ISDR - Earnings call transcript Q1 2024

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Jennifer Hammers

Ladies and gentlemen, thank you for standing by and welcome to the Issuer Direct Corporation First Quarter 2024 Earnings Conference Call. My name is Jennifer Hammers, Executive Vice President of Sales and Marketing. I've been with Issuer Direct for 3 years, leading an amazing team of 32 professionals. Like I, they care passionately about our customers and our brands. Like my fellow employees doing this in previous quarters, this is our way of ensuring our shareholders get to know all of us here at our company. With that said, it is my pleasure to introduce the company's Founder and Chief Executive Officer, Brian Balbirnie; and our Chief Financial Officer, Steve Knerr.

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

Brian Balbirnie

year Jen, week next believe you, happy Thank and to you. I it's anniversary actually. third

always ago the working forward are said XX or it I of leader PR way quarter, single each of business those years. new exceeded marketing have quarter team: business can't thank those XX%. the us year-over-year Total you. With is and you in actually quarter. pleased our The to in $X this For we quintessential joining past the down our energy, for not million. Compliance by greetings, results. performed the quarters, that and digit she you Compliance sales to the brand business was XX% and down Unfortunately, AImee, for Jen, quarter would her with Media in possible. prior names on rebrand was with years team's Keep always revenue moving XXXX know, efforts. pushing our more decrease company's am started today The stronger and product new I our do And Optimizer her that like everyone, our I said, discuss today to is creations. first first of Suite every don't her high because tirelessly and wait up.

also Our to is basis. There was in are I indicators a lot discuss our what our year-over-year growth plans insulate Communications XX% regain this as which our and why will as to well business, correct, down later the occurring more from talk as trajectory. There leading business is are to about.

call Steve? turn highlights. Steve I'll So the quarter the over first cover to to

Steven Knerr

Brian, you, afternoon, Thank good everyone. and

XXXX a start. mentioned, Brian is As off to slow

positive compared decreases $X revenue $X.X first decrease some results for we now However, encouraged both to was cash or million, XXXX. Total same by I'll the was are Compliance and continue of generate quarter million from of revenue of streams. of our XX% the in Communications a due during achieved decrease The to the to highlight period our $X.X XXXX. million operations. ability to flow we

Communications Our $X.X million business of or XX% $X.X total million to or revenue. XX% decreased

For accounted revenue. news of due XX% the pricing was in and our Newswire quarter first of to total for distribution decreases The XXXX, volumes both Communication and brands. both in ACCESSWIRE revenue decrease

due a than same related occurred decrease to that year. in the in revenue primarily conference of a occur and the proxy compared last decrease and fewer was to transactions not that the quarter year period to fulfillment had revenue services the quarter in did XXXX. print first prior our webcasting year. Compliance business of events XX% XXXX to from a decrease The in due smaller we and Additionally, during $XXX,XXX decreased first or large of this

and fluctuate a services are and margins. to corporate revenue they decrease activity. Switching due Additionally, from services from market our project-based actions period. Revenue in to gross because these we directives a X agent the had on to over transfer during decrease from in dependent quarter-to-quarter tends

revenue transfer the compared first Gross was XX% compared to from just XXXX quarter million. decreased primarily Our Gross decrease on margin discussed. Gross fulfillment XX% decreased due same $X.X from for the to Communications XXXX. projects This attributable also and million to QX lower our the to This XX% and for or Compliance XX% revenue. quarter percentage XXXX. margin business was margin of XX% our of quarter gross the to margin print $X.X is XXXX first lower in to XX% of from first business XXXX. decreased primarily period to during XX% proxy smaller of overall the percentage margins of for lower agent

revenue to Moving We nonrecurring of for quarter stock of of decrease expense marketing during the first expense. of posted income compared due primarily benefit well in bad lower to commissions. of operating decrease prior increase recognized debt the and partially related is administrative first operating of costs to offset of the and year XX% $XXX,XXX or the in compensation or count head income an reduction the an transaction XXXX. operating as offset to a noted, by $XXX,XXX decreased loss expenses, The just XX% previously lower integration as due and and loss. quarter reversal and the to to $XX,XXX an decreased partially expenses. General a as primarily associated same executive in officer sales $XXX,XXX compared Sales with resignation in I in to the costs margins operating due a quarter decrease operating XXXX by

