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Issuer Direct (ISDR) - 2024 Q3 - Earnings Call Transcript
ISDRIssuer Direct (ISDR)2024-11-10 07:40
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Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 7million,adecreaseof7 million, a decrease of 616,000 or 8% compared to Q3 2023, and 4.2millionor164.2 million or 16% for the first nine months of 2024 compared to the same periods of 2023 [7][16] - Net loss for Q3 2024 was 466,000 or 0.12perdilutedshare,comparedtonetincomeof0.12 per diluted share, compared to net income of 273,000 or 0.07perdilutedshareinQ32023[16]−Non−GAAPnetincomeforQ32024was0.07 per diluted share in Q3 2023 [16] - Non-GAAP net income for Q3 2024 was 641,000 or 0.17perdilutedshare,downfrom0.17 per diluted share, down from 1 million or 0.27perdilutedshareinQ32023[17]BusinessLineDataandKeyMetricsChanges−Communicationsrevenuedecreasedby0.27 per diluted share in Q3 2023 [17] Business Line Data and Key Metrics Changes - Communications revenue decreased by 597,000 or 10% to 1.7millionforQ32024,attributedtoloweraveragerevenueperreleasefromACCESSWIREandNewswirebrands[7][9]−Compliancerevenuedecreasedby1.7 million for Q3 2024, attributed to lower average revenue per release from ACCESSWIRE and Newswire brands [7][9] - Compliance revenue decreased by 19,000 or 1% for Q3 2024 and 2.5millionor352.5 million or 35% for the first nine months of 2024, primarily due to a decrease in print and proxy fulfillment services [10] - Average revenue per subscriber grew 7% year-over-year to 10,114 per customer from 9,477[4]MarketDataandKeyMetricsChanges−Thecompanyachievedamarketshareof20.289,477 [4] Market Data and Key Metrics Changes - The company achieved a market share of 20.28% as of the end of Q3 2024, up from less than 8% six quarters ago [35][37] - The company accounted for 30.15% of quarterly volume distributed in the market, indicating a strong competitive position [36] Company Strategy and Development Direction - The company is transitioning towards a recurring revenue model focused on new media suite products, with plans to market subscription platforms to Public Relations and Investor Relations professionals [3][5] - Future product enhancements include a global expansion of the media database, significant upgrades to distribution and engagement reporting, and strategic partnerships with social media management platforms [23][25] - The company aims to enhance its AI solutions and introduce a video creation service for press releases by late 2025 [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of subscription values, projecting an increase to 14,000 by Q3 2025 [22] - The company is focused on optimizing SG&A expenses and maintaining cash flow generation while exploring strategic options for its compliance business [40][38] Other Important Information - The company reported a gross margin of 74% for Q3 2024, down from 76% in Q3 2023, primarily due to decreased revenue [11][12] - Operating income for Q3 2024 was 156,000,adecreasefrom156,000, a decrease from 593,000 in Q3 2023 [13] Q&A Session Summary Question: Are there any questions from the participants? - There were no questions in the queue during the Q&A session [41]