Financial Data and Key Metrics Changes - The company achieved gross profit of $2,800,000 in the quarter, an increase of 297% year over year, with gross margin expanding from 64.7% to 82.1% [1][13] - Annual recurring revenue (ARR) reached $14,900,000, representing a 268% annualized growth rate compared to Q4 2024 [2][12] - Adjusted EBITDA was a loss of $1,700,000, compared to a loss of $1,500,000 in Q1 2024 [2][14] - Net loss improved by $4,000,000 compared to Q4 2024, with a net loss of $3,600,000 in Q1 2025 [2][14] - Total revenue for the quarter was $3,400,000, compared to $1,100,000 in the same quarter last year [12] Business Line Data and Key Metrics Changes - The consolidated business delivered revenue of $3,400,000 in Q1 2025, a 213% increase compared to 2024 [5] - The company expanded its customer base to over 90,000, including notable clients such as Cisco, Adobe, and Microsoft [6] Market Data and Key Metrics Changes - The company serves customers in over 90 countries across various industries, including healthcare, financial services, e-commerce, technology, and media [6] Company Strategy and Development Direction - The company is focused on targeting the mid-market and enterprise segments while supporting small business customers, emphasizing a disciplined approach to acquiring high-value customers [7] - The strategy includes building integrations and AI enablement to simplify customer workflows and enhance product offerings [8][9] - The acquisition of Acton Software is projected to increase revenue by $27,000,000 in FY 2025 on a pro forma basis [3] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the acquisition pipeline for 2025, despite macroeconomic uncertainties, indicating a strong supply of attractive companies [21] - There is a positive demand environment, with many customers expanding or renewing contracts for longer terms, indicating strong demand for the company's services [23] - The company aims for cash breakeven operations in 2025, with a focus on improving the balance sheet and advancing towards profitability [16][28] Other Important Information - The company completed a $20,300,000 debt repayment ahead of schedule, improving stockholders' equity by $5,700,000 in Q1 [4] - The company is building a suite of synergistic products that drive value for its customer base, with a scalable and asset-light business model [16] Q&A Session Summary Question: Updates on the expected timeline for the Acton acquisition and acquisition pipeline for 2025 - The company is actively working on the Acton acquisition and sees a strong pipeline of interesting acquisition opportunities for 2025 [20][21] Question: Signs of caution from the customer base regarding marketing or demand generation budgets - The company is experiencing the opposite, with customers renewing on longer contracts and showing strong demand [23] Question: Changes in the sales cycle due to macro and tariff concerns - The sales cycle has not changed significantly, with larger customers moving to longer contract terms, providing guaranteed revenue [24][25] Question: Plans to become breakeven or cash flow positive in Q2 - There are no liquidity concerns, and the company is looking to reach cash flow breakeven in 2025, with significant improvements in net income [26][28] Question: Conditions precedent to close the Acton deal - The main condition is a financing contingency, and updates will be provided as progress is made [29] Question: AI strategy and R&D investments for AI products - The company is focused on integrating AI features into its products, enhancing customer capabilities and efficiency [36][40] Question: Thoughts on share price - Management believes the share price is currently detached from the company's reality, but they are focused on delivering better financial results to improve market perception [52][54][56]

Financial Data and Key Metrics Changes - Gross profit for Q1 2025 was $2,800,000, an increase of 297% year-over-year, with gross margin expanding from 64.7% to 82.1% [1][12] - Annual recurring revenue (ARR) reached $14,900,000, representing a 268% annualized growth rate compared to Q4 2024 [2][12] - Adjusted EBITDA showed a loss of $1,700,000, compared to a loss of $1,500,000 in Q1 2024 [2][13] - Net loss improved by $4,000,000 compared to Q4 2024, totaling $3,600,000 for Q1 2025 [2][13] Business Line Data and Key Metrics Changes - Consolidated revenue from video-related products was $3,400,000 in Q1 2025, a 213% increase compared to Q1 2024 [5][11] - The company launched Create Studio 4.0, enhancing its video creation capabilities [3][5] Market Data and Key Metrics Changes - The customer base expanded to over 90,000, including notable clients such as Cisco, Adobe, and Microsoft [6][12] - The company serves various industries, including healthcare, financial services, e-commerce, technology, and media, with customers in over 90 countries [6] Company Strategy and Development Direction - The company is focused on targeting mid-market and enterprise segments while supporting small business customers, emphasizing a disciplined approach to acquiring high-value customers [7][8] - The strategy includes building integrations and AI enablement to simplify customer workflows and enhance product offerings [8][9] - The acquisition of Acton Software is projected to increase FY 2025 revenue by $27,000,000 on a pro forma basis [3][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the acquisition pipeline for 2025, indicating strong interest from potential acquisition targets despite macroeconomic uncertainties [19][20] - There is a positive demand environment, with many customers opting for longer contract terms, indicating confidence in the company's offerings [21][22] - The company aims for cash breakeven operations in 2025, with a focus on improving financial health and profitability [15][24] Other Important Information - The company completed a $20,300,000 debt repayment ahead of schedule, improving its balance sheet and stockholders' equity by $5,700,000 in Q1 2025 [3][4] - The company is actively pursuing AI integration in its products, with significant investments in R&D to enhance capabilities [35][44] Q&A Session Summary Question: Updates on the expected timeline for the Acton acquisition and acquisition pipeline for 2025 - The company is actively working on the Acton acquisition and sees a strong pipeline of attractive acquisition opportunities for 2025 [17][19] Question: Signs of caution from customers regarding marketing or demand generation budgets - Management noted the opposite trend, with customers expanding or renewing on longer contracts, indicating strong demand [20][21] Question: Changes in the sales cycle due to macro and tariff concerns - There has been no significant change in the sales cycle, with larger customers moving to longer contract terms [22][23] Question: Plans to become breakeven or cash flow positive in Q2 - The company is not facing liquidity concerns and aims for cash flow breakeven in 2025, with Q1 expenses primarily being one-time costs [24][25] Question: Conditions precedent for closing the Acton deal - The main condition is a financing contingency, and updates will be provided as progress is made [27] Question: Consideration of AI acquisitions in EMEA - The company is open to AI acquisitions in EMEA, having already made an acquisition in London [28][29] Question: AI strategy and R&D investments - The company is focused on integrating AI into its products, enhancing user capabilities and efficiency [35][44] Question: Thoughts on share price - Management believes the share price is currently detached from the company's reality and hopes improved financial results will be reflected in the share price [52][56]