Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries OTC Markets Group Reports Third Quarter 2023 Results Delivering Revenue and Earnings Growth By: OTC Markets via GlobeNewswire November 08, 2023 at 17:00 PM EST Third Quarter 2023 Highlights: Gross revenues of $27.0 million for the quarter, up 4% versus the prior year periodOperating income of $8.6 million for the quarter, down 5% versus the prior year periodOperating profit margin of 32.7%, versus 35.9% for the prior year periodNet income of $7.4 million, up 3% versus the prior year period, and quarterly diluted GAAP EPS of $0.61, up 2% Total cash returned to shareholders during the quarter of $2.1 million in the form of dividendsAnnouncing special dividend of $1.50 per share and fourth quarter 2023 dividend of $0.18 per share595 OTCQX® and 1,166 OTCQB® companies at quarter end9 graduates to a national securities exchange during the quarter108 subscribers to OTC Link ECN as of September 30, 2023, up 3 versus September 30, 2022 Approximately 28,000 average daily trades during the quarter versus approximately 32,000 during the prior year periodOTC market data feeds available on Nasdaq’s Data Link platform NEW YORK, Nov. 08, 2023 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced its financial results for the third quarter of 2023. “During the third quarter of 2023, we remained focused on operational improvements across our business lines,” said R. Cromwell Coulson, President and Chief Executive Officer. “We continued to integrate the EDGAR Online business, and invest in our technology platforms.” “OTC Markets Group continued to deliver revenue and earnings growth despite greater economic uncertainty,” said Antonia Georgieva, Chief Financial Officer. “Our Market Data Licensing business drove the increase in gross revenues; however, our overall costs outpaced that increase, impacting our operating margin. We remain focused on delivering growth in the long-term.” Third Quarter 2023 compared to Third Quarter 2022 Financial Highlights Three Months Ended September 30, (in thousands, except shares and per share data) 2023 2022 % change $ changeOTC Link $4,532 $5,027 (10%) (495)Market data licensing 11,002 9,028 22% 1,974 Corporate services 11,503 11,860 (3%) (357)Gross revenues 27,037 25,915 4% 1,122 Net revenues 26,232 25,141 4% 1,091 Revenues less transaction-based expenses 25,078 23,836 5% 1,242 Operating expenses 16,505 14,799 12% 1,706 Income from operations 8,573 9,037 (5%) (464)Operating profit margin 32.7% 35.9% Income before provision for income taxes 8,806 9,038 (3%) (232)Net income $7,381 $7,169 3% 212 Diluted earnings per share $0.61 $0.60 2% Adjusted diluted earnings per share $0.87 $0.88 (1%) Weighted-average shares outstanding, diluted 11,865,856 11,866,903 - Gross revenues of $27.0 million, up 4% over the prior year quarter. Revenues less transaction-based expenses up 5%.OTC Link revenues down 10%, relative to the prior year quarter. Transaction-based revenues from OTC Link ECN and OTC Link NQB down 12%, reflecting the impact of lower trading volumes on these platforms, which more than offset the effect of increases in certain fees. Reduced trading activity on OTC Link ATS resulted in messages revenue declining 19% and QAP One Statement fees declining 30%, which further contributed to the overall decline in OTC Link revenues.Market Data Licensing revenues up 22%, due to the contribution of the November 2022 acquisition of EDGAR Online as well as subscriber growth and price increases for certain licenses. Pro-user revenues were up 9%, in line with an 11% increase in the number of professional users quarter over quarter. Revenues from non-pro users were down 24%, driven by a 22% decrease in the number of non-pro users of our market data. Revenues from market data connectivity fees increased 85% and revenues from internal system licenses, delayed data licenses, and certain other data services increased 9%, in each case due to growth in subscribers and price increases for certain licenses.Corporate Services revenues down 3% quarter over quarter, with a 1% increase in revenues from our OTCQX market, offset by a 6% decrease in revenues from the OTCQB market and a 5% decrease in revenues from our Disclosure & News Service® (“DNS”) product. A lower number of companies on our OTCQX and OTCQB markets as well as of companies subscribing to DNS impacted the revenues for these products, offsetting the annual, incremental price increases effective at the beginning of 