ACCESS Newswire (ACCS) Sidoti May Micro-Cap Virtual Conference summary

Business transformation and strategy

• Completed a major rebrand from Issuer Direct and ACCESS Wire to ACCESS Newswire, updating all internal systems and processes in five months.

• Focused on building scale and recurring revenue through PR and IR subscription models, targeting 1,500 subscriptions and $14,000 average revenue per customer by end of 2025.

• Considering launching a lower-priced ARR product to expand customer base to over 5,000 at $5,000–$6,000 per year.

• Exited the compliance business to improve gross margins and reduce revenue seasonality.

Financial performance and outlook

• Q1 revenue declined 1.7% year-over-year, but new deals achieved the $14,000 ARR target.

• Gross margins increased by 3% year-over-year, now in the mid to high 70% range.

• Q1 EBITDA at 10%, with a goal to reach high teens to 20% by year-end.

• Cash flow from operations expected to exceed $1 million per quarter in the second half of the year.

• Deferred revenue growth will slow as the business shifts to monthly recurring revenue contracts.

Product innovation and competitive positioning

• ACCESS Newswire is now the third largest newswire in North America, with 20% market share and a goal to reach 30% in 18 months.

• Offers integrated PR and IR platforms, providing a competitive advantage over siloed competitors.

• Add-on products include incident management and whistleblower systems, powering NYSE's platform.

• Strategic partnerships with OTC Markets, NYSE, and London Stock Exchange expand reach.