Park City Group, Inc. (NASDAQ:PCYG) Q3 2023 Earnings Conference Call May 15, 2023 4:15 PM ET

Company Participants

Jeff Stanlis - FNK Investor Relations

John Merrill - Chief Financial Officer

Randy Fields - Chairman & Chief Executive Officer

Conference Call Participants

Tom Forte - D.A. Davidson

Operator

Greetings and welcome to the Park City Group Fiscal Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Stanlis with FNK IR. Mr. Stanlis, you may begin.

Jeff Stanlis

Thank you, operator. Good afternoon, everyone. Thank you for joining us today for Park City Group's Fiscal third quarter earnings call. Hosting the call today are Randy Fields, Park City Group's Chairman and CEO; and John Merrill, Park City Group's CFO.

Before we begin, I would like to remind everyone that this call could contain forward-looking statements about Park City Group within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based -- are statements that are not subject to historical facts. Such forward-looking statements are based on current beliefs and expectations. Park City Group remarks are subject to risks and uncertainties which actual results may differ materially. Such risks are discussed fully in the company's filings with the Securities and Exchange Commission. The information set forth herein should be considered in light of such risks. Park City Group does not assume any obligation to update information contained in this conference call.

Shortly after the market closed today, the company issued a press release overviewing the financial results that we will discuss on today's call. Investors can visit the Investor Relations section of the company's website at parkcitygroup.com to access this press release.

With all that said, I would now like to turn the call over to John Merrill. John, the call is yours.

John Merrill

Thanks, Jeff and good afternoon, everyone. We continue to deliver strong results in the quarter, wherein both total and recurring revenue, growing net income and growing EPS even faster. We generated significant cash flow, returning capital to shareholders and, once again, strengthening our balance sheet even more. We are achieving this performance despite necessary and strategic de-emphasis on certain high-touch noncore revenue, creating a modest headwind for revenues in the short term. We are achieving this despite investments in traceability, investments in expanding the depth of our sales force and automation, with only minimal revenue contribution at this point. Simply put, our core business, our compliance and supply chain businesses are an efficient, profitable and well-run machine. The proof is in the numbers.