Paltalk(PALT) - 2023 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2023 decreased by 4% to $2.7 million compared to $2.8 million in Q4 2022[7] - Subscription revenue for Q4 2023 decreased by 5% to $2.6 million, while advertising revenue increased by 40% to $0.1 million[7] - For the year ended December 31, 2023, total revenue remained relatively unchanged at $11.0 million[7] - Total revenue for 2023 was $10,979,844, a slight decrease from $10,989,545 in 2022[31] - Subscription revenue for 2023 was $10,646,700, compared to $10,662,691 in 2022, indicating a marginal decline[31] Net Loss and Financial Improvement - Net loss for Q4 2023 improved by 43% to $0.3 million compared to a net loss of $0.5 million in Q4 2022[7] - Net loss for the year ended December 31, 2023 improved by 68.7% to $1.1 million compared to a net loss of $3.4 million in 2022[16] - The net loss for 2023 was $1,067,335, significantly improved from a net loss of $3,412,250 in 2022[31] - The company reported a basic net loss per share of $0.12 for 2023, an improvement from $0.35 in 2022[31] Cost Management - Total costs and expenses decreased to $13,050,087 in 2023 from $14,648,355 in 2022, reflecting a reduction of approximately 10.9%[31] - Operating expenses as a percentage of revenue declined to 118% in Q4 2023 from 129% in Q4 2022[8] - Adjusted EBITDA loss for the year ended December 31, 2023 improved by 61.7% to $1.0 million compared to a loss of $2.6 million in 2022[16] - Adjusted EBITDA is used internally to assess operational performance, but it has limitations and should not be considered in isolation from GAAP results[25] - The company continues to focus on managing cash flow and reducing operational costs to improve financial performance[26] Cash and Assets - Cash balance as of December 31, 2023 was $13.6 million with no long-term debt[7] - Cash and cash equivalents at the end of 2023 were $13,568,049, down from $14,739,933 at the end of 2022[33] - Total assets decreased to $23,887,268 in 2023 from $25,431,608 in 2022, a decline of approximately 6.4%[29] - Total liabilities decreased to $3,752,581 in 2023 from $4,457,366 in 2022, a reduction of about 15.8%[29] Strategic Opportunities - The company is exploring strategic opportunities, including potential mergers or acquisitions[7] - The trial against Cisco is expected to begin in April 2024 regarding patent infringement[9]