Friday, May 14, 2021
QuoteMedia (QMCI)
Will Margins Improve 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.
Q1 in-line with expectations. Q1 revenue growth accelerated to 22%, in line with our expectations. Q1 revenues of $3.606 million was in line with our $3.580 million estimate. Cost of Revenues, however, increased significantly faster than revenue growth at 37.6%. As such, gross margins were lower than expected, 42.8% versus our 45.5% estimate. This led to Adjusted EBITDA of $244,000, lower than our $311,000 estimate.
Gross margins should improve. Vendor price increases are typical at the beginning of the year. As such, gross margins should improve in subsequent quarters as revenues grow. We anticipate gross margins to improve to roughly 45% in subsequent quarters. In addition, we anticipate that gross margins should benefit from a slight acceleration in revenue growth in the company’s Interactive Content & Data …
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.
