CreditRiskMonitor Announces First Quarter Results
CreditRiskMonitor (OTCQX:CRMZ) reported its first quarter results for fiscal 2024 with operating revenues of $4.8 million, marking a 5% increase compared to the same period in fiscal 2023. However, pre-tax income decreased by approximately $189 thousand, totaling $166 thousand, primarily due to higher expenses related to employee compensation and third-party content. CEO Mike Flum highlighted the company's strategic investments in new data, technology, marketing, and employee development aimed at supporting long-term revenue growth. Demand for products is rising due to increasing corporate bankruptcies and geopolitical risks. The company's new Confidential Financial Statement Solution has received positive feedback, particularly for its innovative pricing model that charges only upon receiving a risk score. Moving forward, CreditRiskMonitor anticipates significant interest from the credit community at upcoming industry events.
- Operating revenues increased by 5% to $4.8 million.
- Demand for products is improving due to rising corporate bankruptcies and geopolitical risks.
- Positive feedback received for the new Confidential Financial Statement Solution.
- Innovative pricing model charging clients only when they receive a risk score.
- Significant interest expected from the credit community at upcoming industry events.
- Pre-tax income decreased by approximately $189 thousand.
- Increased expenses related to employee compensation and third-party content.
VALLEY COTTAGE, NY / ACCESSWIRE / May 14, 2024 / CreditRiskMonitor® (OTCQX:CRMZ) reported operating revenues of
Mike Flum, CEO, said, "Our reduced operating income for the first quarter of 2024 reflects the increased investments we have made in new data, technology development, marketing, and employee upskilling to support larger revenue growth. We remain committed to staying marginally profitable while pursuing this goal; however, these operational improvements are more important to our long-term profitability and valuation than short-term cost management.
We continue to experience improved demand for our products due to rising corporate bankruptcies worldwide and mounting geopolitical risk. While financial risk may not currently be at the top of the list for supply chain concerns, we are increasingly hearing about how corporate bankruptcies in the European market are creating disruptions for clients and prospects. Given the massive debt loads, stubborn inflation, and demographic challenges facing much of the Western World coupled with deflationary movements in China, we expect the trend to continue and potentially accelerate. Additionally, with mounting trade tensions and expanding tariff discussions between the West and China, we expect global trade disruptions to become the norm versus the exception.
The early feedback from clients and prospects on our new Confidential Financial Statement Solution has confirmed its product-market fit in addressing the financial risk of unscored private companies. Removing the data entry requirements while ensuring the integrity of resulting standardized statements and risk scores has resonated for both credit and supply chain users. Customers also appreciate our innovative pricing model that only charges them when they receive a risk score, a clear example of our commitment to providing value in excess of cost. We expect to have significant interest from the credit community at the National Association of Credit Management (NACM) Credit Congress in June in line with what we experienced from the supply chain professionals at the recent Institute for Supply Management (ISM) World conference."
A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/
Overview
CreditRiskMonitor® (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. The products help corporate credit and supply chain professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively.
The Company's newest platform, SupplyChainMonitor™, leverages its financial risk analytics expertise to create a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. Users can assess counterparty risks at the aggregate and granular levels under a variety of categories including geography and industry, as well as customized, customer-specific configurations. The platform features mapping capabilities with real-time weather/natural disaster event overlays as well as customizable news notifications, reports, and charts.
Our subscribers, including nearly
The Company, through its Trade Contributor Program, receives confidential accounts receivables data from hundreds of subscribers and non-subscribers every month. This trade receivable data is parsed, processed, aggregated, and finally reported to summarize the invoice payment behavior of B2B counterparties, without disclosing the specific contributors of this information. The Trade Contributor Program's current trade credit file processes approximately
Safe Harbor Statement
Certain statements in this press release, including statements prefaced by the words "anticipates", "estimates", "believes", "expects" or words of similar meaning, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, risks associated with the COVID-19 pandemic and those risks, uncertainties and factors referenced from time to time as "risk factors" or otherwise in the Company's Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
CONTACT:
CreditRiskMonitor.com, Inc.
Mike Flum, CEO
(845) 230-3037
ir@creditriskmonitor.com
SOURCE: CreditRiskMonitor.com, Inc.
View the original press release on accesswire.com
FAQ
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