CHICAGO: PR software and services company Cision recorded $159.7 million in third-quarter revenue, a 5.9% year-over-year increase.
In its Q3 earnings statement for the period ending September 30, Cision’s Americas revenue totaled $112.7 million, a 1.7% drop over the same period last year. EMEA revenues saw a 31.5% Y-O-Y increase to $40.3 million, while APAC revenues increased by 22% Y-O-Y to $6.7 million. It did not disclose organic change in revenue.
CEO Kevin Akeroyd called Q3 a "slight underperformance."
"While we’re disappointed in our performance in this quarter, we’re confident our organic growth thesis remains intact," he said on the third-quarter earnings call.
Cision was affected by "lower-than-anticipated transaction revenue and the lingering effects of some of Cision’s integration activities, which impacted cross-sell activity and the timing of unbilled subscription contracts," Akeroyd explained. He also cited "weakness relative to forecasts in the volume of PRNewswire-related transactional products, particularly for the multimedia professional services."
Cision adjusted its yearly revenue projection, downgrading it to a range of $627-631 million. In its Q2 statement, Cision anticipated annual revenue of $636-640 million.
Operating income for Q3 increased $21 million to $13.9 million, compared to a loss of $7.1 million in the 12 months prior. The company also reported a net loss of $46.4 million, compared to $39.5 million in Q3 last year.
Cision’s average number of subscription customers was about 39,300 for the quarter, 3.9% up on the same period last year, with an average annualized revenue per customer of $9,940.
Akeroyd said the company was focused on integrating its services and improving its products while reaching long-term strategic objectives.
Last quarter Cision recorded 1.8% organic revenue growth and $157.1 million in total revenue. It was its first quarter as a public company since completing a reverse merger with blank check company Capitol Acquisition Corp III on June 30.
Cision has rolled out several products since going public, most recently Cision Impact, which helps users measure earned media’s effect on company revenue. The product uses ad tech data, programmatic, and link-less tracking measurement.
After private equity firm GTCR bought and combined Cision with Vocus in 2014, the newly formed PR services provider went on a buying streak, increasing its scope worldwide. Cision made eight acquisitions since 2014, including PR Newswire and Gorkana.
GTCR still retains majority ownership of the business.
This story was updated on November 9 with additional information.