As one of the leading pioneers in the world of secure,
cloud-driven regulatory compliance, as well as investor communication
solutions, Issuer Direct (NYSE MKT: ISDR) is currently the go-to Disclosure
Management System (DMS) source for thousands of compliance issuers around the
world, as well as for hundreds of corporate issuers, which derive substantial
advantages from the company’s affordable, but extremely robust suite of branded
solutions.
Issuer Direct’s already widely successful toolset stands to
remain at the head of the pack alongside players like Certent, which was
recently selected by PR Newswire to augment its own flexible XBRL tagging and
filing solution with Certent’s own DM tech. Compliance looks to be one of the
hottest, fastest-growing segments of the $3 billion and growing legal
technology solutions market (http://dtn.fm/x7sO5). There is plenty of room here
for an agile, cost-competitive player with advanced technology and a mountain
of in-house experience like ISDR, even with bigger sharks like IBM (NYSE: IBM)
and SAP (NYSE: SAP) circling the market.
The same kind of rock-solid value brought to the table with
ISDR’s proprietary cloud-based DMS framework, so noteworthy for its security,
performance and ease of use, is also present in the company’s other offerings,
whether we are talking about Issuer Direct’s premier regional, national and
global news/communications network, Accesswire®; the company’s extremely robust
media, advisor and investor targeting dataset platform, Classify®; or ISDR’s
SEC filing marvel, known as Blueprint®.
Accesswire is particularly interesting given that the
platform was designed from the ground up specifically for public companies, as
well as due to the sheer scale of Accesswire’s end-user footprint and the ease
with which public companies can join the Accesswire News Network before almost
immediately using it to disseminate messages to that huge audience in
real-time. Underlying this supremely attractive megaphone functionality is a
powerful analytics engine that exposes information like actual social engagement
metrics of a given release, as well as the subsequent/relevant audience
targeting solutions, via a highly intuitive dashboard. Putting the power into
users’ hands, allowing them to really understand what works (or just how well
whatever they are doing is working), ensures confidence in PR budgets and makes
the platform an easy sell to public companies who are hungry to engage the
investment community.
Because ISDR so intimately understands the regulatory
environment, the announcements that need to go to SEDAR or EDGAR are always
routed. Accesswire is partnered with the top names in business media today,
such as Reuters (NYSE:TRI), The Wall Street Journal (NASDAQ: NWSA) and The New
York Times (NYSE: NYT), as well as Stock Exchanges, local newspapers of record,
The Associated Press and United Press International, and digital data feeders
like Yahoo! Finance (NASDAQ: YHOO) – to name but a few.
Little wonder then that ISDR was recently able to report Q2
revenue growth from its Accesswire press release business of 18 percent
(compared to Q1), which was up a handsome 73 percent year-over-year
(http://dtn.fm/WCSu6). Accompanied by a 74 percent gross margin for the quarter
and an additional $1 million in operational cash flow, the quarterly dividend
increase issued back in July on the strength of continued positive earnings and
cash flow has substantially encouraged ISDR shareholders to remain bullish
about the company’s prospects. Accesswire’s distribution channels line up
superbly with the company’s investor network and investor calendar, as well as
ISDR’s public company outreach platform, providing unparalleled venue reach
that includes the Dow Jones Network and the Factiva system, as well as top
broker-dealers. Needless to say, this is a winning proposition to public
companies, and business has been very good for Issuer Direct.
In fact, revenues from platform and technology solutions
were up 20 percent last quarter when compared to Q1, with both Blueprint and
Classify showing marked traction. Even as the traditional Annual Report Service
(ARS) business flags amid an ongoing shift to digital over hardcopy, and market
commoditization hammers XBRL demand, Issuer Direct has actually prospered.
Intelligent restructuring of channel partner agreements in its ARS game, as
well as receptivity to the company’s innovative cloud-based offerings, have
allowed ISDR to soar where lesser operators may have folded altogether.
Blueprint deserves a closer look here, for instance, due not
only to a recent partnership expansion with the London Stock Exchange Group
that includes the SEC reporting platform’s license to LSEG’s RNS (regulatory
news service), but because the LSEG deal is just the latest example of
end-market resonance for Issuer Direct. LSEG’s RNS wanted a way to automate the
reformatting of their own systemically generated HTML into SEC EDGAR-compliant
documentation, and the readily adaptable Blueprint platform was perfect for the
job – a deal which has crystallized an already tight-knit relationship between
LSEG and ISDR. Issuer Direct’s CEO, Balbirnie, was keen to point out the number
of high profile clients that have already signed on with Blueprint as a
hallmark of the platform’s inherent value. The top dog at LSEG/RNS roundly
affirmed this conclusion, while also pointing to Blueprint’s scalability as
leaving the door open to a host of future applications.
That scalability is a big sell for Blueprint, alongside the
platform’s baseline cost-effectiveness and ease of use, as it allows great
confidence that ISDR can fulfill the role of trusted regulatory platform
provider for years to come (no matter how big or small the client). The ability
to handle essentially any document type via a proprietary compliance editing
platform like Blueprint, which alleviates the historically time-consuming and
cumbersome process of regulatory filing, when combined with the company’s DMS
platform, makes for a super-fast, real-time project creation/editing workflow
that has to be experienced to be believed. The ironclad value of the company’s
DMS platform, engineered to meet and keep up with the ever more stringent
demands of regulatory authorities like the SEC, DTCC and FINRA, is further
enhanced by dynamic shareholder communication features.
Issuer Direct even offers naturally parallel services such
as stock transfer agent and proxy services, as well as full-spectrum document
design, formatting and typesetting – the company even does printing/fulfillment
with real-time tracking. Transfer agent duties come second nature to an outfit
like Issuer Direct, and with the in-house talent to easily handle everything
from electronic stock issuance and management, to document preparation and
review, ISDR is increasingly seen as a one-stop-shop for a variety of such
services.
For more information, visit www.IssuerDirect.com
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