QMCI - QuoteMedia Inc. (QMCI) - Not All Pistons Are Firing

Q2 disappoints. Revenues increased 12% to $4.30 million, but were 7.5% lower than our $4.65 million estimate. Notably, revenues moderated from the 18% revenue growth in the first quarter. We believe that adverse general market conditions and economic concerns impacted the company's individual Quotestream business, which declined 9% yoy, and slowed revenue growth in its Corporate Quotestream segment, an increase in revenues of a modest 5.3% versus 20.4% in Q1. Misses Adj. EBITDA estimate. Gross profit margins were slightly lower than expected. But, more importantly, G&A expenses and Software Development expenses were higher. As such, combined with the revenue miss, adj. EBITDA of $564,000 was lower than our $765,000 estimate. Read More >>