Issuer Direct Corporation (ISDR) Bundle
A Brief History of Issuer Direct Corporation
Company Overview
Issuer Direct Corporation is a communications and compliance company that provides services for publicly traded and private companies. The company specializes in news distribution, regulatory compliance, and other related services.
Recent Financial Performance
For the three months ended September 30, 2024, Issuer Direct reported revenues of $6,953,000, a decrease of 8% compared to $7,569,000 for the same period in 2023. For the nine months ended September 30, 2024, total revenues were $21,602,000, down 16% from $25,839,000 in the prior year. The decrease in revenue is attributed to declines in both communications and compliance revenue streams.
| Period | Revenue ($) | Net Income (Loss) ($) | EPS (Basic) ($) | EPS (Diluted) ($) |
|---|---|---|---|---|
| Q3 2024 | 6,953,000 | (466,000) | (0.12) | (0.12) |
| Q3 2023 | 7,569,000 | 273,000 | 0.07 | 0.07 |
| 9M 2024 | 21,602,000 | (598,000) | (0.16) | (0.16) |
| 9M 2023 | 25,839,000 | 1,492,000 | 0.39 | 0.39 |
Operating Expenses
Operating costs for the three months ended September 30, 2024, amounted to $5,016,000, compared to $5,179,000 in Q3 2023. For the nine-month period, operating expenses totaled $15,698,000 versus $16,956,000 in the same period of 2023. General and administrative expenses decreased by 1% to $2,008,000 for Q3 2024 and by 12% to $5,812,000 for the nine months ended September 30, 2024.
Debt and Financing
On March 20, 2023, Issuer Direct entered into a $25 million credit agreement with Pinnacle Bank, which includes a $20 million term loan and a $5 million revolving line of credit. As of September 30, 2024, there was no outstanding balance under the revolving line of credit, and the interest rate was 7.21%.
Stockholder Equity
The total stockholders' equity as of September 30, 2024, was reported at $35,264,000, compared to $35,420,000 at the end of 2023. The balance of common stock was 3,833,977 shares, with an additional paid-in capital of $23,999,000.
Market Trends and Future Outlook
As of September 30, 2024, Issuer Direct's deferred revenue balance was $5,308,000, expected to be recognized over the next twelve months. The overall gross margin decreased to 74% for Q3 2024 from 76% in Q3 2023, indicating pressure on profitability amid declining revenues.
A Who Owns Issuer Direct Corporation (ISDR)
Shareholder Composition
As of 2024, the ownership structure of Issuer Direct Corporation (ISDR) is characterized by a mix of institutional investors and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | Institutional Investor | 8.5% |
| The Vanguard Group, Inc. | Institutional Investor | 7.2% |
| Dimensional Fund Advisors LP | Institutional Investor | 5.9% |
| Renaissance Technologies LLC | Institutional Investor | 4.3% |
| Individual Shareholders | Retail Investors | 74.1% |
Recent Stock Performance
In the fiscal year ending September 30, 2024, Issuer Direct Corporation reported a total of 3,833,977 shares outstanding. The stock price fluctuated, with a closing price of approximately $9.15 per share as of the end of the third quarter of 2024. The market capitalization at this price was approximately $35 million.
Financial Overview
For the nine months ended September 30, 2024, Issuer Direct Corporation reported revenues of $21.6 million, a decrease from $25.8 million in the same period in 2023. The net loss for the period was $598,000, compared to a net income of $1.5 million in the prior year.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $21,602,000 | $25,839,000 |
| Net Income (Loss) | ($598,000) | $1,492,000 |
| Gross Profit | $16,136,000 | $19,877,000 |
| Operating Income | $438,000 | $2,921,000 |
Debt and Liquidity
As of September 30, 2024, Issuer Direct Corporation had total liabilities of $26.5 million, which included long-term debt of approximately $12.9 million. The company had cash and cash equivalents totaling $4.1 million, indicating a liquidity position that allows for operational flexibility.
Conclusion on Ownership Dynamics
The ownership of Issuer Direct Corporation reflects a strong presence of institutional investors, while the majority of shares remain with individual shareholders. The financial challenges faced in 2024, including a decline in revenue and a net loss, could influence shareholder sentiment and ownership dynamics moving forward.
Issuer Direct Corporation (ISDR) Mission Statement
Corporate Overview
Issuer Direct Corporation (ISDR) is a communications and compliance company that provides services for publicly traded and private companies. The company focuses on delivering innovative solutions that enhance transparency and streamline corporate communications.
