DJCO · Daily Journal Corporation

Summary

Operating performance improved sharply on revenue growth and margin expansion, but a large unrealized loss on the equity portfolio drove a net loss.

Key takeaways

• Revenue increased 25.0% to $22.7M, driven by growth in Journal Technologies consulting fees and e-filing revenue.
• Operating income tripled to $3.0M, with operating margin expanding to 13.2% on revenue scale.
• Net loss of -$34.6M versus prior-year income of $44.7M, primarily due to unrealized losses on marketable securities.
• Free cash flow improved to $2.1M, supported by operating cash flow of $2.2M and minimal capex of $14K.
• Operating expenses increased due to higher personnel costs, contractor utilization, and hosting costs billed to customers.