2023. Contributing to the decline in Corporate Services revenues was also lower revenue from our Virtual Investor Conferences® product due to fewer events held during the quarter and fewer participants per event.Operating expenses increased 12% over the prior year quarter, primarily driven by an 11% increase in compensation and benefits costs and a 35% increase in IT infrastructure and information services costs, reflecting a higher headcount and higher technology, data services, and data center costs, primarily related to our acquisitions. Operating income decreased 5% to $8.6 million, while net income increased 3% to $7.4 million.Adjusted EBITDA, which excludes non-cash, stock-based compensation expense, decreased 1% to $10.5 million, or $0.87 per adjusted diluted share. Dividend Declaration – Quarterly Cash Dividend OTC Markets Group announced today that its Board of Directors authorized and approved a special cash dividend of $1.50 per share of Class A Common Stock and a quarterly cash dividend of $0.18 per share of Class A common stock. The special dividend is payable on December 7, 2023 to stockholders of record on November 21, 2023. The ex-dividend date is November 20, 2023. The quarterly dividend is payable on December 21, 2023 to stockholders of record on December 7, 2023. The ex-dividend date is December 6, 2023. Stock Buyback Program The Company is authorized to purchase shares from time to time on the open market, from employees, and through block trades, in compliance with applicable law. The Company did not repurchase any shares during the third quarter of 2023. On March 6, 2023, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A Common Stock. Non-GAAP Financial Measures In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance. Third Quarter 2023 Conference Call The Company will host a conference call and webcast on Thursday, November 9, 2023, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The call and webcast may be accessed as follows: Webcast:The conference webcast and management presentation can be accessed at the following link (the replay will be available until November 8, 2024): https://edge.media-server.com/mmc/p/2z23pq2e Live Call:Participants intending to ask a question during the live call and Q&A session should also register in advance at: https://register.vevent.com/register/BI23d31b19dcf34ef0a0dc6ed1d9ee694b Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option. The Quarterly Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the OTC Markets Group website at www.otcmarkets.com/investor-relations/overview. About OTC Markets Group Inc. OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market, and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN, and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com. Investor Contact: Antonia GeorgievaChief Financial OfficerPhone: (212) 220-2215Email: ir@otcmarkets.com Media Contact: OTC Markets Group Inc.Phone: (212) 896-4428Email: media@otcmarkets.com OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share information) Three Months Ended September 30, 2023 2022 OTC Link$4,532 $5,027 Market data licensing 11,002 9,028 Corporate services 11,503 11,860 Gross revenues 27,037 25,915 Redistribution fees and rebates (805) (774) Net revenues 26,232 25,141 Transaction-based expenses (1,154) (1,305) Revenues less transaction-based expenses 25,078 23,836 Operating expenses Compensation and benefits 10,436 9,431 IT Infrastructure and information services 2,592 1,917 Professional and consulting fees 1,678 1,690 Marketing and advertising 292 294 Occupancy costs 599 584 Depreciation and amortization 572 556 General, administrative and other 336 327 Total operating expenses 16,505 14,799 Income from operations 8,573 9,037 Other income Interest income 233 1 Other income, net - - Income before provision for income taxes 8,806 9,038 Provision for income taxes 1,425 1,869 Net income $7,381 $7,169 Net income per share Basic$0.62 $0.61 Diluted$0.61 $0.60 Basic weighted average shares outstanding 11,664,344 11,597,871 Diluted weighted average shares outstanding 11,865,856 11,866,903 Non-GAAP Reconciliation Three Months Ended September 30, 2023 2022 Net Income$7,381 $7,169 Excluding: Interest Income (233) (1) Provision for income taxes 1,425 1,869 Depreciation and amortization 572 556 Stock-based compensation expense 1,397 1,066 Adjusted EBITDA$10,542 $10,659 Adjusted diluted earnings per share$0.87 $0.88 Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance. OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except