Where Food Comes From, Inc. Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: Total revenue increased 39% YoY to $6.2 million (from $4.4 million in Q1 2021).
  • Segment Growth:
    • Verification & Certification Services: Up 16% YoY to $3.8 million (from $3.3 million).
    • Product Sales: Up 39% YoY to $1 million (from $724,000). Recovery from Q4 2021 supply chain-related dip.
    • Software & Related Consulting: Tripled to $1.4 million (from $453,000) mainly due to a one-off contract worth $850,000 with the Japanese government (JETRO).
  • Gross Margin: Declined to 39% (from 42%) due to high costs on the JETRO project. Core verification/certification margins improved YoY.
  • SG&A Expenses: Held flat at $1.8 million, showing cost control discipline.
  • Operating Income: Increased more than 6x to $623,000 (from $89,000 in Q1 2021). Operating income would have been higher excluding elevated costs from JETRO project.

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Operator: Greetings. And welcome to the Where Food Comes From First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. At this time, I'll turn the conference over to Jay Pfeiffer, Investor Relations. Jay, you may begin. Jay Pfeiffer: Good morning and welcome to the Where Food Comes From 2022 first quarter earnings call. Joining me today are CEO, John Saunders; President, Leann Saunders; and Chief Financial Officer, Dannette Henning. During this call, we'll make forward-looking statements based on current expectations, estimates and projections that are subject to risk. Statements about current and future financial performance, growth strategy, customers, business opportunities, market acceptance of our products and services, and potential acquisitions are forward-looking statements. Listeners should not place undue reliance on these statements, as there are many factors that could cause actual results to differ materially from our forward-looking statements. We encourage you to review our publicly filed documents, as well as our news releases and website for more information. Today, we'll also discuss adjusted EBITDA, a non-GAAP financial measure provided as a complement to GAAP results. Please refer to today's earnings release for important disclosures regarding non-GAAP measures. I'll now turn the call over to John

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