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Intelligent Protection Management (IPM)
NASDAQ:IPM
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Intelligent Protection Management
(NASDAQ:IPM)
Rating:47Neutral
Price Target:―
Positive Factors
Business Outlook
The new hosting and cybersecurity businesses have a positive outlook and should benefit from now being a standalone business with a greater focus on growth.
Business Strategy
The acquisition of Newtek Technology Solutions and sale of non-profitable legacy assets shifts focus to attractive end markets such as outsourced IT hosting, cybersecurity, and disaster recovery.
Financial Position
As of 3/31/25, the company had $9.7M in cash and no debt, which suggests a strong financial position.
Negative Factors
Earnings
Paltalk reported 3Q24 results with revenue down 23% y/y and an adjusted EBITDA loss of ($1.4M). Results missed expectations.
Earnings Estimates
Analyst estimates for 2024 and 2025 have been lowered based on 3Q24 results, and do not yet factor in the potential acquisition of NTS.
Litigation Proceeds
A jury awarded Paltalk $65.7M in a patent infringement case against Cisco, although net proceeds are not expected to exceed more than one-third of gross.
Intelligent Protection Management (IPM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.77M
Dividend YieldN/A
Average Volume (3M)92.24K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-13.06%
EPS Growth-151.73%
CountryUS
Employees55
SectorTechnology
Sector Strength76
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding9,236,987
10 Day Avg. Volume82,324
30 Day Avg. Volume92,243
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.32
Price to Sales (P/S)0.00
P/FCF Ratio-5.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside180.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Intelligent Protection Management Business Overview & Revenue Model
Company DescriptionIntelligent Protection Management (IPM) is a leading provider of advanced security solutions, specializing in cybersecurity, risk management, and intelligent threat mitigation. The company operates primarily in the technology and security sectors, offering a range of services including real-time threat intelligence, vulnerability assessments, and comprehensive security consulting to help businesses safeguard their digital assets and infrastructure.
How the Company Makes MoneyIPM makes money through a diversified revenue model that includes subscription-based services, consulting fees, and strategic partnerships. The company offers subscription plans for its cybersecurity software and threat intelligence services, providing clients with continuous updates and support. Additionally, IPM generates revenue from consulting fees by offering tailored security assessments and solutions to address specific client needs. Strategic partnerships with technology firms and security agencies further enhance their offerings and contribute to their earnings by enabling collaborative projects and shared resources.
Intelligent Protection Management Financial Statement Overview
Summary
Intelligent Protection Management is facing financial difficulties with declining revenue and consistent net losses, which are reflected in its income statement and cash flow. The balance sheet remains relatively strong with low leverage, but the negative cash flow trends and operational inefficiencies present significant risks that need to be addressed to ensure long-term viability.Income Statement
The company shows a concerning trend with declining revenue growth and consistent net losses over recent years. Gross profit margin remained relatively stable, but negative EBIT and EBITDA margins indicate ongoing operational challenges. Despite a slight increase in revenue from 2023 to 2024, substantial net losses pose a risk to financial stability.25
Negative
Balance Sheet
The balance sheet reveals strong equity levels with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting low leverage risk. However, the company's declining stockholders' equity and total assets in recent years could indicate potential struggles in maintaining its asset base and capital structure.60
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow growth and operating cash flow, pointing to potential liquidity issues. The operating cash flow to net income ratio is unfavorable, reflecting insufficient cash generation relative to net losses. These factors highlight significant challenges in cash flow management.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.10M | 962.03K | 10.99M | 13.27M | 12.83M | Gross Profit |
| 835.39K | 677.14K | 8.17M | 10.55M | 10.26M | EBIT |
| -5.12M | -3.70M | -3.65M | 1.24M | 992.70K | EBITDA |
| -4.22M | -2.79M | -2.83M | 1.73M | 1.92M | Net Income Common Stockholders |
| -8.43M | -1.07M | -3.41M | 1.32M | 1.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.59M | 13.57M | 14.74M | 21.64M | 5.59M | Total Assets |
| 15.87M | 23.89M | 25.43M | 28.88M | 13.59M | Total Debt |
| 74.49K | 77.00K | 159.18K | 239.49K | 575.47K | Net Debt |
| -10.51M | -13.49M | -14.58M | -21.40M | -5.01M | Total Liabilities |
| 3.97M | 3.75M | 25.43M | 3.83M | 3.75M | Stockholders Equity |
| 11.90M | 20.13M | 1.19M | 25.05M | 9.84M |
| Cash Flow | Free Cash Flow | |||
| -3.02M | -1.08M | -2.96M | 1.27M | 1.44M | Operating Cash Flow |
| -3.02M | -1.08M | -2.96M | 1.27M | 1.44M | Investing Cash Flow |
| 0.00 | -85.00K | -2.94M | 858.85K | 225.41K | Financing Cash Flow |
| 39.77K | -7.21K | -997.92K | 13.93M | 497.66K |
Intelligent Protection Management Technical Analysis
Positive
2.14
Price Trends
1.84
Positive
1.91
Positive
2.29
Negative
Market Momentum
0.07
Negative
63.97
Neutral
74.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPM, the sentiment is Positive. The current price of 2.14 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.84, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 74.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPM.