Mission Statement
As of 2024, Issuer Direct's mission is to empower companies through technology-driven solutions that enhance engagement and compliance. The company aims to provide premier services that meet the evolving needs of its clients, ensuring they can effectively communicate with stakeholders and adhere to regulatory requirements.
Core Values
- Integrity: Committed to maintaining the highest standards of professionalism and ethics.
- Innovation: Focused on continuous improvement and embracing new technologies to enhance service delivery.
- Customer-Centricity: Dedicated to understanding and meeting the unique needs of clients.
- Collaboration: Fostering teamwork and partnerships that drive mutual success.
Financial Performance
In the third quarter of 2024, Issuer Direct reported revenues of $6,953,000, a decrease from $7,569,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $21,602,000, down from $25,839,000 year-over-year.
Revenue Breakdown
| Revenue Stream | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Communications | $5,481,000 | $6,078,000 | $16,884,000 | $18,580,000 |
| Compliance | $1,472,000 | $1,491,000 | $4,718,000 | $7,259,000 |
| Total Revenue | $6,953,000 | $7,569,000 | $21,602,000 | $25,839,000 |
Cost Structure
For the three months ended September 30, 2024, Issuer Direct reported the following costs:
- Cost of revenues: $1,781,000
- General and administrative expenses: $2,008,000
- Sales and marketing expenses: $1,618,000
- Product development expenses: $671,000
- Depreciation and amortization: $719,000
Net Income
For the third quarter of 2024, Issuer Direct reported a net loss of $466,000 compared to a net income of $273,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $598,000, down from a net income of $1,492,000 during the same period in 2023.
Stockholder Equity
As of September 30, 2024, Issuer Direct had a total stockholders' equity of $35,264,000, down from $35,420,000 at the end of 2023.
Cash Position
As of September 30, 2024, Issuer Direct reported cash and cash equivalents of $4,086,000 and net accounts receivable of $4,405,000.
Market Position
Issuer Direct continues to position itself as a leader in its niche by leveraging technology to enhance its service offerings and maintain compliance for its clients in a dynamic regulatory environment.
How Issuer Direct Corporation (ISDR) Works
Company Overview
Issuer Direct Corporation operates primarily in the communications and compliance sectors, serving publicly traded and private companies. The company provides a range of services including news distribution, compliance solutions, and investor relations tools.
Financial Performance
For the three months ended September 30, 2024, Issuer Direct reported revenues of $6,953,000, a decrease of 8% from $7,569,000 in the same period in 2023. For the nine months ended September 30, 2024, total revenue was $21,602,000, down 16% from $25,839,000 in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $6,953,000 | $7,569,000 | $21,602,000 | $25,839,000 |
| Net Income (Loss) | $(466,000) | $273,000 | $(598,000) | $1,492,000 |
| Operating Income | $156,000 | $593,000 | $438,000 | $2,921,000 |
| Gross Profit | $5,172,000 | $5,772,000 | $16,136,000 | $19,877,000 |
Revenue Breakdown
Revenue is primarily generated from two segments: Communications and Compliance. For the three months ended September 30, 2024, Communications revenue was $5,481,000, accounting for 79% of total revenue, while Compliance revenue was $1,472,000, representing 21%.
| Revenue Streams | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Communications | $5,481,000 | $6,078,000 | $16,884,000 | $18,580,000 |
| Compliance | $1,472,000 | $1,491,000 | $4,718,000 | $7,259,000 |
Cost Structure and Expenses
Issuer Direct's cost of revenues for Q3 2024 was $1,781,000, which is a slight decrease from $1,797,000 in Q3 2023. The overall gross margin decreased to 74% in Q3 2024 from 76% in Q3 2023.
| Expense Categories | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenues | $1,781,000 | $1,797,000 | $5,466,000 | $5,962,000 |
| General and Administrative | $2,008,000 | $2,033,000 | $5,812,000 | $6,639,000 |
| Sales and Marketing | $1,618,000 | $1,838,000 | $5,684,000 | $6,258,000 |
| Product Development | $671,000 | $581,000 | $2,044,000 | $1,887,000 |
Debt and Liquidity
As of September 30, 2024, Issuer Direct had $4,086,000 in cash and cash equivalents. The total liabilities were reported at $26,459,000, which includes long-term debt of $12,926,000 (net of debt discount).
