Issuer Direct Sees Subscription Growth Amid Revenue Decline

Issuer Direct ( (ISDR) ) has released its Q3 earnings. Here is a breakdown of the information Issuer Direct presented to its investors.

Issuer Direct Corporation is a communications and compliance company offering solutions for public relations and investor relations professionals, serving a diverse range of clients from startups to global brands. In its latest earnings report for the third quarter of 2024, Issuer Direct reported a strategic shift towards a recurring revenue model with its Media Suite products, resulting in a 9% increase in subscriptions from the previous quarter, despite an 8% decrease in overall revenue compared to the same period last year.

The company announced a decline in revenue to $7.0 million from $7.6 million in Q3 2023, attributed mainly to decreased revenue from its Newswire distribution platform. Adjusted EBITDA also fell to $1.4 million from $1.8 million in the previous year. However, operating cash flow rose significantly to $1.5 million from $0.3 million in Q3 2023, reflecting enhanced operational efficiency.

Key metrics indicate a challenging environment with a net loss of $0.12 per diluted share in Q3 2024, compared to a net income of $0.07 per diluted share in the previous year. The company’s gross margin slightly decreased to 74% of revenue, while operating income dropped substantially due to reduced revenue and gross margin.

Looking ahead, Issuer Direct is optimistic about its transition to a communications and subscription model, expecting it to drive future growth and margin expansion. The company’s management is focusing on operational efficiency to enhance its competitive position in the market.