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 [13] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [13] - Services revenue increased to $758,000 from $743,000 in the prior year [14] - Gross profit was $2.6 million, an increase from $2.5 million in the prior year, with a gross profit margin of 66% [14] - Net loss narrowed to $100,000 from a loss of $600,000 in the prior year, with positive adjusted EBITDA of $122,000 compared to negative $193,000 previously [16] 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, generating $2 million, up from $1.9 million last quarter [6] - Average ARR per customer increased by 12% to $28,000 from $25,000 last quarter [7] - Average subscription per customer rose to $33,000 from $30,000 last quarter [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, indicating strong demand for AI capabilities [8] - HawkSearch was ranked number 1 in Gartner's 2025 Critical Capabilities Report, highlighting its competitive position in the market [9] Company Strategy and Development Direction - The company aims for HawkSearch and core products to exceed 70% of overall revenue this year, driving faster, more profitable growth [12] - Continued focus on product innovation, customer success, and delivering shareholder value is emphasized [18] - The company is targeting B2B manufacturing and distribution markets, which are seen as rapidly maturing with technology adoption [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, with expectations for HawkSearch growth to reach 20% this year [51] - The total addressable market remains unchanged, with increased adoption of AI products among existing customers [42] - The company is differentiating itself through analytics and a data lake that enhances AI capabilities for customers [49] Other Important Information - Cash at the end of Q1 2026 was $1.5 million, with total assets of $15.7 million and liabilities of $6.2 million [16][17] - The company has no significant debt or contingent payments remaining from previous transactions [16] 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, up from $30,000 last quarter [23][34] Question: Impact of increasing package prices on customer acquisition - Management stated that the total addressable market has not changed, and customers are now more willing to invest in AI add-ons [42][46] Question: Competitive landscape changes - Management noted that top competitors remain the same, but differentiation is achieved through advanced analytics and AI capabilities [48][49] Question: Future growth expectations for ARR - Management expects continued growth in ARR, supported by a solid pipeline of new customers and opportunities for add-on sales [52][54] Question: Marketing spend effectiveness - Management indicated that marketing dollars are being spent effectively, with plans to increase investment in successful campaigns [61][64] Question: Stability of gross margins - Management expects gross margins to remain stable in the mid-60s range, with subscription margins around 70% and service margins in the low 50s [66][74]

Financial Data and Key Metrics Changes - Total revenue for Q4 Fiscal 2025 was $3.9 million, unchanged from the prior year [16] - Subscription revenue was $3.1 million, up from $3 million in the prior year, accounting for 81% of total revenue [16] - Services revenue decreased to $700,000 from $800,000, representing 19% of total revenue [16] - Gross profit was $2.5 million with a gross profit margin of 66%, while subscription gross margin was 69% [17] - Net loss remained at $400,000, with adjusted EBITDA at minus $169,000 compared to a positive $5,000 in the prior year [17] Business Line Data and Key Metrics Changes - HawkSearch Suite and its AI products contributed 58% of total revenue, amounting to $8.9 million, and over 60% of subscription revenue at $7.4 million [5] - Net revenue retention for HawkSearch was 117%, with a churn rate of less than 4% [8] - Average annual recurring revenue (ARR) per sale increased by 35% from $18,500 to $25,000 [5] - The company sold 83 licenses with a total contract value of $6.9 million, marking an 18% increase over Fiscal 2024 [6] Market Data and Key Metrics Changes - The sales pipeline grew by 65% compared to the beginning of Fiscal 2025, with a shorter sales cycle reduced from 160 days to 92 days [6][15] - The company added 28 new customers, contributing $2 million in total contract value and $700,000 in ARR [10] Company Strategy and Development Direction - The company aims to focus on core products, particularly HawkSearch, which is expected to dominate overall financials moving forward [27] - Marketing budget has been increased to $500,000 per quarter to enhance brand visibility and lead generation [12][45] - Partnerships with Unilog and Salesforce are expected to expand the total addressable market and accelerate sales cycles [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability and potential growth of the customer base, particularly in the B2B segment [33] - The company anticipates a reduction in the decline of legacy products by 2026, leading to stronger cumulative financials [15] - The focus will remain on product innovation, customer success, and delivering shareholder value [19] Other Important Information - The company launched six new AI-powered products in Fiscal 2025, enhancing its competitive position in the market [14] - The total assets as of September 30, 2025, were $15 million, with total liabilities of $5.8 million [18] Q&A Session Summary Question: Clarification on ARR number - The $8.9 million in ARR is specific to HawkSearch, with total cumulative revenue of $15.4 million including $12.4 million in ARR [25] Question: Future sharing of ARR metrics - The company intends to continue sharing ARR growth metrics quarterly as it becomes a significant part of overall financials [27] Question: Changes in contract length for HawkSearch - Average contract length remains consistent at around two to three years, with increased initial investments from customers [30][31] Question: Stability of non-HawkSearch revenue - Management expressed confidence in the stability of the remaining customer base, with a low churn rate [34] Question: Impact of Salesforce AppExchange on revenue - The partnership with Salesforce is expected to start impacting revenue in the upcoming quarters [39] Question: Comfort with sales and marketing spend - The current sales and marketing spend level of $1.1 million per quarter is deemed appropriate for 2026, with a focus on maximizing lead generation [44]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $3.9 million, unchanged from the prior year period [17] - Subscription revenue was $3.1 million, up from $3 million in the prior year, accounting for 81% of total revenue [17] - Gross profit was $2.5 million with a gross profit margin of 66%, while subscription gross margin was 69% [18] - Net loss remained at $400,000, with adjusted EBITDA at minus $169,000 compared to a positive $5,000 in the prior year [18][19] Business Line Data and Key Metrics Changes - HawkSearch Suite and its AI products contributed 58% of total revenue, amounting to $8.9 million, and over 60% of subscription revenue at $7.4 million [5] - Net revenue retention for HawkSearch was 117%, with a churn rate of less than 4% [7][26] - Average annual recurring revenue (ARR) per sale increased by 35% from $18,500 to $25,000 [5] Market Data and Key Metrics Changes - The sales pipeline grew by 65% compared to the beginning of Fiscal 2025, with a reduction in the average sales cycle from 160 days to 92 days [6][16] - 28 new customers were added, contributing $2 million in total contract value and $700,000 in ARR [10] Company Strategy and Development Direction - The company aims to focus on core product growth, particularly HawkSearch, while expecting the decline of legacy products to stabilize in 2026 [6][16] - Marketing budget has been doubled to $500,000 per quarter to enhance brand visibility and customer engagement [12][33] - Partnerships with Unilog and Salesforce are expected to expand the total addressable market and accelerate sales cycles [13][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for HawkSearch, anticipating it to dominate overall financials moving forward [21][23] - The company is optimistic about the impact of new product launches and AI innovations on future sales [15][28] Other Important Information - The company injected $2 million of capital to expand its marketing budget and improve sales efficiency [11] - Total assets were reported at $15 million with total liabilities of $5.8 million as of September 30, 2025 [19] Q&A Session Summary Question: Clarification on ARR number - The $8.9 million in ARR is specific to HawkSearch, with total cumulative revenue of $15.4 million including $12.4 million in ARR [21] Question: Changes in contract length - Average contract length remains consistent at around two to three years, with increased initial investments from customers [24][25] Question: Impact of Salesforce AppExchange - The partnership with Salesforce is expected to start generating revenue in the upcoming quarters, with initial sales already occurring [30] Question: Sales and marketing spend - The sales and marketing spend is set at $1.1 million per quarter, including $500,000 in ad spend, which is expected to continue into 2026 [32][33]