ISDR - Earnings call transcript Q1 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Issuer Direct Corporation's First Quarter 2019 Earnings Conference Call. Today's call will be conducted by the company's Founder and Chief Executive Officer, Brian Balbirnie; and its Chief Financial Officer, Steven Knerr.

Before I turn the call over to Mr. Brian Balbirnie, I'd like to read you the company's abbreviated safe harbor statement. I'd like to remind you that statements made in this conference call concerning future revenues, results from operations, financial position, markets, economic conditions, estimated impact of tax reform, product releases, partnerships and any other statements that may construe as a prediction of the future performances or events are forward-looking statements, which may involve known and unknown risks, uncertainties and other factors, which may cause actual results to differ materially from those expressed or implied by such statements. discussed call. be will results on the Non-GAAP The useful ongoing supplementary the presentation operations, information provides of non-GAAP only. data purposes is for company provided believes and informational concerning the company's being that said, With Mr. Balbirnie?

Brian Balbirnie

today, first thank our and founded announcing us. market press for Welcome, A we for copy everyone, we a the you issued results of Subsequent in XXXX. After the joining the for close quarter our section Relations be call, to release your to our call. during today's quarter. on the newsroom Investor with website, ACCESSWIRE's reference for this SEC intend file XX-Q can and our

first The core revenues a record and the for integration of platform year expansion. acquired beginning our for quarter our Direct, in in marked Issuer both newly solid Visualwebcaster

in QX to last we Steve XXXX, total increase happy million in an that over which of will over of upon QX in are sequentially $X.X of report revenue XX% a achieved represents couple XX% here minutes. something expand and QX, year We

As continues percentage to our revenues. grow platform business we total overall a of as year, messaged last

quarter first of QX million XXXX accounted in for million. to the revenues or For Platform $X.XXX and total compared $X.XXX or of XX% XXXX, Technology XX%

statement remains what consistent Our revenues goal this year XX% we in have of be from with business. our Technology previously derived reaching to overall our Platform and

active will prior our in about the be Something report format for compared talk how and today's call will else we will I Steve our new each year. in to customers period

for an transition insight we the overall public will to critical into beginning and a seeing for a rates, as period and we it into we some back metrics believe known. continue In following, we results. takeaways effort be Steve ACV, for of like will SaaS in the Then will I'd Steve? business, that this on to towards to down to turn the remainder get at able future, retention year. to both key our hope QX, I this As financial further last customers better business. we're with the successfully full needed point, into be provide and MRR to of quarter, be further which deeper we what mentioned to will our elaborate But do private the breaking dive

Steven Knerr

afternoon, for followed Thank and remarks, the results and then you, Brian going it to Brian, our good session. Q&A back begin I'll a first everyone. quarter over his turn for by quarterly by

by in hit the on As which revenues during fueled July first acquisition of Brian primarily and the we FSCwire more XXXX of X, XXXX. mentioned, was our record recently, January acquired XXXX quarter Platform Visualwebcaster

of the continued of We grew licensing product. selling focus on Platform organically also full as we through subscriptions id

$X,XXX,XXX for totaled our revenue first revenue growth XXXX. XXXX. Lastly, XXXX compared management of of quarter to new Revenue of for acquisitions period of quarter compared quarter XXXX the the total increased to the our totaled and Technology Platform XX% same during we XXXX and conducted an first FSCwire customers $X,XX,XXX Visualwebcaster to the for compared or the few of of from conferences revenue our was module. first acquired revenue first using The Platform the first stream, of during increase for of our in revenue conference $X,XXX,XXX first XX% revenue XXXX. of $X,XXX,XXX quarter XX% quarter a quarter $XXX,XXX Technology the which to Leading of successful of from increased to the and the $XXX,XXX Technology or XX% XXXX. Platform and quarter $XXX,XXX for in

