National Research's Q4 Earnings Drop Y/Y, Stock Falls 9%

Core Insights - National Research Corporation (NRC) shares have declined 9.1% since the earnings report for Q4 2024, compared to a 0.6% decline in the S&P 500 index during the same period [1] - The company reported earnings per share of 28 cents for Q4 2024, down from 36 cents in the same quarter last year [2] - Revenues for Q4 2024 were $36.9 million, a decrease from$38 million in the prior-year quarter [2] - Net income fell to $6.6 million from$8.9 million year-over-year [2] Financial Performance - Total operating expenses increased to $27.3 million from$26.3 million, driven by higher direct expenses and selling, general, and administrative (SG&A) costs [3] - Operating income decreased to $9.6 million from$11.7 million, reflecting the impact of higher costs and lower revenues [3] - Interest expenses rose to $0.7 million from$0.3 million in the prior-year quarter [4] Business Metrics - Total recurring contract value was approximately $133.2 million as of December 31, 2024 [4] - Net indebtedness was around$58.5 million at the end of the quarter [4] Performance Influencers - Revenue declines and margin compression were key factors contributing to NRC's lower earnings performance [5] - A modest increase in operating expenses, particularly in SG&A costs, negatively impacted profitability [5] - A significant rise in interest expenses further pressured net income [5] Other Developments - NRC continued its capital allocation strategy through share repurchases and dividend distributions, repurchasing approximately 393,000 shares for around $7.3 million [6] - The company paid a quarterly dividend of 12 cents per share, totaling approximately$2.8 million [6]