Intellinetics(US:INLX)2025-03-24 22:40Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $4.3 million compared to $4.2 million in the same period last year [19] - SaaS revenue, including hosting, rose by 11.8% to $1.5 million from $1.3 million year-over-year, driven by early successes in payables automation [20] - Consolidated gross margin increased by 88 basis points to 65.8% for Q4 2024, compared to 64.9% last year [22] - Full year total revenue for 2024 increased by 6.7% to $18 million from $16.9 million in 2023 [25] - Full year net loss was $546,000 compared to net income of $519,000 last year [27] Business Line Data and Key Metrics Changes - Professional services revenue was flat at $2.2 million for Q4 2024, while year-to-date, it delivered 8.9% growth, reaching a record $10 million compared to $9.2 million last year [21][25] - SaaS revenue for the full year increased by 10.8%, contributing to improved margins [25] Market Data and Key Metrics Changes - The K-12 market is expanding quickly, with two additional Iowa school districts engaged after a pilot program [12] - The company is also targeting local governments and municipalities as potential new verticals for its solutions [46] Company Strategy and Development Direction - The company is transitioning to a predominantly SaaS-driven model, focusing on digital transformation solutions [7] - Investments are being made in sales and marketing to accelerate growth, with a focus on hiring more sales representatives and enhancing marketing efforts [17] - The launch of a complementary purchase order solution is expected to expand the customer base and increase transaction volume [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the payables automation solution as a key growth driver, highlighting high customer acceptance and significant ROI [8][9] - The company anticipates revenue growth for fiscal 2025, although EBITDA is expected to be reduced by more than half due to increased investments [31][32] Other Important Information - Cash flow from operating activities was $3.9 million, allowing the company to prepay $1.6 million of its debt [30] - The company has a strong balance sheet with total assets of $18.6 million and cash of $2.5 million as of December 31, 2024 [29] Q&A Session Summary Question: How many customers are live and what is the expectation for the second half of the year? - Management reported that two customers went live recently, with five more in the implementation process, indicating smooth transitions [36][38] Question: Is there any hesitation from customers regarding budget deployment? - Management noted that while some customers are cautious due to market conditions, the strong ROI from their solutions positions them well for sales [48][49] Question: Will SaaS line margins maintain above 85%? - Management indicated that while margins may fluctuate, they expect to maintain a mid-80s range due to the nature of customer engagements [50][52]