Friday, May 10, 2024
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
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Results. Revenue was reported at $64.3 million, down 18% from $78.5 million in the previous year. We estimated revenue of $66 million. Continued slower client decision making meant revenue is being pushed into later quarters. Net loss for the quarter was $3.4 million, or a loss of $0.07 per share, compared to net income of $3.5 million, or $0.07 per share last year. We estimated a net loss of $0.7 million, or a loss of $0.01 per share.
Recurring Revenue and Tango. Recurring revenues for the Company continue to grow, accounting for about half of ISG’s revenues in 1Q24. For the trailing 12 months, recurring revenues totaled $126 million, up 10% from the previous 12-month period. We expect recurring revenues to continue to grow with management’s focus on growing platforms such as ISG GovernX and ISG ProBenchmark. With the launch of the next-gen sourcing platform ISG Tango in March, the Company is already seeing the platform gaining interest, as over $2.6 billion of contract value is already running on the platform.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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