Tag: Analysts

Release – QuoteMedia Announces 8% (10% FXN) Revenue Growth for Q3 2023

Posted on by aweinsoff@channelchek.com

Research News and Market Data on QMCI

PHOENIX, Nov. 13, 2023 (GLOBE NEWSWIRE) — QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the quarter ended September 30, 2023.

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), analytics and research, trade integration, web content solutions (financial content for website integration) and applications such as Quotestream Professional and Quotestream Web Trader.

Highlights for Q3 2023 include the following:

  • Quarterly revenue increased by 8% to $4,762,442 in Q3 2023 from $4,390,667 in Q3 2022, an increase of $371,775.
  • On an FX-neutral basis (FXN), revenue growth for Q3 2023 vs Q3 2022 was 10% (1) .
  • Adjusted EBITDA for Q3 2023 was $719,547 compared to $670,145 in Q3 2022, an improvement of $49,402 (7%) (1) .
  • Deferred revenue was $2,049,664 at September 30, 2023. This is an $882,816 (76%) increase from the $1,166,848 deferred revenue balance at December 31, 2023.

“This has been another good quarter for QuoteMedia,” said Robert J. Thompson, Chairman of the Board. “We have closed and launched important new clients, and completed substantial product development, all of which will lead to continuing revenue growth. Additionally, we have a healthy sales pipeline and are continuing exploratory discussions with several large firms about major deployments. We are now enjoying increasing market penetration as our successes over past periods are gaining notice throughout the industry.”

QuoteMedia will host a conference call Tuesday, November 14, 2023 at 2:00 PM Eastern Time to discuss the Q3 2023 financial results and provide a business update.

Conference Call Details:

Date: November 14, 2023

Time: 2:00 PM Eastern

Dial-in numbers: 800-343-4136; 203-518-9814

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, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase, Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities, Avantax, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Telus International, Business Wire, PR Newswire, The Goldman Sachs Group, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Credential Qtrade Securities, CNW Group, iA Private Wealth, Ally Invest, Inc., Suncor, Leede Jones Gable, Firstrade Securities, Charles Schwab, First Financial, Equisolve, Stock-Trak, Mergent, Cision and others. Quotestream®, QMod TM and Quotestream Connect TM 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.

QuoteMedia Investor Relations

Brendan Hopkins
Email: investors@quotemedia.com
Call: (407) 645-5295

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 30,20232022
Net income$126,036$309,543
Depreciation and amortization672,588545,076
Stock-based compensation(57,188)(82,888)
Interest income, net(825)(10)
Foreign exchange gain(21,803)(102,327)
Income tax expense739751
Adjusted EBITDA$719,547$670,145

In addition to the non-GAAP measures discussed above, we also analyze certain measures, including net revenues and operating expenses, on an FX-neutral basis to better measure the comparability of operating results between periods. Management believes that changes in foreign currency exchange rates are not indicative of the company’s operations and evaluating growth in net revenues and operating expenses on an FX-neutral basis provides an additional meaningful and comparable assessment of these measures to both management and investors. FX-neutral results are calculated by translating the current period’s local currency results with the prior period’s exchange rate. FX-neutral growth rates are calculated by comparing the current period’s FX-neutral results by the prior period’s results.

News Provided by GlobeNewswire via QuoteMedia

How Equity Analysts Can Improve Your Performance in 2023

Posted on by phoffman@channelchek.com
Image Credit: Kampus Productions (Pexels)

Everything You Always Wanted to Know About Equity Analysts* (*But Were Afraid to Ask)

Determining the potential of a company stock involves more time and perhaps more understanding than the average self-directed investor can provide. Fortunately, there are investment analysts that specialize in equities and spend their days staying current on the industry, individual companies, and the risks associated with the overall market. The investment world is becoming more transparent as the work of these well-educated professionals has become more accessible to DIY investors.

Just what is it that equity analysts do, and how do individual and professional investors benefit from their work?

