iCoreConnect Inc. Reports Strong Revenue and Subscriber Growth in Q2 2024 With a 66% Revenue Increase

Rhea-AI Summary

iCoreConnect Inc. (NASDAQ: ICCT) reported strong financial results for Q2 2024, with a 66% revenue increase to $3.1 million. The company saw improved gross profit margins, rising from 74% to 80%. iCoreConnect experienced high customer demand, including for its new Fintech product, iCorePay. The company implemented AI in its support division and is testing it across various solutions.

Operating expenses increased due to a one-time $4.8 million charge related to stock-based compensation. iCoreConnect expanded channel relationships and successfully restructured approximately $3.6 million in debt, extending maturities to August 1, 2027. This restructuring aims to improve cash flow management and support growth initiatives.

Positive

• 66% increase in Q2 2024 revenue, rising from $1.6 million to $3.1 million
• Gross profit margins improved from 74% to 80%
• High customer demand, including for the new Fintech product iCorePay
• Successful debt restructuring of $3.6 million, extending maturities to August 2027
• Implementation of AI in support division with potential for expansion to other solutions

Negative

• Increased operating expenses due to a one-time $4.8 million charge for stock-based compensation

Insights

Financial Analyst

The 66% revenue increase to $3.1 million in Q2 2024 is impressive, signaling strong market traction. The improved gross profit margin of 80% indicates enhanced operational efficiency. However, the one-time charge of $4.8 million for stock-based compensation significantly impacts short-term profitability. The debt restructuring, extending $3.6 million in maturities to 2027, provides important financial flexibility. The potential conversion at $0.80 per share could dilute existing shareholders but also strengthen the balance sheet. Overall, iCoreConnect's growth trajectory is promising, but careful cash management remains critical.

Tech Expert

iCoreConnect's integration of AI into its support division and ongoing tests across various solutions demonstrate a forward-thinking approach. The potential application of AI in ICD-10 coding and insurance verification software could be a game-changer, potentially reducing errors and increasing efficiency. The expansion of channel relationships and the seamless integration offered by the iCoreEnterprise platform showcase a strong focus on user experience and interoperability. These technological advancements, combined with the high demand for solutions like iCorePay, position the company well in the competitive healthcare software market.

Market Research Analyst

The unprecedented situation of having signed agreements with customers waiting for installation indicates robust market demand and potential for future growth. This backlog, coupled with the launch of iCorePay, suggests untapped revenue streams. The expansion of partnerships with state associations and HIPAA consultants broadens iCoreConnect's market reach. However, the healthcare software market is highly competitive and maintaining this growth rate may be challenging. The company's success will depend on its ability to rapidly scale operations, manage the installation backlog and continue innovating to stay ahead of competitors.

OCOEE, FL , Aug. 16, 2024 (GLOBE NEWSWIRE) -- iCoreConnect Inc. (NASDAQ: ICCT) ("iCore" or the "Company"), a leading provider of cloud-based software and technology solutions designed to enhance workflow productivity and customer profitability, is pleased to announce its financial results for the three and six months ended June 30, 2024.

Q2 2024 Financial Highlights

• Revenue Growth: The Company reported a significant 66% increase in revenue, rising from $1.6 million in Q2 2023 to $3.1 million in Q2 2024. For the six months ending June 30, 2024, revenue grew from $3.7 million to $5.8 million compared to the same period in 2023. This growth was driven by strong performance across all active products and services.
• Gross Profit Margins: iCoreConnect saw an improvement in gross profit margins, increasing from 74% to 80% for both the three and six months ending June 30, 2024 compared to the three and six months ending June 30, 2023 respectively.
• Customer Demand: For the first time in the company's history, it has signed agreements with customers waiting for installation reflecting high demand for iCore’s solutions, including the newly launched Fintech product, iCorePay.

Operational and Strategic Developments

• Operating Expenses: Operating expenses increased due to a one-time, non-recurring charge of $4.8 million. This charge is related to stock-based compensation awarded to certain officers and employees in recognition of the Company's Nasdaq listing and merger with FG Merger Corp in 2023.
• Artificial Intelligence Integration: The Company has implemented artificial intelligence (AI) in its support division and is testing AI across various solutions. Notably, iCoreConnect sees significant potential in leveraging AI for its ICD-10 coding and insurance verification software, promising exciting developments soon.
• Channel Relationships: iCoreConnect continued to expand its relationships with companies such as mConsent, Arthur/Marshall, independent HIPAA consultants, and various state associations, including the California Association of Orthodontists and Tennessee Dental Associations. These relationships enhance value for end users by enabling them to access multiple solutions with a single sign-on through the iCoreEnterprise platform, seamlessly integrating with existing practice management software.

Debt Restructuring

As part of its strategy to improve cash flow management, iCoreConnect has successfully reached restructuring agreements with certain of its convertible noteholders. These agreements cover approximately $3.6 million in combined principal and accrued interest, originally due in 2024. The majority of maturities have now been extended to August 1, 2027, with all principal and interest payable at that time. Upon shareholder approval, noteholders will have the option to convert their notes into common stock at a conversion price of $0.80 per share, with mandatory conversion required if the common stock price exceeds $1.04.

This debt restructuring provides the Company with an additional runway to preserve cash and support ongoing growth initiatives.

About iCoreConnect, Inc. (NASDAQ: ICCT)

iCoreConnect Inc. is a market leading, cloud-based software and technology company focused on increasing workflow productivity and practice profitability through its enterprise and healthcare workflow platform of applications and services. iCoreConnect is most notably known for its innovation in solving healthcare business problems. iCoreConnect’s philosophy places a high value on customer feedback, positioning iCoreConnect to respond to the market’s needs. iCoreConnect touts a platform of 16 SaaS enterprise solutions and more than 130 product endorsements with state or regional healthcare associations across the United States.

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 Q2 2024?

iCoreConnect (ICCT) reported a 66% revenue increase in Q2 2024, with revenue rising from $1.6 million in Q2 2023 to $3.1 million in Q2 2024.

How did iCoreConnect's (ICCT) gross profit margins change in Q2 2024?

iCoreConnect's (ICCT) gross profit margins improved from 74% to 80% for both the three and six months ending June 30, 2024, compared to the same periods in 2023.

What new product did iCoreConnect (ICCT) launch in Q2 2024?

iCoreConnect (ICCT) launched a new Fintech product called iCorePay, which contributed to high customer demand in Q2 2024.

How much debt did iCoreConnect (ICCT) restructure in Q2 2024?

iCoreConnect (ICCT) successfully restructured approximately $3.6 million in debt, extending the majority of maturities to August 1, 2027.

How is iCoreConnect (ICCT) implementing artificial intelligence in its business?

iCoreConnect (ICCT) has implemented AI in its support division and is testing AI across various solutions, with potential applications in ICD-10 coding and insurance verification software.