Park City Group (PCYG) Tops Q2 EPS by 6c, Revenues Miss

Park City Group (NASDAQ: PCYG) reported Q2 EPS of $0.08, $0.06 better than the analyst estimate of $0.02. Revenue for the quarter came in at $5.17 million versus the consensus estimate of $5.29 million.

Second Quarter Financial and Recent Business Highlights:

• Total revenue increased to $5.2 million from $4.8 million, a 7% year-over-year increase resulting from higher MarketPlace revenue and recurring SaaS revenue. Fiscal 2020 revenue included $410,000 of one-time revenue that did not reoccur in fiscal 2021.
• GAAP net income of $1.6 million which includes a $72,000 unrealized gain on investment and a $1.1 million gain on forgiveness of debt vs. net income of $660,000 in the prior year.
• Net income to common shareholders of $1.5 million, inclusive of above-mentioned gains, vs. $516,000.
• EPS $0.08 vs. $0.03 in the prior year second quarter.

Randall K. Fields, Chairman and CEO of Park City Group commented, “We continue to experience increased interest and higher levels of buying and selling activity across MarketPlace beyond our traditional base of food retailers who utilize our concierge and automated platform to secure hard-to-source supplies. Importantly, we have reached sufficient scale and established pricing models that enable sustainable profitability. With this, we can leverage our profitable business model to generate steady bottom-line growth, even if transactional revenues for hard-to-source items fluctuate from quarter to quarter.”

“In parallel, we are beginning to rollout two added offerings to our platform, which are expected to contribute to revenue as the year progresses,” continued Mr. Fields. “The first, within our MarketPlace solution, is a grant reconciliation solution, helping states accurately manage their FEMA procurement efforts before, during and after emergencies. Park City has signed up a U.S. state to pilot this offering, and we anticipate incremental revenue from this solution in this year. Our second offering is a Quality Management Solution or QMS, which is an extension of our existing compliance offering. We have experienced a high level of interest from customers and expect more revenue contribution from this in the coming quarters.”

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

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