Daily Journal Corporation Reports 11% Revenue Growth to $17.7 Million

Daily Journal Corporation reported its financial results for the three months ending December 31, 2024, revealing a consolidated revenue of $17.7 million, an increase of 11% from $16.0 million in the same period of the previous year. The growth was primarily driven by a $968,000 rise in licensing and maintenance fees from its subsidiary, Journal Technologies, and a $1.2 million increase in other public service fees. However, the company experienced a decline in consulting fees, which fell by $703,000. The net income for the quarter was $10.9 million, or $7.91 per share, down from $12.6 million, or $9.16 per share, in the prior year.

Operating expenses also increased, rising by 10% to $17.0 million from $15.4 million. This increase was attributed to higher salaries and employee benefits, which grew by $689,000 due to annual salary adjustments and the hiring of additional staff. Other notable increases included outside services and equipment maintenance costs, which rose by 9% and 60%, respectively. The company’s non-operating income decreased by 6% to $14.2 million, primarily due to lower net unrealized gains on marketable securities.

In terms of operational developments, Daily Journal's Traditional Business segment generated $4.1 million in operating revenues, up from $3.9 million in the previous year, with advertising revenues increasing by 9%. The Journal Technologies segment saw a 12% increase in revenues to $13.6 million, with licensing and maintenance fees contributing significantly to this growth. The company continues to focus on enhancing its software products and expanding its market presence, particularly in governmental agencies across the United States and internationally.

The company’s cash and cash equivalents, along with marketable securities, increased by $15.6 million during the quarter, bolstered by net unrealized gains on marketable securities of $13.4 million. As of December 31, 2024, the fair market value of these securities was approximately $372.1 million, with net unrealized gains of $233.0 million. The balance on the company’s margin loan secured by these securities remained stable at $27.5 million.

Looking ahead, Daily Journal Corporation anticipates continued growth driven by its software solutions and public notice advertising. The company remains committed to investing in its operations and addressing the challenges posed by market conditions and evolving technology. However, it acknowledges potential risks, including changes in public notice advertising requirements and the impact of economic conditions on its business. The management is focused on improving internal controls and operational efficiencies to support its strategic objectives.