ACCESS Newswire (ACCS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $7.7M, down 20% year-over-year but up 10% sequentially, with net income of $7K compared to $1.4M in Q2 2023.

• Six-month revenue was $14.6M, a 20% decrease from the prior year, resulting in a net loss of $132K versus $1.2M net income last year.

• Communications revenue was flat year-over-year in Q2 but up 9% sequentially; compliance revenue fell 53% year-over-year due to absence of prior-year one-time projects.

• News distribution volumes and revenues increased, with average price up 15% and customer accounts rising 19% year-over-year.

• Strategic shift underway to a subscription-first communications platform, with compliance business planned for divestiture by year-end.

Financial highlights

• Q2 2024 revenue: $7.7M (down 20% year-over-year); six-month revenue: $14.6M (down 20%).

• Q2 net income: $7K; six-month net loss: $132K.

• Q2 gross margin: $5.9M (77%); six-month gross margin: $11.1M (76%).

• Q2 adjusted EBITDA: $1.5M (19% margin); six-month adjusted EBITDA: $2.2M (15% margin), both down from 2023.

• Q2 operating cash flow: $(190)K; first half: $796K, both down from 2023.

Outlook and guidance

• Management expects continued growth in subscription ARR, targeting $14,000 per customer by Q3 2025.

• Full pivot to MRR model underway, with new metrics to be disclosed next quarter; cost savings of $400K per quarter expected in H2 2024.

• Sale of compliance business targeted for completion by year-end, aiming to become a pure-play communications technology company.

• Management anticipates stable demand for platforms and services despite global uncertainties.