PHOENIX, April 08, 2024 (GLOBE NEWSWIRE) -- QuoteMedia, Inc. (OTCQB: OTC:QMCI), a leading provider of market data and financial applications, announced financial results for the fiscal year ended December 31, 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), web content solutions (financial content for website integration) and applications such as Quotestream Professional desktop and mobile.
Highlights for fiscal 2023 include the following:
- Annual revenue increased to $18,907,725 in 2023 from $17,527,605 in 2022, an increase of $1,380,120 (8%).
- Net income for 2023 was $361,584 compared to $444,470 in 2022, a decrease in profitability of $82,886.
- Adjusted EBITDA for 2023 was $3,039,507 compared to $2,727,411 in 2022, an improvement of $312,096.
This was an important year for QuoteMedia, said Robert J. Thompson, Chairman of the Board. We invested in a major data consolidation initiative that allows us to significantly reduce our dependence on 3rd party data providers and reduce our data sourcing costs. This has been a long, difficult and costly process, but we are already beginning to enjoy the benefits, as we have much greater flexibility and control in servicing our clients, at lower costs.
2023 resulted in the completion of some major client deployments, and the startup of new client deployments that are currently in progress. Discussions and negotiations on several other large-scale projects expected to be closed in 2024, were also commenced.
While we experienced strong revenue growth, our profitability was somewhat dampened due to some large one-time expenses incurred in relation to completing the data consolidation initiative and in changing public accounting firms. Moving forward, we expect to see an improvement in profitability as our professional fees normalize, and our revenue and gross margin percentages increase.
Our teams have put in a tremendous amount of very productive hard work this year. We are very pleased with what we have accomplished, and we look forward to enhanced success in the years to come.
QuoteMedia will host a conference call Tuesday, April 9, 2024, at 2:00 PM Eastern Time to discuss the 2023 financial results and provide a business update.
Conference Call Details:
Date: April 9, 2024
Time: 2:00 PM Eastern
Dial-in number: 800-901-2707
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, ™X Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group (LON:LSEG), FIS, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase (NYSE:JPM), Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities, Avantax, Stockhouse, Zacks Investment Research, General Electric (NYSE:GE), Boeing (NYSE:BA), Bombardier (OTC:BDRBF), Telus (NYSE:TU) International, Business Wire, PR Newswire, The Goldman Sachs Group (NYSE:GS), 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 (NYSE:SCHW), First Financial, Equisolve, Stock-Trak, Mergent, Cision 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:
- Moving forward, we expect to see an improvement in profitability as our professional fees normalize, and our revenue and gross margin percentages increase.
QuoteMedia Investor Relations
Brendan HopkinsEmail: 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:
| Year ended December 31, | 2023 | 2022 | ||||
| Net income | $ | 361,584 | $ | 444,470 | ||
| Depreciation and amortization | 2,645,906 | 2,121,135 | ||||
| Stock-based compensation (recovery) | (17,812 | ) | 115,625 | |||
| Interest expense | 1,846 | 2,818 | ||||
| Foreign exchange loss | 45,017 | 40,307 | ||||
| Income tax expense | 2,966 | 3,056 | ||||
| Adjusted EBITDA | $ | 3,039,507 | $ | 2,727,411 | ||