QuoteMedia Announces Small Growth in Revenue for Q2 2020

PHOENIX, Aug. 12, 2020 (GLOBE NEWSWIRE) -- QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, announced financial results for the three and six months ended June 30, 2020.

QuoteMedia provides banks, brokerage firms, exchanges, financial portals, private equity firms, financial planners, professional traders and sophisticated investors with economical, high quality stock market data, news, analytics and research information. QuoteMedia provides streaming data feeds, on-demand request-based data (XML/JSON), web content solutions (preformatted content for website integration) and terminal-style applications such as Quotestream Professional desktop and mobile.

Revenue for the three months ended June 30, 2020 was $3,029,199 versus $2,984,846 in the comparative 2019 period, resulting in a 1% increase.

Revenue for the six months ended June 30, 2020 was $5,995,783 versus $5,855,465 in the comparative 2019 period, resulting in a 2% increase.

“We are comfortable with our results for this quarter”, said Robert J. Thompson, Chairman of the Board of QuoteMedia, Inc. “As we mentioned when releasing our results for the previous quarter, while we only experienced modest revenue growth, it occurs in the context of the severe economic disruption caused by the COVID-19 pandemic. Our operations continue to be affected by a range of factors related to the global pandemic that are outside of our control. Prime among them is that the uncertainty caused by the COVID-19 pandemic has caused a slow-down in clients’ or prospects’ purchasing decisions, or product and service implementations. In other cases, clients have suspended operations, due to the financial strain resulting from current economic conditions. Although this has tempered our revenue growth, we are pleased to still be experiencing modest gains despite the current climate. 

“In part, our continued growth, although constrained, is due to the fact that the current economic downturn has also been a source of some opportunities, as the added pressure on financial sector firms to find more efficient and cost effective solutions to their data and technology needs is leading to a continuing demand for QuoteMedia’s offerings. The situation surrounding the COVID-19 pandemic remains fluid, and we are continuing to actively manage our response and assess potential impacts to our financial position and operating results, even as we look forward to the eventual economic recovery.

“Notwithstanding the flattening of revenues, the company has undertaken major growth initiatives in 2020 investing in technological and infrastructure advancement, new product development, data collection and aggregation initiatives, and the expansion of our global market coverage. As well we have invested in new marketing campaigns and increased staffing. As a result of these increased expenditures, we experienced net losses of $127,098 and $244,423 for the three and six months ended June 30, 2020 compared to net income of $202,361 and $315,417 in the prior periods in 2019. Our adjusted EBITDA¹ was $213,648 and $405,136 for the three and six months ended June 30, 2020 versus $576,622 and $1,058,979 in the prior periods in 2019. These strategic investments are important to continue the strength of the company’s competitive position and equip the Company to realize substantial revenue and profitability growth in future periods as the economy starts to perform again on a stable base.”

QuoteMedia will host a conference call today at 2pm Eastern time to discuss the Q2 2020 financial results and provide a business update. 

Date: August 12, 2020

Time: 2:00 PM Eastern Time

Dial-in number: 1-800-894-5910

Conference ID: QUOTEMEDIA

An audio rebroadcast of the call will be available later at: www.quotemedia.com

About QuoteMedia

QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides data and services for companies such as the NASDAQ Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), FIS, U.S. Bank, Broadridge Financial Systems, Ridge Clearing, JPMorgan Chase, CI Financial, JitneyTrade, Hilltop Securities, HD Vest, Intrinsic Research Systems, Stockhouse, Zacks Investment Research, General Electric, Boeing, Bombardier, Business Wire, PR Newswire, FolioFN, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Qtrade Financial, CNW Group, Industrial Alliance, Ally Invest, Inc., Suncor, Virtual Brokers, Equities.com, Leede Jones Gable, Firstrade Securities, Motif Investing, First Financial, Cirano, Equisolve, Stock-Trak, Mergent, SNN Incorporated and others. Quotestream®, QMod^TM and Quotestream Connect™ are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com.

QuoteMedia Investor Relations
Brendan Hopkins
Email: investors@quotemedia.com
Call: (407) 645-5295

Note 1 on Non-GAAP Financial Measures

We believe that Adjusted EBITDA, as a non-GAAP pro forma financial measure, provides meaningful information to investors in terms of enhancing their understanding of our operating performance and results, as it allows investors to more easily compare our financial performance on a consistent basis compared to the prior year periods. This non-GAAP financial measure also corresponds with the way we expect investment analysts to evaluate and compare our results. Any non-GAAP pro forma financial measures should be considered only as supplements to, and not as substitutes for or in isolation from, or superior to, our other measures of financial information prepared in accordance with GAAP, such as net income attributable to QuoteMedia, Inc.

We define and calculate Adjusted EBITDA as net income (loss) attributable to QuoteMedia, Inc., plus: 1) depreciation and amortization, 2) stock compensation expense, 3) interest expense, 4) foreign exchange loss (or minus a foreign exchange gain), and 5) income tax expense. We disclose Adjusted EBITDA because we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies, investors and financial institutions in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors. The table below provides a reconciliation of Adjusted EBITDA to net income (loss) attributable to QuoteMedia, Inc., the most directly comparable GAAP financial measure.

QuoteMedia, Inc. Adjusted EBITDA Reconciliation to Net Income (Loss)