Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $3.9 million, up from $3.8 million in the prior year period [12] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [12] - Gross profit increased to $2.6 million from $2.5 million in the prior year, with a gross profit margin of 66% [13] - Net loss reduced to $100,000 from a loss of $600,000 in the prior year, with positive adjusted EBITDA of $122,000 compared to a negative $193,000 [14] Business Line Data and Key Metrics Changes - Core products accounted for 60% of total revenue, growing 17% to $2.4 million from $2.0 million last quarter [6] - HawkSearch represented 63% of subscription revenue, increasing to $2 million from $1.9 million last quarter [6] - Average annual recurring revenue (ARR) per customer increased by 12% to $28,000 from $25,000 last quarter [7] Market Data and Key Metrics Changes - New customer acquisition continued to grow, with 13 new licenses sold this quarter, totaling $1.2 million in contract value [7] - More than half of new license sales included AI products, indicating strong demand for AI capabilities [7] - HawkSearch was ranked number one in Gartner's 2025 Critical Capabilities Report, highlighting its competitive position in the market [8] Company Strategy and Development Direction - The company aims to increase core products to over 70% of overall revenue this year, driving faster and more profitable growth [11] - Investments in AI and product innovation are expected to enhance customer satisfaction and retention [11] - The focus remains on revenue growth, product innovation, customer success, and delivering shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, with expectations for HawkSearch to achieve a 20% growth rate this year [49] - The total addressable market remains unchanged, with a strong pipeline of new customers and opportunities for add-on growth within existing customers [52] - The competitive landscape has not significantly changed, with the company differentiating itself through advanced analytics and AI capabilities [46] Other Important Information - The company had cash of $1.5 million and total assets of $15.7 million as of December 31, 2025 [14][15] - Operating expenses decreased to $2.8 million from $3 million in the prior year [13] Q&A Session Summary Question: Clarification on ARR figures - The ARR per new customer increased to $28,000, up 12% from the previous quarter, and overall revenue per customer is now $33,000 [21][31] Question: Impact of increasing average package on market reach - The total addressable market remains large, and customers are now more willing to invest in AI add-ons [40][44] Question: Changes in competitive landscape - The same top competitors are present, but the company is differentiating through its analytics and data lake capabilities [46][47] Question: Expectations for future growth rates - The company expects continued growth, aiming for a 20% growth rate for HawkSearch this year [49] Question: Stability of gross margin - The combined gross margin is expected to remain in the mid-60s range, with subscription margins around 70% [64][72]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $3.9 million, up from $3.8 million in the prior year period [12] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [12] - Services revenue increased to $758,000 from $743,000 in the prior year [12] - Gross profit rose to $2.6 million from $2.5 million, with a gross profit margin of 66% [13] - Net loss improved to $100,000 from a loss of $600,000 in the prior year [14] - Adjusted EBITDA was positive at $122,000, compared to a negative $193,000 in the prior year [14] Business Line Data and Key Metrics Changes - Core products accounted for 60% of total revenue, growing 17% to $2.4 million from $2.0 million [6] - HawkSearch represented 63% of subscription revenue, increasing to $2 million from $1.9 million [6] - Average ARR per customer increased by 12% to $28,000 from $25,000 [7] - Average subscription per customer rose to $33,000 from $30,000 [7] Market Data and Key Metrics Changes - New customer acquisition continued to grow, with 13 new licenses sold, totaling $1.2 million in contract value [7] - More than half of new license sales included AI products [7] - HawkSearch was ranked number 1 in Gartner's 2025 Critical Capabilities Report, indicating strong market positioning [8] Company Strategy and Development Direction - The company aims to increase HawkSearch and core products to over 70% of overall revenue this year [11] - Focus on product innovation, customer success, and delivering shareholder value [16] - Investments in AI and a clean product architecture enable rapid product releases [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and success in 2026, with expectations for revenue growth and product innovation [16] - The total addressable market remains unchanged, with a strong focus on B2B manufacturing and distribution [40][52] - Anticipated growth rates for HawkSearch are expected to reach 20% this year [50] Other Important Information - Cash at the end of Q1 2026 was $1.5 million, with total assets of $15.7 million [14][15] - The company has no significant debt or contingent payments remaining from previous transactions [14] Q&A Session Summary Question: Clarification on ARR figures - Management confirmed that the average ARR per new customer is $28,000, up from $25,000, and overall revenue per customer is now $33,000 [21][31] Question: Impact of increasing average package on market reach - Management stated that the total addressable market has not changed, and customers are now more willing to adopt AI add-ons [40][44] Question: Competitive landscape changes - Management noted that top competitors remain the same, but differentiation is achieved through analytics and a data lake for customer data [46][47] Question: Expectations for future growth rates - Management expects continued growth in ARR and HawkSearch, with a solid pipeline of new customers [50][52] Question: Marketing spend effectiveness - Management indicated that marketing dollars are being spent effectively, with plans to invest more in successful campaigns [58][61] Question: Stability of gross margin - Management expects gross margins to remain stable in the mid-60s range, with subscription margins around 70% [64][72]