Arcturus Therapeutics (ARCT) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Today's call is being recorded. I would now like to turn the call over to Nadeus Saffarzadeh, Vice President, Head of Investor Relations, Public Relations and Marketing. Please go ahead. Speaker1 Thank you, operator. Good afternoon, and welcome to Arctera Therapeutics Quarterly Financial Update and Pipeline Progress Call. Today's call will be led by Joe Payne, our President and CEO, and Andy Sousin, our CFO. Doctor. Patri B ...

Mineralys Therapeutics (MLYS) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to the Minauralis First Quarter twenty twenty five Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded on Monday, 05/12/2025. I would now like to turn ...

Stereotaxis (STXS) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Good afternoon. Thank you for joining us for Stereotaxis First Quarter twenty twenty five Earnings Conference Call. Certain statements during the conference call and question and answer period to follow may relate to future events, expectations and as such constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and ...

Financial Data and Key Metrics Changes - Q1 2025 revenues increased by 11% year over year to $21.9 million, with adjusted EBITDA improving to $1.5 million, a nearly $2 million increase year over year [3][10] - Gross margin decreased from 62% in Q1 2024 to 60.9% in Q1 2025, primarily due to product and channel partner mix [9][10] - The company reported a net loss of $2.2 million or $0.12 per share for Q1 2025, compared to a net loss of $6.9 million or $0.38 per share in Q1 2024 [10] - Operating cash flow was $3.9 million, with a cash balance of $16.6 million at the end of Q1 2025 [11] Business Line Data and Key Metrics Changes - Contracted revenue increased by over 25% year over year, exceeding $70 million as of the end of Q1 2025 [11] - Average revenue per top 20 pharmaceutical manufacturer is approximately $3 million, representing 63% of business in Q1 2025 [12] - Net revenue retention rate remains strong at 114%, with revenue per FTE increasing to $710,000 from $641,000 in Q1 2024 [12] Market Data and Key Metrics Changes - The company is experiencing early momentum in transitioning to a subscription-based model, with over 5% of projected annual revenue already converted to subscription contracts for 2025 [4][5] - The digital pharma marketing landscape is undergoing significant shifts, with the company positioned to reshape engagement between pharmaceutical companies, patients, and prescribers [5][6] Company Strategy and Development Direction - The company aims to address critical commercialization challenges in the pharma industry, including improving brand visibility and supporting the shift towards specialty medications [8] - Focus on operational excellence and customer relationships is expected to drive significant shareholder value [5][8] - The company is targeting Rule of 40 performance in the coming years, emphasizing disciplined cost management and targeted upselling strategies [4][5] Management's Comments on Operating Environment and Future Outlook - Management has not observed significant headwinds impacting the business despite market noise related to tariffs and price negotiations [4][18] - There is confidence in the ability to fund operating needs and strategic priorities, with a strong working capital position [11] - The company anticipates continued growth and is optimistic about achieving revenue guidance of $101 million to $106 million for the year [4][11] Other Important Information - The company is leveraging one of the largest point of care networks in the country to connect pharmaceutical manufacturers with healthcare providers [5][6] - The transition to subscription-based revenue is expected to smooth revenue recognition over time, enhancing financial stability [21][37] Q&A Session Summary Question: Concerns about market noise and customer hesitation - Management has not seen any pullback from clients and reports that customers are leaning into digital channels more than before [18][19] Question: Impact of subscription-based revenue on revenue recognition and margins - Subscription revenue spreads over a twelve-month period, but it is expected to be accretive due to low cost of sales [21][24] Question: Gross margin outlook - Current gross margin is expected to remain in the low 60% range, with efforts to increase it above that level [25][27] Question: Visibility on revenue and backlog - Committed revenue is north of 80%, indicating strong visibility for the year [31][32] Question: New business and RFP season performance - Both DTC and DAP components of the business are performing well, contributing to increased guidance [57][58] Question: Pipeline growth and win rates - The pipeline continues to grow steadily, with improved conversion ratios, particularly in data and subscription components [70][71] Question: Subscription deal structure - Current subscription deals are one-year evergreen arrangements, with plans to transition to multi-year deals in the future [73] Question: Guidance correlation between revenue and EBITDA - High-end revenue guidance correlates with high-end EBITDA, with a focus on gross margin mix being a key factor [75]

