Earnings call transcript: ACCESS Newswire Q4 2024 revenue miss impacts stock
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings report reveals a significant net loss and decreased revenue, despite slight improvements in EBITDA. The transition to a subscription model and competitive pressures add uncertainty. The Q&A highlights strategic priorities but lacks clear timelines, adding to the uncertainty. Despite debt reduction, the financial health is concerning, with increased operating expenses and cash depletion. These factors outweigh the positive aspects like non-GAAP profitability and planned share repurchases, leading to an overall negative sentiment.
Key Financial Performance
Revenue for Q4 2024 $5,800,000, a $64,000 or 1% increase over Q4 2023.
Total Revenue for Full Year 2024 $23,100,000, a 6% decrease from the full year of 2023.
Gross Margin Percentage for Q4 2024 75%, consistent with Q4 2023.
Gross Margin Percentage for Full Year 2024 76%, compared to 77% for 2023.
Operating Expenses for Q4 2024 $13,300,000, an increase compared to Q4 2023, primarily due to an impairment loss of $14,150,000.
Net Loss from Continuing Operations for Q4 2024 $10,900,000 or $2.85 per diluted share, compared to a net loss of $1,500,000 or $0.4 per diluted share in Q4 2023.
Net Loss from Continuing Operations for Full Year 2024 $13,300,000 or $3.47 per diluted share, compared to a net loss of $3,400,000 or $0.9 per diluted share for the full year of 2023.
Non-GAAP Net Income from Continuing Operations for Q4 2024 $819,000 or $0.21 per diluted share, compared to a non-GAAP loss of $275,000 or $0.07 per diluted share in Q4 2023.
Non-GAAP Net Income from Continuing Operations for Full Year 2024 $791,000 or $0.21 per diluted share, compared to non-GAAP income of $538,000 or $0.14 per diluted share for the full year of 2023.
EBITDA for Q4 2024 $770,000 or 13% of revenue, compared to negative $834,000 or negative 14% of revenue in Q4 2023.
EBITDA for Full Year 2024 $840,000 or 4% of revenue, compared to negative $342,000 or negative 1% of revenue for the same periods of 2023.
Adjusted EBITDA for Q4 2024 $871,000 or 15% of revenue, compared to negative $27,000 or just under 1% of revenue in Q4 2023.
Adjusted EBITDA for Full Year 2024 $1,900,000 or 8% of revenue, compared to $2,000,000 or 8% of revenue for the same periods of 2023.
Cash on Hand at End of Q4 2024 $4,100,000, compared to $5,700,000 at the end of 2023.
Cash Provided by Continuing Operations for Q4 2024 $353,000, compared to net cash used of $236,000 in Q4 2023.
Cash Provided by Continuing Operations for Full Year 2024 $400,000, compared to net cash used of $741,000 for the same periods of the prior year.
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Operating Highlights
New Subscription Product: The new newsroom product released is an upgrade to the subscription service.
Subscription Growth: New subscriptions sold averaged $12,000 in Q4, aiming for $14,000 by year-end.
Product Portfolio: The product portfolio includes news distribution, media monitoring, and investor relations services.
Market Positioning: Access Newswire maintains approximately 20% of news volumes and aims to become the second largest news distribution platform.
Customer Base Growth: Customer count increased by 4% to 12,349, with 71 new subscriptions sold in Q4.
Debt Reduction: Debt reduced by 78% or $12 million to $3.3 million after the sale of the compliance business.
Operational Efficiency: Cash provided by continuing operations increased due to lower expenses and improved operational efficiencies.
Strategic Shift: Focus on a lean communications business with a subscription model and a clear capital allocation strategy.
AI Integration: Plans to use AI for product innovation, internal efficiencies, and maintaining competitive parity.
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Risk or Challenges
Revenue Decrease: Total revenue for 2024 decreased by 6% compared to 2023, primarily due to lower volume from the formerly branded NewsWire business and a slight decline in Investor Relations webcasting revenue.
Impairment Loss: An impairment loss of $14,150,000 was recorded due to the rebranding of the Newswire trade name, which shortened its useful life from 15 years to 5 years.
Increased Operating Expenses: Operating expenses increased significantly due to the impairment loss, although they decreased when excluding this factor.
Debt Management: Despite reducing debt by 78% to $3,300,000, the company must manage this remaining debt while investing in growth.
Market Competition: The company faces competitive pressures in the news distribution market, aiming to improve its position against fragmented platforms.
Subscription Model Transition: The transition to a subscription model may lead to fluctuations in revenue recognition, impacting cash flow and financial stability.
Economic Factors: The overall economic environment may affect customer spending on public relations and investor relations services, impacting revenue growth.
Operational Efficiency: The need for operational efficiencies is critical as the company aims to improve gross margins and EBITDA through automation and AI.