our outreach decline to our customers increased XX% continued gears during from advantage by where for Annual gross the first $XXX,XXX. margin an of in print increase for adding customers our continued by XXXX by as an revenue is services. decline our Majority These distribution FSCwire of this of and as well X% in the increase during value the for as Service specifically offset from XX% distribution The increased timing proxy acquired was first XXXX. of $XXX,XXX face the $X,XXX,XXX increases to and quarter in margin, revenue Visualwebcaster gross Cost take XX revenue Report during percentage to pricing of additional the of annual to first an report to prior in revenues period continue associated base These first Services Visualwebcaster well of platform to shareholder costs revenue decline compared increases subscription revenue as compliance the as to year. projects with increase as quarter our to beginning as for we legacy the delivering of same to the of our Services acquisition from were the compared of platform due our compared of annualized Switching quarter the year. XXXX due press offset pressure our an the were increase increased revenue of which services tied also costs. and quarter $XXX,XXX quarter offerings. overall well size prior release id with to is subscriptions offering, was revenue additional the in We distribution of Platform due contract quarter.

to result the the a the same Technology margin quarter of year. decreased compared XXXX percentage period first for XX% and prior Platform XX% As of for gross to

our in able gross margin of with in work will to product, XX% months we to X of to which for continue Gross March XXXX we Visualwebcaster streamline As revenue anticipate our XX, period from compared in scale prior previous bring stream the more the ended integration to Services more we building cost order the margin through percentage be was identifying for same quarters. year. line XX% the

for expense XXXX an operating increase head top line head or expenses due development additional and costs $XXX,XXX of to year or Majority acquisition-related XX% ourselves compared $XXX,XXX had due year. of $XX,XXX prior G&A increase for an expense We in quarter realign and to Moving were increasing which bad debt of XX% prior expenses. increased to XXXX. the compared an sales over in expenses in $XX,XXX to as marketing to the we increased build to operating to first due corporate position increase $XXX,XXX, marketing higher Product continue of expenses personnel this the growth. expenses an or and increase Sales down or increase count XX% as in related well, we as count team. an to of $XXX,XXX and the X%

increased from part as of acquisitions. Visualwebcaster FSCwire the resulting assets intangible expense due Lastly amortization additional acquired both amortization to and

expense year. to Our income a quarter was period $XX,XXX tax of period. the associated first the prior of $XX,XXX benefit tax respective XXXX with benefit from during exercise benefited in Each the of for compensation compared the stock-based a

reported by in of we share share XXXX. For the earnings as secondary negatively $X.XX $X.XX increase or of was per XXXX. period and $XXX,XXX share to as completed of or for in quarter quarter the per XXXX $XXX,XXX the the non-GAAP for net $XXX,XXX of diluted shares affected first share GAAP $X.XX income Both result offering quarter net we XXXX. first GAAP outstanding per of XXXX of purposes a an $X.XX or per diluted first August diluted per share of $XXX,XXX the compared income diluted Non-GAAP income or for same diluted for compared to net were the

same during Looking first XX% the at to compared the metrics, prior of XX% or revenue other $XXX,XXX some for or XXXX was EBITDA year. the period $XXX,XXX of quarter revenue of of

quarter an generated revenue year-end Also generate as $X,XXX,XXX, first balance points productive continue earlier. Visualwebcaster release first I increased deferred in $XXX,XXX We obtain of increase to the positive looking and mentioned the to XXXX, generated more In conclusion, order revenue to XXXX. of to do year. have similar more to cash from XX% we the of good to $XXX,XXX build additional still in growth last ID generated distribution for the the some are Platform flow we licenses work quarter scale as in the of press the needed. completing additional remaining our since throughout we integration had to due come during operations growth We quarter another

build turn our products about to management With analytics conference including modules. I for our and in beyond. talk software out outlook it our refine back Brian? will to of continue remainder further also now and We products and Brian that insights and the will who XXXX

