QuoteMedia Announces 3% Growth in Revenue for Q1 2020
PHOENIX, May 14, 2020 (GLOBE NEWSWIRE) -- QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the three months ended March
31, 2020. These results reflect a 3% increase in year-over-year quarterly revenues, from $2,870,619 in Q1 2019 to $2,966,584 in Q1 2020.
QuoteMedia provides banks, brokerage firms, exchanges, financial portals, private equity firms, financial planners, professional traders and sophisticated investors with economical, high quality stock market data, news, analytics and research information. QuoteMedia provides streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (preformatted content for website integration) and terminal-style applications such as Quotestream Professional desktop and mobile.
“We are happy with our results for this quarter”, said Robert J. Thompson, Chairman of the Board of QuoteMedia, Inc. “While we only experienced modest 3% revenue growth, this is occurring in the context of a global pandemic that has severely curtailed economic activity. Our operations have been affected by a range of external factors related to the COVID-19 pandemic that are outside of our control. Some clients have been unable to continue operations due to the financial strain resulting from current economic conditions. In other cases, the uncertainty caused by the COVID-19 pandemic has caused a slow-down in clients’ or prospects’ purchasing decisions, or product and service implementations. All of this has tempered our revenue growth, but we are still making gains despite the current climate.
“We are seeing that the economic downturn could also be a source of opportunities, as the added pressure on financial sector firms to find more efficient and cost effective solutions to their data and technology needs could lead to greater demand for QuoteMedia’s offerings. We have already seen an increase in individual subscriptions for our Quotestream product in March and April. Of course, the situation surrounding the COVID-19 pandemic remains fluid, and we are continuing to actively manage our response and assess potential impacts to our financial position and operating results.
“QuoteMedia has undertaken major growth initiatives in 2020, including new marketing campaigns, increased staffing, new and increased spending on infrastructure and technological advancement, investment in new product development, data collection and aggregation initiatives, and the expansion of our global market coverage. As a result of this increased spending, we experienced a net loss this quarter of $117,325, compared to a net income of $113,056 in the comparable quarter in 2019, and our adjusted EBITDA1 was $191,488 versus $482,357 in Q1 2019. It is expected, however, that these strategic investments will position and equip the Company to realize substantial growth in future periods.”
QuoteMedia will host a conference call today at 1pm Eastern time to discuss the Q1 2020 financial results and provide a business update.
Date: May 14, 2020
Time: 1:00 PM Eastern
Dial-in number: 866-342-8588
Conference ID: 24088
An audio rebroadcast of the call will be available later at: www.quotemedia.com
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 data and services for companies such as the NASDAQ Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), FIS, U.S. Bank, Broadridge Financial Systems, Ridge Clearing, JPMorgan Chase, CI Financial, JitneyTrade, Hilltop Securities, HD Vest, Intrinsic Research Systems, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Business Wire, PR Newswire, FolioFN, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Qtrade Financial, CNW Group, Industrial Alliance, Ally Invest, Inc., Suncor, Virtual Brokers, Equities.com, Leede Jones Gable, Firstrade Securities, Motif Investing, First Financial, Cirano, Equisolve, Stock-Trak, Mergent, SNN Incorporated and others. Quotestream, QModTM and Quotestream ConnectTM are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.
QuoteMedia Investor Relations
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 March 31,|
|Depreciation and amortization||305,757||249,697|
|Foreign exchange loss (gain)||(11,206||)||14,058|
|Income tax expense||744||752|