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Guidance & Outlook
Subscription Growth: New subscriptions sold averaged $12,000 in Q4, aiming for $14,000 by year-end. Subscription business now accounts for 50% of overall revenues.
Debt Reduction: Proceeds from the sale of the compliance business reduced debt by 78% or $12,000,000 to $3,300,000.
Product Portfolio Expansion: Focus on expanding omni-channel capabilities and enhancing product offerings to drive customer retention and growth.
Customer Acquisition: Targeting net new customers and increasing subscription retention, with a goal of reaching 75% recurring revenue by the end of next year.
AI Integration: Implementing AI for product innovation, internal efficiencies, and maintaining competitive product parity.
Revenue Expectations: Expecting continued top-line growth and increased newswire volumes.
Gross Margin Improvement: Projected gross margins to grow by 2% to 4% over the next twelve months, aiming for low 80s in blended gross margins.
EBITDA Goals: Targeting EBITDA margins in the range of 22% to 23% long-term.
Cash Flow Projections: Anticipating approximately $4,000,000 in cash flows from operations before tax impacts for the year.
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Shareholder Return Plan
Share Repurchase Program: The company plans to keep a careful watch on the overall market cap and share price, and if necessary, deploy capital at a later point to repurchase shares.
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Key Q&A
Q:What would you characterize as really your top two or three priorities for ’25?
A:The top priority for us is net new customers, continuing to build our brand, and growing customer numbers. The second is to challenge management on capital allocation to generate additional cash for debt repayment while investing in the business. The third is focusing on our product platform and roadmap, listening to customer feedback, and enhancing our offerings.
Q:What two or three products really are going to help the most with driving the subscription mix higher?
A:The number one product is our news distribution element, which we believe has a compelling architecture and customer journey platform. The second driver will be the Access PR subscription product, which includes distribution, monitoring, database, and pitching.
Q:How would you describe your go to market strategy today?
A:Our strategy focuses on one platform, one check, and one contact, which is important for customer decision-making. We aim to provide a fixed-price subscription model that offers more tools than competitors, making it attractive for customers.
Q:Do you have any medium term goals for gross margin and adjusted EBITDA margin expansion?
A:We expect gross margins to grow by 2% to 4% over the next twelve months, with blended gross margins likely reaching the low 80s. We aim to push EBITDA into the 22% to 23% range long term.
Q:Review of Unclear Management Responses
A:Management did not provide specific details on the exact timeline for achieving their financial goals or the specific metrics they will use to measure success in their new strategy.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Access Newswire
Analyst Northland
Chief Executive
Executive Officer
Founder Chief
Grondahl Analyst
Newswire today
Northland Securities
Officer Access
PR
automation
brand
capital allocation
cash
cost
customer
distribution
driver
efficiency
folk
headcount
kind
line
lot
margin
market
month
number
perspective
platform
product
scale
solution
subscription
system
volume
way
ACCS Transcript
ACCESS Newswire Inc. (ACCS) Q3 2025 Earnings Call Transcript
Unknown11-11
The earnings call presents a mixed sentiment. Financial performance shows modest improvement, with revenue and EBITDA growth, but cash flow is negative due to tax payments. Product development costs are expected to rise, and regulatory risks persist. The Q&A highlights some positive trends in market share and strategic growth plans, but management's lack of detail on future initiatives tempers optimism. The overall sentiment is neutral, as improvements are offset by uncertainties and lack of guidance.
ACCESS Newswire Inc. (NYSE:ACCS) Q1 2025 Earnings Call Transcript
Unknown5-20
The earnings call presents a mixed picture: improved cash flow, gross margin increase, and debt reduction are positive, but revenue and EPS misses, operating loss, and competitive pressures are concerning. Q&A insights reveal some uncertainties in sales cycles and product impacts. The lack of a share repurchase program and unclear guidance dampens optimism. Given the company's small size and the mixed signals, a neutral stock price movement is likely over the next two weeks.
ACCESS Newswire, Inc. (ACCS) Q1 2025 Earnings Call Transcript
Unknown5-13
The earnings call revealed mixed results: improved gross margins and cash flow, but a decline in revenue and an operating loss. The Q&A highlighted efficiency gains and subscription growth, but management's lack of clarity on certain strategies raises concerns. Given the absence of a share repurchase program and market uncertainties, the stock price is likely to remain stable in the short term, leading to a neutral prediction.
Earnings call transcript: ACCESS Newswire Q4 2024 revenue miss impacts stock
Unknown3-25
The earnings report reveals a significant net loss and decreased revenue, despite slight improvements in EBITDA. The transition to a subscription model and competitive pressures add uncertainty. The Q&A highlights strategic priorities but lacks clear timelines, adding to the uncertainty. Despite debt reduction, the financial health is concerning, with increased operating expenses and cash depletion. These factors outweigh the positive aspects like non-GAAP profitability and planned share repurchases, leading to an overall negative sentiment.
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