the $XXX,XXX XXXX compared net the we ACCESSWIRE the of were development costs loss is first $XXX,XXX, year. that reported to of diluted first during Media to related Net GAAP the rate our quarter $XXX,XXX XXXX on to quarter as XX% to a additional despite a first of development also of income XXXX loss enhancements for decrease lower system. as the quarter prior first our share with of well during of of compared of the net due quarter costs of the or per fair year. XXXX. loss product per share a capitalized Lastly, change costs $XXX,XXX in Suite quarter the of product of quarter capitalization interest to of our to consistent during first XXXX of first $X.XX of No of is decreased compared diluted XXXX. On or during we gain as of because $XXX,XXX the $X.XX prior operating $XXX,XXX value a recorded This primarily a basis, income swap

also the We a recorded first loss of extinguishment $XXX,XXX related had purchase. in XXXX debt early the with the to of associated quarter of Newswire

of EBITDA to Looking in to of XX% metrics. of generated first the compared $XXX,XXX non-GAAP We increase the or an first XXXX, XXXX. some quarter quarter $XXX,XXX of

of of revenue, EBITDA percentage the to quarter X% for first compared the a XXXX As first during to increased of XXXX. XX% quarter

the decreased to compared $X.X of quarter the during XXXX to XX% for EBITDA adjusted XXXX. of quarter $XXX,XXX million However, first first

per first $X.X decreased As first compared quarter a or during the to net over was percentage $XXX,XXX $X.XX of of diluted to diluted compared or of for statement. the share the sheet XX% EBITDA for first the to income million to first revenue, flow Non-GAAP share XXXX. Switching the of XXXX. XX% balance quarter quarter $X.XX per XXXX XXXX and quarter adjusted for of cash

else compared XXXX from company. for cash the from XX, quarter and next on now everything the was business, quarter to during Our some XXXX the we deferred $XXX,XXX operations XXXX. the turn to first provide we have consecutive of recognize it compared quarter as is remainder million Brian? will This XXth the to marks XXXX. The updates generated of first to for revenue flow Adjusted months, back XX, of December of XXXX. I of of cash $XXX,XXX over customers, of flow the our statement, first the the to first balance, $XXX,XXX March as Brian, cash volumes which of the free $XXX,XXX $X.X who planned of quarter revenue $X.X cash XX million positive to XXXX, compared flows expect primarily X% for flow for operations will increased year. quarter we for over

Brian Balbirnie

Thank you, Steve.

period, and our the things, of time want remaining to and where conditions customer for we subscriptions, a market as backlog about with volumes, going several as subscriptions, our speak large well I business. the the accounts For in our utilization are address today, as industry our segment such

indicators XX,XXX these about the assumptions the customers XX,XXX results will and XX% we're early from of spend Lastly, talking part some year. Total I up were for time to addressing year-over-year. and how remaining

brands, business, are indicator pleased hard releases we good into ACCESSWIRE from of working subscription our portion Newswire the this and other singles market which A to and this continue move these our share. comes customers from growth Media press and bundles and growth the is our products. Seeing to both beyond. brands and continue our of remaining will to year it part be throughout believe We with Suite and of key overall

year prior concentrations decrease year-over-year subscriptions, end customer down quarter last in subscription grew from revenue X% backlog of is up in year. We consistent deferred and XX% sequential micro-/nano-cap and are year. the Additionally, year, grew The QX X,XXX last from X% with to X% attributable from customers last with the X% QX the of space. year-over-year ended the and and

We flow continue seeing overall our have constraints, counts these part that believe access the are to market sector. customers will capital and for affect and we the issues of customer which year cash remaining in

subscription to forecast which both come basis. X% platform grow going We Media our however, XX% from to subscriptions, and PR expect Suite business, to Optimizer performed our year-over-year companies us our is growth subscriptions we our to This our upmarket business X ranges way, continue and mid-, and the a IR on in and earnings are else mega-cap websites. in call will believe during QX, will we continue. something product expectations see growth moving These large- to QX. Conversely, leading to

well a couple is double doing our been our is Aramco-Luberef good micro-cap. business focus and XX normal the move This ARR. example as quarter to a test Yes, private. I tend to annual years lifetime by the calls for far, growth a and Sherwin-Williams, and earnings but over our volumes, is our with come customers subscription several things are spending business. the as year The fine currently to other well a of upmarket. the that It's so to as values going going we accomplishes this brands. target Saudi to and fairly business be of months sales is back of a won of of be Day for public larger to in here to time business. One, meetings be all. customers their this It Xx one I new X to and Gannett and narrative us X where of a year. This our distribution for am to going markets fits viable as results determine to will build knowing know pipeline be show are tailored well certain back we as growth will in be going to model with team as flow for confident the unlimited. to new if ebb and it, needing we This don't will and overall big our An for portion industry begin of has is not some half this names. Additionally, have the Investor return subscriptions

