Financial Data and Key Metrics Changes - In Q1 2019, Issuer Direct achieved total revenue of $4.2 million, representing an 18% increase year-over-year and a 15% sequential increase from Q4 2018 [5][10] - The overall gross margin percentage was 69% for Q1 2019, down from 71% in the same period last year [15][17] - GAAP net income for Q1 2019 was $205,000 or $0.05 per diluted share, compared to $320,000 or $0.10 per diluted share in Q1 2018 [21] - Non-GAAP net income was $518,000 or $0.13 per diluted share for Q1 2019, compared to $458,000 or $0.15 per diluted share in Q1 2018 [22] Business Line Data and Key Metrics Changes - Platform and Technology revenue accounted for 64% of total revenues in Q1 2019, up from 58% in Q1 2018, with revenue increasing by 31% to $2.665 million [6][11] - Services revenue was $1.514 million for Q1 2019, a 1% increase compared to Q1 2018, driven by acquisitions and increased print and proxy distribution revenue [13] - The company added 20 new subscriptions for Platform id during the quarter, with an annualized contract value of $189,000 [12] Market Data and Key Metrics Changes - The number of publicly traded customers increased to 1,482 in Q1 2019 from 1,176 in the same period last year, while privately held customers rose to 764 from 606 [26] - Deferred revenue increased by 17% since year-end to $1.464 million due to additional licenses of Platform id [23] Company Strategy and Development Direction - The company aims to increase the percentage of revenue from Platform and Technology to 70% in 2019 [6][25] - Issuer Direct is focusing on new customer acquisition and expanding average revenue per user (ARPU) from current customers [25] - The integration of Visualwebcaster is a key focus, with expectations for it to drive revenue growth when combined with existing products [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth and the successful integration of Visualwebcaster, which is expected to enhance the company's offerings [24][28] - The company is committed to refining its products and expanding its conference software management capabilities [29][31] - Management highlighted the importance of building a strong pipeline for future growth and the need for continued investment in sales and marketing personnel [32][33] Other Important Information - The company reported an increase in operating expenses of 24% in Q1 2019, primarily due to higher general and administrative expenses [18] - The gross margin for Platform and Technology decreased to 75% in Q1 2019 from 79% in the prior year, attributed to costs associated with the Visualwebcaster platform [16] Q&A Session Summary Question: How is the conference management software performing? - Management indicated that the performance is in line with expectations, with plans to double the number of events in Q2 and a strong pipeline for the rest of the year [36][37] Question: What is the status of the insights and analytics module? - The module is expected to be released at the end of June, with a 30-day trial for current customers [38][39] Question: What is the acquisition pipeline like after FSC and Visualwebcaster? - Management stated they are being careful with future acquisitions, focusing on transactions that fit their core business [44][46] Question: What specific needs are being looked for in potential acquisitions? - The focus is on enhancing communication, news distribution, and analytics capabilities, aiming for products that can improve margins [47][48] Question: Will Platform and Technology customer data be included in the 10-Q? - Management confirmed a shift to reporting public and private customer metrics, emphasizing the importance of these distinctions [50][51] Question: Can you elaborate on the increase in bad debt expense? - Management explained that the increase is due to a few larger clients with outstanding balances, but they maintain good communication with these clients [54][55] Question: What are the most exciting prospects for 2019? - Management expressed excitement about the brand visibility and ecosystem being built around their products, which is expected to drive future growth [57][58]
Issuer Direct (ISDR) - 2019 Q1 - Earnings Call Transcript