Financial Data and Key Metrics Changes - Q1 fiscal 2026 revenue reached a record $76.7 million, a 20.7% increase from $63.5 million in the prior year [25][16] - Subscription revenue grew by 44% year over year, with organic subscription revenue increasing by 24% [17][27] - Recurring revenue, including subscription and annual maintenance, reached $48.6 million, 28% higher than the prior year, representing 63.4% of total revenue [17][27] - Adjusted EBITDA for Q1 was $12.5 million, slightly higher than $12.1 million in the previous year [30] Business Line Data and Key Metrics Changes - Subscription software sales were up 79% year over year, marking the fourth consecutive record sales quarter for subscription sales [26][17] - Professional services revenue increased by 16% year over year, reaching a record $18.1 million [27][16] - Foodservice Management (FSM) vertical saw a significant turnaround, achieving the best sales quarter in two and a half years [6][9] Market Data and Key Metrics Changes - International sales were the second highest on record, indicating strong momentum in the international market [8][9] - The casino gaming sales vertical had its best Q1 period on record, 15% higher than the previous best [8][9] - The company added 24 new customers in Q1, with an average of six products purchased per customer [11][15] Company Strategy and Development Direction - The company is focused on expanding its integrated ecosystem of hospitality software solutions, which is seen as a competitive advantage [12][44] - There is a strong emphasis on AI integration within product offerings to enhance customer experience and operational efficiency [13][80] - The company plans to maintain a disciplined approach to M&A, focusing on opportunities that complement its product set or expand market share [90][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the annual revenue guidance of $308 million to $312 million for fiscal 2026 [21][32] - The company anticipates continued growth in subscription revenue, raising its guidance from 25% to 27% for the fiscal year [19][32] - Management noted that operational challenges from the previous fiscal year have been largely resolved, leading to improved sales visibility [72][26] Other Important Information - The company remains debt-free after paying off its credit revolver [31] - The user conference in Q1 was a significant cost driver, impacting sales and marketing expenses [47][30] Q&A Session Summary Question: Sales capacity and productivity trends - Management indicated that sales capacity has increased by 45% year over year, with a focus on hotel and resort verticals [36][38] Question: International market momentum - Management noted that the product ecosystem is strong, and the focus is on installing new projects to create reference customers [42][46] Question: Cost impact of the user conference - The user conference significantly impacted sales and marketing expenses, accounting for most of the increase in that line item [47][50] Question: Sales organization improvements - Management confirmed that the sales structure is in a good place, with ongoing investments in marketing to enhance presence [56][57] Question: Subscription revenue visibility - Management expressed strong visibility into subscription revenue backlog and ongoing sales momentum [85][86] Question: M&A strategy - Management remains patient and conservative regarding M&A, focusing on opportunities that complement existing products or expand market share [90][92]

Financial Data and Key Metrics Changes - In 2024, the company reported revenues of $60.9 million, a decrease of 56% compared to $137.1 million in 2023, primarily due to the shutdown of the Affordable Connectivity Program (ACP) federal funding [19][20] - Gross loss was $14.3 million in 2024, compared to a gross profit of $35.6 million in 2023, significantly impacted by the end of ACP funding [21][24] - The net loss for 2024 was $45.7 million, translating to a loss per share of $2.39, adversely affected by the cessation of ACP [24] Business Line Data and Key Metrics Changes - The platform service revenue grew to $17.4 million in 2024 from $11.3 million in 2023, driven by a new sales director [20] - The top-up platform experienced over 300% revenue growth from Q1 to Q4 in 2024, indicating strong activation readiness [14] Market Data and Key Metrics Changes - The company has built a retail distribution network of nearly 9,000 convenience community stores nationwide, enhancing its market presence [8] - The company expects to ship 250,000 to 300,000 SIMs per month moving forward, reflecting strong demand [17][38] Company Strategy and Development Direction - The company aims to transition subscribers to either the non-subsidized MVNO business model (LinkUp Mobile) or into another subsidized program (Lifeline) [21][24] - A multiyear agreement with AT&T was announced, providing customers with access to the largest wireless network, which is expected to drive growth [16] - The company is focusing on a diversified revenue model, emphasizing the importance of not relying on a single revenue stream [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $200 million in revenue over the next twelve months, with expectations of exiting 2025 cash flow positive [18] - The management noted that economic conditions could lead consumers to seek value, which may benefit the company's offerings [70][72] Other Important Information - SG&A expenses increased by 57% year-over-year, primarily due to additional non-cash stock compensation for management [22] - The company is prioritizing cash allocation to finance the transition of subscribers and establish the Linco Mobile brand [26] Q&A Session Summary Question: Inquiry about SIM card orders and delivery - Management confirmed that SIM card activation was historically dependent on physical SIM cards, but now eSIM capabilities have been added to bypass physical cards [32] Question: Clarification on projected revenue of $200 million - The projected revenue of over $200 million is for the next twelve months starting from April 1, 2025 [39][43] Question: Economics and margin profile of SIM cards - The blended average margin for LinkUp Mobile is expected to be between $8 to $15 per subscriber, with various margins for different plans [50] Question: Composition of revenue target for the next twelve months - Over 50% of the projected revenue will come from the wireless segment, primarily from LinkUp Mobile and Lifeline [55] Question: Economic outlook for the working class - Management noted that economic tightness often leads consumers to seek value, which could positively impact the company's business [70][72] Question: Strategy for converting ACP customers - Approximately one-third of the 280,000 ACP customers have been converted to Lifeline, with efforts ongoing to transition the remaining customers [80][86]