Brian Balbirnie

Steve. Thanks,

was Platform and talk quarter a acceleration in more and beginning first rollout business module, us conference few minutes. of Technology The I'll about the platform annual our for in our revenues, year record a resulting which of good further for

platform of In this strategy, revenues order important customers. increased to XX% from momentum our as ARPU XXXX further of customer expand current and as our Platform the expansion sequentially is quarter for acquisition our from keep well to quarter. extremely First business new overall XX%

spends see Our goals our are platform overall revenues reach to in XXXX. unchanged XX% as we expect of

since During the id into period we period compared privately new during Platform contracts Platform to increase XXX $XXX,XXX the the revenues, just just year. customers about XX the values the Also we to XX% traded of last dates had annual full home quarter, just contributed now year. year-end. last publicly XXX subscriptions in And id compliance same to we $X.X quarter, company balance contract this or revenue of have million. or had valued active X,XXX the during subscriptions in during X,XXX under during average held future XX during quarter, the entered saw customers year. subscription Also communications The quarter. compared in same March have at $XX,XXX services activated of we XX, approximately new of deferred start which These with have XXX

points ACCESSWIRE, publications the The distribution, consumer and media health big to a and news include subscriptions media. news XXX, digital we and have electronics, our expanded Cannabis handful distribution and trade of during specialty networks, and the on to pricing period. online of millions improved addition Moving

a higher have -- we the margin the for have slightly, and of to in order cost and delivery gain delivery step both some customers gross it's of which lower further period Some but which driven market. in necessary acceptance driven

add tools launch and build we new XXXX to release beyond. during to growth online advancements we necessary for more of distribution, market and the drafting even are QX, During our press keep interfaces. advanced expect planned intend These to ahead

Visual the on January. to just Moving Webcasting this [ph] recently acquisition, announced announced

have we to with are learning more it products for X the day right part we which last fact, this are the XX microcap know head-down platform best and force operations sharing begun with software other just ways coming we getting delivering With look are the platform, with companies doubt to on the is in the many and is is quarters. customers time upon This integrated a conference several We and over a during weeks. accounting, feedback of begun technology almost been into to issuer acquired revenue legacy see of deal the coming launched on driving customer and of to conference revenues. do software we government, our to newly new that have of the building new great earnings public hopes in some webcast determine now recently infrastructure. are instrumental and software segue XXX-plus a of months spot, integration conference In something to This improve of forward contribution initiative several Visualwebcaster We've about said, we have like and benefit finding here days, more companies, still the in always understand over could to saw this a events with and the we to to believe our there the our commitments learned going there that us areas needs direct components road good product and over and no our software. an on of also components our plan is now great id customer investors you we've combined to moving all when organizations our for A last what and be can focus better QX, the based better. will integration's with we product have maps where also both There on, in we meeting year. few focused and private be and going federal Platform together, customers quarter events expand today. in other talking intentions which completed spend

make to everywhere iterating and learning listing, a is team better Our we product the can.

not events do track call we private build these private customer more We were are Because rather events the on than revenues. half customers material, did them not our this continue include numbers previously as of double but of quarter pipeline in I our to the to public the out in did year. back and and with separately

these to have order to additional sales for $XX,XXX attributable and revenues to with expanded In add our our quarter. momentum, we to the their keep So events. the were with events first look assist marketing in teams pace personnel invested customers

pipelines sign will directly and business bringing And to strategy opportunities the XX-plus to ties and into As we events our number, by XXXX X a about and of year. that excited Xx we this investor closer together. grow, believe the issuer do we're

on marketing Moving to teams. sales our and

We have look the to remaining add continued components team and part to expand the to year. the key invest continue and refine and of through will

head growth the help achieving objectives. half experienced this This XX% to deliver several workforce. XX% added is planned and acquire marketing us and X personnel. market our XX believe brings account this days, in we year. last business achieve more on-boarding We our Adding managers, something right to new counts client the we organization of the During of The sales new personnel includes entire addition first development total head with the vital need to managers, count year. to or our during customers, to this, is will

We purchasing in the put in by our specifically continued base, employee expansion, product client both the making are will further and us business new business. that our grow our which in we to platforms position our investment are the scale and encouraged and a customers development are our

you questions again could Operator, today Q&A We have portion of please forward with sooner. and your and enjoyed visiting you the speaking we the call. begin look to with

Operator

first Our is Securities. question Northland Instructions] from Grondahl of today [Operator coming Mike

Mike Grondahl

your Brian, schedule? of that would would Or with Steve, on you as in software, the conference characterize ahead management that? describe How expectations? line sort you of

