Revenue Growth - Revenues increased by 10% to $14.4 million for the three months ended March 31, 2024, compared to $13.1 million for the same period in 2023[143]. - Software revenues rose by 4.7% to $3.48 million for the three months ended March 31, 2024, primarily due to increased ERP software sales, especially for Sage Intacct and Acumatica[152]. - Service and other revenue increased by 11.7% to $10.96 million for the three months ended March 31, 2024, attributed to growth in professional services and hosting services[153]. Profitability - Gross profit for the three months ended March 31, 2024, increased by 5.6% to $5.66 million, with a gross profit percentage of 39.2% compared to 40.8% in the prior year[154]. - Gross profit from software revenues decreased by $108,876 (7.8%) to $1,281,178 for Q1 2024 compared to Q1 2023, with a gross profit percentage of 36.8% down from 41.8%[155]. - Gross profit from services and other increased by $408,803 (10.3%) to $4,376,309 for Q1 2024 compared to Q1 2023, with a gross profit percentage of 39.9% down from 40.5%[156]. Operating Expenses - Operating expenses increased by $166,713 (7.7%) to $2,345,416 for Q1 2024, primarily due to salary increases and new personnel[157]. - General and administrative expenses rose by $283,878 (11.1%) to $2,843,906 for Q1 2024, driven by salary increases and higher employee benefits[158]. Net Income - Net income from operations decreased to $227,686 for Q1 2024, down from $369,537 in Q1 2023[161]. Cash Flow and Working Capital - The company's working capital increased to $555,974 at March 31, 2024, compared to $273,762 at December 31, 2023[167]. - Cash provided by operating activities was $365,512 for Q1 2024, a significant improvement from cash used of $783,062 in the same period of 2023[167]. - Cash used in investing activities increased to $60,524 for Q1 2024, compared to $4,979 in Q1 2023, mainly due to higher equipment purchases[168]. Strategic Focus - The company is focused on expanding its customer base through organic growth and acquisitions, establishing a national presence with ERP customers across most of the United States[143]. - The company has completed a series of strategic acquisitions over the past fifteen years, significantly expanding its operational footprint[140]. - The company plans to continue seeking additional growth opportunities through potential acquisitions and partnerships[141]. - The company is investing in product development, marketing, and sales capabilities to remain competitive and support future growth[143]. - The company is exploring additional operating income opportunities through potential acquisitions and product additions[165]. Recruitment Challenges - The company has faced challenges in recruiting but has successfully increased consulting staff and utilized outside contractors to support growth[153]. Financial Agreements - An investment agreement was entered into for an aggregate investment of $1 billion, which includes a cash dividend of $17.4 million to stockholders[144][146]. - The company has no line of credit or other credit facility with any lender as of now[163].
SilverSun Technologies(SSNT) - 2024 Q1 - Quarterly Report