Park City Group (PCYG) Misses Q1 EPS by 3c, Revenues Miss

Park City Group (NASDAQ: PCYG) reported Q1 EPS of $0.00, $0.03 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $4.8 million versus the consensus estimate of $4.85 million.

“The goal of driving our network size from 20,000-plus to 100,000 companies is accelerating,” said Randall K. Fields, Chairman and CEO of Park City Group. “We ended the quarter with a total network of nearly 340,000 connections. Increasing the penetration in our network represents an eight-figure revenue opportunity. Driving the network scale, making it easier for customers to buy, provides cross selling opportunities for more services, at a competitive price, and drives results.”

“We remain focused on accelerating our recurring revenue growth with a three-pronged strategy,” Mr. Fields stated. “First, we grow compliance revenue by adding more Tier 2 hubs. Second, we accelerate Supply Chain revenue by focusing on the industry’s number one problem: Out of Stocks. Third, we grow MarketPlace by adding additional buyers. All of this is happening now, and we believe that it will drive year-over-year revenue growth for fiscal 2020.”

“Our platform continues to attract net new participants every month,” Mr. Fields added. “We remain laser-focused on growing recurring revenue and further penetrating our existing customer base. Notably, Tier 2 recurring revenue grew for the quarter 8% year-over-year, and we exited the quarter on a run rate that was 35% higher than the comparable period last year.”

Mr. Fields concluded, “I am particularly encouraged with the response to our new Out of Stock Management Solution (OOS). We delivered an average reduction of 39% in out-of-stocks in less than three months for nine different retailers across more than 25,000 store-SKUs and more than 12,175 stores. Eliminating out-of-stocks remains a critical challenge for food retailers as consumers turn to online retailers when their local store is out of a sought-after item. Previously, retailers had no viable solution to address this challenge. Our OOS is the industry’s first solution to address Direct Store Delivery out-of-stocks, enables retailers to keep customers and increase revenues. It also serves as a differentiator, helping us secure recurring revenue. When combined with our MarketPlace solution, we are increasingly providing innovative solutions to address pressing challenges for all retailers. The growth of our network underscores the progress we are making as we continue to minimize one-time revenue, and focus on our accelerating recurring revenue. As we accomplish this objective, our top line will begin to grow rapidly.”

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

You May Also Be Interested In

• Citi agrees to acquire rewards platform Kard Financial
• 4D Molecular Therapeutics, Inc. (FDMT) Misses Q2 EPS by 3c
• MapLight Therapeutics, Inc. (MPLT) Misses Q2 EPS by 33c