CreditRiskMonitor Announces First Quarter Results

VALLEY COTTAGE, NY / ACCESSWIRE / May 14, 2024 / CreditRiskMonitor (OTCQX:CRMZ) reported operating revenues of $4.8 million, an increase of approximately $218 thousand or 5%, for the first quarter of fiscal 2024 compared to the same period of fiscal 2023. The Company reported pre-tax income of approximately $166 thousand, a decrease of approximately $189 thousand, for the first quarter of fiscal 2024 compared to the same period of fiscal 2023. The decrease in pre-tax profitability was primarily driven by increased expenses related to employee salaries, employee benefits, commissions, and third-party content due to inflation.

Mike Flum, CEO, said, "Our reduced operating income for the first quarter of 2024 reflects the increased investments we have made in new data, technology development, marketing, and employee upskilling to support larger revenue growth. We remain committed to staying marginally profitable while pursuing this goal; however, these operational improvements are more important to our long-term profitability and valuation than short-term cost management.

We continue to experience improved demand for our products due to rising corporate bankruptcies worldwide and mounting geopolitical risk. While financial risk may not currently be at the top of the list for supply chain concerns, we are increasingly hearing about how corporate bankruptcies in the European market are creating disruptions for clients and prospects. Given the massive debt loads, stubborn inflation, and demographic challenges facing much of the Western World coupled with deflationary movements in China, we expect the trend to continue and potentially accelerate. Additionally, with mounting trade tensions and expanding tariff discussions between the West and China, we expect global trade disruptions to become the norm versus the exception.

The early feedback from clients and prospects on our new Confidential Financial Statement Solution has confirmed its product-market fit in addressing the financial risk of unscored private companies. Removing the data entry requirements while ensuring the integrity of resulting standardized statements and risk scores has resonated for both credit and supply chain users. Customers also appreciate our innovative pricing model that only charges them when they receive a risk score, a clear example of our commitment to providing value in excess of cost. We expect to have significant interest from the credit community at the National Association of Credit Management (NACM) Credit Congress in June in line with what we experienced from the supply chain professionals at the recent Institute for Supply Management (ISM) World conference."