Park City Group (PCYG) Tops Q2 EPS by 4c

Park City Group (NASDAQ: PCYG) reported Q2 EPS of $0.09, $0.04 better than the analyst estimate of $0.05. Revenue for the quarter came in at $5.6 million versus the consensus estimate of $5.86 million.

“Our converged business is driving benefits in terms of improved execution and enhanced profitability, as evidenced by the record net income in the quarter,” said Randall K. Fields, Chairman and Chief Executive Officer of Park City Group. “We continue to scale our network of connections, and we are still at the early stages for increasing the scope of our activities on this network. Our single technology platform and investments in automation are allowing us to shed the overhead of our legacy model. As we focus the Success Team on serving our customers through a single, cohesive application platform, we expect revenue growth to accelerate and earnings growth to continue to outpace revenue growth.”

“Our activities in the quarter were focused on execution to ensure our customer’s success,” added Mr. Fields. “We now have over 75,000 compliance connections, as the team focused on onboarding suppliers for two large Tier 1 compliance customers which we won in the first quarter. One of these HUBs is one of the largest wholesalers in the country, and the other was a large retailer where our mandate grew since the initial engagement last quarter. These two engagements, and a robust pipeline of Tier 1 and Tier 2 prospects, give us confidence fiscal 2019 will be another strong year for adding compliance connections.”

“Interest in MarketPlace continues to grow,” said Mr. Fields. “As we projected, we have added two more buyers to MarketPlace, achieving this goal ahead of our own target of the end of our fiscal year. One of these will begin using the platform this quarter for the same use case as our initial buyer. The second launched in December for a completely new use case and has become a valuable customer reference. MarketPlace is early stage and subject to quarterly variances, due to seasonality and customer initiatives, but we are highly encouraged and expect to demonstrate the progress we have made.”

“Industry dynamics continue to drive higher interest in our supply chain capabilities as our HUBs are looking to drive our applications deeper into their supplier bases,” said Mr. Fields. “This is happening organically through an acceleration in the addition of new suppliers to existing HUBs and through high-level discussion for HUB-wide mandates and large supplier-driven mandates like we saw at the end of the prior fiscal year. We believe there is an eight-figure opportunity just from engaging every supplier we already enable at each of our HUBs they already service.”

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

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