ISDR - Earnings call 3 2023 | ACCESS Newswire Inc.

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Operator

Good day, everyone, and welcome to the Issuer Direct's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Dee Brown. Ma'am, the floor is yours.

Dee Brown

Ladies and gentlemen, thank you for standing by, and welcome to the Issuer Direct Corporation Third Quarter 2023 Earnings Conference Call. My name is Dee Brown, Director of Human Resources here at Issuer Direct. company you X all the happy and with meet to today. been for years, almost I'm I've Like David of did of Issuer ensuring last quarter, this shareholders Direct. to is get know all us at our here our way

Pitoniak. are Balbirnie; each that this Financial and to the its said, to Chief and Tim pleasure quarter. With company's my Chief both Founder committed is Executive We excited introduce continue and it Officer, Officer, Brian

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

Brian Balbirnie

you, Dee, and thank introduction. Greetings, today's everyone, for

us So able happy this you're do today. to for

to this and work hello, with to and is Super HR my processes David. hard us with systems. doing on our many has today you culture, for name tenure produced our your the [indiscernible] improvements Your so for cool tools, be

where can't get we Mr. have employees As Michael, we'll James interim, call will wait our ready, well, as introduce I sir. new I the employee longest-standing his next said give quarter's for quarter. each before,

results. our to Now everyone appreciate joining today us quarter let's talk third about the discuss quarter. We

accessible quarter. is released key which just the Our in the press our on and been release, provides for has takeaways performance newsroom our

the XX% was solid year-over-year to results. earlier We to delivered year-over-year. acquisition. total spoke XX% million about and will We've shortly. the the quarter, also on EBITDA thrilled by for quarter $X.X up Adjusted detail Newswire revenue earnings with Tim Today, our in are performance third discuss $X.X driven in and last this this something ACCESSWIRE million, we year. was up call

our that's will core has Our in also and important average subscription why release the business business X% talk bit per news about a later. grew I And steadily. our for press quarter, prices held

be budget environment to we that years to our we're and earnings economic and products month, something brands, cuts We confident core as we continue have businesses, uncertainty, calls still bullish and with challenging new do core IR platform even in website I've and led have market continued to have by to in customers share gaining are do each We recognition. recognize we news brand said, our and will come. our though for lot still further communications a here, we feel grown that a we ACCESSWIRE, distribution,

talk about. highlights. quarter call there's the cover a I'll to to As third the always, Tim to Tim? lot over turn

Tim Pitoniak

afternoon, good everyone. and Brian, you, Thank

line our Newswire revenues, Brian from in benefit continue not positive we results cash As deliver mentioned, quarterly flows, the to top and including acquisition. earnings

compared XXXX. result, for period I the to for third Total year-to-date results revenue. the we've revenue drive million XX% a of on has as quarterly will was basis, of distribution $X.X quarter. new Our business a achieved third now the increase the highlight some of same helped of an stand-alone XXXX $X.X quarter during and has million, grown XX%

months The months increase for and the XX% September months million, respectively. the XX, September increase and an which X compared of the Communication by the from million revenue of XX% periods of increase for XXXX, increasing the primarily revenue both $XX.X of the $XX.X XX% was included to For in revenue Newswire, X is the for represents XX% and XX% XXXX. periods was XX% ended X for business, XXXX, total XXXX, XX, our XX, same ended driven September Communications and driven X X total same revenue period revenue. XX% revenue ended acquisition by XXXX. communication of during The all was for and in

Compliance business proxy a the decline over in revenue during in year-to-date in to fulfillment from events transfer XXXX. year compliance increase The agent actions in decrease period in revenue in an from XX% year. revenue increase corporate quarter. services first half XXXX. Switching increases by same we corporate increased businesses decrease periods to related same which a as margin. months occurred first decreased half and The during a X X print ended an and XX, XXXX, for also of due transfer compared to same webcasting revenue few the the XXXX, during significant and services the revenue our XX% of to attributed revenue and ACCESSWIRE and respectively, compared of due to well is the the of and X in activity increase decrease to prior is proxy and from compared months increased XX, as the year. the September prior our first due the from of X print service For quarter and ended revenue the revenue September fulfillment for were increase XXXX, to these gross X to The compliance in which business, our a an generated months directives to the our of agent projects business increased and transactions, period XX% offset the partially during

