Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $1,900,000, reflecting a 6% annual growth compared to Q1 2024 [6][20] - Gross margin expanded by 14.6 percentage points to 31.7%, driven by increased contributions from the Population Health business unit [7][22] - Net loss for Q1 2025 improved to $472,000, a reduction of over two-thirds compared to a net loss of $1,400,000 in Q1 2024 [13][23] Business Line Data and Key Metrics Changes - Population Health business unit revenue reached $1,200,000, showing significant year-over-year growth [20] - Healthcare Workforce revenue decreased to $655,000 from $1,400,000 in the previous year, indicating a strategic phase-out of less favorable contracts [20][21] - Behavioral and Mental Health business unit is experiencing growth due to increased user adoption of the Serenity app [21] Market Data and Key Metrics Changes - The company is facing delays and cancellations in contracts due to federal government budget cuts affecting state and local agencies [15][33] - The company is actively pursuing new contracts in both public and private sectors to mitigate revenue impacts from federal changes [17][34] Company Strategy and Development Direction - The company is focusing on high-margin, recurring revenue streams, particularly in Population Health and Behavioral and Mental Health [26] - A strategic decision was made to voluntarily delist from NASDAQ to reduce costs and improve focus on core fundamentals [12] - The company is consolidating its business units from five to three core units to streamline operations [19] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current challenges, emphasizing a commitment to operational efficiency and innovation [26] - The company withdrew its previously issued guidance for revenue growth and profitability due to uncertainties in the healthcare industry [24] Other Important Information - Cash on hand as of March 31, 2025, was $2,500,000 [24] - The company is negotiating with healthcare workforce partners to ramp up high-value contracts while allowing less desirable contracts to expire [17] Q&A Session Summary Question: What should we expect from the company now that it's traded on the OTC markets? - The company will maintain transparency and continue to provide timely updates on contract wins and quarterly results [28] Question: Should investors be concerned about the lack of revenue from the Indiana FSSA Neurodiagnostic Institute? - A one-year contract extension valued at $1,500,000 was secured, reflecting continued confidence in the company's services [29] Question: What is the status of the two federal contracts announced in early 2024? - The company is partnered with Kaduchis on a federal contract vehicle, but no task orders have been issued yet [30][32] Question: Have federal level changes affected the business? - Yes, federal changes have led to project delays and potential revenue impacts, but the company remains focused on high-margin revenue growth [33][34]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $169.8 million, down from $194.6 million in the prior year, primarily due to softening in global construction and agriculture end markets as well as North American Class eight truck demand [12] - Adjusted EBITDA for Q1 2025 was $5.8 million, compared to $9.7 million in the prior year, with adjusted EBITDA margins at 3.4%, down 160 basis points from 5% in Q1 2024 [12][13] - Free cash flow from continuing operations improved to $11.2 million compared to negative $6.5 million in the prior year, supported by better working capital management and reduced capital expenditures [14] Business Line Data and Key Metrics Changes - Global Seating segment revenues decreased by 9% to $73.4 million, with adjusted operating income of $2.7 million, a decrease of $100,000 compared to the prior year [16] - Global Electrical segment revenues decreased by 14% to $50.5 million, with adjusted operating income of $200,000, down $1.3 million from the prior year [17] - Trim Systems and Components revenues decreased by 17% to $45.9 million, with adjusted operating income of $1.6 million, a decrease of $3.1 million compared to the prior year [18] Market Data and Key Metrics Changes - The Class eight heavy truck build forecast for 2025 indicates a 23% decline in year-over-year volumes, with a projected 19% increase in truck builds anticipated in 2026 [20] - The construction market is expected to decline by approximately 5% to 15%, while the agriculture market is anticipated to decline in the same range due to higher interest rates and lower commodity prices [21] Company Strategy and Development Direction - The company has shifted to a new segment structure to enhance clarity and focus within each business unit, aiming to better align with customers and end markets [4][5] - Strategic actions taken in 2024 are expected to lower costs and improve operational efficiency, with a focus on reducing freight, labor, and overhead costs [9][10] - The company is actively pursuing new business opportunities while managing working capital and reducing capital expenditures by 50% in 2025 [22][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current macroeconomic challenges and emphasizes the importance of maintaining flexibility and agility in operations to respond to market changes [37][39] - The company expects to generate at least $20 million of free cash flow in 2025, which will be used to pay down debt, with a focus on reducing working capital [25] Other Important Information - The company has decided to discontinue reporting new business wins due to the current macroeconomic environment, believing that annual guidance is a better way to contextualize future results [7][8] - The net leverage ratio at the end of Q1 2025 was five times, with expectations to decline throughout 2025 and 2026 as the company works towards a targeted two times level [14][16] Q&A Session Summary Question: What is the potential for gross margin improvement in a normalized environment? - Management sees potential for gross margin to reach around 15% in a normalized environment, with a focus on self-help initiatives and market recovery [30][31] Question: How does the company view the current downturn in end markets? - Management acknowledges the extended downturn but believes they have adequate plans in place to manage costs and maintain EBITDA and cash flow [36][37] Question: What percentage of COGS is impacted by tariffs? - The largest exposure is related to tariffs from Mexico and Canada, with a smaller percentage from China, primarily affecting the global seating business [51][54] Question: How is the revenue profile for April compared to March? - Revenue for April is in line with expectations set in February and March, with no significant shifts noted [63] Question: What cost-saving measures remain to be implemented in 2025? - Continued focus on operational and material cost reductions, labor productivity, and supply chain optimization are key areas of focus for 2025 [69][70]

Core Viewpoint - CrowdStrike plans to lay off nearly 500 employees, approximately 5% of its global workforce, as part of a strategic initiative to significantly enhance operational efficiency while continuing to hire in key strategic areas [1][2] Group 1: Strategic Plan and Financial Performance - The company announced a strategic plan aimed at advancing operational transformation to significantly improve operational efficiency [1] - CrowdStrike aims to achieve an annual recurring revenue (ARR) target of $10 billion [1] - The financial performance for the first quarter of fiscal year 2026 is expected to align with or exceed the guidance provided in the fourth quarter results announced on March 4 [1] - The company reaffirmed its performance guidance for fiscal year 2026 [1] Group 2: Costs Associated with Layoffs - The estimated costs related to the strategic plan are projected to be between $36 million and $53 million, with approximately $7 million expected to be recognized in the first quarter of fiscal year 2026 [1] - The majority of the remaining costs will be incurred in the second quarter of fiscal year 2026 [1] - These costs primarily include future cash expenditures for severance, employee benefits, and related expenses, estimated between $19 million and $26 million, as well as stock-based non-cash compensation expenses estimated between $10 million and $20 million [1]

Financial Data and Key Metrics Changes - The company reported a net sales increase of 6.2% in Q4 fiscal 2024, reaching $80 million compared to $75.3 million in Q4 fiscal 2023. Excluding the impact of an extra week in the previous year, net sales increased approximately 9% [15] - Adjusted operating margin improved by 100 basis points despite relatively flat sales performance compared to the prior year [13] - Gross profit for Q4 was $40.1 million, representing 50.1% of net sales, up from 45.4% in the same quarter last year, driven by lower promotional activity and reduced product costs [16] Business Line Data and Key Metrics Changes - The wholesale segment saw a significant increase of 26.7%, which offset an 8.1% decline in the direct-to-consumer segment [15] - The direct-to-consumer business was impacted by store closures, remodels, and relocations, leading to inconsistent store sales performance [7][16] Market Data and Key Metrics Changes - The company continues to source over 60% of its cost of goods sold from China, with plans to reduce this exposure by moving about one-third of its sourcing outside of China [8][20] - The company is actively working on mitigation strategies to address the impact of evolving tariff policies on consumer behavior [7][20] Company Strategy and Development Direction - The company is focused on navigating the current dynamic environment while enhancing operational efficiencies and product costs [4][9] - There is an emphasis on expanding the men's business and enhancing relationships with wholesale partners, which are seen as critical for growth [6][7] - The transformation plan has delivered over $10 million in savings, which will now shift to manage tariff mitigation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current challenges due to the strong foundation built over the past year [4][9] - The company will