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

Intelligent Protection Management (NASDAQ:IPM) announced its quarterly earnings data on Tuesday. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.08), FiscalAI reports. The firm had revenue of $10.95 million during the quarter. Intelligent Protection Management had a negative net margin of 14.80% and a negative return on equity of 21.13%.

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 Stock Performance

Shares of NASDAQ IPM traded up $0.15 during mid-day trading on Wednesday, reaching $1.79. The company had a trading volume of 14,516 shares, compared to its average volume of 46,727. Intelligent Protection Management has a twelve month low of $1.37 and a twelve month high of $2.19. The stock has a market capitalization of $16.22 million, a PE ratio of -6.41 and a beta of 1.75. The stock’s 50 day moving average is $1.77 and its 200-day moving average is $1.78.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on IPM shares. Zacks Research upgraded Intelligent Protection Management to a “hold” rating in a research report on Thursday, August 13th. Weiss Ratings reissued a “sell (d-)” rating on shares of Intelligent Protection Management in a research report on Friday, October 2nd. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce”.

About Intelligent Protection Management

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.