Financial Data and Key Metrics Changes - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments of approximately $27.1 million, down from $44.9 million as of December 31, 2024 [21] - Cash used in operations for Q1 2025 was $18.1 million, compared to $13 million for the same period in 2024 [22] - The net loss for Q1 2025 was $17.6 million, or $0.58 per share, compared to a net loss of $21.8 million, or $0.72 per share, for Q1 2024 [23] Business Line Data and Key Metrics Changes - Research and development expenses for Q1 2025 totaled $12 million, down from $13.3 million in Q1 2024, primarily due to lower study costs [22] - General and administrative expenses for Q1 2025 were $6.3 million, down from $9.7 million in Q1 2024, mainly due to a decrease in stock-based compensation [23] Market Data and Key Metrics Changes - The market opportunity for NDV-one includes approximately 75,000 new bladder cancer cases diagnosed each year in the U.S., with about 50% classified as high-grade disease [8] - Prader Willi syndrome, the first candidate indication for sopranolone, is estimated to affect approximately 350,000 people worldwide, including about 20,000 in the U.S. [16] Company Strategy and Development Direction - The company aims to advance its pipeline with two innovative product candidates, NDV-one for bladder cancer and sopranolone for Prader Willi syndrome and Tourette syndrome, both showing promising Phase two data [5][24] - The strategic plan includes securing U.S. IND clearance for NDV-one and progressing sopranolone into clinical development in early 2026 [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of NDV-one to improve care for bladder cancer patients, citing strong Phase two data and a favorable safety profile [14][32] - The company is optimistic about the upcoming discussions with the FDA regarding the registration study for NDV-one, highlighting the well-known efficacy and safety of the drug combination [30][32] Other Important Information - NDV-one is designed to be administered in less than ten minutes in a doctor's office, contrasting with conventional chemotherapy that requires lengthy preparation and administration [10] - The company has a clean balance sheet and a disciplined approach to its development plan, positioning it well for advancing its clinical milestones [6][25] Q&A Session Summary Question: What gives confidence that the current data from the Phase two study would be sufficient for the FDA to agree for NDV-one to move into registrational study? - Management highlighted the established use of gemcitabine and docetaxel, the safety profile of NDV-one, and the ease of administration as key factors for confidence in FDA discussions [30][32] Question: Could you elaborate on scaling up supply? - Management indicated that scaling up supply involves preparing for commercial quantities and ensuring multiple manufacturers for risk management [44] Question: When should we look forward to sharing the complete response rate for the entire population? - The next data point will be the six-month assessment, expected around June or July, with further updates planned for nine and twelve months [48][49] Question: What would you want the phase three trial to look like in terms of time points, endpoints, and types of patients? - Management discussed potential routes for the phase three trial, including a single-arm chemoablation route or a randomized trial against placebo, depending on FDA feedback [56][58]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $1.6 million, down 21% year-over-year due to decreased sales of smart glasses, particularly the M400, but up 24% sequentially from the prior quarter [22] - Engineering services revenue increased to $300,000, a 47% increase from the prior year's period [22] - The net loss for Q1 2025 was $8.6 million or $0.11 per share, compared to a net loss of $10 million or $0.16 per share for the same period in 2024 [25] Business Line Data and Key Metrics Changes - The smart glasses segment saw a decline in sales, particularly the M400 model, contributing to the overall revenue drop [22] - Engineering services revenue growth indicates increased interest in custom waveguide development capabilities [22] Market Data and Key Metrics Changes - The company is witnessing significant interest and engagement in the OEM business, particularly in enterprise, defense, and consumer segments [6][8] - The enterprise market is characterized by hardware and software solution bundles tailored to specific customer needs, with notable deployments in logistics and manufacturing [19][20] Company Strategy and Development Direction - The company is focused on expanding its presence in the waveguide and AI-driven smart glasses market, leveraging strategic partnerships, particularly with Quanta [8][9] - Vuzix aims to enhance its manufacturing capabilities and product offerings, with several new unannounced products slated for release in 2025 [21][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing developments in the smart glasses market and the company's strategic initiatives, which are expected to lead to significant revenue growth [7][20] - The company anticipates that its cash position and disciplined cost structure will provide sufficient runway to execute its operating plan well into 2026 [27] Other Important Information - The acquisition of a state-of-the-art waveguide R&D facility in California is expected to enhance the company's manufacturing capabilities and support customer needs [10][11] - The company has made progress towards achieving performance milestones required for additional investment tranches from Quanta, which would provide $10 million in growth capital [26] Q&A Session Summary Question: How much of the $9 million M400 inventory do you still have on hand? - The company has a little over $4 million in M400 inventory at the end of the quarter, with provisions against that of close to $5 million [30] Question: Any update on product design partnerships with Quanta? - Management remains enthusiastic about the relationship with Quanta, with multiple programs expected to roll out before the end of the year [32] Question: Expectation for the two remaining tranches with Quanta? - Both tranches are expected by the end of 2025, with the company ahead of schedule on performance milestones [34]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 reached $692,000, a significant increase from negative $125,000 in Q1 2024 [10] - Net loss for Q1 2025 was $459,000 or $0.02 per share, compared to a net loss of $95,000 or $0.15 per share in Q1 2024 [10] - Investment income rose to $79,000 from $62,000 in the prior year [9] Business Line Data and Key Metrics Changes - The core reinsurance business remains focused on fully collateralized policies, with a consistent loss ratio of 0% for Q1 2025 [11] - The acquisition cost ratio remained stable at 10.9 cents for Q1 2025 [12] - The expense ratio improved from 99.8% in Q1 2024 to 95.8% in Q1 2025, attributed to higher net premiums earned [12][13] Market Data and Key Metrics Changes - The investment portfolio increased marginally to $16,000 as of March 31, 2025, from $15,000 at the prior year-end [13] - Cash and cash equivalents rose by 62.8% to $9,600,000 from $5,900,000 as of December 2024, driven by premium deposits and a registered direct offering [14] Company Strategy and Development Direction - The company aims to position itself as a key player in the RWA Web3 sector, diversifying its business through the establishment of Shorts Plus Inc, which focuses on tokenized reinsurance securities [7][8] - Assurance Plus was launched to tokenize securities representing fractionalized interests in reinsurance contracts, with initial offerings achieving returns exceeding 49% [15][16] - The company is exploring strategic alternatives for its Web3 division, including potential sales, mergers, or continuing as a publicly traded entity [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the long-term outlook of the core reinsurance business and the integration of Assurance Plus [8] - The reinsurance market is currently stable, with solid contracts and premiums, particularly in Florida, where regulatory changes are favorable [34] - The company is confident in its ability to navigate market dynamics and capitalize on the growing tokenized asset market, projected to reach $30 trillion by 2034 [20] Other Important Information - The company has initiated a strategic review process and is considering including cryptocurrencies in its corporate treasury reserve strategy [17] - A memorandum of understanding with Plume aims to enhance distribution channels for tokenized resource offerings [18] Q&A Session Summary Question: How is the marketing going on for the tokenized securities? - Marketing efforts are progressing well, with a focus on outreach and building relationships in the RWA space [24][25] Question: What should we look for in terms of information in the next three to six months? - The company is making good progress towards the next token launch, with two sets of tokens targeting different investor preferences [30] Question: How is the overall health of the reinsurance market? - The reinsurance market appears solid, with favorable premiums and underwriting conditions, particularly in Florida [32][34] Question: Can you elaborate on the partnership with Plume? - The partnership with Plume is expected to provide a strong distribution channel due to their evolved ecosystem [40]

