Financial Data and Key Metrics Changes - Revenue in Q1 2025 was $32 million, up 10% sequentially and 44% year over year, reflecting new customer acquisition and strong expansion from the installed customer base [21][43] - Annual recurring revenue (ARR) grew 34% year over year to $106 million at the end of Q1 2025, with 80% of revenue in Q1 being recurring [22][44] - Adjusted EBITDA for Q1 2025 increased to $1.7 million, with an adjusted EBITDA margin of 5% [22][46] Business Line Data and Key Metrics Changes - The company welcomed over 50 new customers in Q1 2025, now serving approximately 950 customers across key end markets [21] - The Evolve Expedite product saw early traction with 12 new customers added shortly after its launch [28] Market Data and Key Metrics Changes - Evolve's technology is deployed in 20 of the 100 largest US school districts, screening over 850,000 students and visitors daily [31] - In healthcare, the installed base reached 500 hospital buildings, with daily visitor screenings nearly doubling year over year [32] Company Strategy and Development Direction - The company aims to leverage its subscription model to drive predictable long-term revenue growth, with 78% of the 2025 revenue plan already contracted at the start of the year [12][74] - A new certified pre-owned program is being introduced to recapture value from returning units, which is expected to positively impact revenue and cash flow [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on 2025 revenue targets, expecting revenue growth of 20% to 25% [40][54] - The company is focused on enhancing operational efficiency and expects to achieve positive full-year adjusted EBITDA in 2025 [54] Other Important Information - The company has resolved an FTC inquiry and completed a restatement that shifted $3.1 million in revenue to future periods [17] - The company ended Q1 2025 with $35 million in cash, down from $52 million at the end of Q4 2024, primarily due to one-time cash disbursements [48] Q&A Session Summary Question: Success with expansions and vertical contributions - Management noted that 50% of new subscriptions in Q1 came from existing customers, indicating strong customer commitment [60][61] Question: Impact of new California law on hospital security - Management acknowledged the legislation as a positive indicator for increased safety focus in healthcare and noted active engagement with customers in California [62][63] Question: Expectations for gross margin with new product rollout - Management indicated that gross margins are expected to remain consistent, with a shift towards more full subscriptions maximizing ARR [64] Question: CapEx expectations for the year - Management estimated CapEx to be in the range of $20 to $25 million to support the subscription business [68] Question: Strategy refinements and potential acquisitions - Management emphasized the focus on driving a strong subscription model and securing more entry lanes for growth [74] Question: Revenue progression expectations for 2025 - Management expects to maintain a consistent revenue growth trajectory, informed by strong subscription bookings [85][88] Question: Purchase versus subscription model mix - Management confirmed a preference for pure subscription models but will continue to offer both options to customers [92][94] Question: Performance of the Evolve Expedite product - Management reported a mix of new and existing customers adopting the Expedite product, indicating strong market interest [95]