IcoreConnect Inc. (ticker: ICCT), a leading provider of software and managed services for the healthcare industry, posted impressive growth in the year ended December 31, 2022, according to their recently published SEC report. The company’s net revenues rose to $7,987,902 in 2022, marking a 60% increase compared to 2021’s figure of $4,956,552. IcoreConnect’s financial performance can primarily be attributed to the expansion of its subscriber base and the integration of acquired assets.
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In 2022, IcoreConnect witnessed considerable growth in its software-as-a-service (SaaS) subscription revenue streams
These revenue streams encompass areas such as electronic prescription software, insurance verifications, medical coding software, encrypted HIPAA-compliant email services, analytics, and managed services software. The company’s decision to focus on providing software and managed services has been paying off, with increased revenue generation stemming from new sales and a higher rate of product uptake.
This upward trend was also boosted by the full-year results of asset acquisitions completed in Q2 and Q3 of 2021, as well as a moderate price hike for existing users. IcoreConnect’s management team leveraged its extensive experience in operating successful IT companies to consolidate and scale its operations.
The company’s cost of sales saw a year-on-year increase of 42% in 2022
Cost of sales reached $2,243,253 as against 2021’s figure of $1,580,390. However, the overall gross margin improved to 72% in comparison to the previous year’s 68%. The improvement in margins is largely due to the cost-efficiency of SaaS operations, as costs related to serving remained flat because of excess capacity in their systems.
However, IcoreConnect’s operating expenses also increased in 2022
Operating expenses primarily increased due to higher labor costs needed to support the growth and maintain customer services from the three asset acquisitions completed in 2021. Legal costs associated with two completed legal actions amounted to $0.7 million. Total operating expenses reached $10,546,755 in 2022, a 77% increase compared to the 2021 figure of $6,663,644.
Debt and interest expenses grew in 2022 due to increased borrowing to fund asset acquisitions and operating expenses. The company also received notice of forgiveness for its Paycheck Protection Plan loan, which included $330,047 in relief funds.
IcoreConnect’s SEC report states that the company intends to raise additional capital through the issuance of debt and/or equity securities to continue funding its operations. While the future financial performance of the company largely relies upon the continued growth of software subscriptions and other SaaS initiatives, IcoreConnect has demonstrated a strong growth trajectory in 2022, positioning it well for the challenges and opportunities ahead.
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