Information Services Group Q3 revenue edges past estimates on APAC growth
III•Information Services Group’s Q3 revenue rose 4.4% year over year to $65.10 million, slightly exceeding estimates, while adjusted EPS of $0.10 met expectations. The company expects Q4 revenue of $64 million to $65 million and adjusted EBITDA of $9 million to $10 million.
1. Quarterly results
Q3 revenue increased 4.4% year over year to $65.10 million, compared with analyst estimates of $64.96 million. Adjusted EPS was $0.10, in line with estimates; adjusted net income of $5 million and adjusted EBITDA of $9.995 million beat estimates of $4.84 million and $9.56 million, respectively.
2. Growth drivers and outlook
The company said revenue growth was driven by a 47% increase in Asia Pacific. AI-related revenue surpassed $30 million for the first time, and recurring revenue rose 7%. For Q4, it expects revenue of $64 million to $65 million and adjusted EBITDA of $9 million to $10 million, while monitoring foreign exchange, inflation and macroeconomic conditions for potential impacts.
