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Issuer Direct Corp (ISDR) Q3 2024 Earnings Call Highlights: Navigating Revenue Challenges with ...
  • Total Revenue: $7 million for Q3 2024, $21.6 million for the first nine months of 2024, an 8% and 16% decrease respectively compared to 2023.

  • Annual Recurring Revenue (ARR): Increased by nearly $1 million from the prior quarter and over $1.4 million year over year.

  • Average Revenue per Subscriber: Grew 7% year over year to $10,114 per customer.

  • Gross Margin: $5.2 million for Q3 2024, $16.1 million for the first nine months of 2024, with percentages decreasing to 74% and 75% respectively.

  • Operating Income: $156,000 for Q3 2024, $438,000 for the first nine months of 2024.

  • Net Loss: $466,000 or $0.12 per diluted share for Q3 2024, $598,000 or $0.16 per diluted share for the first nine months of 2024.

  • Non-GAAP Net Income: $641,000 or $0.17 per diluted share for Q3 2024, $1.8 million or $0.47 per diluted share for the first nine months of 2024.

  • EBITDA: $590,000 or 8% of revenue for Q3 2024, $2.6 million or 12% of revenue for the first nine months of 2024.

  • Adjusted EBITDA: $1.4 million or 20% of revenue for Q3 2024, $3.6 million or 17% of revenue for the first nine months of 2024.

  • Cash Flow from Operations: $1.5 million for Q3 2024, $2.3 million for the first nine months of 2024.

  • Subscriptions: Total subscriptions reached 1,121, a 9% increase from the previous quarter and 7% year over year.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Issuer Direct Corp (ISDR) achieved a 9% increase in total subscriptions by the end of the third quarter, reaching 1,121 subscriptions.

  • Annual recurring revenue (ARR) grew by nearly $1 million compared to the prior quarter and over $1.4 million compared to last year.

  • Customer average revenue per subscriber increased 7% year over year to $10,114 per customer.

  • The company is focusing on a transition towards a recurring revenue model with new media suite products, which is expected to drive future growth.

  • Issuer Direct Corp (ISDR) is planning significant upgrades and new features for its platform in 2025, including global media database expansion and AI-supported video creation services.

Negative Points

  • Total revenue decreased by $616,000 or 8% for the third quarter and $4.2 million or 16% for the first nine months of 2024 compared to the same periods of 2023.

  • Communications revenue decreased by $597,000 or 10% for the quarter, primarily due to lower average revenue per release and decreased volumes from newswire brands.

  • Gross margin percentages decreased to 74% and 75% for the three and nine months ended September 30, 2024, compared to 76% and 77% for the same periods of 2023.

  • Operating income decreased significantly to $156,000 for the third quarter compared to $593,000 in the same period of 2023.

  • Issuer Direct Corp (ISDR) reported a net loss of $466,000 for Q3 2024, compared to net income of $273,000 in Q3 2023.