shares information) September 30, December 31, 2023 2022 Assets Current assets Cash and cash equivalents$ 35,168 $ 37,368 Short-term investments2,201 - Accounts receivable, net of allowance for credit losses of $489 and $6387,431 9,485 Prepaid income taxes2,525 59 Prepaid expenses and other current assets2,238 1,469 Total current assets49,563 48,381 Property and equipment, net8,745 8,637 Operating lease right-of-use assets12,657 13,635 Deferred tax assets, net6,844 4,853 Goodwill3,984 3,984 Intangible assets, net7,556 7,993 Long-term restricted cash1,582 1,568 Other assets559 567 Total Assets$ 91,490 $ 89,618 Liabilities and stockholders' equity Current liabilities Accounts payable$ 923 $ 1,684 Accrued expenses and other current liabilities12,973 13,141 Income taxes payable54 567 Deferred revenue20,560 30,456 Total current liabilities34,510 45,848 Income tax reserve718 657 Operating lease liabilities12,267 13,309 Total Liabilities47,495 59,814 Commitments and contingencies Stockholders' equity Common stock - par value $0.01 per share Class A - 17,000,000 authorized, 12,711,772 issued, 11,927,003 outstanding at September 30, 2023; 12,601,270 issued, 11,874,763 outstanding at December 31, 2022127 126 Additional paid-in capital28,193 24,847 Retained earnings35,469 21,246 Treasury stock - 784,769 shares at September 30, 2023 and 726,507 shares at December 31, 2022(19,794) (16,415) Total Stockholders' Equity43,995 29,804 Total Liabilities and Stockholders' Equity$ 91,490 $ 89,618 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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OTC Markets Group Reports Third Quarter 2023 Results Delivering Revenue and Earnings Growth By: OTC Markets via GlobeNewswire November 08, 2023 at 17:00 PM EST Third Quarter 2023 Highlights: Gross revenues of $27.0 million for the quarter, up 4% versus the prior year periodOperating income of $8.6 million for the quarter, down 5% versus the prior year periodOperating profit margin of 32.7%, versus 35.9% for the prior year periodNet income of $7.4 million, up 3% versus the prior year period, and quarterly diluted GAAP EPS of $0.61, up 2% Total cash returned to shareholders during the quarter of $2.1 million in the form of dividendsAnnouncing special dividend of $1.50 per share and fourth quarter 2023 dividend of $0.18 per share595 OTCQX® and 1,166 OTCQB® companies at quarter end9 graduates to a national securities exchange during the quarter108 subscribers to OTC Link ECN as of September 30, 2023, up 3 versus September 30, 2022 Approximately 28,000 average daily trades during the quarter versus approximately 32,000 during the prior year periodOTC market data feeds available on Nasdaq’s Data Link platform NEW YORK, Nov. 08, 2023 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced its financial results for the third quarter of 2023. “During the third quarter of 2023, we remained focused on operational improvements across our business lines,” said R. Cromwell Coulson, President and Chief Executive Officer. “We continued to integrate the EDGAR Online business, and invest in our technology platforms.” “OTC Markets Group continued to deliver revenue and earnings growth despite greater economic uncertainty,” said Antonia Georgieva, Chief Financial Officer. “Our Market Data Licensing business drove the increase in gross revenues; however, our overall costs outpaced that increase, impacting our operating margin. We remain focused on delivering growth in the long-term.” Third Quarter 2023 compared to Third Quarter 2022 Financial Highlights Three Months Ended September 30, (in thousands, except shares and per share data) 2023 2022 % change $ changeOTC Link $4,532 $5,027 (10%) (495)Market data licensing 11,002 9,028 22% 1,974 Corporate services 11,503 11,860 (3%) (357)Gross revenues 27,037 25,915 4% 1,122 Net revenues 26,232 25,141 4% 1,091 Revenues less transaction-based expenses 25,078 23,836 5% 1,242 Operating expenses 16,505 14,799 12% 1,706 Income from operations 8,573 9,037 (5%) (464)Operating profit margin 32.7% 35.9% Income before provision for income taxes 8,806 9,038 (3%) (232)Net income $7,381 $7,169 3% 212 Diluted earnings per share $0.61 $0.60 2% Adjusted diluted earnings per share $0.87 $0.88 (1%) Weighted-average shares outstanding, diluted 11,865,856 11,866,903 - Gross revenues of $27.0 million, up 4% over the prior year quarter. Revenues less transaction-based expenses up 5%.OTC Link revenues