Vertiqal Studios Sees Long-Term Growth on Snapchat

Core Viewpoint - Vertiqal Studios anticipates long-term growth driven by its strategic partnerships and a strong audience base, particularly in light of Snapchat's renewed focus on its Discover ecosystem [2][9]. Financial Performance - For the three months ended March 31, 2025, Vertiqal Studios reported revenues of $705,845, a decrease of 16$842,909 in the same period in 2024 [4][7]. - Gross profit for Q1 2025 was $567,186, down from$654,845 in Q1 2024, while total expenses increased to $1,880,599 from$1,250,090 [4]. - The net loss for Q1 2025 was ($1,313,413), compared to a net loss of ($513,047) in Q1 2024 [4]. - EBITDA for the quarter was ($561,547), worsening from ($213,754) in the previous year [4]. Revenue Composition and Trends - The company experienced a significant revenue increase of 101% on Snapchat in March 2025, despite an overall year-over-year revenue decline [7]. - The gross margin improved to 80% in Q1 2025 from 77% in Q1 2024, indicating operational efficiency [7]. Strategic Partnerships and Market Position - Vertiqal Studios has formed a strategic partnership with CrossMedia, enhancing its media planning capabilities [2][8]. - The company has a substantial audience of 52 million across TikTok, Snapchat, and Instagram, with 75% of this audience located in the US, solidifying its market position [2]. Outlook for Fiscal 2025 - Following Snapchat's reversal of its decision to merge Discover and Spotlight, Vertiqal Studios expects renewed momentum in demand and performance on the platform [9]. - The company anticipates that Snapchat revenue will meet or exceed forecasts for the remainder of 2025, driven by increased advertiser confidence [10].