Financial Data and Key Metrics Changes - The company reported second quarter revenue of $8,800,000, a slight decrease from $8,900,000 in the previous year, attributed to a different mix of customers, particularly the growth in the AI segment [6][18] - Net profit for the quarter was $300,000, compared to a net loss of $400,000 in the same period last year [21] - Adjusted EBITDA was $1,000,000, down from $3,400,000 in the previous year [21] - Non-IFRS gross margin decreased to 63% from 78% year-over-year [19] Business Line Data and Key Metrics Changes - The company is experiencing a shift in customer base, with significant growth in the AI segment, which is replacing customers from other segments [18] - The net retention rate (NRR) was reported at 0.98, reflecting the transition in customer mix [18] Market Data and Key Metrics Changes - The company is seeing increased demand from major AI players and e-commerce companies, leading to larger deal sizes [8] - A new large-scale AI data project is expected to contribute approximately $3,000,000 in revenue per quarter, although initial profitability margins will be low [19][23] Company Strategy and Development Direction - The company is focused on investing in infrastructure and expanding its IP proxy network to capture long-term value from major AI-driven customers [18][15] - The strategy includes sacrificing short-term profitability for long-term revenue growth and higher profits [15] - The company aims to position itself as a central player in the evolving AI landscape by enhancing its product offerings and capabilities [12][14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic and unpredictable nature of the AI market, urging investors to evaluate performance over multiple quarters rather than on a quarterly basis [13] - The company is optimistic about the long-term opportunities presented by the increasing value of data and the demand for data collection solutions [10][12] - The guidance for 2025 anticipates revenue of $12,800,000, representing a 78% year-over-year increase [23] Other Important Information - The company's cash and liquid investments stood at approximately $25,000,000, providing a solid foundation for strategic investments [22] - The company is actively recruiting talent to support its R&D efforts and meet growing customer demands [42] Q&A Session Summary Question: Clarification on the large customer ramp in Q3 - Management explained that lower margins are due to the new product's infrastructure costs and the scale of the project, which is currently more expensive [28][29] Question: What is the product and how is it different? - The product involves a significant amount of bandwidth and data volume, requiring advanced technology infrastructure [38] Question: Broader customer base usage trends - Management noted a significant increase in demand from AI and data intelligence customers, with a strong pipeline of new logos [41] Question: Customer lifetime value and stability - Management indicated that the current customer base is expected to provide significant growth, with a focus on long-term retention and value [50] Question: Expected contribution from the new project - Management expressed confidence in the projected $3,000,000 revenue for Q3, while noting the unpredictability of future demand [59]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $8.8 million, a slight decrease from $8.9 million in the same period last year, attributed to a shift in customer mix towards the AI segment [16][19] - Non-IFRS gross margin for 2025 was 63%, down from 78% in 2024, reflecting the impact of strategic investments and lower margins from new projects [17] - Non-IFRS net profit was $300,000 for 2025, compared to a net loss of $400,000 in 2024 [19] - Adjusted EBITDA for 2025 was $1 million, down from $3.4 million in 2024 [19] Business Line Data and Key Metrics Changes - The company is experiencing significant growth in the AI segment, which is replacing customers from other segments, leading to a net retention rate (NRR) of 0.98 [16] - The company has launched new projects with major AI and e-commerce platforms, indicating a shift towards larger deal sizes and more significant revenue potential [7][8] Market Data and Key Metrics Changes - The demand for data collection services is increasing, driven by the need for training data for AI models, positioning the company favorably within the evolving market landscape [6][9] - The company is focusing on expanding its customer base, which now includes major tech giants and emerging startups, indicating a broadening market reach [7] Company Strategy and Development Direction - The company is strategically reinvesting earnings into scaling operations, expanding infrastructure, and broadening its IP proxy network to capture long-term value from major AI-driven customers [16][13] - The focus is on building a robust talent pool and developing a cooperative field of data collection products designed for the AI era, aiming to cross-sell to existing customers [11][13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic and unpredictable nature of the AI market, urging investors to evaluate the company's performance over multiple quarters rather than on a quarter-by-quarter basis [12] - The company anticipates revenue for 2025 to range from $12.8 million, representing a 78% year-over-year increase, with adjusted EBITDA expected to be around $1.1 million [22] Other Important Information - The company has a strong balance sheet with cash and liquid investments of approximately $25 million, allowing for strategic investments while maintaining a focus on sustainable value creation [14][21] - The company is currently experiencing a transition phase, with operating expenses increasing to $5.4 million due to higher employee-related costs, particularly in R&D [18] Q&A Session Summary Question: Clarification on the large customer ramp in Q3 - Management explained that lower margins are due to the new product's infrastructure costs, which are currently high due to the scale of the project [27][28] Question: Infrastructure costs and margin recovery - Management indicated that significant volume increases would be necessary to recover margins, and improvements in cost structure are expected as the project scales [31][32] Question: Broader customer base usage trends - Management noted a significant increase in demand from AI and data-driven customers, with a strong pipeline of new logos expected [36][38] Question: Customer lifetime value and stability - Management expressed optimism that the new AI-driven customer base could lead to higher customer lifetime value and stability over time [42][47] Question: Contribution of the large customer to Q2 results - Management confirmed that the large customer has been ramping up and is already contributing a respectable amount to revenues [51] Question: Visibility into projected revenues - Management stated that there is a level of confidence in the projected $3 million revenue for Q3, with ongoing demand expected [56][57]