Issuer Direct Corporation (AMEX:ISDR) Q3 2022 Earnings Call Transcript

Mike Grondahl: Great. Well, congratulations, and thanks for all the color Brian and Tim.

Brian Balbirnie: Thank you, Mike.

Operator: Thank you. . And the next question is coming from Luke Horton from Northland Securities. Luke, your line is live.

Luke Horton: Hey, guys, so it sounds like the combined customer count here is going to double in the TR business with the Newswire acquisition. I was just wondering if you could give any insight on what the customer profile is from Newswire is that pretty similar to what your guidance is working with smaller companies, private versus public and do you look to go after maybe some bigger companies now with the addition of them or just kind of anything around that would be great?

Brian Balbirnie: A good question. Look, I — look the number of customers that Newswire have, I’d say 98% of them are private companies. These are customer profile, that’s a 100 million and below. So in some ways, very similar to this microcap nano cap size that we tend to look at from the public company side. When you start to think about 6,500 customers, 5,500 of them are communication customers, right. That’s where the real interest is here for us as building this communications powerhouse. And the IRM PR suites to really focus there. So there’s no customer overlap at all, right. There’s no doubt that the strength of the brands together, we’re going to be able to take that private company, kind of company size from 100 to go to 500 and continue to grow it.

We’re absolutely going to go back to the public company side of the business and bring the Newswire additional products into and with our subscription business. So that we can continue to leverage what we’ve been doing the last several quarters of moving up market, right and going and getting these new clients that we’ve talked to you about and the most recent corner folks like Insperity that turned their Investor Relations platform and Corporate Communications platform into the access wire system and are now working with us. So we’re going to continue to want to do those things and take the best of what Joe and his team has been able to do there and apply to our customer base and vice versa, take the best of what we’re doing and apply it to theirs.

So hope that is helpful, Luke.

Luke Horton: Yeah, that’s very helpful. Appreciate that. Then just kind of pivoting over to I know you guys announced earlier in the quarter about the ADA and ACA compliance. Just wondering if the Newswire acquisition will have any effect on this or if that’s just those stays separate. We still compliance with that?

Brian Balbirnie: No, look, ADA and ACA is important to us. And I know that that the development and tech teams have spent a good amount of time in the Newswire side addressing this, they care passionately about that like we do. We’re going to merge together those newsrooms here over time to ensure that we continue to meet those compliance requirements for our customers and their underlying prospects, shareholders and interested parties. And so I think there’s two parts of that. One is, there is a definite integration plan that needs to happen with that. And we’ve identified that already early on in our discussions. The second part of it is two more pointed about our core business is that our average subscription prices continue to increase.

That is one of the benefactor reasons why we have been able to go into a good amount of our customers and a new investor relation platform sales is incorporate our ADA solutions and ACA solutions for both folks in Canada here in the U.S. So that continues to benefit us, it will continue for a given period of time in the next several years, as all customers should be able to adopt these new principles and regulations as we go for. So I think there’s two sides to it.

Luke Horton: Okay, great. Well, that helps a lot. Congrats, again on the acquisition. And thanks for taking the questions guys.