Park City Group Reports 30% Increase in Revenue, Net Income Increases 184% for Fiscal Third Quarter 2021
Park City Group, Inc. (NASDAQ: PCYG), the parent company of ReposiTrak, Inc., which operates a B2B ecommerce, compliance, and supply chain platform that partners with retailers, wholesalers, and their suppliers, to accelerate sales, control risk, improve supply chain efficiencies, and source hard-to-find items, today announced financial results for the third fiscal quarter ended March 31, 2021.
Third Quarter Financial and Recent Business Highlights:
Randall K. Fields, Chairman and CEO of Park City Group commented, "Our strong performance in the quarter reflects 30% top line and 184% net income growth, demonstrating the inherent leverage of our business model. MarketPlace revenue soared as customers utilized this unique solution to find hard-to-source items amidst the pandemic. But even as our revenue mix resulted in more transactional, lower-margin MarketPlace revenue this quarter, our bottom-line conversion still grew exponentially demonstrating the strong leverage inherent in our business model. As the pandemic begins to abate and MarketPlace revenue moderates, we expect our mix to shift in favor of our traditional SaaS solutions where budgets are beginning to loosen, likely resulting in slower top-line growth but increased profitability."
"Our business is highly scalable," added Mr. Fields. "We can significantly increase our revenue, especially our software revenue, and particularly recurring compliance and supply chain revenue, driving incremental profitability. Meanwhile, the value we have provided our customers with the MarketPlace offering has further bolstered our relationships with customers. Our network creates value far beyond the transaction, as we are perhaps the only partner who can help customers source, vet, and transact business across the entire supply chain."
Fiscal 2021 Year to Date Results (nine months ended March 31, 2021 vs. nine months ended March 31, 2020):
Total revenue increased 15% to $16.4 million for the nine months, as compared to $14.3 million during the same period a year ago. Total operating expense was $14.7 million, an increase of 11% from $13.3 million a year ago. GAAP net income was $3.0 million versus $1.1 million a year ago, and GAAP net income to common shareholders was $2.5 million, or $0.13 per diluted share, compared to $674,000, or $0.03 per diluted share, a year ago.
Third Quarter Financial Results (three months ended March 31, 2021 vs. three months ended March 31, 2020):
Total revenue increased 30% to $6.0 million as compared to $4.6 million due largely to growth in MarketPlace revenue and a 13% increase in recurring revenue. Total operating expense increased 21% to $5.3 million due to increased cost of revenue and product support due to a greater portion of MarketPlace revenue. GAAP net income was $773,000, versus $272,000. GAAP net income to common shareholders was $627,000, or $0.03 per diluted share, compared to $125,000, or $0.01 per diluted share.
The Company had $23.2 million in cash and cash equivalents at March 31, 2021, compared to $17.9 million at March 31, 2020 and $20.3 million at June 30, 2020.
The Company will host a conference call at 4:15 P.M. Eastern today to discuss the Company's results. The conference call will also be webcast and will be available via the investor relations section of the Company's website, www.parkcitygroup.com.
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About Park City Group:
Park City Group, Inc. (NASDAQ:PCYG), the parent company of ReposiTrak, Inc., a compliance, supply chain, and e-commerce platform that enables retailers, wholesalers, and their suppliers, to accelerate sales, control risk, and improve supply chain efficiencies. More information is available at www.parkcitygroup.com and www.repositrak.com.
Specific disclosure relating to Park City Group, including management's analysis of results from operations and financial condition, are contained in the Company's annual report on Form 10-K for the fiscal year ended June 30, 2020 and other reports filed with the Securities and Exchange Commission. Investors are encouraged to read and consider such disclosure and analysis contained in the Company's Form 10-K and other reports, including the risk factors contained in the Form 10-K.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to Park City Group, Inc. ("Park City Group") are intended to identify such forward-looking statements. Park City Group may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in Park City's annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
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