XXXX, our third from quarter communications to margin related September and XX% margins and for continue compared reach XX% period XX% respectively, was business an months percentage months expand the first of distribution percentage in X were XXXX. increase to same for XX% and the global respectively, Our in compared XX% XXXX. primarily for we XX, of decrease and XX% XXXX, The is to the to overall for X periods costs our X and of and ended as gross for gross quarter Gross margin XX% the same and footprint. the

the General first assets months to Moving year-to-date offset to income administrative to XX% increase months to acquired the to by increase is XXXX. operating increase in The intangible operating quarterly decrease of expense and compared operating income. during The to $X.X Newswire X the primarily in in related an XX% income and due We operating increased of is during attributed million posted the by additional primarily expenses. and and in revenue, revenues first amortization XXXX primarily an income in costs employee-related additional the and partially operate months in X XXXX, third quarter stock for XXXX. associated the of expense. expenses acquisition. the compared driven of $XXX,XXX with cost Operating to cost million Newswire operating The income for increase XXXX compensation first X of of QX QX of expenses was is respectively. $X.X $XXX,XXX business,

per offset development September also by quarter the related well is component as the during and of increase XXXX, months or diluted increased X ended XXXX. periods and Chief of months directly QX and addition to the attributed is of $XXX,XXX due net XX% the swap media compared income costs and X XX, increased Product important Newswire a with partially that from of the onetime $X.XX new our increase share our generated XXXX. the change as the additional Almee XXXX the months XXXX, the interest per of of months ended XX% the X XXXX. previously costs, same related of our diluted to and product. On the periods marketing offset interest income diluted the as and Sales we transaction The fair to X business, $X.XX of months fees. of operating executive our income. diluted were well the $XXX,XXX, as XXXX, to XXXX, impacted $X.X acquisition. or $XXX,XXX for sales to million costs respectively, share of known million recruiting third $X.XX X a the as share Officer. XXX% months same Net the for and Newswire reduction to XXXX, for in resulting well per ended associated compared to compared during team. X and by and costs partially new was GAAP were $X first the for to associated $XXX,XXX Newswire or artificial our hiring with share X during XXXX interest September for months cost is expense expense as Newswire database first XX, XXXX $X.XX building increases capitalized discussed basis, X It value compared Net XXX% items to upgrades X These in rate Technology also X XX, additional and by operating during September income we XX, first intelligence September ended per of QX to note or as income the the For of

XXXX, the Additionally, payable by extinguish was Newswire to the from impacted and ended transaction. X payment September resulting note our XX, months a

XX% ] or XXXX some in revenue of third EBITDA XX% QX XXXX. quarter to non-GAAP or of metrics. of compared Looking million for $XXX,XXX revenue the was to $X.X of [

decrease recognize recorded $X.X to is deferred Non-GAAP acquisition. same XXXX. revenue was statement, over revenue during of XX, of the million adjustment decreased next The was of compared for income XXXX. Newswire X months $X.X months EBITDA revenue diluted period during million opening of $X.XX For to diluted share XX of QX sheet income of of million our diluted $X.X compared million $X.XX the $X.X net X was XXXX. or the flow which attributed compared was $X.XX million per X period to $X of balance to and driven balance, or X per first $X.X share million million months as million of the over XXXX. revenue December to XXXX the XX% revenue for primarily Non-GAAP $X.X per share the an September for sheet the first or same XX, or million or period compared to or of as $XXX,XXX XXXX, XXXX. the $X.XX $X.X months $X.X revenue Adjusted first for of X revenue or XXXX, of of million the XXXX first or XX% of was $X.X QX XXXX for XX% share net or to or of Adjusted of XX% diluted revenue first XX% was for months revenue the compared $X.X during to to compared EBITDA XXXX. Switching the deferred during balance XX% of XXXX million cash X expect by per first EBITDA the in months we of months to

cash in we the XX, of cash the flow same and compared Brian, some year-over-year pipeline who will ended XXXX. we $XXX,XXX of in now $XXX,XXX planned million for On period flows products XXXX, months months it to $XXX,XXX. I'll from September approximately for Brian? negatively compared and have increase same million of operations the for of months updates the Adjusted XXXX. the year. during and to a million payments respectively, $X.X $X.X free X for business, September XX, period impacted Cash generated else provide over was the back ended and by and cash flow to for XXXX, million remainder flow X $X.X $X.X the X statement, the million was ended or of $X hand everything on the XXXX, respectively, X the and X September new XX, tax $X.X million

