Intelligent Protection Management (NASDAQ:IPM) Issues Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Intelligent Protection Management (NASDAQ:IPM) released its earnings results on Tuesday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.08), FiscalAI reports. The business had revenue of $10.95 million for the quarter. Intelligent Protection Management had a negative return on equity of 18.70% and a negative net margin of 11.45%.

Here are the key takeaways from Intelligent Protection Management’s conference call:

• Revenue rose 75.5% to $10.95 million in the third quarter, driven largely by a 271% increase in procurement revenue, including sales of AI-related equipment and fulfillment of a significant customer order.
• Procurement generally carries lower gross margins, so profitability did not increase in line with revenue. The company still reported a $779,000 net loss, although its operating loss narrowed and Adjusted EBITDA turned positive at $159,000.
• Core managed services revenue from non-affiliated customers grew 33%, while operating cash flow was $5.6 million and quarter-end cash was $12.5 million with no long-term debt. Management said it aims to achieve positive Adjusted EBITDA in the fourth quarter.
• IPM signed an agreement to acquire AdTech IT, a recurring-revenue managed services business, in a two-step closing process. Management expects the deal to expand customer reach and create cross-selling opportunities, while noting that growth depends on completing the transaction and executing successfully.

Intelligent Protection Management Trading Up 2.9%

Shares of IPM traded up $0.05 during trading hours on Thursday, reaching $1.77. 27,240 shares of the stock traded hands, compared to its average volume of 9,646. Intelligent Protection Management has a 52 week low of $1.37 and a 52 week high of $2.19. The stock has a fifty day simple moving average of $1.77 and a 200 day simple moving average of $1.78. The company has a market cap of $16.00 million, a price-to-earnings ratio of -6.81 and a beta of 1.75.

Wall Street Analyst Weigh In

IPM has been the topic of a number of research analyst reports. Zacks Research upgraded Intelligent Protection Management to a “hold” rating in a report on Thursday, August 13th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Intelligent Protection Management in a research note on Friday, October 2nd. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Intelligent Protection Management currently has an average rating of “Reduce”.

Intelligent Protection Management Company Profile

Intelligent Protection Management Corp. engages in the development of communications software to enhance security and privacy solutions for multimedia communication and data transmission. Its solutions include blockchain strategy consulting, blockchain implementation, white label video solutions, and technology licensing. The firm’s product portfolio includes Paltalk and Camfrog. The company was founded by Clifford Lerner and Darrell Lerner on July 19, 2005 and is headquartered in Jericho, NY.