Revenue Growth - Revenues increased by 22.2% to $39.8 million for the nine months ended September 30, 2023, compared to $32.6 million for the same period in 2022[147]. - Software revenues rose by 20.3% to $9.47 million for the nine months ended September 30, 2023, driven by increased sales of Acumatica and Sage Intacct products[151]. - Service revenue increased by 22.8% to $30.34 million for the nine months ended September 30, 2023, attributed to growth in professional services and hosting services[152]. Profitability - Gross profit for the nine months ended September 30, 2023, increased by 19.8% to $15.89 million, with a gross profit percentage of 39.9%[153]. - Gross profit attributed to services increased by $710,835 (20.1%) to $4,254,136 for the three months ended September 30, 2023, compared to $3,543,301 for the same period in 2022[155]. - The company reported net income from operations of $427,455 for the three months ended September 30, 2023, compared to a loss of $117,610 for the same period in 2022[161]. Business Strategy - The company executed a multi-pronged business strategy focused on recurring revenue and customer retention, enhancing average revenue per customer[136]. - The company plans to continue seeking growth through acquisitions, revenue sharing arrangements, and partnerships[145]. - The company continues to explore acquisitions and investments to increase operating income and profitability[166]. Operational Changes - The company has invested in increasing consulting staff and system improvements, which positively impacted financial performance[152]. - The company terminated its merger agreement with Rhodium Enterprises, Inc. on October 13, 2023[149]. - Other expenses included $2,936,107 related to a terminated merger agreement, charged as deal costs[162]. Expenses - Operating expenses for the three months ended September 30, 2023 increased by $211,676 (10.5%) to $2,228,526, primarily due to salary increases and higher commissions[156]. - General and administrative expenses rose by $253,269 (11.3%) to $2,497,891 for the three months ended September 30, 2023, driven by salary increases and accrued compensation[157]. - Share-based compensation decreased by $44,185 (100%) for the three months ended September 30, 2023, resulting in $0 compared to $44,185 for the same period in 2022[158]. Financial Position - The company's working capital decreased to $487,090 at September 30, 2023, from $2,946,349 at December 31, 2022[169]. - Cash used in financing activities increased to $1,871,929 for the nine months ended September 30, 2023, primarily due to cash dividends paid to shareholders[172]. Impact of COVID-19 - The company continues to monitor the impact of COVID-19 on its operations and customer base, with no significant future impact expected[148]. Losses - Losses before taxes for the three months ended September 30, 2023 were $2,566,299, compared to losses of $141,298 for the same period in 2022[163].
SilverSun Technologies(SSNT) - 2023 Q3 - Quarterly Report