Financial Data and Key Metrics Changes - First quarter revenue for 2025 was $224.1 million, representing growth of 0.8% or 2.6% on a currency neutral basis [4][11] - Adjusted EBITDA was $70.1 million for the quarter, down 0.1% or up 2.2% on a currency neutral basis [4][17] - Annual subscription revenue was 57.2% of total revenue in Q1, up from 54.7% in Q1 of last year [12] - Free cash flow was negative $0.3 million, down from $7.1 million in Q1 2024 [19] Business Line Data and Key Metrics Changes - Subscription revenue grew by 5.4% or 7.2% on a currency neutral basis, driven primarily by growth in premium access [12] - Paid downloads were down slightly at $93 million, while video attachment rate rose to 16.7% from 14% in the previous year [13] - Editorial revenue increased by 4% year on year to $82.6 million, while creative revenue decreased by 4.8% year on year to $132.2 million [13][14] Market Data and Key Metrics Changes - Revenue growth of 6.4% in The Americas, while EMEA was down 3% and APAC was down less than 1% [15] - The annual subscription revenue retention rate was 92.7%, up from 90% in the previous year [12] Company Strategy and Development Direction - The company is committed to investing in core assets and evolving offerings to deepen relevance for customers [10] - The annual subscription business represents more than half of total revenue, positioning the company to adapt to macroeconomic uncertainties [9] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue was impacted by early FX pressures, tariff-driven uncertainty, and softness in agency and entertainment sectors [5][11] - The company expects to close the merger with Shutterstock in the second half of 2025, pending regulatory approvals [9][8] - Guidance for full year 2025 anticipates revenue of $931 million to $968 million, reflecting a decrease of 0.9% to an increase of 3.1% year over year [22] Other Important Information - The company completed refinancing of its term loan structure, extending maturity to February 2030 [20] - Total debt outstanding was $1.36 billion, with a net leverage of 4.1 times [20] Q&A Session Summary Question: Can you elaborate on the mix shift to corporate subscriptions and the demand perspective? - Management indicated a continued trend of building internal corporate marketing groups, which drives subscription growth [29] Question: Are the impacts from FX, tariff uncertainty, and LA fires resolved? - Management confirmed that while some impacts persist, they are largely baked into the guidance [32] Question: What is the expected acceleration in currency neutral guidance and data licensing revenue? - Management stated that data licensing revenue remains unchanged, with growth expected from new customers and geographic markets [42] Question: Can you provide an update on litigation regarding copyright protections against AI training? - Management explained ongoing litigation with Stability AI to clarify whether training on copyrighted material requires permission [46] Question: What is the current status of the company's Gen AI offering and client adoption? - Management reported consistent but slow adoption of Gen AI offerings, with revenue still in the single-digit millions [55]

