ReposiTrak, Inc. reported a 7% increase in revenue for the second quarter of fiscal 2024, reaching $5.49 million compared to $5.13 million in the same period last year. For the six months ending December 31, 2024, total revenue was $10.93 million, up from $10.19 million in the prior year. The growth in revenue was attributed to an increase in recurring subscription revenue across all business lines, particularly in compliance, supply chain, and traceability services. The company noted that heightened regulatory requirements and increased demand from retailers for compliance solutions have driven this growth.
Operating expenses for the quarter rose to $4.14 million, a 7% increase from $3.88 million in the previous year. The cost of revenue and product support increased by 3% to $1.00 million, primarily due to investments in automation and cybersecurity enhancements. Sales and marketing expenses saw a more significant rise of 15%, totaling $1.46 million, reflecting higher commissions and marketing efforts related to the Food Safety Modernization Act (FSMA) compliance. General and administrative expenses also increased slightly by 2% to $1.38 million, driven by higher employee benefits and insurance costs.
ReposiTrak's balance sheet showed total assets of $54.74 million as of December 31, 2024, up from $51.60 million at the end of June 2024. Current assets increased by 11% to $32.39 million, primarily due to higher cash balances and contract assets. The company reported a significant increase in cash flow from operating activities, which rose 117% to $5.33 million for the six months ended December 31, 2024, compared to $2.45 million in the same period last year. This increase was largely driven by higher revenues and advance payments from customers for annual subscriptions.
In terms of strategic developments, ReposiTrak announced a 10% increase in its quarterly cash dividend, raising it to $0.01815 per share, effective for the dividend payable to shareholders of record on December 31, 2024. The company is also focused on expanding its traceability solutions in response to the FSMA 204 regulations, which require enhanced traceability measures for high-risk foods. The company has positioned its ReposiTrak Traceability Network as a key solution to meet these regulatory demands, anticipating that compliance will drive further demand for its services.
Looking ahead, ReposiTrak remains optimistic about its growth trajectory, emphasizing its commitment to enhancing its software services and expanding its market presence. The company plans to continue focusing on recurring subscription revenue while managing operational costs effectively. With a strong cash position and positive working capital, ReposiTrak is well-positioned to navigate the evolving regulatory landscape and capitalize on emerging opportunities in the supply chain management sector.
About ReposiTrak, Inc.
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