down 10%, relative to the prior year quarter. Transaction-based revenues from OTC Link ECN and OTC Link NQB down 12%, reflecting the impact of lower trading volumes on these platforms, which more than offset the effect of increases in certain fees. Reduced trading activity on OTC Link ATS resulted in messages revenue declining 19% and QAP One Statement fees declining 30%, which further contributed to the overall decline in OTC Link revenues.Market Data Licensing revenues up 22%, due to the contribution of the November 2022 acquisition of EDGAR Online as well as subscriber growth and price increases for certain licenses. Pro-user revenues were up 9%, in line with an 11% increase in the number of professional users quarter over quarter. Revenues from non-pro users were down 24%, driven by a 22% decrease in the number of non-pro users of our market data. Revenues from market data connectivity fees increased 85% and revenues from internal system licenses, delayed data licenses, and certain other data services increased 9%, in each case due to growth in subscribers and price increases for certain licenses.Corporate Services revenues down 3% quarter over quarter, with a 1% increase in revenues from our OTCQX market, offset by a 6% decrease in revenues from the OTCQB market and a 5% decrease in revenues from our Disclosure & News Service® (“DNS”) product. A lower number of companies on our OTCQX and OTCQB markets as well as of companies subscribing to DNS impacted the revenues for these products, offsetting the annual, incremental price increases effective at the beginning of 2023. Contributing to the decline in Corporate Services revenues was also lower revenue from our Virtual Investor Conferences® product due to fewer events held during the quarter and fewer participants per event.Operating expenses increased 12% over the prior year quarter, primarily driven by an 11% increase in compensation and benefits costs and a 35% increase in IT infrastructure and information services costs, reflecting a higher headcount and higher technology, data services, and data center costs, primarily related to our acquisitions. Operating income decreased 5% to $8.6 million, while net income increased 3% to $7.4 million.Adjusted EBITDA, which excludes non-cash, stock-based compensation expense, decreased 1% to $10.5 million, or $0.87 per adjusted diluted share. Dividend Declaration – Quarterly Cash Dividend OTC Markets Group announced today that its Board of Directors authorized and approved a special cash dividend of $1.50 per share of Class A Common Stock and a quarterly cash dividend of $0.18 per share of Class A common stock. The special dividend is payable on December 7, 2023 to stockholders of record on November 21, 2023. The ex-dividend date is November 20, 2023. The quarterly dividend is payable on December 21, 2023 to stockholders of record on December 7, 2023. The ex-dividend date is December 6, 2023. Stock Buyback Program The Company is authorized to purchase shares from time to time on the open market, from employees, and through block trades, in compliance with applicable law. The Company did not repurchase any shares during the third quarter of 2023. On March 6, 2023, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A Common Stock. Non-GAAP Financial Measures In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance. Third Quarter 2023 Conference Call The Company will host a conference call and webcast on Thursday, November 9, 2023, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The call and webcast may be accessed as follows: Webcast:The conference webcast and management presentation can be accessed at the following link (the replay will be available until November 8, 2024): https://edge.media-server.com/mmc/p/2z23pq2e Live Call:Participants intending to ask a question during the live call and Q&A session should also register in advance at: https://register.vevent.com/register/BI23d31b19dcf34ef0a0dc6ed1d9ee694b Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option. The Quarterly Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the OTC Markets Group website at www.otcmarkets.com/investor-relations/overview. About OTC Markets Group Inc. OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market, and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN, and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com. Investor Contact: Antonia GeorgievaChief Financial OfficerPhone: (212) 220-2215Email: ir@otcmarkets.com Media