not provide full-year guidance due to increased uncertainty regarding tariffs and consumer behavior [9][21] - For Q1 fiscal 2025, the company expects a sales decline of approximately 5% compared to the prior year, driven by planned store activities and shifts in wholesale shipments [23] Other Important Information - A non-cash goodwill impairment charge of $32 million was recorded due to a change in control of ownership [17] - The company is evaluating strategic price increases to absorb increased costs while maintaining value for consumers [9][33] Q&A Session Summary Question: What is the potential for expanding new product categories and store count? - Management is enthusiastic about expanding categories, particularly accessories, and has plans for new store openings in the U.S. and internationally [30][31] Question: How will the company market to core customers who can absorb price increases? - The focus is on full-price customers, with strategies in place to support this segment amid potential price increases [33] Question: Can the company quantify the revenue shift in wholesale? - The shift in wholesale revenue was not material for Q4, but it has significant implications for Q1 fiscal 2025 [39] Question: Will the tariff issue change product introduction plans? - There will be some SKU reduction, but the company is working to protect key items while adjusting sourcing strategies [41][42] Question: Has the strategy of shifting from airfreight to ship freight changed? - The company is currently using both methods to maintain flexibility in response to evolving tariff situations [44][45]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $45.7 million, down 23% year-over-year and down 2% on a constant-currency basis [30][31] - Adjusted EBITDA was negative $13.7 million for Q4 2024, compared to negative $0.6 million in Q4 2023 [15][39] - Cash burn for the quarter was $30.6 million, compared to $26.8 million in Q4 2023 [16] - The company ended 2024 with a liquidity position of $133.9 million, including $55.4 million in cash and cash equivalents [45] Business Line Data and Key Metrics Changes - Core marketplace business accelerated in Q4 2024, with physical goods orders growing by 18% year-over-year [9] - Marketplace revenue for Q4 was $22.8 million, down 31% year-over-year [32] - Revenue from first-party sales was $22.5 million in Q4, down 14% but up 8% on a constant-currency basis [33] Market Data and Key Metrics Changes - GMV declined 12% in USD but grew 13% year-over-year in constant currency [13] - Average order value for physical goods orders decreased from $45.5 in Q4 2023 to $35.5 in Q4 2024 [14] Company Strategy and Development Direction - The company is focusing on upcountry expansion and product assortment expansion to drive growth [19][21] - Jumia aims to improve operational efficiencies and achieve profitability by enhancing customer and seller experiences [24][27] - The company plans to leverage its logistics network and partnerships to reduce fulfillment costs [20] Management's Comments on Operating Environment and Future Outlook - Management noted macro headwinds affecting performance but expressed confidence in the company's growth trajectory [13][28] - For 2025, the company anticipates physical goods orders to grow between 15% and 20% year-over-year [50] - GMV is projected to be between $795 million and $830 million in 2025, reflecting a year-over-year increase of 10% to 15% [51] Other Important Information - The company streamlined operations by exiting non-strategic markets, consolidating warehouse footprints, and improving logistics capabilities [8][19] - The Net Promoter Score rose to 63 in Q4 2024, indicating improved customer satisfaction [12] Q&A Session Summary Question: What trends are being observed in Q1? - Management noted continued progress on order growth and usage, leading to confidence in the guidance of 15% to 20% growth year-over-year [54] Question: Is there anything preventing the company from increasing selection? - Management indicated that the challenge is more on the supply side than demand, focusing on increasing supply and improving value for money [57] Question: Can you elaborate on the mix between first-party and third-party sales? - Management acknowledged a decline in corporate sales affecting first-party sales and emphasized a pragmatic approach to the mix [62] Question: What is behind the physical order growth? - Growth is driven by country expansion, better assortment, and improved customer experience [66] Question: What efficiencies have been gained from consolidating the warehouse footprint? - Consolidation has led to better control over efficiency, staff productivity, and fulfillment costs [74] Question: What is the current fixed cost base as 2025 begins? - Management indicated that while costs have been reduced, there is potential for another 20% efficiency improvement [78] Question: How does the balance sheet look in terms of inventory strategy? - Management confirmed that working capital was increased to support better supply and vendor relationships, with expectations for moderation in future quarters [90]