Brian Balbirnie

Thank you, Tim.

year. of seeing coming said planned before, XX% by can from that year-over-year we our feel customer growth. customers for late acquired year. this the up we with in we that see the total things grew Total is confident were This growth important last XX% customer we've includes XXXX. to to an plus increases customers last that acquisition continue This As have growth the is us. year, a Newswire XX,XXX, KPI end customer of goal the With new some of X.XXX

Moving along to subscriptions.

of customers success subscribing of So with the we the [ ] XX% the average and/or customer X% year. an from which our attributable $XXX a $X.XXX revenue up is year-over-year spend prior This quarter Optimizer with was growth X,XXX Part products is a ended for on and quarter. product our to PR the of expansion increase $X,XXX, basis. the to

will we good are We have increase quarter next new ARR the stage, here a bit of year. We new further continue headway prelaunch that to are a our still products for and us these marketing busy seeing model products a these in clearer drive fourth are and with that U.S. confident in metrics

are from subscription We continue And a addressable obviously, to market the share organization the activity and not customer whole. in take platform Canada, of our beginning sell a business. of results, ability incumbents the full our to communications to a just gives win into new having see new the we sales industry as space. total Conversely, in but slowing signs more comprehensive slightly,

As well we quarters, our global and monitoring a we full will existing prior that our is distribution period will quarter news reporting talked as about our the new pitching product products, fourth which offerings. subscription media in this platforms suite, include new newsrooms, database, release media as in

$XX,XXX full reoccurring market. our $XX,XXX to in that products a to pitching way and content engine different few with customers' in and these report our fully been has further $XX,XXX at be in We into storytelling AI but and now revenue all year. features of tools having the a are real Almee. we into will for The them integrated One anticipate solution learn as articles our the time. what our We processes example AI process are and also back excited our go up near customers examine beginning available to engine launch both those to that mentions mentioning not scan plans millions the to a is meets year needs may offer a market model and annual that values

Our are ARR ] deliberate. to our assist contextual individuals bring to an journalists can to brands a is progression engage, goal our we move cover [ business making anticipate platform. The is in that customers aware to by and to who way here life, in these of

X,XXX increase our of I subscribers business. As retention have number to to our lifetime see as our ARR, and a significantly products. and want report the we churn, mature you and earlier, value by we dollar our we be to spoke about the end XXXX to subscription able renewals on to retention full values

As product our $XXX,XXX an the driving map customers. just peer in earlier, suite handful from new well I formerly for over ARR quarter, mentioned performed a optimizer of

show to coming it's in continuing shift this by momentum new for are encouraged we've truth are the brand upgrades pipeline this the on product results will We But our the in and continue and on product early that us to build told, made the life quarters. results and cycle. be in

amazing making a performance pleased most quarter for consistent was year will product in could of we're and their So look revenues, the review important all gross products, year-end an is our growth our to shaping that in to year-end be call, in Direct. be up repetitive, sustained from in customer our the product where and forward year-over-year we but lineup. margins, Not subscribers We to more growth the third we not what forward. fully a progress going with growth Issuer guide be will of products quarter our and discuss for of each strong

I As Newswire mentioned, up quarter both $X.X were Tim of year-over-year, million, mostly the for and the because acquisition. revenues

to in than see decrease it by challenging and is being in soft it our I will activity being quarter, priority our compliance the moving do distribution belief revenues for particular many actions fourth business more the quarters doubled quarter continuing if said, business weaken. slow markets communications Conversely, million. You revenue of our the from anticipate have XX% we significantly in corporate not into more the see and business onetime well down quarter. $X.X will this deals news capital until which be million the We that financed this that had of recent of from year XXXX than for news driven as quarter that With The top business, as for projects, of the numbers has the unit we $X.X our as our for drove past. would for of work this business benefit XX% did entire projects occur is said and compliance grow to business our came quarter, and platforms, line onetime overall is something our quarter.