to this their each quarter a Second, bad services. something customers to to it like take charges at that their policy that in look inabilities and insulates to customers, quarter QX our debt we off going us hard micro-cap/nano-cap are demonstrating did related having are perspective the to to moving for continue we from credit from platform pay

in more. to our to customers their situations, like So noise accounts that a In I've see the likely, offset board. performance. Albeit This XX% the year losses. But ago, to remaining XX pay numbers, can by those encouraged part across XX% of I for in making customer receivable, always minute will X% services. as summary, I to make attributable quarter am no each not then of these product said, churn up some XX% for subscription said we service progress the the longer the out new range are in is that growth want or we is X

don't They're in market the they're revenues. Bundled all around of term spread used. releases we revenues. As the know, drive the contract press as volumes immediate drive

and balances perspective. Which revenue they've As an shifted year-over-year leads in provider. almost deferred our to around increase remain of for They to from saw increase because $XXX,XXX the provider me a market. example, multiyear in $XXX,XXX in we flat volumes a and unbilled contracts

releases last doing example, quarter of began year, in have we an a in-house, volumes of XX,XXX. review seen when some XX,XXX market our to QX we of competitors down from since As the drop

up taking remaining growth believe beyond, in flat. flat to saw incumbents. or the in comparative XX,XXX, remain the X move the just ending Whereas volumes from market the we've continue X% to market to be X% period we We see do So the nearly down about XX.X% share decrease. with from seen later, share will part quarter in quarters same for XX,XXX but or total. Others we volumes that year essentially this of the and our

do to and have there, stop. success that that, will we continued have not believe We

job us having full ever for answer at the a our it team great more current a and for close even get we to continue year. Also, more done are sales to and addressable to and today market enable our competitive to come higher replacement Our than contract market looking this solution Media that share pipeline this, now be a to and inbound to rates was to their brands accelerate able seeing build target imperative to is we're rate. sale. Suite at a able our before,

meeting did Media Suite see this our we Lastly, numbers. at expectations internal new Optimizer perform our quarter, PR sales our forecast

they other releases. we X- follows deliver is webcast confident we initial new cycles Suite subscription like do sales quarter It pro to growing, we and business see QX As for time of continue this press was in feel and number than longer the a X-month performed, sale, well record our like to matter solutions, close. is each any line pattern can have a from pipeline Newswire call year. Media IR a to enterprise-type is that where fact,

a serve. in that and today time remain the talking As the has look the I products follow-up results discussing confident We you Like and always, we We not with you it business. quarter. that for in our nice our said, calls. was have with spending forward changed always markets all first to

and year start we'll come resurgence and space there. will the to We micro-/nano-cap growth of back, are also see next believing beyond

with the Our brands updates with We serve next sharing us go the look ahead continue of forward more to you please. call, portion well. quarter. Operator, to Q&A

Operator

Northland [Operator Capital Instructions] Your first question Markets. comes from from Grondahl Mike

Lucas John Horton

Mike. is This on for Luke

ACCESSWIRE to the help Just slowness could with between us press wanted and of obviously, quantify kind release Newswire. if in the you just touch, distribution,

lacking, kind X of during historically to of been Newswire, with the outperforming any relative just the Just for ACCESSWIRE which sort flavor has quarter? the between trade-off

Brian Balbirnie

basis I Look, you this Brian. probably down is year-over-year seen is this a basis we've one sequential or first ACCESSWIRE Luke, Yes. the of would revenues. a tell quarters in on

had in are growth that I we likely private of business. But in XXs than beyond is we in the customers' or in compared We about XX% X-plus the have headroom those in other call, teens more believed to good believed categories of run space. significant that even a of and alluded and years as the the likely micro-/nano-cap to a amount including releases companies. market The markets down number serve, there

did So that impact ACCESSWIRE this period.