Contact: OTC Markets Group Inc.Phone: (212) 896-4428Email: media@otcmarkets.com OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share information) Three Months Ended September 30, 2023 2022 OTC Link$4,532 $5,027 Market data licensing 11,002 9,028 Corporate services 11,503 11,860 Gross revenues 27,037 25,915 Redistribution fees and rebates (805) (774) Net revenues 26,232 25,141 Transaction-based expenses (1,154) (1,305) Revenues less transaction-based expenses 25,078 23,836 Operating expenses Compensation and benefits 10,436 9,431 IT Infrastructure and information services 2,592 1,917 Professional and consulting fees 1,678 1,690 Marketing and advertising 292 294 Occupancy costs 599 584 Depreciation and amortization 572 556 General, administrative and other 336 327 Total operating expenses 16,505 14,799 Income from operations 8,573 9,037 Other income Interest income 233 1 Other income, net - - Income before provision for income taxes 8,806 9,038 Provision for income taxes 1,425 1,869 Net income $7,381 $7,169 Net income per share Basic$0.62 $0.61 Diluted$0.61 $0.60 Basic weighted average shares outstanding 11,664,344 11,597,871 Diluted weighted average shares outstanding 11,865,856 11,866,903 Non-GAAP Reconciliation Three Months Ended September 30, 2023 2022 Net Income$7,381 $7,169 Excluding: Interest Income (233) (1) Provision for income taxes 1,425 1,869 Depreciation and amortization 572 556 Stock-based compensation expense 1,397 1,066 Adjusted EBITDA$10,542 $10,659 Adjusted diluted earnings per share$0.87 $0.88 Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance. OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except shares information) September 30, December 31, 2023 2022 Assets Current assets Cash and cash equivalents$ 35,168 $ 37,368 Short-term investments2,201 - Accounts receivable, net of allowance for credit losses of $489 and $6387,431 9,485 Prepaid income taxes2,525 59 Prepaid expenses and other current assets2,238 1,469 Total current assets49,563 48,381 Property and equipment, net8,745 8,637 Operating lease right-of-use assets12,657 13,635 Deferred tax assets, net6,844 4,853 Goodwill3,984 3,984 Intangible assets, net7,556 7,993 Long-term restricted cash1,582 1,568 Other assets559 567 Total Assets$ 91,490 $ 89,618 Liabilities and stockholders' equity Current liabilities Accounts payable$ 923 $ 1,684 Accrued expenses and other current liabilities12,973 13,141 Income taxes payable54 567 Deferred revenue20,560 30,456 Total current liabilities34,510 45,848 Income tax reserve718 657 Operating lease liabilities12,267 13,309 Total Liabilities47,495 59,814 Commitments and contingencies Stockholders' equity Common stock - par value $0.01 per share Class A - 17,000,000 authorized, 12,711,772 issued, 11,927,003 outstanding at September 30, 2023; 12,601,270 issued, 11,874,763 outstanding at December 31, 2022127 126 Additional paid-in capital28,193 24,847 Retained earnings35,469 21,246 Treasury stock - 784,769 shares at September 30, 2023 and 726,507 shares at December 31, 2022(19,794) (16,415) Total Stockholders' Equity43,995 29,804 Total Liabilities and Stockholders' Equity$ 91,490 $ 89,618
Third Quarter 2023 Highlights: Gross revenues of $27.0 million for the quarter, up 4% versus the prior year periodOperating income of $8.6 million for the quarter, down 5% versus the prior year periodOperating profit margin of 32.7%, versus 35.9% for the prior year periodNet income of $7.4 million, up 3% versus the prior year period, and quarterly diluted GAAP EPS of $0.61, up 2% Total cash returned to shareholders during the quarter of $2.1 million in the form of dividendsAnnouncing special dividend of $1.50 per share and fourth quarter 2023 dividend of $0.18 per share595 OTCQX® and 1,166 OTCQB® companies at quarter end9 graduates to a national securities exchange during the quarter108 subscribers to OTC Link ECN as of September 30, 2023, up 3 versus September 30, 2022 Approximately 28,000 average daily trades during the quarter versus approximately 32,000 during the prior year periodOTC market data feeds available on Nasdaq’s Data Link platform NEW YORK, Nov. 08, 2023 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced its financial results for the third quarter of 2023. “During the third quarter of 2023, we remained focused on operational improvements across our business lines,” said R. Cromwell Coulson, President and Chief Executive Officer. “We continued to integrate the EDGAR Online business, and invest in our technology