Financial Data and Key Metrics Changes - Revenues for Q1 were $106 million, up 15% year over year and flat sequentially [15] - Non-GAAP EPS for Q1 was $0.31, with a non-GAAP gross margin of 55.9%, up 80 basis points from the prior quarter [15][17] - Cash flow from operations was $26 million, with CapEx at $6 million [18] Business Line Data and Key Metrics Changes - Consumer revenues increased about 20% sequentially, driven by appliances and air conditioning [16] - Industrial revenues decreased 3% sequentially, below expectations due to seasonality [16] - Computer and Communication categories saw declines in mid-teens and mid-20s respectively, largely driven by seasonality [16] Market Data and Key Metrics Changes - All four end markets were up year over year, with consumer and computer categories leading with over 20% growth [6] - Industrial is expected to be the fastest-growing market this year, driven by high power design wins [10] Company Strategy and Development Direction - The company is focusing on high voltage semiconductors to meet demand trends in energy efficiency, artificial intelligence, and electrification [14] - The outlook for the second half of the year is highly dependent on trade policy, but the company expects to benefit from low channel inventories [13][50] Management's Comments on Operating Environment and Future Outlook - Management noted stable bookings and healthy distribution inventory, with no significant changes in business trends since the tariff announcement [5][6] - The company anticipates a seasonally higher second quarter, with revenues expected to be $115 million plus or minus $5 million [12][19] Other Important Information - The company has authorized an additional $50 million for share repurchases, following $23 million spent in Q1 [18][19] - Channel inventory is at 7.9 weeks, considered normal, with consumer inventory below normal levels [51][63] Q&A Session Summary Question: Changes in ramp timing or volume for design wins - Management indicated that the high power delay is unrelated to tariffs and is specific to a particular program, expected to ramp in Q2 [22][24] Question: Trends for margins for the rest of the year - Management expects non-GAAP gross margin to remain steady around 55.5% for the year, with operating margins benefiting from revenue increases in Q3 and Q4 [25] Question: Strength in automotive design wins - Management reported better than anticipated performance in automotive, with expectations of reaching around $100 million in revenue by 2029 [30][31] Question: Consumer segment and tariff-related demand - Management noted that demand in the consumer segment was better than anticipated, with a few million dollars in additional revenue attributed to tariff-related pull-ins [39][41] Question: Impact of tariffs on the second half outlook - Management stated that so far, there have been no unusual impacts from tariffs, and they expect mid-teens growth if tariffs do not affect demand [50] Question: Geographic demand and shifts in manufacturing - Management observed that OEMs in China are pragmatic and continue to use their products, with some manufacturing shifting to India and Vietnam [55][57] Question: Impact of currency fluctuations on gross margins - A 10% change in the yen impacts gross margins by about 100 to 120 basis points, with current benefits from a weaker yen [58][59]

RCI Hospitality (RICK) Q2 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Greetings, and welcome to RCI Hospitality Holdings second quarter twenty twenty five earnings conference call. You can find the company's presentation on RCI's website. Go to the Investor Relations section, and all the links are at the top of the page. Please turn with me to Slide two of our presentation. I'm Mark Moran of Equity Animal, and I'll be hosting our call today. I'm coming to you from Washington, D. C. Eric Lange, Pres ...