CreditRiskMonitor Announces Second Quarter Results

Rhea-AI Summary

CreditRiskMonitor.com, Inc. (OTCQX:CRMZ) reported Q2 2024 operating revenues of $4.9 million, a 5% increase from Q2 2023. However, pre-tax income decreased by $423,000 to $170,000, primarily due to increased expenses. CEO Mike Flum attributed this to continued investment in data, technology, marketing, and employee upskilling to support future growth.

The company highlighted rising corporate bankruptcy filings and increased global business failure risks as potential drivers for demand. CreditRiskMonitor's new Confidential Financial Statements Solution and SupplyChainMonitor™ platform are receiving positive market feedback. The company serves nearly 40% of Fortune 1000 companies and provides comprehensive credit reports, bankruptcy risk analytics, and supply chain risk management solutions.

Positive

• Q2 2024 operating revenues increased by 5% to $4.9 million
• Positive market feedback on new Confidential Financial Statements Solution
• Increasing interest in SupplyChainMonitor™ platform
• Rising corporate bankruptcy filings potentially increasing demand for CRMZ products

Negative

• Q2 2024 pre-tax income decreased by $423,000 to $170,000
• Increased expenses due to inflation and investment strategy

VALLEY COTTAGE, NY / ACCESSWIRE / August 12, 2024 / CreditRiskMonitor.com, Inc. (OTCQX:CRMZ) reported operating revenues of $4.9 million, an increase of approximately $251 thousand or 5%, for the second quarter of fiscal 2024 compared to the same period of fiscal 2023. The Company reported pre-tax income of approximately $170 thousand, a decrease of approximately $423 thousand, for the second 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, new technology development, and third-party content due to inflation.

Mike Flum, CEO, said, "Our reduced operating income for the second quarter of 2024 reflects the continuation of our increased investment strategy in new data, technology development, marketing, and employee upskilling to support larger revenue growth as stated in our first quarter press release. We are still committed to staying profitable while pursuing this goal and expect these operational improvements to support our long-term profitability and valuation in time.

As reported in the media, US corporate bankruptcy filings are up approximately 6% year-to-date relative to 2023 and are higher than any comparable figure in the past 13 years, including 2020 with the COVID-19 pandemic in full swing. The international figures are also concerning with Allianz Trade forecasting an increase of 9% relative to 2023. The US election cycle coupled with ever-mounting geopolitical risk certainly set the stage for higher business failure risks worldwide which should increase demand for our products in trade credit and supply chain counterparty risk monitoring.

Feedback on our new Confidential Financial Statements Solution has been strongly positive, continuing to validate its product-market fit for addressing the financial risk of unscored private companies in both trade credit and supply chain use cases. Our teams continue to demonstrate this innovative add-on product and we expect it to make contributions to our performance as these opportunities are monetized. We are also excited to see increasing interest in our SupplyChainMonitor™ platform, providing market confirmation that the product addresses prospects' need for financial risk analysis and continuing monitoring of vendors."

A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/

Overview

CreditRiskMonitor.com, Inc. (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 supply chain 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 platforms 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, risks associated with the COVID-19 pandemic and 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

SOURCE: CreditRiskMonitor.com, Inc.

View the original press release on accesswire.com

FAQ

What were CreditRiskMonitor's (CRMZ) Q2 2024 financial results?

CreditRiskMonitor reported Q2 2024 operating revenues of $4.9 million, a 5% increase from Q2 2023. However, pre-tax income decreased by $423,000 to $170,000 due to increased expenses.

How does the current corporate bankruptcy trend affect CRMZ?

US corporate bankruptcy filings are up 6% year-to-date compared to 2023, potentially increasing demand for CRMZ's credit risk and supply chain monitoring products.

What new products has CreditRiskMonitor (CRMZ) introduced recently?

CreditRiskMonitor has introduced the Confidential Financial Statements Solution and the SupplyChainMonitor™ platform, both receiving positive market feedback.

What is CreditRiskMonitor's (CRMZ) market presence among Fortune 1000 companies?

CreditRiskMonitor serves nearly 40% of Fortune 1000 companies, providing them with comprehensive credit reports and risk management solutions.