is to Newswire of pricing also, pricing of down and Newswire. be PR compare others against we It its strong. tier PRN, conversely, in power entire is when Its Newswire the the and to industry continues is top volumes. the

more quarter brand are in now to to see recently, see come I premium there, those prices We you we volumes. But volumes reduce look can a holding good. late to that in both going starting there price and there. spur categories. will We're subscription very to pricing and We're which and incentivize back the testing tell include is product if we're

this then back the ago, after. up volumes saw we and quarter again picked where X.X years right down So slowed happen

now. so already seeing And the we're are indicators early happening

Lucas John Horton

price lowering kind to that for able puts Okay. of comments guys function up Got And customers saw in to pricing kind to Or your for during coming takes off a it. pricing in of that you being the the on slower press Was just lower mention release, pay? of and the go there volume? the pricing lower? then Or quarter. pick was was were the some not a of there, what

Brian Balbirnie

Yes.

that in can in you is critical contracts we at being believe our firmly very you we API large-volume that get means as are without into mass costs certain being this aggressive I thoroughly precisely will gross distribution, a price. what are hurting that year. And industries that about It incrementally it then think products is to expand point aggressive new your testing much. your on which fixed margin enter really at is

that we're so interval. through first halfway And about

editors and of impact be rest So improve the on we entirely because volume head and of gross process, articles. those reduce margin effort the able low we at to up got where clean that some but light it here expect touching did able count in cost still development slightly a that in to we'll gross end to quarter, XX% XX% actually because margins to from the we're more from

the So customers, and to further on on of even some walk that. We're prices the API share. and marketplace up the attributable private side. a at to way But the integrations public core is of day, really look, hard are and our company want we take it working the believe that that end SMBs is market to

to at the trying both we're accomplish same So time.

So we'll it definitely looks talk between a a little combination, the deal how about in noise both. there's sometimes in of future that there. good But

Lucas John Horton

thinking helpful. go we Got then or business do into where some investments allocation? are or And you Okay. it. the you That's paying of as via out of guys how head debt? allocation guys capital down through Or kind buybacks with either XXXX capital

Brian Balbirnie

Yes. Look, We're to we that invest Media processing product for bringing market we've job it. further done on top natural to quickly. of continue Suite of do to language a attributions to translation going in want categories. fantastic AI There's some

to not change. that's So going

come deals our the to quarters. But We've but at we we've the we're going in with and budgets and to combination. long days more it, not look, confident We're business our continue our going call products of R&D to market and in year in line the what past that organization. manage XXX way of tell in see feel in doing seen I'm in years got really the growth we're enterprise investment the been going last, sacrifice kind and expenses in that in what to as that you our last our as seeing to do You're they've customers. look few overall, the in

So we And in we're experience to team accomplish. trying we're driving with momentum there. And in building years what brought sales of those is fair, of is important that the to opportunities. be us to that some

space well the we're micro-cap of would for reality everybody not you just That's the As with. and dealing growth now. is understand what understands, as a right market us

through $X dividends, flip to talked optimum another it And generated We debt, cash, into down last Steve then likely ironically investor So and our call covenants a think cash I not quarter. week that a more Hold operations, said, of or next it, at accelerate is about, going continue side pay And the flow almost this position quarters to have and a of likely get the business a as lot quarter year. we million the right, we're that trend on not; an do off. year to it's actually continue. puts that execute, XX good in meet this conference from us options. not. cash so this consecutive That's was consecutively. I to fact-checked way a

that day, cash to estimates serving business have what So cash We're from the what at But to if we to of our something want to we're we accumulate debt, need in confident aren't do and markets use the that. the the run to cash. we we're prepared look, perspective. a end are do fulfilling with

holding more key, to what with understand right? also a again, is in to know the clearly could So present future be do. option need that of we we as options to cash, ourselves accumulate We an when time. execute. for Stock We we that us we and the well. price on that, But need is. is this Execution keep it what lot at by

Operator

for I and hand [Operator Founder to conference go Brian closing Instructions] now ahead. Officer, Q&A session. That Chief back Executive remarks. Please Direct's will the Issuer our Balbirnie, concludes

Brian Balbirnie

Thank you, Matthew.

deliver. hope we wanted Thank that back that do continue quarter, results we're a you there our the expenses are going confident our been we focusing working half to through and come about. I we've not optimizing organization, stronger. have the pipeline in diligently what like before, we we returned everyone, we've of even uphill, this to to we brands, and our spoke do we've and need done really all able managing Although very this back are on you and to be in And much. night. year good it, to Albeit

Operator

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

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

ACCESS Newswire (ACCS) 9 May 242024 Q1 Earnings call transcript