Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $1.7 million, representing an 11% increase sequentially and a 23% increase year-over-year [17] - For fiscal 2024, revenues totaled $5.8 million, a 3% increase compared to fiscal year 2023 [21] - Operating expenses in Q4 2024 were $3.2 million, flat sequentially and down $0.3 million year-over-year [24] - The net loss from operating activities for Q4 2024 was $2 million, improving by $0.5 million or 20% year-over-year [28] - The net loss for the full year 2024 was $7.8 million, a $6.1 million or 44% improvement from the prior year [29] Business Line Data and Key Metrics Changes - Consulting revenue in Q4 totaled $1.3 million, an increase of $0.3 million sequentially and $0.4 million year-over-year [21] - Shield revenue in Q4 was $0.4 million, a decrease of $0.1 million both sequentially and year-over-year [22] - For the full year, Shield revenue was $1.6 million, a decrease of $0.1 million or 5% from 2023 [22] Market Data and Key Metrics Changes - The company signed a total of 20 new Shield logos during the year, with near-zero churn among Shield customers [7] - The company has seen an expansion in its pipeline driven by increasing demand for its products in the U.S. and the Asia Pacific region [7] Company Strategy and Development Direction - The company aims to focus on sustainable growth and profitability, having eliminated the need for further capital raises in 2025 unless compelling opportunities arise [8][9] - The management is revamping its channel program and increasing digital marketing efforts to enhance visibility and engagement [12][13] - The company is investing in R&D to improve its product portfolio, including the launch of the Intrusion Shield Command Hub and the Intrusion Shield Sentinel [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial position and growth opportunities, emphasizing the rising demand for cybersecurity solutions [33] - The management noted that while the sales cycle may be elongated due to changes in federal administration, the overall environment remains steady for existing contracts [56][58] - Concerns about cybersecurity threats are increasing, which is expected to drive demand for the company's solutions [60][62] Other Important Information - The company is virtually debt-free and has sufficient cash to fund operations through fiscal year 2025 and beyond [8] - The gross profit margin for Q4 2024 was 75%, down from 79% in Q4 2023, primarily due to product mix [23] Q&A Session Summary Question: What would be compelling for potential capital raises? - Management indicated that compelling opportunities would include acquisitions or arrangements that significantly enhance the product portfolio [38][40] Question: What are the new promotional programs being considered? - Management plans to increase visibility through social media and influencer engagement, which will not require significant spending [44] Question: What is the size of the typical Shield contract? - The size of Shield contracts varies widely, ranging from $5,000 to a couple of hundred thousand dollars, with a focus on larger deals going forward [45][50] Question: What is the sales cycle for cybersecurity software, especially on the federal side? - The sales cycle is described as fluid, with a steady environment for existing contracts but potentially elongated cycles for new opportunities [56][58] Question: How is the $15 million in cash being utilized? - Management confirmed that the cash is being managed wisely, with plans to invest in sales personnel and other resources [67][70] Question: How many of the 20 Shield clients have increased their revenue obligations? - Approximately one-third of the new Shield clients have increased their commitments, while another third may have expansion potential [72][73] Question: What are the geographic areas of opportunity? - The company is focusing on the U.S. and Asia-Pacific regions, particularly the Philippines, with an emphasis on larger deals [78]
Intrusion(INTZ) - 2024 Q4 - Earnings Call Transcript