As
one of the leading pioneers in the world of secure, cloud-driven regulatory
compliance, as well as investor communication solutions, Issuer Direct (NYSE
MKT: ISDR) is currently the go-to Disclosure Management System (DMS) source for
thousands of compliance issuers around the world, as well as for hundreds of
corporate issuers, which derive substantial advantages from the company’s
affordable, but extremely robust suite of branded solutions.
Issuer
Direct’s already widely successful toolset stands to remain at the head of the
pack alongside players like Certent, which was recently selected by PR Newswire
to augment its own flexible XBRL tagging and filing solution with Certent’s own
DM tech. Compliance looks to be one of the hottest, fastest-growing segments of
the $3 billion and growing legal technology solutions market
(http://dtn.fm/x7sO5). There is plenty of room here for an agile,
cost-competitive player with advanced technology and a mountain of in-house
experience like ISDR, even with bigger sharks like IBM (NYSE: IBM) and SAP
(NYSE: SAP) circling the market.
The
same kind of rock-solid value brought to the table with ISDR’s proprietary
cloud-based DMS framework, so noteworthy for its security, performance and ease
of use, is also present in the company’s other offerings, whether we are
talking about Issuer Direct’s premier regional, national and global
news/communications network, Accesswire®; the company’s extremely robust media,
advisor and investor targeting dataset platform, Classify®; or ISDR’s SEC
filing marvel, known as Blueprint®.
Accesswire
is particularly interesting given that the platform was designed from the
ground up specifically for public companies, as well as due to the sheer scale
of Accesswire’s end-user footprint and the ease with which public companies can
join the Accesswire News Network before almost immediately using it to
disseminate messages to that huge audience in real-time. Underlying this
supremely attractive megaphone functionality is a powerful analytics engine
that exposes information like actual social engagement metrics of a given
release, as well as the subsequent/relevant audience targeting solutions, via a
highly intuitive dashboard. Putting the power into users’ hands, allowing them
to really understand what works (or just how well whatever they are doing is
working), ensures confidence in PR budgets and makes the platform an easy sell
to public companies who are hungry to engage the investment community.
Because
ISDR so intimately understands the regulatory environment, the announcements
that need to go to SEDAR or EDGAR are always routed. Accesswire is partnered
with the top names in business media today, such as Reuters (NYSE:TRI), The
Wall Street Journal (NASDAQ: NWSA) and The New York Times (NYSE: NYT), as well
as Stock Exchanges, local newspapers of record, The Associated Press and United
Press International, and digital data feeders like Yahoo! Finance (NASDAQ:
YHOO) – to name but a few.
Little
wonder then that ISDR was recently able to report Q2 revenue growth from its
Accesswire press release business of 18 percent (compared to Q1), which was up
a handsome 73 percent year-over-year (http://dtn.fm/WCSu6). Accompanied by a 74
percent gross margin for the quarter and an additional $1 million in
operational cash flow, the quarterly dividend increase issued back in July on
the strength of continued positive earnings and cash flow has substantially
encouraged ISDR shareholders to remain bullish about the company’s prospects.
Accesswire’s distribution channels line up superbly with the company’s investor
network and investor calendar, as well as ISDR’s public company outreach
platform, providing unparalleled venue reach that includes the Dow Jones
Network and the Factiva system, as well as top broker-dealers. Needless to say,
this is a winning proposition to public companies, and business has been very
good for Issuer Direct.
In
fact, revenues from platform and technology solutions were up 20 percent last
quarter when compared to Q1, with both Blueprint and Classify showing marked
traction. Even as the traditional Annual Report Service (ARS) business flags
amid an ongoing shift to digital over hardcopy, and market commoditization
hammers XBRL demand, Issuer Direct has actually prospered. Intelligent
restructuring of channel partner agreements in its ARS game, as well as
receptivity to the company’s innovative cloud-based offerings, have allowed
ISDR to soar where lesser operators may have folded altogether.
Blueprint
deserves a closer look here, for instance, due not only to a recent partnership
expansion with the London Stock Exchange Group that includes the SEC reporting
platform’s license to LSEG’s RNS (regulatory news service), but because the
LSEG deal is just the latest example of end-market resonance for Issuer Direct.
LSEG’s RNS wanted a way to automate the reformatting of their own systemically
generated HTML into SEC EDGAR-compliant documentation, and the readily
adaptable Blueprint platform was perfect for the job – a deal which has
crystallized an already tight-knit relationship between LSEG and ISDR. Issuer
Direct’s CEO, Balbirnie, was keen to point out the number of high profile
clients that have already signed on with Blueprint as a hallmark of the platform’s
inherent value. The top dog at LSEG/RNS roundly affirmed this conclusion, while
also pointing to Blueprint’s scalability as leaving the door open to a host of
future applications.
That
scalability is a big sell for Blueprint, alongside the platform’s baseline
cost-effectiveness and ease of use, as it allows great confidence that ISDR can
fulfill the role of trusted regulatory platform provider for years to come (no
matter how big or small the client). The ability to handle essentially any
document type via a proprietary compliance editing platform like Blueprint,
which alleviates the historically time-consuming and cumbersome process of
regulatory filing, when combined with the company’s DMS platform, makes for a
super-fast, real-time project creation/editing workflow that has to be
experienced to be believed. The ironclad value of the company’s DMS platform,
engineered to meet and keep up with the ever more stringent demands of
regulatory authorities like the SEC, DTCC and FINRA, is further enhanced by
dynamic shareholder communication features.
Issuer
Direct even offers naturally parallel services such as stock transfer agent and
proxy services, as well as full-spectrum document design, formatting and
typesetting – the company even does printing/fulfillment with real-time
tracking. Transfer agent duties come second nature to an outfit like Issuer
Direct, and with the in-house talent to easily handle everything from
electronic stock issuance and management, to document preparation and review,
ISDR is increasingly seen as a one-stop-shop for a variety of such services.
For
more information, visit www.IssuerDirect.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html