Revenue Performance - Revenue decreased 2% to $5.5 million compared to $5.6 million in Q1 2024[5] - Total revenues for the three months ended March 31, 2025, were $5,476,000, a decrease of 1.7% compared to $5,572,000 for the same period in 2024[33] Profitability Metrics - Adjusted EBITDA increased to $564,000, representing 10% of revenue, compared to $61,000, or 1% of revenue, in Q1 2024[6] - Operating loss decreased to $677,000 in Q1 2025 from $862,000 in Q1 2024[6] - The net income for the three months ended March 31, 2025, was $5,387,000, compared to a net loss of $139,000 for the same period in 2024[33] Cash Flow - Cash flow from operations increased to $809,000 from $77,000 in Q1 2024[5] - Adjusted free cash flow was $1,029,000 for Q1 2025 compared to $(126,000) for Q1 2024[18] - The company reported a net cash provided by operating activities of continuing operations of $809,000 for the three months ended March 31, 2025[35] Customer Metrics - Subscription customers increased by 9% year-over-year, reaching 955 from 874 in Q1 2024[3] - Average Annual Recurring Revenue (ARR) per subscription customer rose to $11,139, up from $9,300 as of March 31, 2024[13] - The company aims to have 80% of its revenue come from subscription customers by the end of 2025[26] Gross Margin - Gross margin improved to 78% of revenue, up from 75% in Q1 2024[6] - Gross profit for the same period was $4,273,000, reflecting a gross margin of 77.9%[33] Business Transactions - The company sold its Compliance business for $12.5 million on February 28, 2025[5] - The sale of the Compliance business generated $12,000,000 in proceeds, positioning the company for focused growth as a standalone Communications platform[35] Balance Sheet - Total current assets as of March 31, 2025, were $10,137,000, slightly up from $10,026,000 as of December 31, 2024[29] - Total liabilities decreased to $16,388,000 as of March 31, 2025, from $25,412,000 as of December 31, 2024[31] Future Outlook - The company expects faster growth in the upcoming quarters following the strategic sale of its Compliance business[26] - The weighted average number of common shares outstanding was 3,842,000 for the three months ended March 31, 2025[33]
Issuer Direct (ISDR) - 2025 Q1 - Quarterly Results