The following is a summary of the Issuer Direct Corporation. (ISDR) Q1 2024 Earnings Call Transcript:
Financial Performance:
ISDR reported a Q1 2024 total revenue of $7 million, a decrease of 19% year-over-year due to fall in both Communications and Compliance revenue streams.
The company's Compliance business was down by 27%, and the Communications sector saw a decrease of 17% year-over-year.
ISDR suffered an operating loss of $52,000 for Q1 2024 as opposed to an operating income of $581,000 in Q1 2023.
Non-GAAP net income decreased to $321,000 in Q1 2024 from $1.3 million in Q1 2023.
Despite a disappointing financial performance, cash flow from operations rose to $986,000 for Q1 2024 from $272,000 in Q1 2023, and adjusted free cash flow was $783,000 compared to $739,000 in Q1 2023.
Business Progress:
There was a 20% increase in the total number of customers, up to 12,093 from 10,053 year-over-year.
ISDR witnessed an 8% year-over-year and a 3% increase from the previous quarter in deferred revenue.
Subscription numbers grew by 4% from last year but declined by 1% from the last quarter due to concentrations in the micro/nano-cap arena.
The company anticipates a subscription growth of 5% to 10% each quarter for the remainder of the year.
ISDR plans to explore new distribution subscriptions tailored by industry and customer and aims its efforts upwards towards collaborating with mid-, large-, and mega-cap companies.
The company plans to harness opportunities in the API integrations market and invests in AI for natural language translation processing. Despite the challenging quarter, organizational optimisation, brand management, expense control, and pipeline enhancement remain the focus points, with confident improvement expectations for the rest of the year.
More details: Issuer Direct IR
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