Revenue Growth - Cloud Telecommunications service revenue increased by 7% or 2,181to31,849 for the year ended December 31, 2024, compared to 29,668fortheyearendedDecember31,2023[225].−Softwaresolutionsrevenueincreasedby305,327 to 23,374fortheyearendedDecember31,2024,comparedto18,047 for the year ended December 31, 2023[229]. - Total revenue for the year ended December 31, 2024, was 60,838,representinga1453,199 in 2023[234]. - The increase in total revenue was attributed to an increase in software solutions revenue, service revenue, and product revenue[234]. - Total revenue for 2024 increased to 60,838,000,up14.553,199,000 in 2023[334]. - Service revenue rose to 31,849,000,a7.429,668,000 in 2023[334]. - Software solutions revenue grew by 29.7% to 23,374,000,comparedto18,047,000 in 2023[334]. Income and Earnings - Income before income tax for the year ended December 31, 2024, was 1,889,asignificantincreaseof2,153 or 816% from a loss of 264in2023[235].−NetincomefortheyearendedDecember31,2024,was1,677, compared to a net loss of 362in2023[231].−BasicearningspercommonsharefortheyearendedDecember31,2024,was0.06, compared to a loss of 0.01in2023[231].−U.S.GAAPnetincomeforQ42024was507,000, compared to a net income of 61,000inQ42023,representingasignificantincrease[244].−Non−GAAPnetincomeforQ42024reached1,971,000, up from 1,590,000inQ42023,indicatingagrowthofapproximately241,677,000, a significant turnaround from a net loss of 362,000in2023[334].OperatingExpenses−Operatingexpensesincreasedby4,126, primarily due to higher commission expenses and contract labor costs[235]. - Operating expenses for 2024 totaled 59,014,000,upfrom54,888,000 in 2023, representing an increase of 7.7%[334]. - Selling and marketing expenses rose by 13% to 11,564,000in2024comparedto10,251,000 in 2023[281]. - General and administrative expenses decreased by 8% to 8,556,000in2024from9,275,000 in 2023[283]. - Research and development expenses decreased by 33% from 1,172millionin2023to788 million in 2024, primarily due to resource allocation to the Software Solutions segment[284]. Cash Flow and Liquidity - The company had cash and cash equivalents of 18,193millionasofDecember31,2024,comparedto10,347 million in 2023, indicating improved liquidity[299]. - Net cash provided by operating activities for the year ended December 31, 2024, was 6,284million,anincreaseof803,499 million in 2023[300]. - Net cash used in investing activities for the year ended December 31, 2024, was (27)million,adecreaseof1013,700 million in 2023, primarily due to purchases of property and equipment[303]. - Net cash provided by financing activities for the year ended December 31, 2024, was 1,595million,adecreaseof1693,901 million in 2023, mainly due to cash received from the exercise of stock options of 2,370million[305].PerformanceObligationsandFutureRevenue−RemainingPerformanceObligations(RPOs)increasedby2410,559,000, to 55,369,000asofDecember31,2024[277].−RemainingPerformanceObligations(RPOs)roseby5819,122 million in 2023 to 30,262millionin2024,indicatingstrongfuturerevenuepotential[290].−Theestimatedfuturerevenueexpectedtoberecognizedrelatedtounsatisfiedperformanceobligationstotals85,631,000[407]. Tax and Valuation - The company recorded an income tax provision of (212)fortheyearendedDecember31,2024,comparedto(98) in 2023[236]. - The company has recorded a valuation allowance of 5,417,000fordeferredtaxassetsasofDecember31,2024,duetocumulativepretaxlossesoverthepastthreeyears[260].−Avaluationallowanceof5,417 million was recorded against the gross deferred tax asset balance as of December 31, 2024, compared to 4,782millionin2023[380].SegmentPerformance−OperatingincomefortheCloudTelecommunicationsServicessegmentwas254,000 in 2024, a recovery from a loss of 1,483,000in2023[270].−TheincomebeforeincometaxfortheSoftwareSolutionssegmentimprovedfromalossof140 million in 2023 to a profit of $1,476 million in 2024[287]. - The company has two operating segments: Cloud Telecommunications and Software Solutions, indicating a focus on diversified service offerings[343]. Customer and Market Insights - The company generates 94% of its total revenue from customers within the United States and 6% from international customers[382]. - No customer accounted for 10% or more of total revenue for the years ended December 31, 2024, and 2023[382]. Accounting and Financial Reporting - The company utilizes Non-GAAP financial measures such as Adjusted EBITDA to assess operating performance[239]. - The company recognizes revenue upon transfer of control of services or products, reflecting expected consideration[366]. - The company accounts for business combinations using the acquisition method, with goodwill recorded when the purchase price exceeds the fair value of net identifiable assets[358].
