SilverSun Technologies Reports First Quarter 2024 Results

Rhea-AI Summary

SilverSun Technologies, Inc. (NASDAQ:SSNT) reported positive first quarter 2024 results, with total revenue reaching $14.4 million, software sales up by 4.7%, and service revenues increasing by 11.7%. Gross profit grew by 5.6%, but EBITDA decreased by $161,626. Net income was $138,087, with earnings per share at $0.03. The company is progressing with a transaction with Brad Jacobs and Jacobs Private Equity, with a shareholder meeting scheduled for May 30, 2024.

Positive

• Total revenue for SilverSun Technologies increased to $14.4 million in the first quarter of 2024, marking the highest first quarter figure in the company's history.

• Software sales saw a 4.7% growth, reaching $3.48 million, showcasing a positive trend in the company's product offerings.

• Service and other revenues, including managed and professional services, experienced a significant 11.7% increase, indicating strong demand for the company's services.

• Gross profit increased by 5.6%, reaching $5.66 million, reflecting the company's ability to effectively manage costs and enhance profitability.

• While EBITDA decreased by $161,626, the company's financial performance remained robust, showcasing resilience despite challenges.

• The net income for the quarter stood at $138,087, with earnings per basic and diluted share at $0.03, demonstrating a stable financial position.

Negative

• None.

Insights

Financial Analyst

SilverSun Technologies' Q1 2024 results signify a mixed financial performance with top-line growth and a bottom-line contraction. A 10.0% year-over-year increase in total revenue to $14.4 million showcases a robust sales expansion, where service and other revenues lead with an 11.7% increase, indicating a growing demand for the company's services. The software sales growth of 4.7%, although positive, might suggest a slower pace in product adoption or competitive pressures in the market. However, investors should consider the dip in EBITDA, which declined 24.3% from the previous year, signaling a potential increase in operational costs or lower gross margins. A net income decrease from $277,491 to $138,087 further corroborates this trend, reflecting a possible challenge in maintaining profitability amidst growth. For long-term stakeholders, the ongoing transaction with Jacobs Private Equity and the upcoming shareholder vote are critical developments that could reshape the company's strategic direction and market valuation.

Market Research Analyst

The announcement from SilverSun Technologies points to a positive market and consumer sentiment within their sector, as reflected in the increased revenues from services. This suggests that their client base is experiencing economic confidence and willing to invest in technology solutions for future growth. Particularly, the uptick in managed and professional services could indicate that businesses are focusing on efficiency and outsourcing technology needs, which may be a ripe opportunity for SilverSun. Moving forward, the outcome of the shareholder's meeting related to the Jacobs Private Equity transaction will be pivotal. If approved, it could either propel the company towards greater expansion through additional capital infusion and strategic alignments or create a pivot in its business operations, impacting investor sentiment and stock performance. Retail investors should monitor this closely as it may have significant implications on the company's financial health and stock trajectory.

EAST HANOVER, NJ / ACCESSWIRE / May 7, 2024 / SilverSun Technologies, Inc. (NASDAQ:SSNT), a national provider of transformational business technology solutions and services, today announced its first quarter results for the three months ended March 31, 2024.

Financial Highlights for Three Months Ended March 31, 2024 as Compared to Three Months Ended March 31, 2023:

• Total revenue was $14,435,555, compared with $13,127,738, an increase of 10.0%.
• Software sales were $3,480,001, compared with $3,322,329, an increase of 4.7%.
• Service and other revenues totaled $10,955,554, compared with $9,805,409, an increase of 11.7%.
• Gross profit was $5,657,487, compared with $5,357,560, an increase of 5.6%.
• Earnings before taxes, interest, depreciation and amortization ("EBITDA"), plus share-based compensation, were $503,910, compared with earnings before taxes, interest, depreciation and amortization, plus share-based compensation, of $665,536, a decrease of 161,626.
• Net income was $138,087, or $0.03 earnings per basic and diluted share, compared to net income was $277,491, or $0.05 earnings per basic and diluted share.

For more details on SilverSun's first quarter results, please refer to the Company's 10-Q filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.

Commenting on the results, Mark Meller, Chairman and CEO of SilverSun, stated, "This was a solid quarter for the company. Total revenue was $14.4 million, our highest first quarter figure ever. Software sales were up 4.7% over last year. Service and other revenues, which includes managed and professional services, was up 11.7%. We generally had positive results and contributions across our entire platform, including professional consulting, application hosting, infrastructure-as-a-service, and development.

"The company continues to move forward with its previously announced transaction with Brad Jacobs and Jacobs Private Equity. A shareholder's meeting is scheduled for May 30, 2024, at which time stockholders will have the opportunity to vote to approve that transaction. Following such approval, if secured, the parties will work to close the transaction on or before October 15, 2024."

Meller concluded, "Our customers and prospects seem to feel confident about their economic outlook, both in the short and long term, and continue to invest in their systems and infrastructure for the future. As a result, the Company is well positioned for success, and we look forward to delivering more positive news and results in the coming quarters."

About SilverSun Technologies, Inc.

We are a business application, technology and consulting company providing software and IT solutions to meet our clients' information, technology and business management needs. Our services and technologies enable customers to manage, protect and monetize their enterprise assets whether on-premise or in the "cloud". As a value-added reseller of business application software, we offer solutions for accounting and business management, financial reporting, Enterprise Resource Planning ("ERP"), Warehouse Management Systems ("WMS"), Customer Relationship Management ("CRM"), Business Intelligence ("BI") and other business applications. Our value-added services focus on consulting and professional services, specialized programming, training, and technical support. We have a dedicated network managed services practice that provides cybersecurity, application hosting, disaster recovery, business continuity, cloud and other services. Our customers are nationwide, with concentrations in the New York/New Jersey metropolitan area, Chicago, Arizona, Southern California, North Carolina, Washington and Oregon.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to SilverSun Technologies, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

Contact:

Corporate
Mark Meller
SilverSun Technologies, Inc.
973-758-6108
meller@silversuntech.com

SOURCE: SilverSun Technologies, Inc.

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