Financial Data and Key Metrics Changes - Revenue for Q3 fiscal year 2025 was $324 million, an increase of 7.9% compared to Q3 fiscal year 2024 [4][20] - Non-GAAP diluted earnings per share was $0.47, a 25% increase year over year [5][21] - Non-GAAP operating income was $38 million, up 15% from the prior year [5][21] - Non-GAAP gross margin was 31.7%, down 0.6 percentage points year over year [21][22] Business Segment Data and Key Metrics Changes - Advanced Computing revenue was $132 million, down 9% year over year [21][10] - Integrated Memory revenue was $130 million, up 42% year over year [21][12] - Optimized LED revenue was $62 million, down 4% year over year [21][15] Market Data and Key Metrics Changes - Strong demand for Integrated Memory from computing, networking, and telecommunications customers [12] - Pricing in both DRAM and NAND appears stable, with balanced inventory levels at major customers [13] Company Strategy and Development Direction - The company is focusing on AI infrastructure solutions and has seen early-stage enterprise AI adoption across various sectors [5][6] - Investments in channel partnerships are being made to provide new growth opportunities [8] - The company has transitioned to providing a full-year financial outlook to better reflect the timing of AI infrastructure deployments [9] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full-year revenue growth outlook at 17% and raised the non-GAAP diluted earnings per share outlook to $1.8 [9][29] - The company is navigating macroeconomic uncertainties while investing in long-term growth [32] Other Important Information - The company completed a refinancing that reduced gross leverage and extended debt maturity [17][28] - The re-domiciliation from the Cayman Islands to the United States as a Delaware Corporation was completed [17][18] Q&A Session Summary Question: Details on new customer bookings - The sales cycle for new customers typically ranges from 12 to 18 months, with hardware recognized upfront and software/services recognized over time [35][36] Question: Collaboration with SK Telecom - The relationship with SK Telecom is expected to generate new business opportunities globally, particularly in AI data center infrastructure [39][40] Question: Memory segment growth dynamics - No significant pull forwards were observed in memory demand, and the pipeline remains healthy [45][46] Question: Advanced computing segment outlook - The growth in advanced computing is expected to be more diversified across multiple customers rather than driven by one major deployment [50][51] Question: Incremental deployments in advanced computing - Strength is seen in federal, energy, and biotech sectors, with increased interest in the financial sector [53] Question: CDW agreement details - The company is investing in partnerships to scale customer engagement and expand internationally [59][60] Question: Software and services revenue growth - Services revenue growth was driven by a mix of ratified services and lower hardware revenue recognition in Q3 [61] Question: Strength in memory products - DRAM pricing stability has been observed, and the attach rate of memory products to advanced computing products is being developed [70]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $324 million, an increase of 7.9% compared to Q3 2024 [4][19] - Non-GAAP gross margin was 31.7%, down 0.6 percentage points year over year [21] - Non-GAAP diluted earnings per share was $0.47, a 25% increase year over year [5][20] - Non-GAAP operating income was $38 million, up 15% from the prior year [5][21] Business Segment Data and Key Metrics Changes - Advanced Computing revenue was $132 million, down 9% year over year [20] - Integrated Memory revenue was $130 million, up 42% year over year [20] - Optimized LED revenue was $62 million, down 4% year over year [20] Market Data and Key Metrics Changes - Strong demand observed in sectors such as financial services, energy, defense, education, and neo cloud segments [5][6] - Integrated Memory segment saw a 24% increase in revenue compared to the prior quarter [11] Company Strategy and Development Direction - Company is focusing on transforming into a leader in high-performance enterprise infrastructure solutions [5] - Investment in channel partnerships to create new growth opportunities [7] - Transitioned to providing a full-year financial outlook to better reflect business dynamics [8] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year revenue growth outlook at 17% [8] - Anticipation of growth in AI infrastructure deployments in 2025 and 2026 [5][6] - Management expressed confidence in navigating macroeconomic uncertainties while investing for long-term growth [30] Other Important Information - Completed a refinancing to strengthen the balance sheet and reduce gross leverage [16] - Re-domiciled from the Cayman Islands to the United States as a Delaware Corporation [16] Q&A Session Summary Question: Details on new customer bookings - New customer bookings typically take 12 to 18 months to finalize, with hardware recognized upfront and software/services recognized over time [32][34] Question: Collaboration with SK Telecom - Positive progress with SK Telecom and SK Hynix, focusing on AI data center infrastructure solutions globally [36][38] Question: Memory segment growth dynamics - No significant pull forwards observed; healthy pipeline for Q4 [42][44] Question: Advanced computing segment strength - Growth in Q4 expected from a diversified customer base rather than a single large deployment [46][48] Question: Incremental deployments in advanced computing - Strength seen in federal, energy, and biotech sectors, with increased interest from the financial sector [51] Question: CDW agreement details - Early success in partnerships with CDW and Dell, focusing on scaling customer reach [57][58] Question: Services revenue growth - Services revenue growth driven by a mix of ratified services and lower hardware deals in Q3 [60] Question: Memory product strength - DRAM pricing stable; memory gross margins slightly impacted by higher DRAM percentage [68]