Brian Balbirnie

Hey, Mike. This is Brian.

in months. a incumbents is we're couple X product think typically a of are that to It only today. offering Sales cycles I line. X there has

full at in in releasing rest of I are a to events think do availability than double think the a into the more handful So small good that for stead. that with early go have to in late stage, pipeline we year, QX, production very and to of product a in good last year QX, I lot QX

are large part to investment had the I we The I familiar success are lot microcap in year. XX-plus we for of as of we with, We've significant think begin to that and we a worked build you the and bank a bottom going have far. what beyond. remaining say speaking typical year, today with build that pipelines the year so to the we're the talking to start small up. preparing the investment just quantify to to that we're are space of next banks that events some

work year to we as good their we well. as a to going we doing a be to opportunity So believe as continue early have, in deliver next position we're find have ourselves to

So I within right we're now. think expectations

Mike Grondahl

analytics on is module. update and the And there insights Okay. an

Brian Balbirnie

talk event, lot earnings trial conferences, derive about see about the deliberate will good add-on see today, of to in end trained half at sales product data back and intend stretch to of begin our module year. call intentional will that imagination. in our and analysis, gain to June customers both from and engagement and get it. data fully a any able to by of to what XX-day analytic of then We actually to didn't last of be or the selling up it and will time of a able speed current wasn't spent they team that shareholder We to We the be access where to talking Yes. deal our and it release

Mike Grondahl

in the jump back I'll great. Thanks. queue. it Got

Brian Balbirnie

Thank you.

Operator

ahead, have of coming from additional Northland go Securities. Grondahl Mr. do questions We sir. Please

Mike Grondahl

up. just Merrill E*TRADE, Yes, with one of of those? Schwab, following ACCESSWIRE, Ameritrade, each kind the status Lynch what's

Brian Balbirnie

of include that distribution to a in and this will Yes. got they add which talking equal handful about. you're what past first already some and quarter, the in this added quarter, we've of second asking that we more

at TD Ameritrade into platform delivered and of our end Our partners through live aggregator the feeds quarter one the the theirs. were of Thinkorswim

occur. for either were in we final to And today, waiting happen implementation couple couple weeks. that a told days the We tomorrow last can that or of of are

And are waiting. we patiently so

we're long waiting a patiently so on think and We've every have I to customers other playing delivered continuing that. do, and are distribution we do and fully committed fine today customers it. that any commitment game point that Our patience, us. we're to see our don't be to made will we We're the different understand for this right? here, It's

Mike Grondahl

talking light? acquisition it describe you after the Got Is it FSC, anybody? Are does what today? would it? then it. full? look to And you like pipeline Visualwebcaster, How Is

Brian Balbirnie

It's a it's kinds any transactions very buffet right? contemplating. be the by not careful stretch Yes. of in we'll being imagination, that We're of

We are to folks. talking

another not or as specific do to we've right adjacencies continue line late that trying to done, messaged time. X opportunities is last that we're find in fit the worried not Like And the FSC and to that to transactions year. months, core We since month that the transactions if and we mid in for our that We're do another like that us now. right Visualwebcaster, takes fit wheelhouse right time look that we're and about. terribly going others

a going on. lot have We

that able add do last thing, trying and our I our shareholders we be into else to know as successful. to need is And don't we handle of can and that just that find be think adjacency lot something think, opportunity size. be have we all an given our to our doing platform we I folks understand an that to business awful that the

you those that have soon But reasons, could as I you, that guys further of I be something some at do is sure. tell along. this do to we That's the available wish can't But with data we obvious first as point know. So at to share time. to would you folks. continue that for for look I

Mike Grondahl

looking or in for? you there you you're Is for particular realize anything a need have

