Summary of TEN Holdings (XHLD) Conference Call Company Overview - Company Name: TEN Holdings Incorporated - Ticker Symbol: XHLD - Founded: 2011, originally as Ten Events - Location: Langhorne, Pennsylvania - Industry: Event management and virtual broadcasting services - Global Reach: Collaborates with a Japanese company, vCube, which has a significant presence in the APAC region [6][9][12] Core Business Model - Service Offering: Provides technology-based solutions for various types of events, including in-person, virtual, and hybrid events [6][18][19] - Target Market: Fortune 500 and Fortune 1,000 companies [6][18] - Event Types: - In-Person Events: Traditional conferences and trade shows [18] - Virtual Events: Fully online events with live broadcasting capabilities [18] - Hybrid Events: Combination of in-person and virtual attendance [19] Financial Performance - Recent IPO: Successfully went public on Nasdaq approximately 90 days prior to the conference [5] - Revenue: The virtual company generated $3.5 million in revenue last year but incurred a loss of about $2 million [52] - Gross Margins: Virtual events have gross margins around 80-82%, while physical events vary based on equipment usage [50][51] Strategic Growth Plans - Expansion Strategy: Plans to grow both organically and inorganically, including potential mergers and acquisitions of complementary event-based companies [39][46] - Technology Integration: Incorporating AI capabilities to enhance event preparation and presentation quality [35][36] - New Product Launch: Introduction of a platform as a service product called TenPro, aimed at providing clients with technology to run their own events [37] Market Positioning - Competitive Advantage: Emphasizes high production quality and a full-service model that includes all aspects of event management [30][32] - Client Base: Works with various industries, with a notable presence in the pharmaceutical sector due to geographical proximity [28][29] Key Partnerships - vCube: The Japanese company that acquired Ten Events in 2021, holding a significant stake in TEN Holdings [9][12] - Potential Collaborations: Interest in exploring partnerships with other event-based companies, particularly those with established client bases and no debt [46][48] Additional Insights - Market Resilience: The company views its diverse service offerings as a hedge against market fluctuations, as it can adapt to changes in demand for physical, virtual, or hybrid events [33] - Operational Costs: Acknowledges the high costs associated with being a public company, which are expected to normalize as the company grows [53] Conclusion - Future Outlook: TEN Holdings is positioned for growth with a focus on enhancing its technology offerings and expanding its market presence through strategic partnerships and acquisitions [54][55]
TEN Holdings (XHLD) Conference Transcript