Financial Data and Key Metrics Changes - Net revenues for the first quarter were $7.1 million, down from $10 million in the prior year [6] - Average active brand partners decreased to 7,700 from 13,400 year-over-year [6] - Loss before income taxes improved to a negative $1.4 million from a negative $1.7 million [6] - Net loss decreased to $1.1 million compared to a loss of $1.3 million last year [6] - Loss per share improved to $0.13 from $0.15 on a fully diluted basis [6] - Net inventories decreased by $2.7 million from $44.7 million to $42 million [7] Business Line Data and Key Metrics Changes - The decline in sales was primarily driven by reduced brand partner levels in the paper pie division [4] - Customer sales events were implemented to promote paper pie sales and generate cash [4] Market Data and Key Metrics Changes - The company faced a challenging sales environment due to high inflation and reduced disposable income among families with small children [4] - The direct sales industry, particularly in the product sector, has experienced difficulties in recruiting new consultants [4] Company Strategy and Development Direction - The company is focusing on strategic changes to support brand partners and has launched new incentive programs [7] - A successful partnership with Ticket to Dream has allowed the company to distribute thousands of books to foster children [9] - The company is planning a phased approach to purchasing new titles and replenishing best sellers to energize the sales force [10][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current downturn in the industry but expressed confidence in emerging stronger and more resilient [13] - The company is working on a sale leaseback of its headquarters, with expectations to complete the sale before September [12] - Management is optimistic about the ongoing sale process and has developed a contingency plan (Plan B) in case the primary sale does not go through [22][23] Other Important Information - The company has executed an agreement to sell the Hilti Complex, with a 90-day due diligence period [12] - Proceeds from the sale are expected to fully pay back the bank, leaving the company with no debt [13] Q&A Session Summary Question: What is the contingency plan if the sale of the Hilti Complex falls through? - Management has a viable Plan B that includes other offers with quick close contingencies, which would also help eliminate bank debt [22][23] Question: Can you provide more details about the buyer group for the Hilti Complex? - The buyer group is a real estate company, and management is optimistic about the ongoing due diligence process [26][27] Question: What is the strategy behind buying new titles given the current inventory levels? - The strategy involves a conservative approach to introduce new titles to energize the sales force without significantly increasing inventory levels [40][41] Question: What is the target net revenue run rate and average from partners during normalization? - Management indicated that rebuilding will take time, and they are implementing various strategies to improve sales and recruitment [44][45] Question: Has there been any serious interest in acquiring the company? - Management has not received any serious unsolicited offers for acquisition, but they would entertain such discussions in the future [47][50] Question: What is the current relationship with the bank? - The relationship has been good, with the bank supporting the company through the process, although amendments have become more restrictive [51][53]

Financial Data and Key Metrics Changes - Net revenues decreased to $7.1 million from $10 million in the prior year first quarter, representing a 29% decline [6] - Average active brand partners fell to 7,700 from 13,400, a decrease of 43% [6] - Loss before income taxes improved to a negative $1.4 million from a negative $1.7 million [6] - Net loss decreased to $1.1 million compared to a loss of $1.3 million last year [6] - Loss per share improved to $0.13 from $0.15 on a fully diluted basis [6] Business Line Data and Key Metrics Changes - The decline in sales was primarily driven by reduced brand partner levels in the paper pie division and ongoing customer sales events [4] - The company has seen a decline in brand partner levels due to high inflation and reduced disposable income among families with small children [4] Market Data and Key Metrics Changes - The direct sales industry, particularly in the product sector, is experiencing challenges in new consultant recruiting [4] - The company is facing a short-term impact on operating levels due to the current sales environment [4] Company Strategy and Development Direction - The company is focusing on strategic changes to support brand partners and has launched new incentive programs [7] - A sale leaseback of the headquarters is in progress, with expectations to complete the sale before September [13] - The proceeds from the sale are anticipated to fully pay back the bank, leaving the company with no debt [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging sales environment and the need