Sonic Foundry, Inc. (OTC:SOFO)

Sonic Foundry, Inc. (NASDAQ:SOFO)

Momentum in the company’s turnaround has significantly stalled over the last two quarters. Furthermore, 2022 guidance is not impressive. The conviction was stated as a 2, but since the forum we have decided to remove it from our Model Portfolios.

Sonic Foundry Inc (OTC:SOFO) ($3.20; $29.1M market cap), is the global leader in video capture, management and streaming solutions as well as virtual and hybrid events.  The company announced its uplisting to the Nasdaq Capital Markets. 

“Our uplisting signals our solid progress in stabilizing the business as well as our long-term potential to be the leader in this new era of video engagement that will span across all sectors…

…We believe the pandemic is a 10-year accelerant in the way people create and consume video content, and Sonic Foundry is uniquely positioned to build upon our 30-year leadership in providing solutions that empower companies to advance their digital-first profile in scalable and cost-effective ways. Being on the Nasdaq Capital Market expands our audience of investors to improve the liquidity of our stock as we seek to create long-term shareholder value by moving boldly to execute our strategic growth initiatives. Our entire team is incredibly energized by the opportunities before us,”

Please see our full research on SOFO here.

Sonic Foundry Inc (OTC:SOFO) ($3.34; $30.1M market cap), a company that provides enterprise  solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally, announced Q4 2021 results:

• Sales of $8.6 million vs $10.2 million in the prior year
• Loss of $0.05 vs $0.05 in the prior year

The prior year quarter had a $1.3 million impact of a one-time project to migrate a significant on-premises deployment to the Mediasite Cloud.

“I believe that the greatest opportunity in our 30-year history lies just ahead. The pandemic accelerated how content is delivered and consumed, and we have optimized our platform to capitalize on this powerful and permanent shift in how people work and learn. Every day, we work with customers to adopt a new paradigm that makes any event or classroom—whether virtual, hybrid or in person—more engaging, more personalized, and more impactful. We are expanding our cloud capabilities to better support our customers as they adapt to a digital-first world. At the same time, we are moving from primarily a hardware provider to a SaaS service provider, which will ultimately generate more recurring revenue.”

Sonic Foundry Inc (OTC:SOFO) ($4.34; $35.0M market cap), a company that provides enterprise  solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally, announced Q3 2021 results:

• Sales of $8.7 million vs $7.9 million in the prior year
• EPS of $0.02 vs $0.01 in the prior year

“This has been a big quarter for us as we continue to achieve our growth plan,” said Joe Mozden Jr., CEO, Sonic Foundry. “I’m pleased to once again say that our quarter delivered strong results across several key financial metrics and we’ve made some exciting progress including acquiring several new investors with a lead investment by the Roumell Opportunistic Value Fund which is run by James Roumell, a highly acclaimed Chevy Chase, MD money manager. Additionally, we secured a new line of credit with U.S. Bank for $3 million. These new contributions allow us to continue to create substantial growth by investing in new markets and providing new working capital that we can invest in future projects.

While presentation spaces such as classrooms and training rooms will continue to play a key role in our success in the future, we made the strategic decision at the start of the pandemic to focus more on two new large growth opportunities – cloud video services and hybrid events. We’ve made tremendous progress in these areas over the past months, increasing events and cloud services 17 percent and 34 percent respectively. We’re encouraged by the overall growth from both of these areas and we believe they will continue to be contributors to our growth going forward.”

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Sonic Foundry Inc (OTC:SOFO) ($4.20; $33.65M market cap), a company that provides enterprise solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally, announced fiscal Q2 2021 results:

• Sales of $8.7 million vs $8.7 million in the prior year
• EPS of $0.03 vs a net loss of $0.01

“We believe these new areas of focus will continue to grow substantially for us. We're encouraged by the overall growth in both our hosting and events businesses. The hosting business has increased by 42%. We believe the events business will grow based on year-to-date sales activity and growing pipeline. Post-COVID, we anticipate not only the positive momentum from our new businesses but also a renewed energy and growth in the traditional classroom. Classrooms will open again in the near future, and the need for video technologies like Mediasite to deliver anytime, anywhere education is a critical piece of the puzzle for schools.”

Sonic Foundry Inc (OTC:SOFO) ($4.60; $36.6M market cap), a company that provides enterprise solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally, announced Q1 2021 results:

• Sales of $9.2 million vs $8 million in the prior year
• EPS of $0.08 vs a net loss of $0.12

“I’m pleased that our first quarter delivered solid results across several key financial metrics. These results were driven by the informed bold decisions we’ve made to pursue high-demand, high-growth markets and anticipating our client needs in a video-centric world. We continue to maintain positive momentum across several important business segments, including our virtual events platform and Mediasite Video Cloud, two key areas we continue to invest in as we adjust our model to focus on solving new client business issues....

I am even more enthusiastic and confident today than when I joined the team last fall. While we have some challenges ahead, we have a vision and mentality for growth and have the right team in place to drive that growth. We are thinking about our business differently, aligning to our clients’ needs and proudly serving as their trusted partner to help them grow and lead them through the uncertainty,” 

Please see our full research on SOFO here.

Sonic Foundry Inc (OTC:SOFO) ($4.70; $31.9M market cap), is a company that provides enterprise solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally announced Q3 2020 results:

• Sales of $7.9 million vs $10.1 million in the prior year
• EPS of $0.01 vs a loss of $0.03 in the prior year

"The company expects to recognize $4.6 million of the current unearned revenue in the fourth quarter of fiscal 2020. Recurring revenue of $5.6 million was 70 percent of total revenue in the third quarter of 2020, compared to $6.3 million, or 63 percent of total revenue, in the third quarter of 2019.

In this new video-centric world, Sonic Foundry is well positioned to help schools and organizations react quickly to meet their expanding communication needs with Mediasite. I am proud of how the team has innovated to launch additional products and services that are in high demand. We expect that Mediasite Mosaic, our new personal capture app, and our expanded Zoom integration will be integral to hybrid back-to-school plans around the world. Our Mediasite Events team pivoted almost overnight to a complete virtual event offering that grew out of our 15-year history of creating dynamic online experiences – a business segment we expect to grow as the long-reaching effects of the pandemic on in-person conferences continues into next year,”