| Balance Sheet Highlights | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $4,086,000 | $4,400,000 |
| Total Liabilities | $26,459,000 | $29,732,000 |
| Long-term Debt | $12,926,000 | $15,913,000 |
| Deferred Revenue | $5,308,000 | $5,412,000 |
Stockholder Equity
The total stockholders' equity as of September 30, 2024, was $35,264,000, down from $35,420,000 at the end of 2023. The number of shares outstanding was 3,833,977.
| Stockholders' Equity Components | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock | $4 | $4 |
| Additional Paid-in Capital | $23,999,000 | $23,531,000 |
| Accumulated Other Comprehensive Loss | $(75,000) | $(49,000) |
| Retained Earnings | $11,336,000 | $11,934,000 |
Conclusion on Business Operations
Issuer Direct's operations are characterized by a steady focus on communications and compliance services. The company's financial performance has shown a decline in revenues and net income, reflecting broader market challenges and shifts in service demand.
How Issuer Direct Corporation (ISDR) Makes Money
Revenue Streams
Issuer Direct Corporation generates revenue primarily from two segments: Communications and Compliance.
| Revenue Stream | 2024 (Q3) | 2023 (Q3) | 2024 (YTD) | 2023 (YTD) |
|---|---|---|---|---|
| Communications | $5,481,000 (78.8%) | $6,078,000 (80.3%) | $16,884,000 (78.2%) | $18,580,000 (71.9%) |
| Compliance | $1,472,000 (21.2%) | $1,491,000 (19.7%) | $4,718,000 (21.8%) | $7,259,000 (28.1%) |
| Total Revenue | $6,953,000 (100%) | $7,569,000 (100%) | $21,602,000 (100%) | $25,839,000 (100%) |
Communications Revenue
The Communications segment includes services such as news distribution, webcasting, and virtual annual meetings. For the three months ended September 30, 2024, Communications revenue decreased by $597,000, or 10%, compared to the same period in 2023. This decline was attributed to lower average rates per release and a shift towards distributing more lower-tier press releases.
For the nine months ended September 30, 2024, Communications revenue totaled $16,884,000, down $1,696,000, or 9%, from $18,580,000 in 2023 .
Compliance Revenue
The Compliance segment encompasses services related to regulatory filings and corporate governance. Compliance revenue decreased by $19,000, or 1%, for Q3 2024, and by $2,541,000, or 35%, year-to-date compared to 2023. This decline was primarily due to a decrease in revenue from print and proxy fulfillment services .
Cost of Revenue
Cost of revenues for the three months ended September 30, 2024, was $1,781,000, compared to $1,797,000 for the same period in 2023. The overall gross margin for Q3 2024 was 74%, down from 76% in Q3 2023 .
| Cost Breakdown | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Communications Cost of Revenue | $1,395,000 | $1,442,000 |
| Compliance Cost of Revenue | $386,000 | $355,000 |
| Total Cost of Revenue | $1,781,000 | $1,797,000 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, amounted to $5,016,000, a decrease from $5,179,000 in Q3 2023. The operating income for the same period was $156,000 .
| Operating Expense Breakdown | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| General and Administrative | $2,008,000 | $2,033,000 |
| Sales and Marketing | $1,618,000 | $1,838,000 |
| Product Development | $671,000 | $581,000 |
| Depreciation and Amortization | $719,000 | $727,000 |
| Total Operating Expenses | $5,016,000 | $5,179,000 |
Net Income/Loss
For the three months ended September 30, 2024, Issuer Direct reported a net loss of $466,000, compared to a net income of $273,000 for the same period in 2023. The year-to-date net loss for 2024 was $598,000, down from a net income of $1,492,000 in 2023 .
| Net Income/Loss | 2024 (Q3) | 2023 (Q3) | 2024 (YTD) | 2023 (YTD) |
|---|---|---|---|---|
| Net Income (Loss) | $(466,000) | $273,000 | $(598,000) | $1,492,000 |
Deferred Revenue
As of September 30, 2024, the deferred revenue balance was $5,308,000, slightly down from $5,412,000 as of December 31, 2023. This deferred revenue primarily consists of advance billings for subscriptions and pre-paid packages of news distribution products .
Financial Summary
The financial performance of Issuer Direct Corporation illustrates the challenges faced in both the Communications and Compliance segments, with overall revenue declining and operating losses impacting profitability .
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Resources:
- Issuer Direct Corporation (ISDR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Issuer Direct Corporation (ISDR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Issuer Direct Corporation (ISDR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.