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VASO Stock Rises Post Q4 Revenue Growth and Solid Segment Gains
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Shares of Vaso Corporation (VASO - Free Report) have gained 2.2% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 8.9% decline over the same time frame. Over the past month, the stock lost 1.1% compared with the S&P 500’s 9.7% decline.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenue Growth and Profitability Metrics
For the fourth quarter of 2024, Vaso reported a 23.4% year-over-year increase in revenues to $27 million from $21.9 million in the same period of 2023. Gross profit for the quarter rose 22.6% to $17.2 million from $14.1 million. Net income surged 98.7% to $2.1 million from $1.1 million a year ago, driven largely by strong top-line growth across all business segments.
For the full year, revenues climbed 7.1% to a record $86.8 million from $81 million in 2023. Despite this, net income for 2024 decreased 80.2% to $0.9 million from $4.8 million in the prior year, primarily due to increased operating expenses related to new programs and strategic initiatives.
Vaso Corporation Price, Consensus and EPS Surprise
Each of Vaso’s business segments contributed to the quarterly revenue increase. The IT segment saw a 13.6% increase in revenues, reaching $11.1 million, fueled by growth in network services and healthcare IT offerings. The professional sales service segment delivered a standout performance, with commission revenues rising 31.2% to $15 million, supported by higher equipment deliveries and improved commission rates. The equipment segment reported a 31% revenue increase to $921,000, driven by stronger equipment sales in China, despite a decline in U.S. software-as-a-service (SaaS) subscriptions.
On a full-year basis, the IT segment grew 6.4% to $42.9 million from $40.4 million, while the professional sales service segment rose 9.3% to $41.3 million from $37.8 million. However, the equipment segment contracted 12.5% to $2.5 million from $2.8 million, impacted by reduced SaaS revenues and lower product sales in China, alongside foreign exchange headwinds.
Other Key Business Metrics
Adjusted EBITDA for the fourth quarter of 2024 was $2.3 million, up 108.5% from $1.1 million in the prior-year period.
Adjusted EBITDA for 2024 came in at $1 million, down 80.3% from $5.1 million in the prior year, primarily reflecting the decline in net income. Operating cash flow was $3.3 million, a decrease from $5.3 million in 2023, largely due to the earnings contraction.
Despite this, VASO’s liquidity position remained healthy, with cash and cash equivalents and short-term investments totaling $26.3 million at year-end, compared with $25.3 million a year earlier. The company also saw an 8.4% rise in deferred revenues to $34.9 million from $32.2 million, reflecting order bookings that surpassed equipment deliveries.
Management Commentary
President and CEO Dr. Jun Ma emphasized the company’s sustained revenue growth and ongoing profitability. He noted that despite the rise in operating expenses, Vaso continues to generate positive cash flow from operations and maintains a robust balance sheet. Dr. Ma highlighted that the firm’s consistent financial improvements over recent years have established a solid foundation for future expansion, both organically and through potential partnerships or external opportunities.
Factors Influencing the Headline Numbers
Higher selling, general and administrative expenses were a notable headwind during the quarter and year. These rose 18.4% to $14.3 million in the fourth quarter from $12.4 million and 8.7% to $48.9 million from $45.1 million for the full year. Increases in personnel and travel costs across both the professional sales service and IT segments contributed significantly to this rise. Corporate expenses also increased by $1.4 million, partly due to elevated professional fees associated with a proposed business combination transaction with Achari, which was terminated in 2024.
Other Developments
In 2024, VASO terminated its proposed business combination with Achari. While no further details were disclosed regarding the decision, related professional fees contributed to increased corporate expenses for the year. There were no other notable acquisitions, divestitures, or restructuring initiatives reported during the quarter.
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VASO Stock Rises Post Q4 Revenue Growth and Solid Segment Gains
Shares of Vaso Corporation (VASO - Free Report) have gained 2.2% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 8.9% decline over the same time frame. Over the past month, the stock lost 1.1% compared with the S&P 500’s 9.7% decline.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenue Growth and Profitability Metrics
For the fourth quarter of 2024, Vaso reported a 23.4% year-over-year increase in revenues to $27 million from $21.9 million in the same period of 2023. Gross profit for the quarter rose 22.6% to $17.2 million from $14.1 million. Net income surged 98.7% to $2.1 million from $1.1 million a year ago, driven largely by strong top-line growth across all business segments.
For the full year, revenues climbed 7.1% to a record $86.8 million from $81 million in 2023. Despite this, net income for 2024 decreased 80.2% to $0.9 million from $4.8 million in the prior year, primarily due to increased operating expenses related to new programs and strategic initiatives.
Vaso Corporation Price, Consensus and EPS Surprise
Vaso Corporation price-consensus-eps-surprise-chart | Vaso Corporation Quote
Segmental Performance and Business Metrics
Each of Vaso’s business segments contributed to the quarterly revenue increase. The IT segment saw a 13.6% increase in revenues, reaching $11.1 million, fueled by growth in network services and healthcare IT offerings. The professional sales service segment delivered a standout performance, with commission revenues rising 31.2% to $15 million, supported by higher equipment deliveries and improved commission rates. The equipment segment reported a 31% revenue increase to $921,000, driven by stronger equipment sales in China, despite a decline in U.S. software-as-a-service (SaaS) subscriptions.
On a full-year basis, the IT segment grew 6.4% to $42.9 million from $40.4 million, while the professional sales service segment rose 9.3% to $41.3 million from $37.8 million. However, the equipment segment contracted 12.5% to $2.5 million from $2.8 million, impacted by reduced SaaS revenues and lower product sales in China, alongside foreign exchange headwinds.
Other Key Business Metrics
Adjusted EBITDA for the fourth quarter of 2024 was $2.3 million, up 108.5% from $1.1 million in the prior-year period.
Adjusted EBITDA for 2024 came in at $1 million, down 80.3% from $5.1 million in the prior year, primarily reflecting the decline in net income. Operating cash flow was $3.3 million, a decrease from $5.3 million in 2023, largely due to the earnings contraction.
Despite this, VASO’s liquidity position remained healthy, with cash and cash equivalents and short-term investments totaling $26.3 million at year-end, compared with $25.3 million a year earlier. The company also saw an 8.4% rise in deferred revenues to $34.9 million from $32.2 million, reflecting order bookings that surpassed equipment deliveries.
Management Commentary
President and CEO Dr. Jun Ma emphasized the company’s sustained revenue growth and ongoing profitability. He noted that despite the rise in operating expenses, Vaso continues to generate positive cash flow from operations and maintains a robust balance sheet. Dr. Ma highlighted that the firm’s consistent financial improvements over recent years have established a solid foundation for future expansion, both organically and through potential partnerships or external opportunities.
Factors Influencing the Headline Numbers
Higher selling, general and administrative expenses were a notable headwind during the quarter and year. These rose 18.4% to $14.3 million in the fourth quarter from $12.4 million and 8.7% to $48.9 million from $45.1 million for the full year. Increases in personnel and travel costs across both the professional sales service and IT segments contributed significantly to this rise. Corporate expenses also increased by $1.4 million, partly due to elevated professional fees associated with a proposed business combination transaction with Achari, which was terminated in 2024.
Other Developments
In 2024, VASO terminated its proposed business combination with Achari. While no further details were disclosed regarding the decision, related professional fees contributed to increased corporate expenses for the year. There were no other notable acquisitions, divestitures, or restructuring initiatives reported during the quarter.