In This Article:
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Revenue (Q4 2024): $5.8 million, a 1% increase over Q4 2023.
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Full Year Revenue (2024): $23.1 million, a 6% decrease from 2023.
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Gross Margin (Q4 2024): 75%, consistent with Q4 2023.
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Full Year Gross Margin (2024): 76%, down from 77% in 2023.
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Operating Expenses (Q4 2024): Increased by $13.3 million, primarily due to a $14.15 million impairment loss.
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Net Loss from Continuing Operations (Q4 2024): $10.9 million or $2.85 per diluted share.
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Full Year Net Loss from Continuing Operations (2024): $13.3 million or $3.47 per diluted share.
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Non-GAAP Net Income (Q4 2024): $819,000 or $0.21 per diluted share.
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EBITDA (Q4 2024): $770,000 or 13% of revenue.
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Adjusted EBITDA (Q4 2024): $871,000 or 15% of revenue.
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Cash on Hand (End of 2024): $4.1 million, down from $5.7 million at the end of 2023.
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Cash Provided by Continuing Operations (Q4 2024): $353,000.
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Subscription Business Revenue (Q4 2024): Accounts for approximately 50% of overall revenues.
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Debt Reduction: Reduced by 78% or $12 million to $3.3 million.
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Customer Growth (End of 2024): 12,349 customers, a 4% increase over the prior year.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ACCESS Newswire Inc (ACCS) reported a 1% increase in revenue for Q4 2024, indicating some growth despite challenges.
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The company's subscription business now accounts for approximately 50% of overall revenues, up from 30% in the previous year.
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The sale of the compliance business significantly reduced debt by 78%, positioning the company for a debt-free future.
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Non-GAAP net income from continuing operations showed a positive trend, with $819,000 reported for Q4 2024.
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The company is focusing on expanding its subscription model, aiming for 75% of revenues from recurring subscriptions by the end of next year.
Negative Points
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Total revenue for the full year 2024 decreased by 6% compared to 2023, primarily due to lower volumes in the Newswire business.
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Operating expenses increased significantly due to a $14.15 million impairment loss associated with the Newswire trade name.
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The company reported a net loss from continuing operations of $10.9 million for Q4 2024, a substantial increase from the previous year.
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Cash on hand decreased from $5.7 million at the end of 2023 to $4.1 million at the end of 2024, partly due to debt repayments.
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The transition to a new business model and rebranding efforts have been time-consuming, impacting leadership focus and resources.
Q & A Highlights
Q: What are ACCESS Newswire's top priorities for 2025? A: Brian Balbirnie, CEO, stated that the top priorities include growing the customer base by building the brand and increasing subscriptions, optimizing capital allocation to generate cash for debt repayment and business investment, and enhancing the product platform based on customer feedback to differentiate from competitors.