Intellinetics, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and operational expenses compared to the previous fiscal period.

For Q3 2024, Intellinetics generated revenues of $4.59 million, an 8.0% increase from $4.25 million in Q3 2023. For the nine-month period, revenues rose to $13.74 million, up 8.2% from $12.69 million in the same period last year. The growth was driven primarily by increases in professional services and Software as a Service (SaaS) revenues, which saw respective increases of 11.5% and 8.5% year-over-year in Q3 2024. SaaS revenues for the nine-month period also increased by 10.5%, attributed to new cloud-based solution sales and expanded service offerings.

Despite the revenue growth, the company reported a net loss of $392,850 for Q3 2024, contrasting with a net income of $209,331 in Q3 2023. For the nine-month period, the net loss was $492,514, compared to a net income of $457,628 in the prior year. The losses were largely due to a significant increase in operating expenses, which rose 37.3% to $3.10 million in Q3 2024, driven by higher general and administrative costs and share-based compensation expenses.

Total liabilities decreased to $8.59 million as of September 30, 2024, from $9.28 million at the end of 2023, while total stockholders' equity increased to $10.44 million from $9.75 million. The company’s cash position improved significantly, with cash and cash equivalents rising to $2.50 million from $1.22 million at the end of 2023.

Intellinetics continues to focus on its two reporting segments: Document Management and Document Conversion. The Document Conversion segment reported increased revenues, while the Document Management segment saw a slight decline in cost of revenues. The company has also been proactive in managing its debt, having prepaid $1.65 million of its principal balances on notes payable in 2024.

The company’s workforce expanded to 199 employees as of September 30, 2024, compared to 165 a year earlier, reflecting its growth strategy and operational needs. Overall, while Intellinetics experienced revenue growth, it faced challenges in profitability due to rising operational costs and strategic investments.