OTC Markets Group reported gross revenues of $28.0 million for the first quarter of 2023, marking an 8% increase from the prior year. However, the operating income and net income fell by 20% and 17%, respectively. The company’s operating profit margin was 25.4%, down from 34.4% for the same period the previous year. The report also noted that operating expenses increased by 23%, primarily due to the integration of EDGAR Online and investments in the business.

Notably, the company achieved robust growth in the Market Data Licensing segment, with revenues up by 26%, largely due to the acquisitions of Blue Sky Data Corp and EDGAR Online. On the other hand, revenues from Corporate Services were down by 2% quarter over quarter. The number of companies using OTC’s services also showed a positive trend, with 593 OTCQX and 1,218 OTCQB companies at the quarter end, and 10 companies graduating to a national securities exchange during the quarter.

In recent news, Heliostar Metals Ltd., a junior mining company, upgraded to the OTCQX Best Market from the Pink Market. This move underscores the importance of the OTCQX Market for companies seeking to provide transparent trading for their U.S. investors.

For OTC Markets Group, the successful integration of EDGAR Online and continued growth in its Market Data Licensing segment indicate strong potential for revenue growth. However, the company will need to manage increased operating expenses and lower operating income. The recent upgrade of Heliostar Metals Ltd. to the OTCQX Market also indicates the attractiveness of the platform for smaller companies, which could drive further growth.