ACCESS Newswire (ACCS) Q4 2022 earnings summary

Executive summary

• FY22 revenue rose 7.5% to $23.514M, while operating income fell to $2.669M and net income to $1.934M; Newswire acquisition contributed to Communications growth and higher expenses.

• Strategic focus: integrate Newswire with ACCESSWIRE, grow Communications subscriptions, expand distribution and customer reach, and invest in product development and profitable growth.

Financial highlights

• Revenue was $23.514M, up 7.5% YoY; gross profit was $17.830M, up from $16.135M, and operating costs rose to $15.161M from $12.392M.

• Net income declined to $1.934M from $3.291M; diluted EPS was $0.52 vs. $0.86. FY21 included $366K of CARES Act employee retention credit income.

• Adjusted EBITDA was $4.867M vs. $5.467M; adjusted net income was $3.548M, or $0.95 diluted share, vs. $3.671M, or $0.96 per diluted share.

• Operating cash flow was $4.019M vs. $4.731M; free cash flow was $3.953M vs. $4.454M, while adjusted free cash flow rose to $5.122M from $4.732M.

Outlook and guidance

• FY23 priorities include Newswire integration, Communications expansion, broader sales and marketing, customer growth, wider newswire distribution, technology upgrades, profitable growth, and operating cash generation.

• ACCESSWIRE demand was expected to remain stable to increase through 2023 and beyond; overall platform demand was described as stable across most served markets.

• Virtual events demand has declined from pandemic peaks; hybrid in-person and virtual event capabilities are viewed as an opportunity, but long-term customer acceptance remains uncertain.