Park City Group (PCYG) Reports Q1 EPS of $0.05, Revenues Beat

Park City Group (NASDAQ: PCYG) reported Q1 EPS of $0.05, versus $0.00 reported last year. Revenue for the quarter came in at $5.9 million versus the consensus estimate of $5.7 million.

“We began fiscal 2019 with strong momentum and continued growth across all areas of our business,” said Randall K. Fields, Chairman and Chief Executive Officer of Park City Group. “Total revenues increased 26% in the first quarter, and we delivered a near tripling of net income, and record operating cash flows. Results for the quarter were driven by our Compliance business, with growth of both Tier 1 and Tier 2 connections, continued growth in high quality Supply Chain subscription revenue, and a large year-over-year increase in revenues from our MarketPlace initiative.”

Mr. Fields added. “With the convergence of our Supply Chain offering into ReposiTrack and the launch of MarketPlace we have created a single platform to address our customers’ needs across every aspect of the supply chain. This is allowing us to better cross-sell our solutions within our network which positions us to more effectively drive growth and accelerate profitability. As a result, we are winning larger mandates from our retail and wholesale HUBs for both our Compliance and Supply Chain solutions and driving sales of our applications deeper into their supplier bases, most notably with our Tier 2 Supplier HUB growth initiative.”

“With MarketPlace up and running, and revenues accelerating, we rotated our focus back to Compliance,” Mr. Fields added. “As a result, we generated strong results from Compliance activities during the first quarter. We saw near record growth in Tier-1 Compliance connections, while our Success Team’s increased focus on signing up Tier-2 Supplier Hubs accelerated the pace of this activity from prior quarters. This gives us even greater confidence that this offering will be a catalyst for growth beginning in the second half of this year as we leverage our relationship with the thousands of suppliers in our Compliance network.”

“Our Supply Chain business continues to deliver solid revenue growth,” said Mr. Fields. “This is increasingly being driven by larger mandates from retail and wholesale HUBs seeking to drive our applications deeper into their supply chains as they see the benefit from our solutions to their competitive capabilities. However, overall results are also clearly underpinned by low churn of both Supply Chain and Compliance customers due to our relentless pursuit of customer satisfaction, with overall churn less than 2% of total revenues in the past year.”

“Last, but certainly not least, we continue to be encouraged by the results we are achieving from MarketPlace with one of the largest retailers in the country,” concluded Mr. Fields. “During the first quarter, we expanded our program with this customer to a second category, improved our execution capabilities, and are working to onboard new retail HUB buyers to the platform. As expected, we experienced some seasonality during the first quarter, which will likely continue into our second quarter. Nevertheless, year-over-year growth remains significant and we remain confident we will add at least two more buyer HUBs to MarketPlace in fiscal 2019.”

For earnings history and earnings-related data on Park City Group (PCYG) click here.

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