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% from $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].

Core Viewpoint - Vertiqal Studios has reported a significant financial turnaround in 2024, achieving a 95% reduction in net loss, driven by strategic cost-cutting and operational efficiencies [1][2][6]. Financial Performance - The company reported stable revenues of $4.86 million for the year ended December 31, 2024, reflecting a 0.32% increase compared to $4.85 million in 2023 [4][8]. - Gross profit decreased slightly by 1% to $3.37 million from $3.44 million in the previous year [4]. - Total expenses were significantly reduced by 90%, amounting to $5.76 million compared to $56.69 million in 2023 [4]. - The net loss for 2024 was $2.37 million, a substantial decrease from $49.02 million in 2023, marking a 95% improvement [4][6]. - EBITDA loss improved by 47%, with a reported loss of $1.52 million compared to $2.92 million in 2023 [4][8]. Strategic Initiatives - The company has focused on strengthening its financial position through disciplined cost management and operational efficiencies, which are essential for sustainable growth and long-term value creation [6][8]. - Direct media revenue saw a remarkable increase of 48% year over year, indicating a successful shift in revenue strategy [8]. - The gross margin for 2024 was reported at 69%, showcasing operational efficiency and a favorable revenue mix [8]. Future Outlook - Vertiqal Studios anticipates continued growth in fiscal 2025, driven by the expansion of its direct media business and strategic partnerships with major brands [7][9]. - The company is exploring further acquisition opportunities to enhance service offerings and diversify income streams [9][10].