Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: 5,441,142 USD; YoY growth: 7.53%; QoQ growth: 4.99%
Gross Profit: 4,581,923 USD; Gross Margin: 84.21%; YoY Gross Margin: 14.98%; QoQ: 5.63%
Operating Income: 1,480,061 USD; Operating Margin: 27.20%; YoY: 23.34%; QoQ: 12.04%
EBITDA: 2,121,115 USD; EBITDA Margin: 38.98%
Net Income: 1,665,155 USD; Net Margin: 30.60%; YoY: 20.79%; QoQ: 5.51%
EPS (GAAP): 0.0854; Diluted EPS: 0.0815; YoY EPS: 26.33%; QoQ: 6.75%
Weighted Avg Shares: 18.244 million; Diluted: 19.101 million
Cash Flow: Net cash p...
Financial Highlights
Revenue: 5,441,142 USD; YoY growth: 7.53%; QoQ growth: 4.99%
Gross Profit: 4,581,923 USD; Gross Margin: 84.21%; YoY Gross Margin: 14.98%; QoQ: 5.63%
Operating Income: 1,480,061 USD; Operating Margin: 27.20%; YoY: 23.34%; QoQ: 12.04%
EBITDA: 2,121,115 USD; EBITDA Margin: 38.98%
Net Income: 1,665,155 USD; Net Margin: 30.60%; YoY: 20.79%; QoQ: 5.51%
EPS (GAAP): 0.0854; Diluted EPS: 0.0815; YoY EPS: 26.33%; QoQ: 6.75%
Weighted Avg Shares: 18.244 million; Diluted: 19.101 million
Cash Flow: Net cash provided by operating activities 1,520,770 USD; Free Cash Flow 1,520,770 USD; Cash at end of period 23,697,228 USD; Net change in cash -293,651 USD
Balance Sheet: Total assets 50,222,475 USD; Total stockholders’ equity 45,614,463 USD; Cash and equivalents 23,697,228 USD; Goodwill 21,733,702 USD; Intangible assets 849,816 USD; Long-term debt 576,608 USD; Short-term debt 335,052 USD; Deferred revenue 2,080,423 USD; Current ratio 6.75x; Debt to capitalization 1.25%; Net debt position -23,093,168 USD
Valuation/Leverage: P/S 32.86x; P/B 3.76x; P/E 26.84x; Enterprise value multiple 86.04x; Interest Coverage negative; Asset turnover 0.104; Receivables turnover 1.371x; DSO 65.66 days
Note: All figures in USD and sourced from the QQ1 2024 10-Q filing for the quarter ended 2024-09-30.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.44M |
7.53% |
4.99% |
| Gross Profit |
4.58M |
14.98% |
5.63% |
| Operating Income |
1.48M |
23.34% |
12.04% |
| Net Income |
1.67M |
20.79% |
5.51% |
| EPS |
0.09 |
26.33% |
6.75% |
Key Financial Ratios
operatingProfitMargin
27.2%
operatingCashFlowPerShare
$0.1
freeCashFlowPerShare
$0.1
dividendPayoutRatio
25.4%
Management Commentary
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Forward Guidance
Forward guidance was not issued in the QQ1 2024 filing. Consequently, the outlook relies on qualitative interpretation of industry trends and the company’s standalone execution indicators. Potential catalysts include: (1) expansion of the ReposiTrak platform and related compliance/safety solutions to more retailers, (2) deeper cross-sell of ScoreTracker and other supply chain modules, (3) ongoing gross-margin resilience driven by a high software content and favorable service mix. Risks include reliance on the grocery/retail sector’s capital expenditure cycles, competitive pressure in supply-chain software, and any macro softness that could impact order pace. Our qualitative assessment suggests modest revenue growth with improving margins if the company maintains its current operating discipline and successfully monetizes additional modules without materially increasing spend.