platforms.” “OTC Markets Group continued to deliver revenue and earnings growth despite greater economic uncertainty,” said Antonia Georgieva, Chief Financial Officer. “Our Market Data Licensing business drove the increase in gross revenues; however, our overall costs outpaced that increase, impacting our operating margin. We remain focused on delivering growth in the long-term.” Third Quarter 2023 compared to Third Quarter 2022 Financial Highlights Three Months Ended September 30, (in thousands, except shares and per share data) 2023 2022 % change $ changeOTC Link $4,532 $5,027 (10%) (495)Market data licensing 11,002 9,028 22% 1,974 Corporate services 11,503 11,860 (3%) (357)Gross revenues 27,037 25,915 4% 1,122 Net revenues 26,232 25,141 4% 1,091 Revenues less transaction-based expenses 25,078 23,836 5% 1,242 Operating expenses 16,505 14,799 12% 1,706 Income from operations 8,573 9,037 (5%) (464)Operating profit margin 32.7% 35.9% Income before provision for income taxes 8,806 9,038 (3%) (232)Net income $7,381 $7,169 3% 212 Diluted earnings per share $0.61 $0.60 2% Adjusted diluted earnings per share $0.87 $0.88 (1%) Weighted-average shares outstanding, diluted 11,865,856 11,866,903 - Gross revenues of $27.0 million, up 4% over the prior year quarter. Revenues less transaction-based expenses up 5%.OTC Link revenues down 10%, relative to the prior year quarter. Transaction-based revenues from OTC Link ECN and OTC Link NQB down 12%, reflecting the impact of lower trading volumes on these platforms, which more than offset the effect of increases in certain fees. Reduced trading activity on OTC Link ATS resulted in messages revenue declining 19% and QAP One Statement fees declining 30%, which further contributed to the overall decline in OTC Link revenues.Market Data Licensing revenues up 22%, due to the contribution of the November 2022 acquisition of EDGAR Online as well as subscriber growth and price increases for certain licenses. Pro-user revenues were up 9%, in line with an 11% increase in the number of professional users quarter over quarter. Revenues from non-pro users were down 24%, driven by a 22% decrease in the number of non-pro users of our market data. Revenues from market data connectivity fees increased 85% and revenues from internal system licenses, delayed data licenses, and certain other data services increased 9%, in each case due to growth in subscribers and price increases for certain licenses.Corporate Services revenues down 3% quarter over quarter, with a 1% increase in revenues from our OTCQX market, offset by a 6% decrease in revenues from the OTCQB market and a 5% decrease in revenues from our Disclosure & News Service® (“DNS”) product. A lower number of companies on our OTCQX and OTCQB markets as well as of companies subscribing to DNS impacted the revenues for these products, offsetting the annual, incremental price increases effective at the beginning of 2023. Contributing to the decline in Corporate Services revenues was also lower revenue from our Virtual Investor Conferences® product due to fewer events held during the quarter and fewer participants per event.Operating expenses increased 12% over the prior year quarter, primarily driven by an 11% increase in compensation and benefits costs and a 35% increase in IT infrastructure and information services costs, reflecting a higher headcount and higher technology, data services, and data center costs, primarily related to our acquisitions. Operating income decreased 5% to $8.6 million, while net income increased 3% to $7.4 million.Adjusted EBITDA, which excludes non-cash, stock-based compensation expense, decreased 1% to $10.5 million, or $0.87 per adjusted diluted share. Dividend Declaration – Quarterly Cash Dividend OTC Markets Group announced today that its Board of Directors authorized and approved a special cash dividend of $1.50 per share of Class A Common Stock and a quarterly cash dividend of $0.18 per share of Class A common stock. The special dividend is payable on December 7, 2023 to stockholders of record on November 21, 2023. The ex-dividend date is November 20, 2023. The quarterly dividend is payable on December 21, 2023 to stockholders of record on December 7, 2023. The ex-dividend date is December 6, 2023. Stock Buyback Program The Company is authorized to purchase shares from time to time on the open market, from employees, and through block trades, in compliance with applicable law. The Company did not repurchase any shares during