What do IVDA's earnings trends reveal about its stability?

Iveda Solutions (IVDA) exhibits volatile earnings trends, which can be inferred from the following analysis: 1. **Revenue Growth**: Iveda has shown significant revenue growth, with a year-over-year increase of 174.78% in the third quarter of 2024, reaching $2.4 million. This is a substantial improvement from the previous year, indicating a strong market response to its products and services. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |IVDA|IVDA.O|Iveda Solutions|2023 Q4|-51.56849761493593|1026172|186| |IVDA|IVDA.O|Iveda Solutions|2024 Q1|-84.27482037617156|346766|186| |IVDA|IVDA.O|Iveda Solutions|2024 Q2|-35.861018234635736|1534055|186| |IVDA|IVDA.O|Iveda Solutions|2024 Q3|174.7785765191427|2398163|186| 2. **Earnings Performance**: Despite the revenue growth, Iveda has not yet achieved profitability, as evidenced by a net loss of $555,000 for the third quarter of 2024. The company's loss per share improved from $0.41 to $0.26 over the same period, suggesting a reduction in losses but not yet a turnaround to profitability. 3. **Interest Coverage**: Iveda's interest coverage ratio is negative, with an EBIT of -$2.24 million and interest expenses of $5911. This indicates that the company is not covering its interest payments and is deeply in debt, which is a red flag for stability. |code|Ticker|Name|Date|Debt-to-Equity Ratio|market_code| |---|---|---|---|---|---| |IVDA|IVDA.O|Iveda Solutions|2023 Q4|0.060106277009574376|186| |IVDA|IVDA.O|Iveda Solutions|2024 Q1|0.18422031597343766|186| |IVDA|IVDA.O|Iveda Solutions|2024 Q2|0.19851662925740812|186| |IVDA|IVDA.O|Iveda Solutions|2024 Q3|0.1499520089788136|186| 4. **Debt Levels**: The company's debt-to-equity ratio is 0.15%, which is relatively low and suggests a manageable level of debt. However, the negative interest coverage ratio and the net loss indicate that the company's debt is not being adequately serviced. 5. **Stock Performance**: Iveda's stock has experienced volatility, with a decrease of 36% from the second quarter of 2023 to the second quarter of 2024 in terms of revenue. Despite this, the stock has shown a 3.7% increase from the previous week, indicating some positive sentiment among investors. 6. **Financial Ratios**: The company's cost of revenue for the quarter was $1.99 million, representing 83% of revenue. This indicates a high operational cost, which could be a concern for stability if not managed properly. In conclusion, while Iveda has shown strong revenue growth, the company's negative interest coverage and net losses raise questions about its ability to service debt and achieve profitability. The company's stock performance and financial ratios suggest that Iveda faces challenges in maintaining stability, and investors should monitor its financial performance closely.