Business
National Research Corporation Announces Third Quarter and Year-to-Date 2020 Results
Net New Sales and Total Contract Value Continue Impressive Growth LINCOLN, Neb., Nov. 03, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC)
About this update from Nrc Health
[{"type":"text","content":"Net New Sales and Total Contract Value Continue Impressive Growth\nLINCOLN, Neb., Nov. 03, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) (the “Company,” “we,” or “our”) today announced results for the third quarter of 2020.\n Third quarter 2020 compared to the third quarter 2019: Record Net New Sales of $11.2 millionTotal Recurring Contract Value increased 10% to $147.5 millionVoice of the Customer platform recurring contract value grew to $115.5 million, a 27% increaseRevenue increased 3% to $33.5 millionOperating Income increased 18% to $12.0 millionNet Income increased 18% to $9.6 million Demand for our Voice of the Customer (VOC) platform offerings remained strong in the third quarter 2020. Net New Sales were a record $11.2 million for the quarter and have increased by 12% year-to-date 2020 compared to 2019, reflecting a successful transition to virtual sales efforts. We believe our offerings are highly differentiated in our clients’ eyes against competitive offerings from firms outside of the healthcare industry and legacy vendors within. This differentiation drove the decision of several more of the nation’s largest and most prestigious healthcare systems to partner with NRC Health in the third quarter 2020. We believe every added client deepens our moat and brings additive value to all current partners through the network effect. Total Recurring Contract Value has increased by 10% at the end of the third quarter 2020 compared to the end of third quarter 2019, a subset of which is our VOC platform. Our VOC platform now comprises $115.5 million of Recurring Contract Value, an increase of 27% year-over-year. We believe the efficiencies inherent in this digital platform have led to long-term margin improvements, a hallmark of our financial performance as demonstrated by the increase in operating income margin in the third quarter 2020 to 36% of revenue compared to 31% in third quarter 2019. Third quarter 2020 revenue was $33.5 million, an increase of 3% over third quarter 2019. Consolidated operating income for the third quarter 2020 was $12.0 million or 36% of revenue, compared to $10.2 million or 31% of revenue for the same period last year. In the third quarter of 2020, we recorded insurance recoveries representing $533,000 in lost revenue. Total operating expenses of $22.0 million for the third quart...