the third quarter of 2023. On March 6, 2023, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A Common Stock. Non-GAAP Financial Measures In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance. Third Quarter 2023 Conference Call The Company will host a conference call and webcast on Thursday, November 9, 2023, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The call and webcast may be accessed as follows: Webcast:The conference webcast and management presentation can be accessed at the following link (the replay will be available until November 8, 2024): https://edge.media-server.com/mmc/p/2z23pq2e Live Call:Participants intending to ask a question during the live call and Q&A session should also register in advance at: https://register.vevent.com/register/BI23d31b19dcf34ef0a0dc6ed1d9ee694b Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option. The Quarterly Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the OTC Markets Group website at www.otcmarkets.com/investor-relations/overview. About OTC Markets Group Inc. OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market, and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN, and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com. Investor Contact: Antonia GeorgievaChief Financial OfficerPhone: (212) 220-2215Email: ir@otcmarkets.com Media Contact: OTC Markets Group Inc.Phone: (212) 896-4428Email: media@otcmarkets.com OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share information) Three Months Ended September 30, 2023 2022 OTC Link$4,532 $5,027 Market data licensing 11,002 9,028 Corporate services 11,503 11,860 Gross revenues 27,037 25,915 Redistribution fees and rebates (805) (774) Net revenues 26,232 25,141 Transaction-based expenses (1,154) (1,305) Revenues less transaction-based expenses 25,078 23,836 Operating expenses Compensation and benefits 10,436 9,431 IT Infrastructure and information services 2,592 1,917 Professional and consulting fees 1,678 1,690 Marketing and advertising 292 294 Occupancy costs 599 584 Depreciation and amortization 572 556 General, administrative and other 336 327 Total operating expenses 16,505 14,799 Income from operations 8,573 9,037 Other income Interest income 233 1 Other income, net - - Income before provision for income taxes 8,806 9,038 Provision for income taxes 1,425 1,869 Net income $7,381 $7,169 Net income per share Basic$0.62 $0.61 Diluted$0.61 $0.60 Basic weighted average shares outstanding 11,664,344 11,597,871 Diluted weighted average shares outstanding 11,865,856 11,866,903 Non-GAAP Reconciliation Three Months Ended September 30, 2023 2022 Net Income$7,381 $7,169 Excluding: Interest Income (233) (1) Provision for income taxes 1,425 1,869 Depreciation and amortization 572 556 Stock-based compensation expense 1,397 1,066 Adjusted EBITDA$10,542 $10,659 Adjusted diluted earnings per share$0.87 $0.88 Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance. OTC MARKETS GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except shares information) September 30, December 31, 2023 2022 Assets Current assets Cash and cash equivalents$ 35,168 $ 37,368 Short-term investments2,201 - Accounts receivable, net of allowance for credit losses of $489 and $6387,431 9,485 Prepaid income taxes2,525 59 Prepaid expenses and other current assets2,238 1,469 Total current assets49,563 48,381 Property and equipment, net8,745 8,637 Operating lease right-of-use assets12,657 13,635 Deferred tax assets, net6,844 4,853 Goodwill3,984 3,984 Intangible assets, net7,556 7,993 Long-term restricted cash1,582 1,568 Other assets559 567 Total Assets$ 91,490 $ 89,618 Liabilities and stockholders' equity Current liabilities Accounts payable$ 923 $ 1,684 Accrued expenses and other current liabilities12,973 13,141 Income taxes payable54 567 Deferred revenue20,560 30,456 Total current liabilities34,510 45,848 Income tax reserve718 657 Operating lease liabilities12,267 13,309 Total Liabilities47,495 59,814 Commitments and contingencies Stockholders' equity Common stock - par value $0.01 per share Class A - 17,000,000 authorized, 12,711,772 issued, 11,927,003 outstanding at September 30, 2023; 12,601,270 issued, 11,874,763 outstanding at December 31, 2022127 126 Additional paid-in capital28,193 24,847 Retained earnings35,469 21,246 Treasury stock - 784,769 shares at September 30, 2023 and 726,507 shares at December 31, 2022(19,794) (16,415) Total Stockholders' Equity43,995 29,804 Total Liabilities and Stockholders' Equity$ 91,490 $ 89,618