Financial Data and Key Metrics Changes - The company achieved record revenue for the thirty-seventh consecutive quarter, with Q1 2025 revenue at $9.7 million, reflecting a 20% year-over-year growth [5][12] - Annual recurring revenue (ARR) increased to $37.1 million, a $500,000 increase from Q4 2024 [12] - Adjusted EBITDA for Q1 2025 was $1.9 million, a $1 million improvement year-over-year [19] - The net loss for Q1 2025 was $1.5 million, compared to a loss of $800,000 in the same period last year [18] Business Line Data and Key Metrics Changes - The partner and marketplace channel grew 17% year-over-year, representing 57% of revenue and around 58% of ARR [14] - The enterprise channel grew 26% year-over-year, contributing 43% of revenue and around 42% of ARR [15] - Customer count increased to approximately 119,000 from 112,000 year-over-year, although there was a sequential decrease due to contract renegotiation [15] Market Data and Key Metrics Changes - The company is experiencing strong deal progression in both the U.S. and European markets, with a notable increase in leads and deal closures expected [7][24] - The European Accessibility Act deadline is approaching, creating significant demand for the company's services [7] Company Strategy and Development Direction - The company is focused on expanding its product features and enhancing its sales engine, particularly in Europe [6][9] - There is an emphasis on building AI capabilities into the company's offerings to improve margins and operational efficiency [29] - The company plans to continue investing in sales and marketing while exploring stock buybacks and potential acquisitions [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in revenue and operating leverage improvements in the second half of the year [5][6] - The company expects quarterly revenues and ARR growth to accelerate in Q2 2025, with guidance for Q2 revenue between $9.85 million and $10 million [10] Other Important Information - The company refinanced its existing debt for a $20 million facility, reducing net interest expense from 14% to approximately 7.5% [19] - Adjusted free cash flow is expected to approach $3 million in Q4 2025, representing over 40% year-over-year growth [20] Q&A Session Summary Question: Insights on the pipeline in the U.S. and Europe - Management reported strong deal progression in all stages in both regions, with direct sales momentum increasing in the U.S. [24] Question: Financial flexibility and investment strategy - The company plans to balance investments in sales and marketing with expected ROI, while also considering stock buybacks and acquisitions [27] Question: Implementation of AI in new products - AI is being integrated into various workflows, with internal tests showing improvements in solving common accessibility issues [29] Question: Details on European market opportunities - The company is actively winning deals in Europe and plans to expand its sales force to capture the growing demand [31] Question: Impact of U.S. legal rulings on business - Management indicated that while there are various rulings, the overall demand remains consistent with historical levels [34] Question: Sales and marketing spending details - The increase in sales and marketing expenses is attributed to additional hires and expansion efforts in both the U.S. and EU [40] Question: Confidence in ARR acceleration - Management expressed confidence in ARR growth due to strong performance in direct enterprise sales and reseller channels [49] Question: Near-term margin impact from platform migration - A temporary increase in costs is expected in Q2 due to customer migration to the upgraded platform, with margins expected to normalize in the second half [50]