Issuer Direct ( (ACCS) ) has released its Q4 earnings. Here is a breakdown of the information Issuer Direct presented to its investors.
ACCESS Newswire Inc., a prominent player in the communications sector, specializes in providing Public Relations and Investor Relations solutions to a diverse range of clients, from startups to global brands. The company recently reported its financial results for the fourth quarter and full year of 2024, highlighting a modest growth in revenue and significant strategic changes.
In the fourth quarter of 2024, ACCESS Newswire Inc. experienced a slight increase in revenue, reaching $5.8 million, and a notable improvement in adjusted EBITDA, which rose to $871,000. The company also saw a positive shift in cash flow from operations, moving from a negative position in the previous year to $353,000. Key strategic moves included the rebranding to ACCESS Newswire Inc. and the sale of its compliance business for $12.5 million, which aligns with its focus on enhancing its core communications business.
The company’s financial performance was marked by a substantial impairment loss related to the Newswire tradename, resulting in an operating loss of $14.3 million for the quarter. Despite this, operating expenses decreased due to reduced general and administrative costs, as well as lower sales and marketing expenses. Subscription growth was a bright spot, with the number of subscription customers increasing to 1,124, contributing to a rise in annual recurring revenue.
Looking forward, ACCESS Newswire Inc. is concentrating on its communications business, aiming to improve gross margins and EBITDA margins through operational efficiency and subscription growth. The company plans to optimize its capital allocation strategy and expand its customer base and market share, setting a path for future growth.