QuoteMedia Announces 15% Revenue Growth for Q3 2022
QuoteMedia, Inc. (OTCQB: QMCI) reported a 15% revenue increase for Q3 2022, reaching $4,390,667 compared to $3,818,713 in Q3 2021. Gross margin improved to 52% from 47%, and net income rose to $309,543 from $154,931. Adjusted EBITDA increased to $670,145 from $539,534. However, due to the depreciation of the Canadian dollar, the company revised its 2022 revenue growth forecast to 16% from 19%. Despite this challenge, management anticipates increased profitability in future quarters.
- Quarterly revenue increased by 15% to $4,390,667.
- Gross margin improved to 52%, up from 47% in Q3 2021.
- Net income grew to $309,543, a 100% increase year-over-year.
- Adjusted EBITDA rose to $670,145, an improvement of 24% from the prior year.
- Established major agreements with high-profile clients, including two large Canadian banks.
- Revised revenue growth forecast for 2022 down to 16% from 19% due to Canadian dollar depreciation.
PHOENIX, Nov. 10, 2022 (GLOBE NEWSWIRE) -- QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the quarter ended September 30, 2022.
QuoteMedia provides banks, brokerage firms, private equity firms, financial planners and sophisticated investors with a more economical, higher quality alternative source of stock market data and related research information. We compete with several larger legacy organizations and a modest community of other smaller companies. QuoteMedia provides comprehensive market data services, including streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (financial content for website integration) and applications such as Quotestream Professional and Quotestream Web Trader.
Highlights for Q3 2022 include the following:
- Quarterly revenue increased to
$4,390,667 in Q3 2022 from$3,818,713 in Q3 2021, an increase of$571,954 (15% ). - Gross Margin percentage improved to
52% in Q3 2022, compared to47% in Q3 2021. - Net income for Q3 2022 was
$309,543 compared to$154,931 in Q3 2021, an increase of$154,612. - Adjusted EBITDA for Q3 2022 was
$670,145 compared to$539,534 in Q3 2021, an improvement of$130,611.
"We are very pleased with what we accomplished this quarter, and over the year to date," said Robert J. Thompson, Chairman of the Board. "We have closed several major agreements with high profile clients including two of Canada’s largest banks, with the second contract commencing in November 2022. We achieved record profits this quarter, and we expect to improve upon this moving forward. We anticipate that the pace of our revenue growth will continue in the coming quarters, with the launch of more enterprise deployments and exciting partnerships.
"We have made extensive time and financial investments into operations and infrastructure improvements this year, to ensure we are able to provide the highest levels of service, support and security for our clients, and we expect that these investments will yield dividends in the months and years to come.
"Due to the significant devaluation of the Canadian dollar, we are revising our revenue growth projection for the 2022 year. A substantial number of our contracts (and new contracts) are denominated in Canadian dollars, and this is re-measured into US Dollars when reporting our financial results. We are now projecting a
QuoteMedia will host a conference call Thursday, November 10, 2022 at 2:00 PM Eastern Time to discuss the Q3 2022 financial results and provide a business update.
Conference Call Details:
Date: November 10, 2022
Time: 2:00 PM Eastern
Dial-in number: 800 445-7795; 203-518-9843
Conference ID: QUOTEMEDIA
An audio rebroadcast of the call will be available later at: www.quotemedia.com
About QuoteMedia
QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase, Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities, HD Vest, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Telus International, Business Wire, PR Newswire, FolioFN, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Qtrade Financial, CNW Group, IA Private Wealth, Ally Invest, Inc., Suncor, Leede Jones Gable, Firstrade Securities, Charles Schwab, First Financial, Equisolve, Stock-Trak, Mergent, Cision, Warrior Trading and others. Quotestream®, QModTM and Quotestream ConnectTM are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.
Statements about QuoteMedia's future expectations, including future revenue, earnings, and transactions, as well as all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements involve risks and uncertainties that are identified from time to time in the Company's SEC reports and filings and are subject to change at any time. QuoteMedia's actual results and other corporate developments could differ materially from that which has been anticipated in such statements.
Below are the specific forward-looking statements included in this press release:
- We achieved record profits this quarter, and we expect to improve upon this moving forward. We anticipate that the pace of our revenue growth will continue in the coming quarters, with the launch of more enterprise deployments and exciting partnerships.
- Due to the significant depreciation of the Canadian dollar, we are revising our revenue growth projection for the 2022 year. A substantial number of our contracts (and new contracts) are denominated in Canadian dollars, and this is re-measured into US Dollars when reporting our financial results. We are now projecting a
16% revenue growth for 2022, down from19% . This will not have a meaningful impact on our bottom-line profitability, though, as our Canadian dollar revenue and expenses are almost equal. In fact, we anticipate significantly increased profitability in upcoming quarters.
QuoteMedia Investor Relations
Brendan Hopkins
Email: investors@quotemedia.com
Call: (407) 645-5295
Note 1 on Non-GAAP Financial Measures
We believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.
We define and calculate Adjusted EBITDA as net income attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.
QuoteMedia, Inc. Adjusted EBITDA Reconciliation to Net Income
| Three months ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| Net income | $ | 309,543 | $ | 154,931 | ||||
| Depreciation and amortization | 545,076 | 432,051 | ||||||
| Stock-based compensation | (82,888 | ) | 6,939 | |||||
| Interest expense (income), net | (10 | ) | 101 | |||||
| Foreign exchange gain | (102,327 | ) | (55,278 | ) | ||||
| Income tax expense | 751 | 790 | ||||||
| Adjusted EBITDA | $ | 670,145 | $ | 539,534 | ||||
FAQ
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