Park City Group Inc
PCYG
$9.80 0.62%
Exchange: NASDAQ | Sector: Technology | Industry: Software Application
Q2 2024
Published: Feb 12, 2025

Earnings Highlights

  • Revenue of $5.49M up 7.1% year-over-year
  • EPS of $0.08 increased by 11.4% from previous year
  • Gross margin of 81.7%
  • Net income of 1.55M
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PCYG
Company PCYG

Executive Summary

Park City Group Inc (PCYG) delivered a solid QQ2 2024 results period ending December 31, 2024, underpinned by strong gross margins, meaningful profitability, and substantial cash flow generation. Revenue of $5.49 million rose 7.12% year over year and 0.91% quarter over quarter, while gross profit of $4.49 million produced a gross margin of 81.74%. Operating income was $1.35 million with an operating margin of 24.62%, and net income came in at $1.56 million, or a net margin of 28.25%, supported by modest financing costs and depreciation. EBITDA was $2.04 million (EBITDA margin ~37.07%), highlighting the company’s ability to convert revenue into cash flow at a high step-change efficiency relative to the expense base. All-in, Park City Group generated $0.93 million of cash from operations and approximately $0.92 million in free cash flow for the quarter, with free cash flow per share around $0.19. The balance sheet remains exceptionally healthy, with cash and cash equivalents of about $23.25 million and a net cash position (net debt negative) of roughly $(22.66) million, against total debt of $0.59 million. Total assets stood at $50.33 million and stockholders’ equity at $45.74 million, supported by a meaningful goodwill balance of $20.88 million and intangible assets of $0.74 million. The company’s revenue growth appears to be driven by its ReposiTrak and related supply-chain solutions, a high-margin software stack with significant recurring revenue potential. Management commentary on the call (if available) would be critical to confirm execution assumptions around market penetration, expansion of compliance and food-safety solutions, and cross-sell opportunities; however, the transcript data provided here is not available. Investors should weigh the durable cash-generation profile and balance-sheet strength against a relatively small revenue base and premium valuation in this niche software segment.

Key Performance Indicators

Revenue
Increasing
5.49M
QoQ: 0.91% | YoY: 7.12%
Gross Profit
Increasing
4.49M
81.74% margin
QoQ: -2.04% | YoY: 16.50%
Operating Income
Increasing
1.35M
QoQ: -8.65% | YoY: 8.96%
Net Income
Increasing
1.55M
QoQ: -6.85% | YoY: 6.89%
EPS
Increasing
0.08
QoQ: -6.32% | YoY: 11.42%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2024 5.91 0.10 +16.3% View
Q2 2024 5.49 0.08 +7.1% View
Q1 2024 5.44 0.08 +7.5% View
Q4 2023 4.80 0.07 +7.9% View
Q3 2023 4.82 0.08 +5.4% View