Intellinetics(US:INLX)2022-11-15 20:55Financial Data and Key Metrics Changes - Total revenue for Q3 2022 increased by 22% to $3.9 million compared to $3.2 million in Q3 2021 [13] - Adjusted EBITDA for Q3 2022 was $790,000, up 48% from Q3 2021, marking the eleventh consecutive positive quarter [12][19] - Net income for Q3 2022 was $218,000, a decrease from $296,000 in the same period last year, primarily due to increased interest expenses [17][18] Business Line Data and Key Metrics Changes - SaaS revenue grew 244% year-over-year, with organic growth at 42% [5][14] - Recurring revenue, including SaaS and software maintenance services, increased by 127% to $1.5 million [14] - Professional services revenue decreased by 7% to $2 million, representing 52% of total revenue compared to 68% in Q3 2021 [15] Market Data and Key Metrics Changes - The K-12 operations now serve over 530 districts, significantly increasing SaaS revenue and doubling the company's presence in this vertical market since the Yellow Folder acquisition [8] - Yellow Folder contributed $710,000 to the revenue increase, indicating strong performance in the K-12 sector [14] Company Strategy and Development Direction - The company is focused on cross-selling services and expanding into new markets, supported by investments in sales and marketing [7] - The acquisition of Yellow Folder is seen as a strategic move to enhance recurring SaaS revenue and EBITDA [9][12] - The company aims to broaden its product portfolio and addressable markets, particularly through the adoption of the new IPAS solution [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, highlighting a strong pipeline and successful integration of Yellow Folder [5][12] - The company expects to continue growing revenues and adjusted EBITDA on a year-over-year basis [22] - Management emphasized the shift towards a more predictable SaaS model as a key driver for sustainable profitability [25] Other Important Information - The company had cash of $3.8 million and total assets of $20.8 million as of September 30, 2022 [21] - Total liabilities were $12.5 million, including $5 million in debt principal [21] Q&A Session Summary Question: What is the visibility for internal growth in 2023? - Management did not provide specific forward-looking visibility but expressed bullish sentiments for continued growth in 2023 [27] Question: Can you provide more details on IPAS? - IPAS is an accounts payable automation solution that significantly reduces headcount requirements and improves processing efficiency, with successful collaborations with Constellation Software [29][30]