Park City Group Inc (PCYG) Q1 2024 Earnings Report

Park City Group In c. (PCYG) delivered a solid QQ1 2024 quarter, underscored by a resilient revenue base, exceptionally high gross margins, and a strong liquidity position. Revenue totaled 5.441 million USD, up 7.5% YoY and 4.99% QoQ, as the company maintained operating discipline with a reported gross profit of 4.581 million and a gross margin of 84.21%. Operating income reached 1.480 million, contributing to an EBITDA of 2.121 million and an EBITDARatio of 38.98%. Net income was 1.666 million with basic EPS of 0.0854 and diluted EPS of 0.0815. The quarter benefited from favorable operational leverage and a recurring software/service mix, despite modest investment in go-to-market initiatives.

Balance sheet strength remains a key differentiator. PCYG ended the period with net cash of approximately 23.7 million USD, a negative net debt of roughly 23.1 million USD, and minimal leverage (debt to capitalization around 1.25%). Cash flow from operations totaled 1.520 million USD, with free cash flow also at 1.520 million USD. Share repurchases of 1.322 million and cash dividends of 0.421 million contributed to financing outflows of around 1.814 million, indicating capital returns are a modest but present aspect of capital allocation. The current ratio stood at 6.75x, and the company carries a conservative balance sheet with goodwill and intangibles supporting a technology-enabled business model.

Looking forward, the company has not issued formal forward guidance in the QQ1 2024 filing. Nevertheless, the investment thesis hinges on continued revenue retention, a sustainable SaaS- and services-mix, potential cross-sell of ReposiTrak modules, and disciplined cost management. Investors should monitor customer concentration, renewal rates, and the pace of new module adoption, as these will drive longer-term margin expansion and cash generation as the operating leverage matures.