iCoreConnect Achieves Robust Revenue Growth in Q3 With Expanding Customer Base

Rhea-AI Summary

iCoreConnect (NASDAQ: ICCT) reported strong financial results for Q3 2024, with total revenue growing 51% year-to-date to $8,599,262. The company achieved a 56% increase in recurring revenue and improved gross margins from 74% to 77%. Quarterly revenue rose 39% to $2,787,999.

The company expanded its market presence through multiple dental association partnerships and launched the iCoreEnterprise Platform, providing single sign-on access to 17 SaaS products. Strategic moves included acquiring Healthcare Circle of Excellence assets and divesting the MSP Division to focus on higher-margin SaaS solutions.

Positive

• 51% YTD revenue growth to $8,599,262
• 56% increase in recurring revenue YTD
• Gross margin improvement from 74% to 77%
• 39% quarterly revenue growth to $2,787,999
• Multiple new dental association partnerships secured
• Successful integration of acquired solutions (iCorePay and iCoreVerifyPro)

Negative

• Divestment of MSP Division may impact short-term revenue

Insights

Financial Analyst

The Q3 results demonstrate robust financial performance with significant growth metrics. The 51% YTD revenue increase to $8.6M and improved gross margins from 74% to 77% reflect successful execution of the company's SaaS-focused strategy. The divestment of the MSP Division shows commitment to higher-margin operations. The 56% growth in recurring revenue is particularly noteworthy, as it provides more predictable future cash flows. Multiple new partnerships and endorsements from dental associations indicate strong market penetration and potential for sustained growth. The launch of the integrated iCoreEnterprise Platform could drive higher customer retention and increase average revenue per user through cross-selling opportunities.

Market Research Analyst

The strategic expansion in the dental sector through multiple state dental association partnerships positions iCoreConnect for significant market share growth. The consolidation of 17 SaaS products into a single platform addresses a critical pain point in healthcare software adoption. The acquisition of Healthcare Circle of Excellence assets and partnership with DSO Market Watch indicate a well-executed vertical integration strategy. The focus on recurring revenue through subscription services suggests a scalable business model with potential for improved operational leverage. The company's expanding product portfolio and growing endorsements from professional associations create substantial barriers to entry for competitors.

OCOEE, Fla., Nov. 21, 2024 (GLOBE NEWSWIRE) -- iCoreConnect, Inc. (NASDAQ: ICCT), a leading provider of cloud-based software and technology solutions, has announced its financial results for the third quarter ending September 30, 2024.

Financial Highlights for Q3 2024

• Recurring revenue grew by 56% year-to-date as of September 30, 2024.
• Total revenue increased by 51% year-to-date as of September 30, 2024.
• Gross margin improved from 74% to 77% year-to-date.

Recent Business Achievements and Partnerships:

• Expanded agreement with the Arizona Dental Association, adding iCoreClaims and iCorePay to its offerings.
• Secured a new endorsement agreement with the Delaware State Dental Society for five products.
• Acquired assets from Healthcare Circle of Excellence to enhance strategic capabilities.
• Divested our MSP Division to focus on higher-margin SaaS solutions.
• Strengthened the relationship with the Mississippi Dental Association by including six additional products.
• Gained a new endorsement from the Alaska Dental Society for nine products.
• Partnered with DSO Market Watch to expand our presence in the Dental Service Organization sector.
• Formed a reseller relationship with mConsent for the iCoreRx cloud ePrescription software.
• Expanded our relationship with the California Association of Orthodontists adding 7 products.

Revenue Growth

For the nine months ending September 30, 2024, total revenue grew by 51% to $8,599,262, compared to $5,701,372 for the same period of 2023. Quarterly revenue rose 39% to $2,787,999 from $2,004,853 for the comparable three-month period.

Subscription Software Services revenue surged 56% year-to-date and 44% for the three-month period, driven by strong adoption of iCorePay and iCoreVerifyPro. These solutions, acquired in January 2024, have been seamlessly integrated into the iCoreEnterprise Platform. Core products, including iCoreRx, iCoreVerify, and other revenue cycle management (RCM) solutions contributed significantly to this growth.

Launch of iCoreEnterprise Platform

In the third quarter of 2024, iCoreConnect introduced the iCoreEnterprise Platform, enabling access to 17 unique SaaS products with a single sign-on. This innovation eliminates the need for multiple logins, enhancing usability and positioning the company to attract larger enterprise clients.

The unified platform not only improves customer experience but also exposes users to additional functionalities, increasing the likelihood of seamless product adoption and growth.

iCoreConnect continues to strengthen its market position through strategic growth initiatives and innovative solutions tailored to its expanding customer base.

About iCoreConnect, Inc. (NASDAQ: ICCT)

iCoreConnect Inc. is a SaaS leader in cloud-based software and technology solutions, designed to enhance workflow productivity and profitability in healthcare.

Forward-Looking Statements

Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ‘believes,’ ‘estimates,’ ‘anticipates,’ ‘expects,’ ‘plans,’ ‘projects,’ ‘intends,’ ‘potential,’ ‘may,’ ‘could,’ ‘might,’ ‘will,’ ‘should,’ ‘approximately’ or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under Item 1A. “Risk Factors” in the Company’s most recently filed Form 10-K filed with the Securities and Exchange Commission (“SEC”) and updated from time to time in its Form 10-Q filings and in its other public filings with the SEC. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Investor Contacts
IR@icoreconnect.com
888.810.7706, ext 5

FAQ

What was iCoreConnect's (ICCT) revenue growth in Q3 2024?

iCoreConnect's quarterly revenue grew 39% to $2,787,999 in Q3 2024, compared to $2,004,853 in the same period of 2023.

How much did iCoreConnect's (ICCT) recurring revenue grow in 2024?

iCoreConnect's recurring revenue grew by 56% year-to-date as of September 30, 2024.

What is iCoreConnect's (ICCT) new iCoreEnterprise Platform?

The iCoreEnterprise Platform is a unified solution launched in Q3 2024 that provides single sign-on access to 17 unique SaaS products, enhancing usability and customer experience.

What strategic acquisitions did iCoreConnect (ICCT) make in Q3 2024?

iCoreConnect acquired assets from Healthcare Circle of Excellence to enhance strategic capabilities and divested its MSP Division to focus on higher-margin SaaS solutions.