Intelligent Protection Management Risk Analysis
Intelligent Protection Management disclosed 45 risk factors in its most recent earnings report. Intelligent Protection Management reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Sales of substantial amounts of shares of our common stock following the Mergers, including shares issuable upon conversion of the Preferred Stock, could depress our stock price. Q3, 2024
2.
Through the Mergers, we are attempting to enter a new line of business which is highly competitive. Q3, 2024
3.
The Mergers may not be completed, and the Merger Agreement may be terminated in accordance with its terms, which could negatively impact the Company. Q3, 2024
Intelligent Protection Management Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
56 Neutral | $18.47M | ― | -19.92% | ― | 1.30% | 75.93% | |
49 Neutral | $16.92M | ― | -501.24% | ― | 141.65% | -28.86% | |
47 Neutral | $19.77M | ― | -17.07% | ― | -13.06% | -151.73% | |
38 Underperform | $27.22M | ― | ― | -51.35% | -103.78% |
* Technology Sector Average
Performance Comparison
IPM
Intelligent Protection Management
2.14
-1.30
-37.79%
BLIN
Bridgeline Digital
1.55
0.36
30.25%
DTSS
Datasea
2.21
-2.81
-55.98%
VVPR
VivoPower International
6.13
2.97
93.99%
Intelligent Protection Management Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 13.83%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. Significant revenue growth and a positive net income were highlights, driven by strategic acquisitions and a strong balance sheet. However, the loss from continuing operations increased, and adjusted EBITDA remained negative. Despite these challenges, the company's strategic focus on growth in cloud infrastructure and cybersecurity, along with a stock repurchase plan, suggests a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue for the three months ended March 31, 2025 was $5.5 million, compared to $0.3 million for the same period in 2024. This represents a substantial increase primarily driven by new revenue streams as a result of the acquisition of NTS.
Positive Net Income
Net income for the three months ended March 31, 2025 was $0.8 million, compared to a net loss of $0.5 million for the same period in 2024. This includes a tax benefit of $2.1 million.
Strong Balance Sheet
The company ended the quarter with $9.7 million in cash and cash equivalents and no long-term debt, providing a solid foundation for future growth.
Strategic Acquisition
Completed the acquisition of Newtek Technologies Solutions, Inc. (NTS), focusing the business on the growing cloud infrastructure and cybersecurity sectors.
Stock Repurchase Plan
The Board of Directors approved a stock repurchase plan for up to $400,000 of the company’s outstanding common stock.
Negative Updates
Increased Loss from Continuing Operations
Loss from continuing operations for the three months ended March 31, 2025 was $1.3 million, compared to a loss of $1.0 million for the same period in 2024. This includes $0.3 million of one-time expenses related to the acquisition.
Negative Adjusted EBITDA
Adjusted EBITDA remained relatively unchanged at negative $0.5 million for the three months ended March 31, 2025 and 2024.
Cash Decrease
Cash and cash equivalents decreased by $0.9 million from December 31, 2024, primarily due to the $4 million cash payment for the acquisition of NTS.
Company Guidance
During the earnings results conference call for the first quarter of fiscal year 2025, Intelligent Protection Management Corporation (IPM) provided several key metrics and guidance. IPM reported a total revenue of $5.5 million for the quarter ending March 31, 2025, a significant increase from $0.3 million in the same period of the previous year, driven by the acquisition of Newtek Technologies Solutions (NTS). The company experienced a net income of $0.8 million, a turnaround from a net loss of $0.5 million in the first quarter of 2024. This included a substantial tax benefit of $2.1 million related to the recent transactions. Despite a loss from continuing operations of $1.3 million, IPM highlighted an adjusted EBITDA that remained stable at negative $0.5 million. The company ended the quarter with $9.7 million in cash and cash equivalents, reflecting a decrease due to the NTS acquisition, which was partially offset by cash inflows from divestitures and operations. IPM emphasized its strategic focus on expanding cloud infrastructure and cybersecurity services and announced a stock repurchase plan of up to $400,000. The company also noted its ongoing efforts to cross-sell services and leverage a marketing firm to enhance sales and client engagement.Intelligent Protection Management Corporate Events
Legal ProceedingsBusiness Operations and Strategy
Intelligent Protection Management Wins $65.7M Verdict Against Cisco
Positive
Feb 6, 2025
Intelligent Protection Management Corp. presented an investor presentation highlighting its strategic focus and recent developments, including significant legal victories such as an awarded $65.7 million verdict against Cisco Systems for patent infringement, dated August 29, 2024. The presentation also emphasized the company’s growth potential, market positioning, and the expertise of its seasoned management team. Despite uncertainties, the company remains optimistic about realizing benefits from its recent acquisitions and maintaining a strong brand in a competitive market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.