] - Cash used in investing activities decreased by 99% to $3,547 for the six months ended December 31, 2018, down from $288,884 in the prior year, due to reduced fixed asset purchases[101] - Cash used in financing activities decreased by 88% to $37,192 for the six months ended December 31, 2018, compared to $315,227 in the same period of 2017, mainly due to lower dividend payments[102] - The company believes its existing cash and short-term investments are sufficient to fund operations for at least the next twelve months[98] Balance Sheet - Current assets increased by 5% to $25,027,283 as of December 31, 2018, compared to $23,733,461 as of June 30, 2018, driven by a rise in cash[104] - Current liabilities rose by 19% to $9,542,741 as of December 31, 2018, up from $7,989,892 as of June 30, 2018, primarily due to increased amounts drawn on the line of credit[105] - Working capital decreased by $259,027 to $15,484,542 as of December 31, 2018, compared to $15,743,569 at June 30, 2018[103] - Total debt as of December 31, 2018, is $4,954,977, with fixed rate debt at $294,977 (6%) and variable rate debt at $4,660,000 (94%) [121] Investment Portfolio - The fair value of cash in the investment portfolio is $16,682,282, with a weighted average interest rate of 2.21% [121] Internal Controls - The Chief Executive Officer and Chief Financial Officer believe that the company's disclosure controls and procedures are effective as of December 31, 2018 [124] - There have been no changes in the company's internal control over financial reporting that materially affected or are likely to materially affect the company's internal control during the reporting period [124]