ID Watchdog Announces Results for First Quarter 2017

DENVER, May 2, 2017

• Employee Benefit revenues increased 41.7%
• Total revenues increased 37.4%
• Gross profit increased 30.6%

ID Watchdog, Inc. (TSX VENTURE: IDW) (OTC: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced its results for the first quarter ended March 31, 2017. All amounts are in U.S. dollars.

First Quarter 2017 Highlights:

• Revenue: Total revenue and employee benefit channel revenue totaled $3,535,300 and $3,162,588 for the first quarter of 2017, increases of 37.4% and 41.7%, respectively, over the first quarter of 2016. 
• Gross Profit: Gross profit increased by 584,084, or 30.6%, from $1,906,856 during the first quarter of 2016 to $2,490,943 during the first quarter of 2017.  The gross margin rates for the first quarter of 2017 and 2016 were 70.5% and 74.1%, respectively.
• Adjusted EBITDA:  For the first quarter of 2017, Adjusted EBITDA decreased by $119,043 to $212,760 as compared with $331,803 for the similar period in 2016. Adjusted EBITDA margins for the first quarter of 2017 and 2016 were 6.0% and 12.9%, respectively.
• Cash Balance: Cash totaled $1,540,681 as of March 31, 2017.

Second Quarter 2017 Guidance

	Actual Results   Three Months Ending June 30, 2016		Guidance ARIVA.DE Börsen-Geflüster Kurse ID WATCHDOG INC. -   0,00% Three Months Ending June 30, 2017		Change vs. 2016
Employee Benefit Revenue	$2,241,374		$3,250,000 to $3,350,000		45% to 50%
Total Revenue	$2,552,390		$3,600,000 to $3,700,000		41% to 45%
Gross Margin	$1,954,695		$2,575,000 to $2,275,000		32% to 37%
Gross Margin %	76.6%		71.5% to 72.3%		-5.1%--4.3%*
Operating Income	$190,859		$85,000 to $210,000		-55% to 10%
Adjusted EBITDA	$476,229		$175,000 to $300,000		-63% to -37%
Adjusted EBITDA %	18.7%		4.9% to 8.1%		-13.8%--10.6%*
* Change in percentage

ID Watchdog CEO, Michael Greene, stated, "We delivered a strong start to 2017 and for the second quarter of 2017, we are anticipating sequential Employee Benefit Channel revenue growth ranging from 2.8% - 5.9% and continued increases in our direct website subscriptions, which should drive sequential total revenue growth of 1.8% - 4.7%."

Mr. Greene, continued, "Our gross margin percentage decreased by 3.6% to 70.4% in the first quarter of 2017 as compared to the similar period in 2016 and we anticipate that our gross margin will improve modestly in the second quarter of 2017 to between 71.5% and 72.3%, as we continue to enhance our service offerings in order to remain competitive in the marketplace.   Also, note that our operating income and Adjusted EBITDA margins generally are at their lowest in the first quarter of each year due to increased costs associated with securing, onboarding and registering the significant number of new customers we typically add each January.  We expect these margins to expand as we move through the year." 

Mr. Greene concluded, "In 2017, we are accelerating enhancements to our service offerings, significantly expanding our sales force and increasing our marketing efforts in order to drive top-line growth and generate long-term value for our shareholders."

ID Watchdog, Inc.
Consolidated Statements of Comprehensive Income
		Three Months Ended March 31,
		2017		2016
Revenue		$      3,535,300		$      2,572,675
Cost of service		1,044,357		665,819
Gross profit		2,490,943		1,906,856
Operating expense:
Benefit broker commission expense		883,736		602,988
General and administrative expense		788,713		596,399
Sales and marketing expense		605,734		375,666
Share-based compensation expense		74,998		27,269
Depreciation and amortization expense		19,709		15,167
		2,372,890		1,617,489
Operating income		118,053		289,367
Other income (expense):
Interest expense, net		(30,986)		(163,025)
Litigation provision		—		(39,808)
Gain on warrant liability		—		317,709
Other		94,935		—
		63,949		144,876
Net income and comprehensive income  applicable to ordinary shares		$        182,002		$        404,243 Werbung Mehr Nachrichten zur ID WATCHDOG INC. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 16.06.24 - wallstreet:online ... Brechen jetzt die Dämme?: Kupfer wankt. Stehen Produzentenaktien vor dem Abverkauf? 16.06.24 - wallstreet:online ... Langfristig erfolgreich : 3 Top-Aktienfonds, älter als 15 Jahre und besser als der MSCI-World-Index 16.06.24 - Société Générale Platin, Silber und Gold in der Marktanalyse