QuoteMedia Announces 6% Revenue Growth and 12% increase in Profitability for 2019
PHOENIX, March 27, 2020 (GLOBE NEWSWIRE) — QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the fiscal year ended December 31, 2019.
QuoteMedia provides banks, brokerage firms, private equity firms, financial planners and sophisticated investors with a more economical, higher quality alternative source of stock market data and related information. We compete with a few larger legacy organizations and a modest community of other smaller companies. QuoteMedia provides streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (preformatted content for website integration) and applications such as Quotestream Professional desktop and mobile. QuoteMedia posted improvements in 2019 across all key performance indicators including the following:Revenue increased to $11,793,731 in 2019 from $11,127,670 in 2018, an increase of $666,061 (6%).Gross margins increased to 51% in 2019 from 50% in 2018.We earned net income of $558,997 in 2019 compared to net income of $497,871 in 2018, an increase of $61,126 (12%).$1,766,409 in cash was generated from operating activities in 2019, and our end of year cash balance increased by $5,155 to $815,487.Adjusted EBITDA1 was $2,124,498 versus $1,831,882 in the comparative period, an increase of $292,616 (16%).COVID-19 UpdateThe global financial markets have experienced extreme volatility and disruption in 2020 due to COVID-19. While we have not yet experienced a significant reduction in the demand for market data and related services, it is too early to assess the effects of COVID-19 and to predict how long its impact will be felt.We have been able to remain fully operational during the COVID-19 crisis as our employees can work remotely in an effective manner. The strength of our balance sheet, with no debt, substantial cash reserves and solid cash generation, leaves us prepared to weather any foreseeable adverse economic conditions that threaten the global economy in 2020 as a result of COVID-19.“We are pleased with our 2019 performance”, said Robert J. Thompson, QuoteMedia’s Chairman of the Board. “On top of the strong revenue growth, we were able to maintain healthy profits, even as we increased our spending on new product development and infrastructure expansion. We expect continued revenue growth in 2020, fueled by several major new product lines that we plan to launch in the upcoming months.” QuoteMedia will host a conference call Monday, March 30, 2020 at 2 PM Eastern time to discuss the 2019 financial results and provide a business update. Conference Call Details:Date: March 30, 2020Time: 2:00 PM EasternDial-in number: (866) 831-8616Conference ID: QUOTEMEDIAParticipant Code: 24088An audio rebroadcast of the call will be available later at: www.quotemedia.comAbout QuoteMediaQuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides data and services for companies such as the NASDAQ Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), FIS, U.S. Bank, Broadridge Financial Systems, Ridge Clearing, JPMorgan Chase, CI Financial, JitneyTrade, Hilltop Securities, HD Vest, Intrinsic Research Systems, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Business Wire, PR Newswire, FolioFN, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Qtrade Financial, CNW Group, Industrial Alliance, Ally Invest, Inc., Suncor, Virtual Brokers, Equities.com, Leede Jones Gable, Firstrade Securities, Motif Investing, First Financial, Cirano, Equisolve, Stock-Trak, Mergent, SNN Incorporated and others. Quotestream®, QMod™ and Quotestream Connect™ are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.Statements about QuoteMedia’s future expectations, including future revenue, earnings, and transactions, as well as all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements involve risks and uncertainties that are identified from time to time in the Company’s SEC reports and filings and are subject to change at any time. QuoteMedia’s actual results and other corporate developments could differ materially from that which has been anticipated in such statements.QuoteMedia Investor Relations
Brendan Hopkins
Email: investors@quotemedia.com
Call: (407) 645-5295Note 1 on Non-GAAP Financial MeasuresWe believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.We define and calculate Adjusted EBITDA as net income attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.QuoteMedia, Inc. Adjusted EBITDA Reconciliation to Net Income
