Executive Summary

Revenue grew 6% year over year to $2.00M, driven by subscription revenue up 10% to $1.80M; gross margin expanded to 74.2% (+~160 bps YoY). However, operating loss widened to $2.42M and diluted EPS was a loss of $0.54, reflecting higher payroll, G&A, and one-time merger-related expenses .
Subscribers reached approximately 33,000 (+11,000; ~+50% YoY), supported by five new state dental association endorsements and the launch of iCoreClaims and iCoreExchange V6.0 .
Management expects salesforce expansion to begin impacting results in Q4 2023; no formal numeric guidance was provided for revenue, margins, or EPS .
Wall Street consensus estimates from S&P Global were unavailable for ICCT’s Q3 2023 (no CIQ mapping), so beat/miss analysis versus Street cannot be assessed.

What Went Well and What Went Wrong

What Went Well

Subscription-led top-line growth: “Subscription revenue of $1.8 million, an increase of 10% compared to the prior year period” and total revenue up 6% YoY to $2.0M .
Margin resilience: Gross profit margin of 74.2%, up about 2 percentage points YoY; management cited “strong demand for our cloud-based SaaS offerings” .
Commercial momentum: “Five new product endorsements across two new states” and product innovation with iCoreClaims and iCoreExchange V6.0; CEO: “We further expanded our reach and grew our subscriber base… expect the impact [of sales investments] to begin to show in the fourth quarter” .

What Went Wrong

Losses widened: Operating loss increased to $2.4M from $1.1M in Q3 2022; diluted EPS declined to $(0.54); management attributed the step-up to payroll, other G&A, and one-time merger expenses .
Higher financing burden: Interest expense rose to $0.48M (from $0.22M), and total other expense increased materially, including a $(0.42)M change in fair value of a forward purchase agreement .
Limited liquidity: Cash at period-end was $0.46M; current liabilities totaled $9.00M, including notes payable current portion of $3.70M, underscoring near-term balance sheet constraints .

Financial Results

Metric	Q3 2022	Q3 2023
Revenue ($USD)	$1,888,768	$2,004,853
Gross Profit ($USD)	$1,371,108	$1,486,978
Gross Profit Margin %	72.6% (computed: $1,371,108 / $1,888,768)	74.2%
Operating Loss ($USD)	$(1,067,165)	$(2,423,104)
Net Loss ($USD)	$(1,401,976)	$(3,691,800)
Diluted EPS ($)	$(0.24)	$(0.54)

Revenue Breakdown (Q3 2023)	Amount
Subscription revenue ($USD)	$1,800,000
Other revenue ($USD)	$204,853 (computed: $2,004,853 − $1,800,000)

KPIs	Q3 2022	Q3 2023
Subscribers (units)	22,000 (computed from +11,000 YoY increase)	~33,000
State dental association endorsements added in quarter (count)	N/A	5

Sequential vs. Estimates (Q3 2023)	Q2 2023	Q3 2023 Actual	Consensus (S&P Global)
Revenue ($USD)	N/A	$2,004,853	N/A (consensus unavailable)
Diluted EPS ($)	N/A	$(0.54)	N/A (consensus unavailable)
Gross Margin %	N/A	74.2%	N/A (consensus unavailable)

Note: Consensus estimates from S&P Global were unavailable for Q3 2023; beat/miss cannot be assessed.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/Margins/EPS	Q4 2023	None disclosed	No formal numeric guidance; management expects salesforce expansion impacts to begin in Q4 2023	Maintained (no formal guidance)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2023)	Trend
Salesforce expansion	Not available in accessible filings	Added sales reps; impact expected beginning in Q4 2023	Expanding
Product launches	Not available	Launched iCoreClaims; released iCoreExchange V6.0	Product expansion
Channel endorsements	Not available	Five new endorsements across two states (RIDA, AzDA Perks)	Growing channel
M&A/portfolio expansion	Not available	Acquired assets of Preferred Dental Services (dental billing/claims/insurance management)	Strategic acquisition
Subscriber growth	Not available	Subscribers ~33,000 (+11,000; ~+50% YoY)	Positive trajectory

No earnings call transcript was found in the document catalog for Q3 2023; analysis reflects press release and 8-K disclosures.

Management Commentary

“In the third quarter, we further expanded our reach and grew our subscriber base across the dental and healthcare industries. We continue to invest in growth initiatives across the business… we expect the impact of this to begin to show in the fourth quarter.” — Robert McDermott, CEO .
“Additionally, our relationships with state dental associations continued to grow as we landed five new product endorsements across two new states in the quarter… We continue to see strong demand for our cloud-based SaaS offerings.” — Robert McDermott, CEO .

Q&A Highlights

No Q3 2023 earnings call transcript was available in the catalog; therefore, no Q&A details or clarifications could be assessed from a call transcript.

Estimates Context

S&P Global consensus estimates for ICCT’s Q3 2023 were unavailable (no CIQ mapping), so we cannot evaluate beats/misses versus Street.
Given the micro-cap profile and recent SPAC-related merger completion, formal sell-side coverage appears limited; the company did not provide numeric guidance ranges in the press release .

Key Takeaways for Investors

Revenue momentum is subscription-led with solid gross margins (74.2%); however, operating losses widened due to higher payroll, G&A, and merger-related costs, pressuring EPS .
Commercial traction is evident: endorsements and new product launches (iCoreClaims, iCoreExchange V6.0) should support subscriber growth and upsell opportunities into revenue cycle management .
Liquidity and near-term obligations warrant monitoring: cash of $0.46M vs. current liabilities of $9.00M and notes payable current portion of $3.70M; financing costs rose notably in the quarter .
With no numeric guidance or Street consensus, near-term stock narrative will hinge on demonstrated Q4 salesforce productivity and evidence of RCM cross-sell driving revenue acceleration .
Integration of Preferred Dental Services broadens capabilities in billing/claims; execution on monetization and cross-selling into the ~33k subscriber base is a key medium-term driver .
Nasdaq listing (Aug 28, 2023) and increased visibility via endorsements may improve access to customers and capital over time; watch for incremental state/association endorsements as validation .
For trading, focus on Q4 update cadence: any quantified ARR/subscription adds, margin trajectory, and financing actions will be critical catalysts.

Citations:

Q3 2023 8-K and attached press release, including revenue/margin metrics, EPS, operating loss, subscriber counts, endorsements, product launches, and qualitative commentary .

iCoreConnect Inc. (ICCT)·Q3 2023 Earnings Summary