QMCI - QuoteMedia Inc. (QMCI) - Meeting Expectations Just Got Easier

Scores a big fish it hoped for. QuoteMedia was selected as market data and technology provider for one of Canada's top financial banks. This was a contract that the company indicated it was about to sign in its last investor call. We had already factored in this new account into our 2022 and 2023 estimates. Large new account. We estimate that the new account will become the company's largest account, exceeding that of the Toronto Exchange estimated to account for annual revenues of roughly $1.7 million. The revenue contribution from the new account is estimated to allow the company to achieve 22% revenue growth for full year 2022 and 2023 due to expanded service offerings in that year. Favorable margins. The new account does not have direct costs, no exchange fees, and should contribute to an expansion in margins. We anticipate that total company adj. EBITDA margins will expand to 15.5% for full year 2022 up from 10.9% in 2021, expanding further to 16.2% for full year 2023. Another potential one beyond that? Management indicated that there may be yet another large account behind this one, which has not been factored into our estimates. We will adjust estimates accordingly, if, and when, another large account signs a contract. At this time, we are maintaining our current revenue and cash flow estimates. Rating is Outperform. Near current levels, QMCI shares trade at a modest 10.1 times Enterprise Value to our 2023 EBITDA estimate, at the low end of its historic trading ranges and below the expected growth rate. We are maintaining our price target of $0.35 at this time. Read More >>