Financial Data and Key Metrics Changes - The company's first quarter revenues increased by 5% year-over-year, reaching a record of $4,894,000 compared to $4,680,000 in the same period of 2024 [22] - SaaS revenue grew by 6% to $4,868,000, representing over 99% of total revenue for the quarter [22] - Adjusted EBITDA improved by $100,000, resulting in a small loss of $17,000 for the quarter, indicating a near breakeven performance [22] - Gross profit margin was 89.7%, slightly down from 90.7% in the previous year, while adjusted gross margin improved to 91.8% from 91.2% [23][24] - Operating expenses decreased by 1% to $4,740,000, with a notable reduction in selling, general, and administrative expenses [25] Business Line Data and Key Metrics Changes - The company has diversified its client base beyond retail credit cards, now seeing significant growth in retail banking, title insurance, auto, email account security, and background checks [6][7] - Revenue from title insurance increased by approximately 350% in Q1, indicating strong market penetration [32] - Retail banking revenue grew by 50% year-over-year, showcasing the effectiveness of the company's diversification strategy [33] Market Data and Key Metrics Changes - The company reported a 26% decline in revenue from retail, reflecting challenges in the retail sector [36] - Despite the retail decline, the overall revenue growth was driven by gains in other sectors, demonstrating the success of the diversification strategy [39] Company Strategy and Development Direction - The company is focused on a diversification strategy, moving away from a retail-first emphasis to capture opportunities in various sectors [20] - The migration from Azure to AWS is expected to yield cloud savings and improve client onboarding processes [6][15] - The appointment of a new senior vice president of sales is anticipated to drive revenue growth and enhance client relationships [10][90] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is down nearly 8% from the previous year, impacting retail purchases [20] - The company remains optimistic about future growth, driven by strategic initiatives and a revitalized sales team [90] - Management emphasized the importance of adapting to market changes and economic conditions as they evolve [21] Other Important Information - The company had cash and cash equivalents of $5,100,000 at the end of Q1, exceeding consensus estimates [26] - The company has a $2,000,000 revolving credit line with Citibank, which was not utilized during 2025 [28] Q&A Session Summary Question: What is the company's penetration in the title insurance market? - The company estimates it has exposure to about 40% of the title insurance market, with revenue from title insurance up 350% in Q1 [31][32] Question: What are the next largest verticals after credit cards? - The next largest verticals are banking and auto, with retail banking revenue up 50% year-over-year [33] Question: What percentage of revenue does retail represent now? - Retail revenue was down 26% year-over-year, indicating a declining percentage of total revenue [36] Question: What drove the increase in deferred revenue and SaaS RPOs? - The increase was largely due to moving customers to a pricing model that encourages upfront payments [45] Question: Any updates on the large social media customer and regional bank? - The social media customer is progressing well, while the regional bank is in procurement discussions [48][49] Question: How is the company addressing the shipping and logistics market? - The company is addressing fraud in shipping and logistics, with significant losses reported per truck due to organized crime [52][53] Question: What is the status of the reseller strategy? - The company sees plenty of room for improvement in its reseller strategy and is actively engaging with potential partners [55] Question: What is the current state of accounts receivable? - The increase in accounts receivable is primarily due to changes in the pricing model, moving towards prepayment [58]