Movers and SHAKERS
A Slow Walk Toward Margin Improvement
QuoteMedia, based in Fountain Hills, Arizona, provides cloud-based financial data, market news feeds, and financial software solutions. Its customers include financial service companies, online brokerages, clearing firms, banks, media portals, public corporations and individual investors. The company provides a single source solution providing products such as streaming quotes, charting, historical data, technical analysis, news and research. Information can customized and provided to multiple platforms including terminals and mobile devices.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
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Mixed Q2 results: Revenues were modestly better than expected by 1.9%, $3.833 million, up 26.5% from the year earlier quarter, versus our estimate of $3.760 million. The largest upside revenue variance was due to better than expected Interactive Content & Data revenue, $1.607 million versus our $1.565 million estimate. While adjusted EBITDA increased 45.7% to $311,000, it was 22% below our expectation of $399,000.
Still waiting: While the acceleration in revenue growth is encouraging, we are still awaiting the prospect of improving gross and adjusted EBITDA margins. Unfortunately, the growth in revenues have come at a cost, as gross margins have declined from a high of 51% for the full year 2019 to 46% in 2020 to 42.8% in the latest quarter. Q2 gross margins were relatively flat to Q1 at 43%. Management ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.