QuoteMedia Announces Financial Results for Q3 2024

/EIN News/ -- PHOENIX, Nov. 14, 2024 (GLOBE NEWSWIRE) -- QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the quarter ended September 30, 2024.

QuoteMedia provides banks, brokerage firms, private equity firms, financial planners and sophisticated investors with a more economical, higher quality alternative source of stock market data and related research information. We compete with several larger legacy organizations and a modest community of other smaller companies.  QuoteMedia provides comprehensive market data services, including streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (financial content for website integration) and applications such as Quotestream Professional desktop and mobile. 

Highlights for Q3 2024 include the following:

• Quarterly revenue decreased by $66,597 (1%) to $4,695,845 in Q3 2024 from $4,762,442 in 2023.
• Deferred revenue increased $160,656 (8%) during the quarter.
• Adjusted EBITDA for Q3 2024 was $366,549 compared to $719,547 in Q3 2023, a reduction of $352,998.
  

“This has been a challenging quarter for QuoteMedia”, said Robert J. Thompson, Chairman of the Board. “Once again, our revenue numbers do not provide as clear a picture as we could hope. We had an increase in deferred revenue of $160,656 this quarter. A significant portion of our deferred revenue relates to initial set-up and development fees for the upfront work we perform to build and customize products for clients. This revenue is paid to us in advance, but we are required to recognize the revenue over the life of the contract, even when the work has long been completed.

“Also, during the quarter, a significant client discontinued using our services due to their financial struggles. This not only had the effect of reducing our revenue, but also resulted in a significant increase in our bad debt allowance and expenses over concerns that this client may not be able to pay its outstanding invoices. This has negatively impacted our profitability.

“We have completed several important development projects; and going forward we expect to see our spending reduced in that regard. With several new prospective client signings on the horizon, and with the implementation of additional cost optimization measures, we expect to see an improvement in revenue growth and profitability in 2025.”

QuoteMedia will host a conference call November 19, 2024, at 2:00 PM Eastern Time to discuss the Q3 2024 financial results and provide a business update.

Conference Call Details:

Date: November 19, 2024

Time: 2:00 PM Eastern Time

Dial-in number: 888-999-3182; 848-280-6330

Conference ID: QUOTEMEDIA

An audio rebroadcast of the call will be available later at: www.quotemedia.com

About QuoteMedia

QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, IEX Data Services LLC, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase, Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities, Avantax, Zacks Investment Research, S&P Global Market Intelligence Inc., Business Wire, Cision (PR Newswire, CNW Group), The Goldman Sachs Group, TheStreet.com, Motley Fool, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Aviso Financial Inc., iA Private Wealth, Leede Jones Gable, Firstrade Securities, Lightspeed Financial Services Group LLC, Equisolve, Stock-Trak and others. Quotestream®, QMod™ and Quotestream Connect™ are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.

Statements about QuoteMedia's future expectations, including future revenue, earnings, and transactions, as well as all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements involve risks and uncertainties that are identified from time to time in the Company's SEC reports and filings and are subject to change at any time. QuoteMedia's actual results and other corporate developments could differ materially from that which has been anticipated in such statements.

Below are the specific forward-looking statements included in this press release:

• We have completed several important development projects; and going forward we expect to see our spending reduced in that regard. With several new prospective client signings on the horizon, and with the implementation of additional cost optimization measures, we expect to see an improvement in revenue growth and profitability in 2025
  

QuoteMedia Investor Relations

Dave Shworan
Email: dave@quotemedia.com 
Call: (250) 954-3216 ext. 2101

Note 1 on Non-GAAP Financial Measures

We believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.

We define and calculate Adjusted EBITDA as net income attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.

QuoteMedia, Inc. Adjusted EBITDA Reconciliation to Net Income:

Three-months ended September 30,	2024				2023
Net (loss) income	$	(440,941	)		$	126,036
Depreciation and amortization		774,947				672,588
Stock-based compensation		-				(57,188	)
Interest expense		(76	)			(825	)
Foreign exchange (loss) gain		31,881				(21,803	)
Income tax expense		738				739
Adjusted EBITDA	$	366,549			$	719,547