Executive Summary

Q1 2021 revenue rose to $4.13M, up 11% year over year, with operating income of $0.24M and net income of $0.19M; operating margin improved to 5.80% from -7.73% in Q1 2020 .
SG&A declined 9% year over year on revised commission accruals, while data/product costs increased 7% from inflationary supplier pricing and staff pay raises .
Management reiterated investment behind a “new platform” and expanded private-company coverage; liquidity remains strong with $10.46M cash and PPP forgiveness application in process .
No formal guidance provided; management highlights COVID-driven forecasting uncertainty—near-term stock catalysts center on product launch execution and sustained renewal/sales momentum .

What Went Well and What Went Wrong

What Went Well

Operating revenues increased approximately $424K (+11%) versus Q1 2020 on higher subscription sales to new and existing customers .
SG&A fell ~$214K (-9%) year over year due to revised commission accrual methodology, partially offset by higher salary/benefits and sales expansion .
CEO emphasized continued investment: “We are looking to introduce a new platform in the near future as well as important additions to our private company coverage… we believe these investments will, over time, produce meaningful returns.”

What Went Wrong

Data/product costs increased ~$101K (+7%) year over year, driven by supplier inflation and staff compensation increases .
Other income declined ~$19K year over year on lower money-market yields, reducing non-operating tailwinds .
Continued reliance on $1.56M PPP loan (maturing Apr 15, 2022) pending forgiveness; management underscores pandemic-related uncertainty for renewals and forecasting .

Financial Results

Metric	Q1 2020	Q3 2020	Q1 2021
Revenue ($USD)	$3,708,751	$4,037,456	$4,132,901
Income from Operations ($USD)	$(286,947)	$359,586	$239,811
Operating Margin (%)	-7.73%	8.91%	5.80%
Net Income ($USD)	$(198,348)	$281,082	$187,714
EPS (Basic & Diluted, $)	$(0.02)	$0.03	$0.02
Data & Product Costs ($USD)	$1,526,328	$1,514,659	$1,627,786
SG&A ($USD)	$2,415,258	$2,110,280	$2,200,792
Depreciation & Amortization ($USD)	$54,112	$52,931	$64,512

Notes:

Q4 2020 quarterly detail is not disclosed in filings; trajectory analysis uses Q3 2020 and Q1 comparables .

Segment breakdown: CRMZ reports a single operating/reportable segment; no segment revenue disclosure .

Selected KPIs (Balance-Sheet/Subscription Dynamics)

KPI ($USD Thousands)	Sep 30, 2020	Dec 31, 2020	Mar 31, 2021
Unexpired Subscription Revenue	$9,190	$9,646	$9,871
Cash & Cash Equivalents	$10,451	$10,303	$10,464
Accounts Receivable (net)	$1,945	$2,557	$2,709
Working Capital	$1,359	$848	$770

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarterly	None	None	No formal guidance; management cites forecasting limitations amid COVID
Margins	FY/Quarterly	None	None	No formal guidance; discretionary spend aligned to cash flow projections
OpEx (Sales & Marketing; Product Dev.)	2021	None	Expect increases as business expands globally and dev. staffing grows, subject to liquidity discipline	N/A
Tax Rate	FY/Quarterly	None	None	N/A
PPP/Financing	2021	N/A	PPP forgiveness application open during Q1; liquidity sufficient for next 12 months	N/A

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2020)	Current Period (Q1 2021)	Trend
Product development / platform	Continued investment in new services/products; expect product dev. expenses to increase	CEO: new platform and expanded private coverage planned; costs borne before revenue	Increasing investment ahead of launch
Sales/renewals momentum	Revenue growth from increased sales to new and existing subscribers	+11% YoY revenue; growth attributable to subscription sales	Positive momentum
COVID and forecasting	Remote operations; uncertainty on renewals; difficulty forecasting	Management reiterates limited ability to forecast; expects quarterly fluctuations	Persistent uncertainty
Cost structure (SG&A, data costs)	SG&A up YTD; lower marketing due to COVID; data costs up modestly	SG&A down YoY due to commission accrual change; data costs up from inflation and pay raises	Mixed: SG&A efficiency vs higher input costs
Liquidity / PPP	PPP received; liquidity strong	PPP forgiveness path, cash +$162K QoQ; liquidity expected sufficient for 12 months	Stable liquidity

Management Commentary

“Operating revenues increased approximately $424,000, or 11%, for the three months ended March 31, 2021 compared to the first quarter of fiscal 2020… attributable to increased sales to new and existing subscribers.”
CEO: “We are looking to introduce a new platform in the near future as well as important additions to our private company coverage… we believe these investments will, over time, produce meaningful returns.”
Liquidity posture: “With the proceeds of [PPP] loan, along with [existing] cash and cash generated from operations, the Company expects to have sufficient liquidity to continue for the next 12 months.”

Q&A Highlights

No formal Q&A transcript was filed for Q1 2021; key points addressed in filings include:
- Revenue drivers (subscription sales to new/existing customers) .
- OpEx mix (commission accrual methodology, higher salary/benefits; supplier inflation) .
- PPP forgiveness timing and liquidity outlook .
- Guidance stance and forecasting constraints under COVID .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q1 2021 revenue and EPS were unavailable. In absence of published consensus, comparisons to estimates cannot be made and should not be inferred. Values retrieved from S&P Global.*

Key Takeaways for Investors

Q1 inflection to profitability with 5.80% operating margin and $0.02 EPS underscores operating leverage in subscription revenue as SG&A efficiencies took hold .
Revenue growth (+11% YoY) amid pandemic uncertainty indicates resilient demand for credit/supply-chain risk analytics; watch renewal rates and upsell activity as leading indicators .
Near-term margin variability likely as product launch and private-company coverage investments ramp ahead of revenue recognition; monitor data cost inflation and payroll trends .
Strong liquidity ($10.46M cash) and deferred subscription liabilities support runway; PPP forgiveness would further de-risk the balance sheet and reduce near-term debt service .
Absence of formal guidance requires triangulation via quarterly filings; expect continued volatility tied to macro/COVID and discretionary investment levels .
Tactical: momentum in sales/renewals is the key stock narrative; medium-term thesis hinges on successful platform launch translating to revenue scale and improved margin structure .

Citations:
Exhibit 99.1 press release (CEO commentary, FY 2020 operating results)
Q1 2021 10-Q financial statements (balance sheet and income statement)
Q1 2021 10-Q PPP disclosure (terms, forgiveness application)
Q1 2021 10-Q MD&A selected stats (working capital, ratios)
Q1 2021 10-Q MD&A liquidity outlook
Q1 2021 10-Q MD&A detailed results of operations
Q1 2021 10-Q MD&A future operations and forecasting commentary
FY 2020 10-K segment disclosure
FY 2020 10-K MD&A selected stats
Q3 2020 10-Q financial statements (revenue, net income)
Q3 2020 10-Q MD&A selected stats
Q3 2020 10-Q MD&A operating margin

*Values retrieved from S&P Global.

CREDITRISKMONITOR COM INC (CRMZ)·Q1 2021 Earnings Summary