Intellinetics(INLX) - 2024 Q2 - Quarterly Results

Revenue Performance - Total revenue for Q2 2024 was $4,641,593, representing a 9.0% increase compared to$ 4,258,430 in Q2 2023[4] - SaaS revenue increased by 9.6% year-over-year, driven by the commercialization of the IPAS solution, which doubled its live reference accounts to four[2] - Professional services revenue rose 15.8% compared to the same period in 2023, marking a record revenue quarter for Q2 2024[5] - Year-to-date revenues for the first half of 2024 were $9,148,677, an 8.3% increase from$ 8,445,263 in the same period of 2023[6] - Recurring revenue grew 6.6% and represented 57% of total revenue in Q2 2024[4] - Recurring revenue for Q2 2024 was $2,629,821, up 6.6% from$ 2,467,066 in Q2 2023[15] - Software as a service revenue for Q2 2024 was $1,400,591, a rise of 9.6% from$ 1,277,918 in Q2 2023[16] - Professional services revenue increased to $2,662,358 in Q2 2024, up 15.9% from$ 2,298,316 in Q2 2023[16] Profitability and Income - Net income for Q2 2024 was $75,050, or$ 0.02 per share, down from $135,734, or$ 0.03 per share, in Q2 2023[5] - Net income for Q2 2024 was $75,050, compared to a net income of$ 135,734 in Q2 2023, reflecting a decrease of approximately 44.7%[16] - Adjusted EBITDA for Q2 2024 increased by 7.1% to $698,217, compared to$ 651,646 in Q2 2023[5] - Adjusted EBITDA for Q2 2024 was $1,371,579, compared to$ 1,281,525 in Q2 2023, indicating a growth of 7.0%[16] - Management expects revenue growth for the fiscal year 2024 but has revised expectations for Adjusted EBITDA to decline modestly compared to 2023 due to increased investments[7] Expenses and Liabilities - Total operating expenses increased by 23.4% to $2,830,873, driven by higher non-cash depreciation and planned investments in sales and marketing[5] - General and administrative expenses increased to$ 2,025,796 in Q2 2024, compared to $1,561,939 in Q2 2023, reflecting a rise of 29.6%[16] - Interest expense decreased to$ 97,056 in Q2 2024 from $160,654 in Q2 2023, a reduction of 39.5%[16] - Total liabilities decreased to$ 8,516,362 from $9,275,539, a reduction of approximately 8.19%[17] - Total long-term liabilities decreased to$ 3,855,825 from $4,888,757, a decrease of approximately 21.06%[17] Cash Flow and Assets - Cash provided by operating activities was$ 1,718,855, a turnaround from $(299,631) in the prior year[18] - Cash at the end of the period rose to$ 1,680,669 from $1,130,487, marking an increase of about 48.54%[18] - Total current assets increased to$ 5,183,690 from $5,004,375, representing a growth of approximately 3.57%[17] - Accounts receivable, net decreased to$ 1,449,188 from $1,850,375, a decline of approximately 21.66%[17] - Stockholders' equity increased to$ 10,346,362 from $9,750,721, reflecting an increase of about 6.11%[17] Debt Management - The company plans to prepay an additional$ 800,000 of long-term debt before the end of August 2024, reducing debt principal to approximately $1.3 million[4] Shareholder Information - The weighted average number of common shares outstanding increased to 4,229,518 in Q2 2024 from 4,073,757 in Q2 2023[16] - The company reported a basic net income per share of$ 0.02 for Q2 2024, down from $0.03 in Q2 2023[16] Share-Based Compensation - Share-based compensation increased significantly to$ 695,305 from $233,617, an increase of approximately 197.06%[18] Capital Expenditures - Capitalization of internal use software was$ (198,051), slightly lower than $(208,417) in the previous year[18]