Issuer Direct Reports First Quarter Financial Results

Issuer Direct Corporation (NYSEA:ISDR), an industry leading communications and compliance company reported its operating results for the three months ended March 31, 2018.

As quoted in the press release:

First Quarter 2018 and Recent Highlights:

• Total revenue was $3,530,000, a 24% increase from $2,856,000 in Q1 2017 and a 4% increase from $3,398,000 in Q4 2017.
• Platform and Technology revenue increased 25% from Q1 2017 and 13% from Q4 2017.
• Overall gross margin was 71%, compared to 74% in Q1 2017 and 73% in Q4 2017.
• Platform and Technology gross margin was 79%, down from 85% in Q1 2017 and 83% in Q4 2017.
• GAAP earnings per diluted share was $0.10 compared to $0.11 in Q1 2017 and $0.24 in Q4 2017.
• The Company generated cash flows from operations of $537,000 compared to $647,000 in Q1 2017 and $417,000 in Q4 2017.
• On April 6, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.05 per share, marking the eleventh straight quarter of paying dividends.

Customer Count Metrics:

• The Company had 1,845 Platform and Technology customers during Q1 2018, compared to 1,761 during Q1 2017 and 1,819 during Q4 2017.
• The Company had 571 Services customers during Q1 2018, compared to 517 during Q1 2017 and 579 during Q4 2017.

Brian Balbirnie, CEO of Issuer Direct, commented, “We had a very good first quarter. Platform and Technology revenue grew 25% year over year, to 58% of total revenue and EBITDA increased to $655,000, which is a 24% increase compared to the first quarter of 2017. On the balance sheet, cash grew by 12% since year-end to $5.5 million, and deferred revenue grew 27% since year-end, highlighting the success we had during the quarter of focusing on platform sales. We continue to build our pipeline in our platform business by not only generating new customers, but cross selling and converting our current customers.”

Mr. Balbirnie continued, “We are very pleased with the start to 2018. Looking ahead, we are focused on increasing our platform business, expanding our newswire distribution and overall client count, which we believe will accelerate earnings growth.”

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