Issuer Direct Corporation reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for Q3 2024 was $6,953,000, an 8.1% decrease from $7,569,000 in Q3 2023. For the nine-month period, revenue fell 16.4% to $21,602,000 from $25,839,000 in the prior year. The revenue breakdown indicated that Communications contributed $5,481,000 (78.8% of total revenue) in Q3 2024, while Compliance generated $1,472,000 (21.2%).
Gross profit for Q3 2024 was $5,172,000, down from $5,772,000 in Q3 2023, with a gross margin percentage of 74%, a decrease from 76% year-over-year. Operating income also declined, reporting $156,000 in Q3 2024 compared to $593,000 in Q3 2023. The company experienced a net loss of $(466,000) for Q3 2024, contrasting with a net income of $273,000 in the same quarter of the previous year. For the nine-month period, the net loss was $(598,000), compared to a net income of $1,492,000 in 2023.
Total operating costs and expenses for Q3 2024 were $5,016,000, slightly reduced from $5,179,000 in Q3 2023. General and administrative expenses decreased by 1% to $2,008,000, while sales and marketing expenses fell by 12% to $1,618,000. Product development expenses increased by 15% to $671,000, reflecting ongoing investments in technology.
The company’s current assets decreased to $10,033,000 as of September 30, 2024, from $11,504,000 at the end of 2023. Cash and cash equivalents also declined to $4,086,000 from $5,714,000. Total liabilities decreased to $26,459,000 from $29,732,000, with long-term debt reduced to $12,926,000 from $15,913,000.
Issuer Direct entered into a $25 million credit agreement with Pinnacle Bank in March 2023, which includes a $20 million term loan and a $5 million revolving line of credit. As of September 30, 2024, there was no outstanding balance under the revolving line of credit.
Strategically, the company is focusing on expanding its Communications products and adapting to industry changes, with plans to align sales and marketing teams to enhance offerings. The company is also evaluating acquisitions to strengthen its market position. Despite the challenges, management believes that demand for its ACCESSWIRE and Newswire brands remains stable amid global economic uncertainties.
About ISSUER DIRECT CORP
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