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Trusted by 40% of Fortune 1000
VALLEY COTTAGE, NY—August 12, 2024—CreditRiskMonitor.com, Inc. (OTCQX: CRMZ) reported operating revenues of $4.9 million, an increase of approximately $251 thousand or 5%, for the second quarter of fiscal 2024 compared to the same period of fiscal 2023. The Company reported pre-tax income of approximately $170 thousand, a decrease of approximately $423 thousand, for the second 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, new technology development, and third-party content due to inflation.
Mike Flum, CEO, said, “Our reduced operating income for the second quarter of 2024 reflects the continuation of our increased investment strategy in new data, technology development, marketing, and employee upskilling to support larger revenue growth as stated in our first quarter press release. We are still committed to staying profitable while pursuing this goal and expect these operational improvements to support our long-term profitability and valuation in time.
As reported in the media, US corporate bankruptcy filings are up approximately 6% year-to-date relative to 2023 and are higher than any comparable figure in the past 13 years, including 2020 with the COVID-19 pandemic in full swing. The international figures are also concerning with Allianz Trade forecasting an increase of 9% relative to 2023. The US election cycle coupled with ever-mounting geopolitical risk certainly set the stage for higher business failure risks worldwide which should increase demand for our products in trade credit and supply chain counterparty risk monitoring.
Feedback on our new Confidential Financial Statements Solution has been strongly positive, continuing to validate its product-market fit for addressing the financial risk of unscored private companies in both trade credit and supply chain use cases. Our teams continue to demonstrate this innovative add-on product and we expect it to make contributions to our performance as these opportunities are monetized. We are also excited to see increasing interest in our SupplyChainMonitor™ platform, providing market confirmation that the product addresses prospects’ need for financial risk analysis and continuing monitoring of vendors.”
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
