CreditRiskMonitor.com, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting both revenue growth and challenges in profitability compared to the previous fiscal period.

For the third quarter of 2024, operating revenues reached $5,009,370, marking a 5% increase from $4,792,869 in Q3 2023. This growth was attributed to higher sales of SaaS subscription products and related price increases. Income from operations also improved, rising to $449,254 from $306,146 year-over-year. Net income for the quarter was $551,582, up from $378,677 in Q3 2023, indicating a positive trend in profitability.

However, for the nine months ended September 30, 2024, total operating revenues increased to $14,751,845 from $14,066,112 in the same period of 2023, a growth of approximately 5%. Despite this revenue growth, total operating expenses rose significantly to $14,364,077 from $13,145,161, leading to a decline in income from operations to $387,768, down from $920,951 in the prior year. Net income for the nine-month period also decreased to $808,175 from $1,105,308 in 2023.

The increase in operating expenses was primarily driven by higher data and product costs, which rose by 13% due to increased salary expenses and third-party content costs. Selling, general, and administrative expenses also saw a 6% increase, attributed to higher salaries and customer acquisition costs. Conversely, the company experienced a rise in other income, benefiting from higher interest rates on held-to-maturity securities.

As of September 30, 2024, the company reported cash and cash equivalents of $7,888,033, a decrease from $11,004,937 at the end of 2023. This decline was largely due to net cash used in investing activities, totaling approximately $5.3 million, despite net cash provided by operating activities of $2.2 million. The company’s total assets increased to $25,730,566 from $24,072,515, while total stockholders’ equity rose to $10,249,953 from $9,367,886.

Strategically, CreditRiskMonitor is focused on enhancing brand awareness, subscriber value, and sales volume to improve profitability. Plans include expanding the sales force and service staff, as well as investing in product development and marketing. The company anticipates increased sales and marketing expenses in the coming years, alongside rising product development costs due to hiring more personnel. The management remains cautious of potential fluctuations in quarterly results due to various market and operational factors.