Revenue and profitability:
- Revenue: $5,441,142, up 7.0% YoY; QoQ up about 5.1% (Q4 2023 revenue was $5,182,591).
- Gross profit: $4,581,923; gross margin 84.21% (0.8421).
- EBITDA: $2,121,115; EBITDA margin approximately 38.99%.
- Operating income: $1,480,061; operating margin 27.20%.
- Net income: $1,665,155; net margin 30.60%; EPS $0.0854, diluted $0.0815.
- Recurring revenue composition: 99.7% of revenue is recurring (consistent with the SaaS transition).
Cash flow and balance sheet:
- Operating cash flow: $1,868,900; free cash flow: $1,868,900.
- Cash and cash equivalents: $23.7 million at 9/30/2023, ending cash balance $25,790,206; no bank debt reported; total debt $604,060 leading to net debt of approximately -$23.09 million (net cash).
- Shareholder returns: in Q1, ~155,000 shares repurchased for $1.3 million; cash dividend paid $422,954; remaining buyback authorization about $8.5 million; quarterly dividend increased to $0.066 per share (annualized $0.264).
- Shares outstanding: weighted average shares outstanding 18.244 million; diluted 19.102 million.
Strategic metrics:
- End-of-period annual recurring revenue (ARR) on hand: $20.8 million (as of 9/30/2023), up from $20.3 million; growth attributed to organic expansion in existing contracts and Traceability-related activity.
- Traceability (RTN) progress: management indicates >500 suppliers in the queue, with potential for ~1,000 more; expected incremental ARR of $3â$4 million upon full deployment; TAM assessed at up to $20 million ARR in coming years.
- Capital allocation framework: Board-approved 10% dividend increase; plan to redeem preferred stock over three years; target to return approximately half of annual operating cash flow to shareholders via dividends, buybacks, and preferred redemption; the remainder retained or allocated to strategic initiatives like RTN.
Notes: No peers data available in the provided dataset; certain valuation multiples (e.g., price-to-book 7.09x, price-to-sales 61.93x) reflect the company's small-cap SaaS profile and specific market positioning.