Where Food Comes From, Inc. Q4 FY2024 earnings call

• Fourth quarter total revenue was basically flat at $6.7 million year-over-year. Verification and certification services revenue down slightly, product revenue up 6%, professional services revenue down. Gross profit declined, SG&A expense decreased slightly, net income increased. Net income benefited from increased dividend income and bitcoin fair market value gain. - Full year total revenue increased, verification and certification services up, product and professional services down. Growth in other service offerings like CARE Certified, Upcycled Certified, organic certifications, etc. Upticks in Prop 12-related audits, dairy audits. Benefit from bundling capabilities. SG&A expense increased due to marketing activities and strategic hires for growth. - Stock buybacks: Repurchased 273,057 shares for $3.3 million in 2024, aggregate buyback over 21 quarters totaled 1,191,636 shares.

Fourth quarter: Verification and certification services revenue was $5.4 million (down slightly from $5.5 million); product revenue increased 6% to $922,000 from $871,000; professional services revenue was $360,000 versus $391,000. Gross profit declined 7% to $2.8 million from $3 million. Full year: Total revenue increased 2% to $25.7 million from $25.1 million. Verification and certification services up 6% to $20.6 million from $19.4 million. Product revenue $3.8 million (down 5% from $4 million). Professional services revenue $1.4 million versus $1.7 million. Gross profit for the full year was slightly up to $10.6 million from $10.5 million. Net income for the year was $2.1 million or $0.40 per diluted share versus $2.2 million or $0.39 per diluted share in 2023.

We expect to continue taking advantage of solid cash flows to further reduce our float, while at the same time, investing in new programs and services designed to strengthen our beef business and accelerate the growth of other service offerings.