iCoreConnect Reports Record Third Quarter 2021 Results

Rhea-AI Summary

iCoreConnect, Inc. (OTCQB: ICCT) reported a remarkable 158% revenue growth in Q3 2021, reaching $1.4 million compared to $0.5 million in Q3 2020. The increase was attributed to a rise in active subscriptions, now exceeding 18,000, and an expanded service offering.

The gross profit surged 269% to $0.9 million, with a gross margin of 69%. However, total operating expenses rose by 70% to $1.7 million. The company also launched the iCoreVerify platform, enhancing patient benefit verifications.

Positive

• Revenue increased by 158% to $1.4 million compared to Q3 2020.
• Gross profit rose by 269% to $0.9 million, with a gross margin of 69%.
• Active subscriptions surpassed 18,000.
• Launch of iCoreVerify, streamlining patient benefit verification.
• Acquisition of Spectrum Technology Solutions enhances service offerings.

Negative

• Operating expenses increased 70% to $1.7 million.
• Operating loss remained steady at $0.7 million.

Revenue Growth of 158% to $1.4 Million, Surpassed 18,000 Active Subscriptions

WINDERMERE, FL, Nov. 15, 2021 (GLOBE NEWSWIRE) -- iCoreConnect, Inc. (OTCQB: ICCT) (“we,” “our,” or the “Company”), a cloud-based, Software-as-a-Service (SaaS) platform for healthcare business workflow, today announced the Company's financial results for the third quarter ended September 30, 2021 (“Q3 2021”).

Key Business Highlights 

• Introduced iCoreVerify automated, real-time verification of benefits up to a week in advance for all scheduled patients. iCoreVerify compresses a previously hours or days-long process into a single click by providing dental practices immediate access to benefit coverage from more than 2,100 insurance companies. 
• Closed acquisition of Spectrum Technology Solutions, a Managed Services, Data Backup, Data Discovery, Strategic IT Leadership & vCIO, Cloud Services, Cybersecurity and Encryption provider
• Appointed new Chief Financial Officer, Archit Shah.
• More than doubled its sales force

“iCoreConnect has advanced the tremendous organic growth of last quarter.” stated Robert McDermott, iCoreConnect’s Chief Executive Officer. “With the addition of iCoreVerify to our already extensive customer offering, we’re giving our rapidly growing healthcare customer base the cloud-based software it needs to meet the demands of the 21st century. Recent product endorsement expansions of the Maryland, Michigan, and California Dental Associations further validates our trajectory in the fourth quarter and beyond.”

Financial Results for the Three Months Ended September 30, 2021:

• Revenue: For the three months ended September 30, 2021, revenue was $1.4 million, an increase of $0.8 million, or 158%, compared with $0.5 million for the three months ended September 30, 2020. This increase was primarily due to an increase in active subscribers and an increase in service offerings across our platform. 
  
  
• Gross Profit: For the three months ended September 30, 2021, gross profit was $0.9 million, an increase of $0.7 million, or 269%, compared with $0.3 million for the three months ended September 30, 2020. The resulting gross margin was 69%, compared with 48% for the same quarter last year. 
  
  
• Profit Margins: Management believes the business will continue to scale in future periods, leading to higher profit margins than historically experienced. The Company has been able to lower marginal costs since 2020 and expects to see gross margins continue to increase in future periods.
  
  
• Total Operating Expenses: For the three months ended September 30, 2021, total operating expenses were $1.7 million, an increase of $0.7 million, or 70%, compared with $1 million for the same quarter last year. Operating expenses as a percentage of revenue decreased to 124% from 184% for the quarter just ended, continuing the Company's structured focus on increasing revenue, reducing expenses, and performing more efficiently.
  
  
• Operating Expenses: Of note, $0.4 million of the Company's operating expenses for the three months ended September 30, 2021 were non-cash expenses, including depreciation, amortization and stock-based compensation.
  
  
• Operating Loss: For the three months ended September 30, 2021, operating loss was $0.7 million, compared with an operating loss of $0.7 million for the same quarter last year.
  
  

The Company filed its Form 10-Q on November 15, 2021.

Conference Call 
The iCoreConnect conference call is scheduled to begin at 8:30 am ET on Tuesday, November 16, 2021. Participants should dial 877-269-7756 (United States) or 201-689-7817 (International). 

About iCoreConnect, Inc.
iCoreConnect is a cloud-based software and technology company focused on increasing profit and operational speed in high-compliance industries. iCoreConnect is most notably known for its innovation in solving healthcare business problems. The company’s philosophy places a high value on customer feedback, allowing iCoreConnect to respond to the market’s needs. iCoreConnect touts a platform of 15 SaaS enterprise solutions and more than 70 agreements with state or regional healthcare associations across the U.S. iCoreConnect is a member of the prestigious StartUp Health accelerator.

Forward Looking Statements
In this news release, the use of the words "believe," "could," "expect," "may," "positioned," "project," "projected,' "should," "will," "would" or similar expressions are intended to identify forward-looking statements that represent the Company's current judgment about possible future events. The Company believes these judgments are reasonable, but these statements are not guarantees of any events or financial results, and actual results may differ materially due to a variety of important factors.

Use of Non-GAAP Financial Measures
This press release includes both financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”), as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to and should not be considered as alternatives to any other GAAP financial measures. They may not be indicative of the historical operating results of iCoreConnect nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

iCoreConnect’s management uses and relies on EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that both management and shareholders benefit from referring to EBITDA and Adjusted EBITDA in planning, forecasting and analyzing future periods. The Company’s management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. The Company’s management recognizes that EBITDA and Adjusted EBITDA, as non-GAAP financial measures, have inherent limitations because of the described excluded items.

The Company defines EBITDA as net income before income tax expense (benefit), interest expense, depreciation and amortization. Adjusted EBITDA represents EBITDA plus stock-based compensation and the fair value of options, restricted stock awards, restricted stock units, and warrants issued in exchange for services. iCoreConnect believes EBITDA and Adjusted EBITDA are important measures of iCoreConnect’s operating performance because they allow management, investors and analysts to evaluate and assess iCoreConnect’s core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.

A reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measure, net loss, calculated in accordance with GAAP is included in this press release. The Company believes that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between iCoreConnect and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.

FAQ

What was iCoreConnect's revenue for Q3 2021?

iCoreConnect reported revenue of $1.4 million for Q3 2021, a 158% increase from Q3 2020.

How many active subscriptions does iCoreConnect have?

iCoreConnect has surpassed 18,000 active subscriptions as of Q3 2021.

What are the key highlights from iCoreConnect's Q3 2021 report?

Key highlights include the introduction of iCoreVerify and the acquisition of Spectrum Technology Solutions.

What was the gross profit for iCoreConnect in Q3 2021?

The gross profit for Q3 2021 was $0.9 million, a 269% increase from the previous year.

What are the total operating expenses reported by iCoreConnect for Q3 2021?

Total operating expenses for Q3 2021 were $1.7 million, a 70% increase from Q3 2020.