QMCI - QuoteMedia Inc. (QMCI) - Shares Appear Timely

Q2 misses expectations. Revenues increased 12% to $4.30 million but were 7.5% lower than our $4.65 million estimate. Management identified a shift in revenue from a large client, deferred into the third quarter contributed to the Q2 revenue shortfall. Lower than expected gross margins and higher than expected G&A and Software Development expenses, all contributed to lower than expected adj. EBITDA of $564,000 versus our $765,000 estimate.Outlook appears on track. Management reiterated its full year 2022 revenue growth guidance of 20%. The deferred revenue is now expected to be recognized in the second half of the year. We are tweaking our full year revenue estimate slightly, from 22% growth to 20% growth, in line with current guidance. Given higher than anticipated G&A and Development costs, we are revising our full year adj. EBITDA estimate down from our original $3.17 million to $2.64 million. We are maintaining our 2023 revenue and adj. EBITDA forecast. Read More >>