Financial Data and Key Metrics Changes - The company reported revenues of $23.2 million for the quarter, representing a 6% year-over-year increase [21] - Non-GAAP net income was $800,000, compared to a loss of $900,000 in the first quarter of the previous year [23] - Positive operating cash flow of $1.7 million was reported, with cash and short-term investments totaling $60.7 million at the end of the quarter [23] Business Line Data and Key Metrics Changes - Revenue from the CCaaS segment was $5.1 million, up 49% year-over-year, comprising 22% of total revenue [21] - CCaaS's annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [7][21] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [22] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in the first quarter, driven by the launch of their mobile service and existing fixed wireless access customers [11][32] - The company is experiencing strong traction in partnerships with major telecom operators, including Vodafone and Verizon, which are expected to drive future growth [11][19] Company Strategy and Development Direction - The company is focused on a "security first" strategy, aiming to enhance growth and profitability through its Security as a Service solutions [6][18] - There is a strong emphasis on expanding partnerships and converting a robust pipeline of opportunities into new agreements [9][19] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity offerings [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitable growth in 2025, with expectations for CCaaS revenue and ARR to increase by around 50% or more year-over-year [19] - The company is confident in its ability to capitalize on the growing demand for cybersecurity solutions, particularly in the consumer and SMB segments [18] - Management acknowledged the competitive nature of the market but highlighted the company's strong position and innovative offerings [41] Other Important Information - The company has made significant progress in expanding its pipeline for both CCaaS and smart products, with several multimillion-dollar agreements signed [14][52] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a strong pipeline of opportunities [14][52] Q&A Session Summary Question: Did Verizon Business Mobile Internet Security contribute to Q1 CCaaS ARR results? - Management indicated that the official launch occurred in mid-April, resulting in minimal contribution for Q1, with expectations for significant growth in Q2 [27][28] Question: What was the driver for the significant CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly related to Vodafone and other previous announcements [29] Question: Is there a probability that CCaaS ARR grows less than 50%? - Management stated that while they are comfortable with the 50% estimate, there are uncertainties due to reliance on service providers' marketing efforts [30][31] Question: Is there potential for cross-selling CCaaS solutions to smart business customers? - Management confirmed that there are synergies and potential for cross-selling between smart products and CCaaS solutions [37] Question: Are there large deals in the pipeline for the smart product line? - Management confirmed the presence of several 8-figure deals in the pipeline, driven by both existing and new projects [50][52] Question: How is the partnership with Vodafone progressing? - Management noted that some revenues have already been recognized from the Vodafone agreements, with expectations for continued growth [56][57]