Executive Summary

Q1 2024 delivered 48% revenue growth to $2.72M, with gross margin expanding to 81% (from 73%) on mix shift toward higher-margin subscription software; however, losses widened on elevated SG&A and financing costs tied to cancelled equity line fees and acquisition integration .
No formal guidance was provided; management emphasized enterprise agreements (CareStream Dental, Patterson) and product expansion (iCoreEnterprise SSO; fintech iCorePay) as catalysts for subscriber and margin growth .
Sequential comparison to Q4 2023 is limited due to the absence of a Q4 earnings press release/transcript; year-over-year trends remain robust, but operating loss and net loss reflect higher amortization and financing charges in the quarter .
Earnings call transcript for Q1 2024 was not found after comprehensive search; therefore, no Q&A insights are available [List: earnings-call-transcript 0 returned].
S&P Global consensus estimates were unavailable due to missing mapping for ICCT; comparisons to Street were not possible (attempted tool retrieval failed) [SpgiEstimatesError].

What Went Well and What Went Wrong

What Went Well

Revenue up 48% YoY to $2.7M with gross margin up to 81%, driven by subscription revenue growth and acquisitions completed January 1, 2024 .
Strategic enterprise agreements expanded distribution: CareStream Dental integrating iCore cloud software across Sensei portfolio; Patterson Dental added Eaglesoft integration for iCoreRx ePrescribing .
State endorsements increased reach (Nebraska, Pennsylvania, Illinois, Tennessee, Arizona, Rhode Island, Louisiana, Michigan, Maryland), reinforcing a multi-year endorsement moat; CEO: “The dedication to expanding our enterprise software solutions has paid off...” .

What Went Wrong

Operating loss widened to $(3.04)M and net loss to $(4.72)M, reflecting higher SG&A (87% YoY) and amortization from acquired intangibles .
Financing fee spike ($1.30M vs. $0.08M) from expensing deferred costs of a cancelled equity line and higher convertible debt activity, pressuring bottom line .
Going concern uncertainty and material weaknesses in internal controls (complex instruments; segregation of duties) flagged in 10-Q, increasing risk perception .

Financial Results

Metric	Q1 2023	Q3 2023	Q1 2024
Revenue ($USD Millions)	$1.840	$2.005	$2.723
Net Income ($USD Millions)	$(1.689)	$(3.692)	$(4.723)
Diluted EPS ($USD)	$(0.26)	$(0.54)	$(0.51)
Gross Profit Margin %	73.0%	74.2%	81.0%
EBIT Margin %	(Loss from ops $(1.351)/$1.840)=−73.4%	(Loss from ops $(2.423)/$2.005)=−120.8%	(Loss from ops $(3.042)/$2.723)=−111.7%
Net Income Margin %	$(1.689)/$1.840=−91.8%	$(3.692)/$2.005=−184.1%	$(4.723)/$2.723=−173.5%

Segment/Revenue-type mix:

Revenue Type	Q1 2023 ($USD)	Mix	Q1 2024 ($USD)	Mix
Subscription software and services	$1,703,815	93%	$2,595,050	95%
Professional services and other	$136,556	7%	$128,313	5%
Total Revenue	$1,840,371	100%	$2,723,363	100%

KPIs (selected):

KPI	Q3 2023	Q1 2024
Subscribers	~33,000	Not disclosed
Revenue in North America	100% (disclosed as geographic concentration)	100%
Recurring Revenue %	—	90%+ (recurring defined; disaggregated subscription 95%)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/quarterly	Not provided	Not provided	Maintained: N/A
Gross Margin	FY/quarterly	Not provided	Not provided	Maintained: N/A
OpEx	FY/quarterly	Not provided	Not provided	Maintained: N/A
Tax Rate	FY/quarterly	Not provided	Not provided	Maintained: N/A
Segment guidance	FY/quarterly	Not provided	Not provided	Maintained: N/A
Dividends	FY/quarterly	Preferred dividends accrue at 12% (terms)	Continued accrual per terms	Maintained

Earnings Call Themes & Trends

Earnings call transcript for Q1 2024 not found; themes below reflect press release and 10-Q narrative.