The Value of Equity Analysts

Equity analysts have a deep understanding of company financials. This begins with formal education, as most true analysts have an accounting background that may include an MBA and, in many cases, the highly esteemed Chartered Financial Analyst (CFA) designation.

In addition to being able to read and pull data for analysis from financials, they understand the industries they cover. This is important because external trends up or down in input prices or competition will impact the whole sector, including the companies they cover. A macro view of what is impacting the industry is foundational to understanding a company within the industry.

For individual investment opportunities, the analysts’ focus is on the equity portion of the capital structure, but understanding debt levels and factors that could impact debt financing is critical to building an overall financial picture. Comparing the financial structure to company goals and initiatives provides information on how realistic they may or may not be based on internal factors.

Using data from the past and present, an analyst will build a model tailored to the specific company. These models are usually detailed spreadsheets with many interconnections between the various categories. The models generally include industry growth trends, the company’s own numbers (past, current, and projected scenarios), and then what-if scenarios. Financial models are a tool used to estimate the valuation of the company, how it changes under various scenarios, and then compare the business to its peers.

Shocking a forecast for different risks is important to assess the overall risk to the forecast.

Learn More

The main risks impact different industries differently. For example, a healthcare company may be more or less immune to inflation, a mining operation could benefit from it, and a hospitality-based business could be hurt by it. Analysts assess the potential impacts of known risks and weigh them into their evaluation.

Primary Risks

The primary risks impacting any industry could be thought of as Business Risks, the challenges of a particular company’s circumstances. This could include the ability to hire talent, legal changes that could be impactful, natural resource availability, etc.

Market Risk or systemic risk is the idea that a sinking stock market will weigh on all stocks. While an analyst may choose top performers if the price target assigned was from an evaluation under average market growth of X%, an actual experience of negative Y% is a risk to the forecast.

Sovereign Risk has become a much bigger concern as trading partners like Russia, and China has shown us that politics and business policies can greatly impact U.S. trading partners. This risk tends to be greater among large international companies.

Foreign Exchange Risk. An analyst will review the impact of conversion back to the native currency and profit impacts. They may even project whether customers could be lost if the U.S. dollar becomes too costly.

Inflation Risk, what might the impact be on the company under various possible scenarios? A company with a large inventory may actually go through a beneficial period while prices are rising.

Interest Rate Risk is the real threat of inflation because it typically raises the cost of money. If the company is a large borrower and will be rolling maturing debt at new interest rate levels, the analyst will determine how this impacts operating costs and profit going forward.

Liquidity Risk. If a company’s stock is not well followed and trades sporadically, selling shares to raise capital may be severely hindered and, therefore, negatively impact the company’s ability to finance its business plan. What is interesting to note here is that analyst coverage of a company by itself has been shown to improve a stock’s liquidity. This is because more information about companies, even if not positive, helps investors understand the company, its risks, and its value.

Equity analysts benefit investors (retail and institutional) that are looking for information and an evaluation from a professional to weigh against their own evaluation. But they also benefit issuers as their stock may get less attention if there is minimal quality information available.

Direct Access to Management

Analysts essentially have a hotline to the covered company’s CEO and CFO to ask questions and get details of any change within the company or outside change that may impact results. Most investors don’t have this, so relying on analysts takes on even more importance.

Nuances Known to Analysts

The best reason to check the thoughts and forecasts of a seasoned analyst as part of your own due diligence is that every company has so many moving parts. A good analyst will be aware of what a DIY investor won’t know about the company. For example, the veteran analysts that provide research to Channelchek. On an ongoing basis, they have their finger on the pulse of the companies they cover.

There’s an opportunity you will want to take advantage of on Wednesday, December 15. You will meet online the Wall Street Analysts who are behind the research published on Channelchek. During this no-cost meeting, the veteran analysts have been asked to uncover what they are looking at, especially as it relates to companies they are bullish on.

This could be a great kickoff to organizing your portfolio for 2023 as these analysts cover the less talked about and perhaps the most overlooked stocks – stocks with great potential and “nuance” that you may have missed.

Learn more by clicking here, or the banner above.

Paul Hoffman

Managing Editor, Channelchek