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Trusted by 40% of Fortune 1000
VALLEY COTTAGE, NY—November 7, 2024—CreditRiskMonitor.com, Inc. (OTCQX: CRMZ) reported operating revenues of $5.0 million, an increase of approximately $217 thousand or 5%, for the third quarter of fiscal 2024 compared to the same period of fiscal 2023. The Company reported pre-tax income of approximately $716 thousand, an increase of approximately $222 thousand, for the third quarter of fiscal 2024 compared to the same period of fiscal 2023. The increase in pre-tax profitability was primarily driven by decreased salary and related expenses, lower customer acquisition costs, and an increase in interest income.
Mike Flum, CEO, said, “We continue our restructuring initiatives to achieve higher efficiency for our teams. While our operating results have improved quarter over quarter, we still expect lower profitability in the short-to-medium term as we increase spending for data, technology, and employee upskilling. We expect these investments will support higher revenue growth and higher profitability in the long term.
Our Confidential Financial Statement Solution continues to receive positive feedback from prospects and customers as it gains momentum. We are making minor tweaks to the process based on user input as we refine product market fit. The add-on helps to address the private company coverage problem without resorting to the firmographic/technographic models used in thin file situations, which we feel provide a false sense of security.
We also continue to gain new clients for our SupplyChainMonitor™ platform and were excited to be rated as a top provider of financial risk analytics for supply chain risk management and third-party risk management by Spend Matters in their Fall 2024 SolutionMap rankings. There is a clear need for financial risk analysis in supply chain management and the movement from one-time onboarding checks to more robust continuous monitoring supports our value proposition.
Finally, we are working to improve our news systems with new natural language techniques to support better content tagging, fewer duplicated stories, and clear materiality to our subscribers. These steps will also support our ambitions to extract more information from news to improve our reporting and counterparty relationship identification which can lead to lower-cost digital twin models that leverage our analytics to surface financial risk contagions within n-tier supply chains.
A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/.
Overview
CreditRiskMonitor.com, Inc. (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. Our primary SaaS subscription products for analyzing commercial financial risk are CreditRiskMonitor® and SupplyChainMonitor™. These products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively. Our subscribers include nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide.
To help subscribers prioritize and monitor counterparty financial risk, our SaaS platforms offer the proprietary FRISK® and PAYCE® Scores as well as the FAST Rating, the well-known Altman Z”-Score, agency ratings from key Nationally Recognized Statistical Rating Organizations (“NRSROs”), curated news, and detailed financial spreads & ratios. Our FRISK® and PAYCE® Scores are financial distress classification models that measure a business’s probability of bankruptcy within a year. The FRISK® score also includes a risk signal based on the aggregate research behaviors of our subscribers, who control counterparty access to trade credit at some of the most sophisticated companies in the world. The inclusion of this risk signal boosts the overall accuracy of this bankruptcy analytic by lowering the false positive rate for the riskiest corporations.
Through its Trade Contributor Program, the Company receives monthly confidential accounts receivables data from hundreds of subscribers and non-subscribers, which it parses, processes, aggregates, and reports to summarize the invoice payment behavior of B2B counterparties without disclosing the specific contributors of this information. The size of the Trade Contributor Program’s current annualized trade credit transaction data is approximately $3 trillion.
Safe Harbor Statement
Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include details of the accounting restatement, the expected impact of the accounting restatement and the remediation of the related material weakness in internal control over financial reporting. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, those risks, uncertainties and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports. There can be no assurance that (i) the consequences of the Company’s restated results will be as anticipated above and (ii) the Company will be able to promptly and efficiently implement the appropriate remediation steps into its financial reporting. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
Contact
CreditRiskMonitor.com, Inc.
Mike Flum, Chief Executive Officer
(845) 230-3037
ir@creditriskmonitor.com
