VRME Earnings Prediction
The chart below shows how VRME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRME sees a +2.18% change in stock price 10 days leading up to the earnings, and a -0.18% change 10 days following the report. On the earnings day itself, the stock moves by -2.01%. This data can give you a slight idea of what to expect for the next quarter's release.
VRME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.43M
-3.02%
1.55%
Gross Margin
34.87%
-14.74%
-10.70%
Operating Margin
-11.37%
-25.49%
13.59%
Net Margin
-44.60%
168.67%
590.40%
EPS
-0.23
-155.56%
666.67%
No Data Available
VRME Earnings Analysis
VerifyMe, Inc. Common Stock Corporation (VRME.O) Earnings Conference Call
Positive
EBITDA Improvement Year-over-Year: 1. Adjusted EBITDA Improvement: Adjusted EBITDA improved by $1.1 million year-to-date 2024, reaching $0.4 million compared to a loss of $0.7 million in 2023.
Proactive Services Revenue Increase: 2. Proactive Services Revenue Growth: Revenue from proactive services in the Precision Logistics segment increased by $0.4 million, demonstrating a positive trend despite overall revenue challenges.
Effective Cost Management: 3. Cost Management in Operating Expenses: Excluding a one-time non-cash impairment, total operating expenses improved by $0.4 million year-over-year, indicating effective cost management strategies.
Direct Premium Customer Growth: 4. Increased Direct Premium Customers: The number of direct premium customers in the Precision Logistics segment has grown, contributing positively to the revenue mix.
Stable Cash Balance: 5. Stable Cash Position: As of September 30, 2024, the company maintained a cash balance of $2.6 million, with no borrowings under its line of credit, indicating a stable cash position.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Q3 2024 revenue decreased to $5.4 million from $5.6 million in Q3 2023, reflecting a $0.2 million drop.
Authentication Segment Stagnation: 2. Authentication Segment Stagnation: The Authentication segment did not grow in 2024, despite initial robust growth expectations, leading to a reevaluation of competitive positioning.
Goodwill and Intangible Impairment: 3. Goodwill Impairment: A $2.3 million goodwill and intangible asset impairment was recorded due to the anticipated exit from the code portion of the Authentication segment.
Rising Operating Expenses: 4. Increased Operating Expenses: Operating expenses rose to $4.8 million in Q3 2024 from $2.9 million in Q3 2023, largely due to the one-time impairment charge.
Net Loss Increase: 5. Net Loss: The company reported a net loss of $2.4 million for Q3 2024, compared to a loss of $0.9 million in Q3 2023, indicating worsening financial performance.
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VRME Earning Call Sentiment
VerifyMe, Inc. (VRME) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VRME.O
-0.8%Positive
The earnings call reveals several challenges: declining revenue and gross margins, increased operating expenses due to impairments, and ongoing net losses. The Authentication segment faces operational challenges and its future contribution to revenue is unclear. Although there are positive aspects like pipeline growth in the premium business, the overall financial health and market strategy seem weak. The Q&A highlights uncertainties in the Authentication segment and lack of clarity from management, reinforcing a negative sentiment. These factors suggest a likely negative impact on the stock price over the next two weeks.