QuoteMedia, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a decline in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue was $4.7 million, a slight decrease from $4.8 million in the prior year. For the nine-month period, revenue also fell to $14.1 million from $14.2 million in 2023, marking a 1% decline.

Gross profit for the third quarter decreased to $2.2 million, down from $2.5 million in 2023, while gross profit for the nine months was $6.8 million, compared to $7.3 million in the previous year. The gross margin percentage declined to 46% for the third quarter and 48% for the nine months, down from 52% and 51%, respectively, in 2023. This decline in gross margin was attributed to a 10% increase in the cost of revenue for the third quarter and a 5% increase for the nine months.

Operating income turned negative, with a loss of $408,398 for the third quarter and $720,629 for the nine months, contrasting with operating income of $104,147 and $331,885 in the same periods of 2023. The net loss before income taxes for the third quarter was $(440,203), compared to a profit of $126,775 in the prior year. The net loss for the nine months was $(720,290), a significant shift from a net income of $312,362 in 2023.

Cash and cash equivalents decreased to $291,217 as of September 30, 2024, down from $342,014 at the end of 2023. The company reported a working capital deficit of $3.3 million, which includes $2.0 million in deferred revenue. Despite these challenges, management indicated that cash on hand and generated from operations should be sufficient to fund current operations for at least the next 12 months.

Strategically, QuoteMedia is focusing on expanding its product lines and improving infrastructure, with plans to enhance its Quotestream applications for brokerage clients. The company is also exploring the creation of proprietary data sets and expanding its client base in Data Feed Services. However, management acknowledged the potential need for additional capital to support future operations, which may be impacted by current adverse capital market conditions.

As of September 30, 2024, QuoteMedia had 90,477,798 shares of common stock outstanding and reported an accumulated deficit of $(20.6 million). The company continues to face challenges in its financial performance, with management noting material weaknesses in internal controls over financial reporting.