CreditRiskMonitor Announces First Quarter Results
VALLEY COTTAGE, N.Y. - May 14, 2024 - CreditRiskMonitor (OTCQX:CRMZ) reported operating revenues of $4.8 million, an increase of approximately $218 thousand or 5%, for the first quarter of fiscal 2024 compared to the same period of fiscal 2023. The Company reported pre-tax income of approximately $166 thousand, a decrease of approximately $189 thousand, for the first quarter of fiscal 2024 compared to the same period of fiscal 2023. The decrease in pre-tax profitability was primarily driven by increased expenses related to employee salaries, employee benefits, commissions, and third-party content due to inflation.
Mike Flum, CEO, said, "Our reduced operating income for the first quarter of 2024 reflects the increased investments we have made in new data, technology development, marketing, and employee upskilling to support larger revenue growth. We remain committed to staying marginally profitable while pursuing this goal; however, these operational improvements are more important to our long-term profitability and valuation than short-term cost management.
We continue to experience improved demand for our products due to rising corporate bankruptcies worldwide and mounting geopolitical risk. While financial risk may not currently be at the top of the list for supply chain concerns, we are increasingly hearing about how corporate bankruptcies in the European market are creating disruptions for clients and prospects. Given the massive debt loads, stubborn inflation, and demographic challenges facing much of the Western World coupled with deflationary movements in China, we expect the trend to continue and potentially accelerate. Additionally, with mounting trade tensions and expanding tariff discussions between the West and China, we expect global trade disruptions to become the norm versus the exception.
The early feedback from clients and prospects on our new Confidential Financial Statement Solution has confirmed its product-market fit in addressing the financial risk of unscored private companies. Removing the data entry requirements while ensuring the integrity of resulting standardized statements and risk scores has resonated for both credit and supply chain users. Customers also appreciate our innovative pricing model that only charges them when they receive a risk score, a clear example of our commitment to providing value in excess of cost. We expect to have significant interest from the credit community at the National Association of Credit Management (NACM) Credit Congress in June in line with what we experienced from the supply chain professionals at the recent Institute for Supply Management (ISM) World conference."
A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/
Overview
CreditRiskMonitor (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. The products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively.
The Company’s newest platform, SupplyChainMonitor™, leverages its financial risk analytics expertise to create a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. Users can assess counterparty risks at the aggregate and granular levels under a variety of categories including geography and industry, as well as customized, customer-specific configurations. The platform features mapping capabilities with real-time weather/natural disaster event overlays as well as customizable news notifications, reports, and charts.
Our subscribers, including nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the Company's timely news alerts, research, and reports on public and private companies to make important risk decisions. The Company's comprehensive commercial credit reports covering both public and private companies worldwide are published through its web-based platform and feature detailed analyses of financial statements, including ratio analysis and trend reports, peer analysis, corporate issuer ratings from key Nationally Recognized Statistical Rating Organizations ("NRSROs"), as well as the Company's proprietary bankruptcy analytics: the FRISK® and PAYCE® scores. One of the FRISK® scoring model's exclusive input features is the aggregate risk sentiment of our subscribers based on their crowdsourced usage behaviors resulting in the improved classification of bankruptcy risk for the riskiest corporations and boosting overall accuracy.
The Company, through its Trade Contributor Program, receives confidential accounts receivables data from hundreds of subscribers and non-subscribers every month. This trade receivable data is parsed, processed, aggregated, and finally reported to summarize the invoice payment behavior of B2B counterparties, without disclosing the specific contributors of this information. The Trade Contributor Program's current trade credit file processes approximately $3 trillion of transaction data annually.
Safe Harbor Statement
Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, those risks, uncertainties, and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
CONTACT:
CreditRiskMonitor.com, Inc.
Mike Flum, CEO & President
845.230.3037
ir@creditriskmonitor.com