Executive Summary

Q3 2020 delivered solid top-line growth and margin inflection: revenue rose to $4.04M (+9.9% YoY) and net income increased to $0.28M; operating income improved to $0.36M as the company balanced investment with profitability .
Management postponed the annual dividend to preserve liquidity amid macro uncertainty and elevated corporate default risk, a cautionary decision likely to be a near-term stock narrative catalyst given income investor expectations .
The company continued to invest in service and technical staff, which tempered earnings growth relative to sales but supports client retention and long-term value creation .
No earnings call transcript was filed; qualitative insights come from the 8-K press release and related disclosures .

What Went Well and What Went Wrong

What Went Well

Revenue growth accelerated: Q3 operating revenues were $4,037,456 vs. $3,673,241 in Q3’19 (+9.9% YoY) .
Margin inflection: income from operations reached $359,586 (vs. $237,134 in Q3’19), reflecting scale benefits despite higher SG&A .
Customer-centric investment continued: “Our net income is not growing at the same pace as sales since the Company retained, and even increased, its payroll levels and employees throughout the year… strengthen[ing] our service and technical staff… to provide exceptional service to our clients” — Jerry Flum, CEO .

What Went Wrong

Dividend suspended/postponed: Board deferred any declaration/payment of the annual dividend until financial stability improves, citing world‑record corporate debt-to-GDP, higher defaults/bankruptcies, and COVID second-wave risks .
SG&A pressure: Q3 SG&A rose to $2,110,280 from $1,962,150 in Q3’19, moderating earnings leverage despite revenue growth .
Lack of guidance/transcript: No numeric guidance was issued and no earnings call transcript is available, limiting external visibility into near-term outlook .

Financial Results

Quarterly P&L and Margins

Metric	Q1 2020	Q2 2020	Q3 2020
Revenue ($USD)	$3,708,751	$3,852,003 (derived from 9M 2020 minus Q1 & Q3)	$4,037,456
Operating Income ($USD)	$(286,947)	$(111,425) (derived from 9M op. loss minus Q1 & Q3)	$359,586
Net Income ($USD)	$(198,348)	$28,921 (derived from 9M NI minus Q1 & Q3)	$281,082
EPS – Basic ($USD)	$(0.02)	N/A (not disclosed)	$0.03
EPS – Diluted ($USD)	$(0.02)	N/A (not disclosed)	$0.03
Operating Margin (%)	(7.7%) (calc: OI/Rev)	(2.9%) (calc: OI/Rev)	8.9% (calc: OI/Rev)
Net Income Margin (%)	(5.3%) (calc: NI/Rev)	0.8% (calc: NI/Rev)	7.0% (calc: NI/Rev)

Notes:

Q2 revenue/operating income/net income are computed from nine-month 2020 totals ($11,598,210 revenue; $(38,786) operating loss; $111,655 net income) minus Q1 and Q3 reported figures .
EPS for Q2 was not disclosed in filings reviewed.

Year-over-Year (Q3’19 vs. Q3’20)

Metric	Q3 2019	Q3 2020
Revenue ($USD)	$3,673,241	$4,037,456
Operating Income ($USD)	$237,134	$359,586
Net Income ($USD)	$203,590	$281,082
EPS – Basic/Diluted ($USD)	$0.02	$0.03
SG&A ($USD)	$1,962,150	$2,110,280

KPIs and Balance Sheet

KPI	Q1 2020	Q3 2020
Cash and Cash Equivalents ($USD)	$8,298,301	$10,451,155
Unexpired Subscription Revenue – Current ($USD)	$9,186,434	$9,189,823
Diluted Shares Outstanding (weighted avg)	10,722,401	10,746,834

Segment breakdown: Not applicable; the company reports consolidated results .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Annual Dividend	FY 2020	None provided in filings reviewed	Postponed until increased marketplace stability; Board to review periodically through 2021	Lowered/Suspended
Revenue/Margins/OpEx/Tax	FY 2020	None provided	None provided	Maintained (no guidance)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2020)	Trend
COVID-19 macro impact	Q1: Net loss despite sales growth; investment in infrastructure and content; resilience amid pandemic . Q2: Preliminary revenue growth +8% (Q2), +7% (1H), +6% (Q1); cautious optimism as subscribers implement cost cutting .	Dividend postponed due to macro instability, default/bankruptcy risks, and second-wave concerns .	Caution intensifies; liquidity preservation focus.
Investment in staff/service	Q1: Continued investment in customer service, infrastructure .	Continued investment in service and technical staff; net income lagging sales growth due to payroll retention/increases .	Ongoing, supporting client service and product quality.
Client financial health	Q2: Subscribers struggling and cutting costs .	Possible reduced financial stability of some subscribers; heightened defaults/bankruptcies .	Headwinds persist.
Product/analytics positioning	Q1/Q2: FRISK®/PAYCE® and analytics focus highlighted in overviews .	Platform continues to serve Fortune 1000 clients with risk analytics .	Stable strategic positioning.

No earnings call transcript was identified in the filings reviewed; themes reflect press release commentary .

Management Commentary

“Our net income is not growing at the same pace as sales since the Company retained, and even increased, its payroll levels and employees throughout the year… We also continue to invest in strengthening our service and technical staff… Our team is our backbone, and our clients rely on them on a daily basis.” — Jerry Flum, CEO .
“Due to the economic crisis, our Board of Directors determined to postpone any declaration or payment of the Company’s annual dividend until the Company sees increased financial stability in the marketplace… preservation of liquidity until there is material evidence of control over the pandemic is paramount.” .
The Board promoted Michael I. Flum to President (continuing as COO), recognizing operational strategy and efficiency improvements leveraging technology .

Q&A Highlights

Not applicable; no earnings call transcript or Q&A disclosures were found in the filings reviewed for Q3 2020 .

Estimates Context

Metric	Period	Consensus (S&P Global)	Actual	Beat/Miss
Revenue ($USD)	Q3 2020	Unavailable	$4,037,456	N/A
EPS ($USD)	Q3 2020	Unavailable	$0.03	N/A

Note: Wall Street consensus via S&P Global could not be retrieved in this session due to access limits; thus, beat/miss vs. estimates cannot be determined at this time.

Key Takeaways for Investors

Q3 marks an operational turning point: double-digit YoY revenue growth and improved operating/net margins while sustaining elevated SG&A to support clients; margin durability into Q4 is the key metric to watch .
The dividend postponement is a significant narrative event; expect investor focus on liquidity, client stability, and macro default trajectories as drivers of future capital return decisions .
Subscription KPIs remain stable (unexpired subscription revenue) and cash rose to $10.45M, providing balance sheet flexibility for continued investment .
With no formal guidance or call transcript, monitor subsequent filings for visibility on churn/expansion within Fortune 1000 accounts and any COVID-related subscriber impacts .
Near term, the stock’s reaction may hinge on income investor sentiment regarding the suspended dividend vs. improved profitability and cash; medium term thesis rests on retention/upsell and analytics differentiation (FRISK®/PAYCE®) in a high-risk macro backdrop .
Watch SG&A trajectory: as client activity normalizes, operating leverage could expand given Q3’s margin inflection despite higher SG&A .
Leadership changes (President/COO role) underscore an emphasis on operational efficiency and technology leverage, potentially aiding scale and margin profiles over time .

CREDITRISKMONITOR COM INC (CRMZ)·Q3 2020 Earnings Summary