Topic	Previous Mentions (Q-2: Q3 2023)	Previous Mentions (Q-1: Q4 2023)	Current Period (Q1 2024)	Trend
Enterprise/channel expansion	New endorsements; iCoreClaims; expanded salesforce	Not located	Enterprise OEM deals (CareStream, Patterson); channel partner division launched (5 large partners)	Accelerating distribution reach
Product platform/technology	Product releases (iCoreExchange v6.0; iCoreClaims)	Not located	Launch of iCoreEnterprise SSO; portfolio expansion; fintech iCorePay initial adoption	Broader platform integration
Gross margin mix	GP margin 74.2%	Not located	GP margin 81% on subscription mix shift	Improving mix/margins
Regulatory/legal & controls	—	—	Material weaknesses in ICFR; going concern; litigation claim disclosed	Ongoing remediation required
R&D/software capitalization	—	—	Capitalized software additions; amortization rise on intangibles	Increased investment/cost absorption
Geographic/customer concentration	—	—	100% revenue North America; AR concentration across 3 customers (31%)	Stable geography; moderate AR concentration

Management Commentary

“The dedication to expanding our enterprise software solutions has paid off. With a modestly sized sales team and minimal advertising, our substantial subscriber growth and the expansion of margins are just the beginning. We anticipate continued growth as we further enhance our sales capabilities.” — Robert McDermott, CEO .
Mix shift to subscription offerings drove gross margin expansion and is expected to continue benefiting margins as SaaS/MSaaS growth outpaces professional services .
Strategic narrative centers on endorsements creating a defensible moat and faster go-to-market across new and acquired solutions .

Q&A Highlights

An earnings call transcript for Q1 2024 was not found after comprehensive search; thus, no Q&A themes or guidance clarifications can be provided [ListDocuments: earnings-call-transcript 0 results].

Estimates Context

Attempted to retrieve S&P Global consensus for Q1 2024 EPS/Revenue/EBITDA; data unavailable due to missing CIQ mapping for ICCT, preventing estimates comparisons [SpgiEstimatesError].
Given the absence of Street estimates and formal guidance, model updates should reflect: higher gross margin trajectory from subscription mix; increased amortization/SG&A run-rate post acquisitions; and elevated financing costs impacting net loss .

Key Takeaways for Investors

Revenue trajectory is improving on subscription-led growth and newly integrated acquisitions; watch for sustained 80%+ gross margin as mix expands, a potential re-rating catalyst if losses narrow .
Distribution leverage via enterprise OEM integrations (CareStream, Patterson) and state endorsements provides low-cost customer acquisition and cross-sell opportunities across the iCoreEnterprise platform .
Near-term risk: going concern and material weaknesses in ICFR; ongoing remediation and capital raises are pivotal to reduce financing frictions and improve investor confidence .
Operating losses are driven by higher SG&A and amortization; monitor OpEx discipline and integration milestones to gauge path to operating leverage .
Financing structure is complex (convertibles, preferred dividends, warrants); dilution/terms should be tracked closely, including subsequent note amendments and equity-linked features .
With no formal guidance and unavailable consensus, trading setups may hinge on incremental contract wins, endorsements, and visible subscriber additions; any disclosure of iCorePay monetization could be a catalyst .
Sequential comps to Q4 2023 are limited by disclosure; focus on YoY KPIs and Q2 prints (66% revenue growth to $3.1M) to assess momentum into mid-2024 .

Sources: Q1 2024 8-K press release and exhibits ; Q1 2024 10-Q (financials, MD&A, risk, subsequent events) ; Q3 2023 8-K press release ; Q2 2024 8-K press release .

iCoreConnect Inc. (ICCT)·Q1 2024 Earnings Summary