Financial Data and Key Metrics Changes - Revenue for the quarter was $42,400,000, reflecting a subscriber growth of 3.3% across the global customer base [3] - Adjusted EBITDA increased 17% year over year to $12,700,000, representing an adjusted EBITDA margin of 30.2% [4] - Total revenue was $42,200,000, down slightly from $43,000,000 in the prior year period due to the expiration of a customer contract [13] - Adjusted gross profit was $33,400,000 or 79% of total revenue, benefiting from cost efficiencies [14] - Net loss was $3,800,000 or a negative $0.37 per share, primarily due to $5,600,000 in non-cash foreign exchange losses [15] - Cash and cash equivalents were $29,100,000 as of 03/31/2025, with free cash flow at negative $3,000,000 [16] Business Line Data and Key Metrics Changes - Quarterly recurring revenue was 93.1% of total revenue, indicating a stable cloud business model [13] - Cloud subscriber growth was 3.3%, driven by demand for the personal cloud platform [13] Market Data and Key Metrics Changes - The company is seeing accelerated adoption at AT&T through streamlined digital onboarding, increasing cloud awareness and elevating take rates [8] - Positive retail sales momentum for Anshin Data Box at SoftBank resulted in subscriber additions ahead of expectations [9] - Verizon's cloud offer transition to a premium My Plan PERC has led to continued growth in cloud PERC adoption [9] Company Strategy and Development Direction - The strategic transformation to a leading global cloud solutions provider has resulted in a more predictable and stable business model [3] - The company is focused on enhancing its personal cloud platform and pursuing growth opportunities, supported by a new $200,000,000 term loan [6] - The company is optimistic about new customer prospects and aims for double-digit revenue growth in the future [11] Management Comments on Operating Environment and Future Outlook - Management reiterated annual guidance metrics despite challenging macroeconomic conditions, including tariffs and global trade uncertainties [4] - The company is closely monitoring industry headwinds, particularly tariffs that could impact device costs and upgrade cycles [12] - Management expressed confidence in the sales pipeline, which is stronger than the previous quarter [11] Other Important Information - The company completed a refinancing of its debt, strengthening its capital structure and extending debt maturity to 2029 [6] - The company is committed to cost control, having cut overall operational expenses by 11.5% year over year [6] Q&A Session Summary Question: Cost structure and further reductions - Management believes the current cost structure is largely where it wants it to be, with major reductions made at the end of 2023 and 2024 [20] Question: New customer prospects - Opportunities for new customers are global, with active conversations in the U.S., Asia Pacific, Europe, and Africa [22] Question: Expected free cash flow - Free cash flow is expected to be between $11,000,000 and $16,000,000 for the year, with a consistent performance anticipated [26] Question: Growth comparison between AT&T and SoftBank - Both AT&T and SoftBank are growing at a healthy pace, contributing significantly to the first quarter's growth [27] Question: Modeling gross margins - Adjusted gross margins are expected to remain between 78% and 80% throughout the year [28]