Monday, March 29, 2021
QuoteMedia (QMCI)
Margins Take A Hit As Revenues Ramp
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.
Refer to the full report for the price target, fundamental analysis, and rating.
In-line fourth quarter. Total company revenues were $3.266 million versus our $3.275 million estimate and operating cash flow, as measured by adj. EBITDA, was $58,000 versus our loss estimate of $21,000. Notably, the company’s Corporate Quotestream business had a very strong quarter, with revenues up 39%, which was somewhat offset by a 9% revenue decline in its Interactive Content segment revenues.
Gross margins declined. The year over year Q4 decline in gross margins from 52.0% to 41.6% reflects the revenue growth in its lower margin Corporate Quotestream business and the revenue weakness in its higher margin Interactive Content business. Management guided to an acceleration in revenue growth to 20% in subsequent quarters and for full year 2021, but gross margins are expected to be …
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.