Brian Balbirnie

it's to a the focus our deploy capital big and accumulate the Look, and raised we that capital continue got right? We've endorse Yes. of years. to allocation, we over

and put XXs of what ourselves add-ons bring really We side, in we're in our that be us the that's deploying a from that we've deploying subscription for would solution would perhaps a in that look impact even have we that margins analysis and specifically to global need compression scale set So have both been areas We're of great capital. we public We're where are our to don't for believe and into are margin side and doing. product or that able position communication our for a in business together. things that we at things good that I have I into be can that going we've always conference back this expansion something this inside to to job capital We're Steve point And right? some Those sheet. commoditization going to business and look a scale, opportunity. that stewards say be going analytics an to to fit point in we look done all of put whether for like can or both maybe customers news, specifically. it provide distribution the to if things balance market. of interest that. our of see things platform fit to We're to could going look private at a that an fit

see things and careful on So to upside. be about we we're the those tremendous going that focus

Mike Grondahl

It's those customers, you Got it. in are private disclosing just Or or companies. done Technology the and guys customers just public and Service XX-Q? And Platform will those? be

Brian Balbirnie

And told end past business I'm more there's switch as come great that the glad we Yes. to service the and asked there of Not are you up the demonstrate about this here, in had what open bought messaged who our think technology those the strategy bought those based format better that of very we of that. That's to want talk we're feel make really important And who are we those to right? begin story to old quarter-to-quarter profitable of very things to this public they necessarily this this to private going we've And the and what to values and subscriptions, And and with may on believe change got. ARPUs continue question. the as a are, company of of be because deliberate companies like was, show by then a services different. sometimes. crossover we about engagements what of it's be clients led call in story like. the private and the harder private to seasonality we that back back business transition and to crossover public drivers able I clients. public we those from and because do. look number is service, and what understand customers that platform-first now a And it's

are and the forward that So beyond. this be going those metrics will using we year

Mike Grondahl

X then Got it Can debt it. release There talk bad a question. it. about a sentence you in the was bit? little that increased. about And expense, Got had financial

Brian Balbirnie

Yes.

XX balances, We've are accumulate days again, both customers time are and got and customers having from and history to here that have that Steve fortunate, and I big clients XX time obviously, and in new. there to We back have larger very our really out from we of I and small move current XX-year XX customers that our to organization, and that been in are think and right? very

continuing do a extent So to larger with And couple we're what balances us. of And reserve are that we've work looks the what taking the we like. on with that some got and to of that's they're working with. clients

have of with And it have we them, coming any when dialogue base rest with the don't more open anything to and client that. good see issues to other we don't continue comes a our We that. of

So...

Mike Grondahl

X or most things about for are Got what XXXX. it. lastly, X you And excited

Brian Balbirnie

provider at kind dateline the of software says of presenter, year the for brand the current representing, may they've they and this one we're you some of press talk the prospective the or an conference but name just ACCESSWIRE, in that saying looked Yes that the world seen business, IR have that this being seen us sit with events pre-early technologies our being and that came shareholders and something releases else to and up of website has Issuer to about these I do tell Direct think always I exciting a and the a it. to right, tables a on that a would us they've lot and thing today to we company brand visibility things name attached what's have that And for really of as is and everything. shareholders

And on you're powered it Issuer so webcast by earnings if Direct. says listening today, to

software at Direct. Issuer you're event, on the by conference releases you're software the The or you're using Platform our press mobile says If an that products. that id using powered

companies receive ecosystem offices, that shareholders this of private investors, thing, id, the essentially small delivering built, And family the That's Platform be and responsibility all which so is after and for we that and And millions public from right? market place. a consumers a big this is just Investment to flattering being banks, fund us ecosystem content. seen prospecting angles. that that's

of probably future all these integrating So think our as that building business. if touches tentacle every critical successful exciting. that's mass, very we are and I And in in think we pieces the

the we that -- but are doing. lot excited I for about think a sound not management So too that we're that us lot to gives of a things terribly the and corny, as demonstration

Operator

the floor over for like to back turn I'd time, to this closing At management comments.

Brian Balbirnie

think calls other able and everybody's to be every the us talk you, about of day we do questions to great appreciate single listening it's you are an I and time It drives to, passion there quarter every opportunity have in the much. thousands today, on a short, very our privilege. listen you it's time I with to between quarter. Mike I at you know day. to spend and a Thank that for a quarters, so have and great and each conferences, pleasure in Look, as the always. companies to Thank to be your

ACCESS Newswire (ACCS) 6 May 192019 Q1 Earnings call transcript