volumes business We revenues, continue both quarter. ACCESSWIRE is are as flat. volumes however, we X% well to as which the industry see But was seeing for in our growth up

it remain always, business the confident we you both are new to discussing nice was calls. sales follow-up today media products, As our with to coming our We new market. We to organization spending opportunities year, and but that so next quarter. that the time capitalize look for you our much our forward suite the with see so also results we in on on in expanding in the talking

brands call. can Our we in well the next period look the with more market, continue us quarter. Operator, to sharing you please forward begin we updates and serve question-and-answer to the of

Operator

Instructions] Mike [ Northland from coming [Operator Your first question from Pronto Securities. is ]

Luke Horton

Luke is for on Mike. This

Just touch of on wanted call. know it a pipeline. see just earnings trying on sort get into think XXXX. of out how here that quick new understanding. -- you product But update the I to we'll probably playing next better of to

So being of of it their at once, and to to in kind going to how be pick and this sort these include be products is pricing or that choose and want what is customers then will to will of this affect they launched. their kind coming of get bundle, will all market

Brian Balbirnie

is be will and a that is be doing variations. going It's That sit today. product X different solution. on with focused discussed between today's entry will pitching Suite are XX and suite currently be that great us press be points will this and releases call, that There include around in will the media we'll earlier customers a database question. particular X product Luke, in Brian. to Yes. The launched Media that X

to moving annual way solution. their more a spend an ARR towards type of As increase them and

with The media their be and news other included in pitching options a going news to distribution database product, along room the are monitoring that.

And X higher or the options so sort pitch the latter to the more ways solution. additional what that version plans a of will up you of compared another ]. And targeting customizations additional be means, maybe $XX,XXX latter scale discussed of to that the of the premium more pro basic number releases, model media differences some on about think more to being press robust and we X will platform, maybe assisted [ newsrooms, really X

build is not be customers PR So aligned a the buy from firms strategy, that all perfectly right calendaring companies do to solutions are us towards geared it internally X. into us is them. which earn wrapped candidate product solution for have are with discipline for -- would media this they content, outreach the looking a want the to Optimizer up and do product those those looking This to themselves,

Luke Horton

this Okay. is suite, as wants Got Or that then going product the as an be into with that And it. be Almee would cost to pricing Or. in going additional to if be is that is Almee of included? far baked offerings? that -- something these

Brian Balbirnie

Yes.

the is no be way that AI you that going today world is additional the a think there's solution, I to have add-on. it's to of part expect

news way doing this same we done the pitching build it And with with and ability platform we're released their to there. for We've monitoring it then help messaging year totality have the of and articles. to as on brand so on customers optimize from a our earlier

Our would Correct. it. include price point

Luke Horton

growing had strategy here how what's bridge then you the Okay. base of you the XXXX that Got to that Or customer by kind XX% do it. growth gap? mentioned? that behind And

Brian Balbirnie

in can to couple to that to sits we we're we're -- dealing for of for but continues larger new years, utilize the the We've be platforms company right? pitching our looking releases market call, simple, buy analytics private to last we've from market talked going TAM for And customers quite public bringing and with tend media IR the are about as opportunity marketplace the and that actually It's the and only growth like press and platforms today's customers in the our only grow outpace us. earnings also percentage all market of business database, companies distribution products market that are on and those us our call here. doing Yes.

having the with to products seat a everything to and So customers entire significant bake we're growth we're that are with when the looking table else as see additional for incumbents of our customer have allow suite and at result for. actually those longer RFPs going us off to that the going customers to

Luke Horton

products getting hearing to some launched forward new Looking updates about here. some

Operator

I'll to Brian you. Instructions] concludes ahead. Please Thank the remarks. closing hand for Founder, session. Q&A That go Balbirnie [Operator CEO back conference and our now

Brian Balbirnie

the remain we Issuer and appreciate the being help We today call. Direct. you. you We're part earnings as Thank forward appreciate to with we we thank a forward the do quarter today's us always, normally. spending Matthew, look to you beyond, We third listening much. part excited everybody and as look and and of time of all to follow-up year so

Operator

everyone. concludes you, event. Thank This today's

and You a participation. wonderful at time, you Thank disconnect day. for have may this your

ACCESS Newswire (ACCS) 9 Nov 232023 Q3 Earnings call transcript