Halfway through the latest iteration of earnings season, stocks haven’t disappointed. Many companies printed new 52-week highs following releasing quarterly results, including Intuit (NASDAQ: INTU) and Avis Budget Group (NASDAQ: CAR), while others, like Avaya Holdings (NYSE: AVYA) are rallying off bottoms by topping analyst expectations. For Software-as-a-Service company iCoreConnect (OTCQB:ICCT), a revenue beat looks to be the catalyst for another higher low as a slow-and-steady uptrend is formed.
As the blue circles indicate, ICCT has climbed from a low of $0.056 in December 2020, to a new higher low at $0.085 in September to $0.117 last week.
The question now is whether ICCT will rally again to take out resistance at $0.20.
On November 15, iCoreConnect, which specializes in cloud-based SaaS services for the healthcare space, reported financial results from the third quarter ended September 30, 2021. Revenue for the quarter was $1.4 million, up 158% from Q3 2020 while beating expectations by $0.09 million. This increase was primarily due to an increase in active subscribers and an increase in service offerings across the iCoreConnect platform.
Gross profit for the quarter was $0.9 million, up 269% from the year prior quarter, while gross margin surged to 69% from 48%. Management commented that as the company continues to scale it expects the pattern of increasing margins that started in 2020 to continue.
Operating expenses rose with the increased sales, reaching $1.7 million from $0.7 million last year. About $400,000 of the operating expenses during the latest quarter were non-cash (i.e. depreciation, amortization, stock-based compensation). iCoreConnect also more than doubled its sales force. The company is operating more efficiently as measured by operating expenses as a percentage of revenue falling from 184% to 124% year-over-year. Operating loss was flat at $0.7 million.
The third quarter featured some key fundamental developments for iCoreConnect, including launching its 15th SaaS product, iCoreVerify. iCoreVerify allows for automated, real-time verification of insurance benefits up to a week in advance for all scheduled patients, compressing processes that are currently highly time consuming, into a single click.
iCoreConnect also closed the highly accretive acquisition of Spectrum Technology Solutions during Q3. Spectrum provides Managed Services, Data Backup, Data Discovery, Strategic IT Leadership & vCIO, Cloud Services, Cybersecurity and Encryption products and services. The Spectrum acquisition was the eighth strategic acquisition by President and CEO Robert McDermott and his executive team, a testimony to their commitment to accelerate growth.
Subsequent to the third quarter, iCoreConnect won two valuable endorsements. One from the California Dental Association, the largest dental association in the U.S. and the Maryland Dental Association. The Michigan Dental Association expanded its endorsement of iCoreConnect prodcuts to now include seven total dental-focused products and services. More than 20 state dental and medical associations endorse one or more iCoreConnect products, bringing the total number of product endorsement agreements to more than 70. Every iCoreConnect product brings continuity and stability to practices that far exceed regulatory standards.
Speaking to the tremendous growth for the quarter, McDermott is optimistic about the direction of the company, particularly with the latest support of organizations representing tens of thousands of dentists. “With the addition of iCoreVerify to our already extensive customer offering, we’re giving our rapidly growing healthcare customer base the cloud-based software it needs to meet the demands of the 21st century,” said McDermott, adding, “Recent product endorsement expansions of the Maryland, Michigan, and California Dental Associations further validate our trajectory in the fourth quarter and beyond.”
With 2022 right around the corner, investors will be looking ahead to how these new developments translate to financial results and a chart looking to keep on rising.