for short-term tactics to generate cash [4] - There is confidence in executing either Plan A (sale of the building) or Plan B (alternative offers) by September [20] - Management is optimistic about the buyer group and believes they understand the local environment [22] Other Important Information - The company has launched a guest checkout feature to improve customer experience [9] - A successful partnership with Ticket to Dream has allowed the company to distribute thousands of books to foster children [10] Q&A Session Summary Question: What is the contingency plan if the building sale falls through? - Management has a viable Plan B that includes other offers with quick close contingencies, ensuring they can move forward without further delays [20][21] Question: Can you elaborate on the plan for new titles given the existing inventory levels? - The strategy involves a conservative approach to introducing new titles while replenishing best sellers, aimed at energizing the sales force without significantly increasing inventory [31] Question: What is the current banking relationship and future expectations? - The banking relationship has been supportive, with amendments becoming more restrictive to ensure cash flow for debt repayment, but there is no intention to maintain the same level of borrowing post-debt retirement [41]

Financial Data and Key Metrics Changes - The meeting confirmed that there were 37,599,015 shares of common stock issued and outstanding as of the record date, with each share entitled to one vote [5] - The preliminary voting results indicated that all five director nominees received a plurality of votes, confirming their election [8] Business Line Data and Key Metrics Changes - No specific data or metrics regarding individual business lines were provided in the meeting [9] Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [9] Company Strategy and Development Direction and Industry Competition - The meeting focused on the election of directors and the ratification of the independent registered public accounting firm, indicating a stable governance structure [6][7] - The advisory vote on executive compensation suggests a commitment to aligning management incentives with shareholder interests [8] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [9] Other Important Information - The meeting was attended by key executives, including the CEO and CFO, indicating strong leadership presence [4] - The results of the meeting will be reported in a current report on Form 8-K, ensuring transparency with shareholders [9] Q&A Session Summary - There were no questions or answers recorded during this meeting [10]

Financial Data and Key Metrics Changes - Revenue in the fiscal fourth quarter of 2025 increased 20% to $14.1 million compared to $11.7 million in the same quarter a year ago [11] - Operating loss in the fiscal fourth quarter of 2025 was $1.8 million compared to an operating loss of $1.2 million in the same quarter a year ago, primarily driven by higher non-cash stock compensation expense [11][12] - Net loss in the fiscal fourth quarter of 2025 was $1.8 million or a loss of $0.06 per share compared to a net loss of $1 million or $0.05 per share in the quarter a year ago [12] - Adjusted EBITDA in the fiscal fourth quarter of 2025 was positive $900,000 compared to positive $300,000 in the same quarter a year ago [12] - For the fiscal year 2025, revenue increased 20% to $52.1 million compared to $43.3 million in fiscal year 2024 [12][13] - Operating loss for the fiscal year 2025 was $6.4 million compared to an operating loss of $5 million in fiscal year 2024 [13] - Net loss for the fiscal year 2025 was $6.4 million or $0.27 per share compared to a net loss of $14.7 million or $0.68 per share in fiscal year 2024 [14] Business Line Data and Key Metrics Changes - PodcastOne renewed several high-performing legacy shows and expanded partnerships, contributing to a 20% year-over-year revenue increase [11][8] - New original titles launched in the quarter included "Kate and Ty," "Break It Down," and "DetoxRetox with Tom Schwartz," each drawing strong early audiences [10] - The migration to Amazon's Art19 platform introduced a new core monetization channel alongside existing revenue streams [9] Market Data and Key Metrics Changes - Podcasting industry projected to see over $2.4 billion in advertising investment in 2025, with PodcastOne positioned to capitalize on this growth [6] - PodcastOne ranked as a top 10 US podcast publisher with a monthly unique US audience of 6 billion downloads and streams [7] Company Strategy and Development Direction - PodcastOne is focused on diversifying revenue streams and enhancing monetization through partnerships and new content [11][17] - The company is actively evaluating M&A prospects to acquire top content and networks, as well as enhance its platform with production and technology acquisitions [17] - The strategic initiative to enter the crypto space aims to create a new vertical and attract new advertisers [19][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising environment, noting higher CPMs and increased advertiser interest [40] - The company is optimistic about future growth, expecting revenues for fiscal year 2026 to be between $55 million and $60 million [15] - Management highlighted the importance of maximizing opportunities with current inventory while acquiring new content producers [61] Other Important Information - PodcastOne completed a renovation of its Beverly Hills studio, enhancing production capabilities [10] - The company ended the fiscal fourth quarter with no debt and $1.1 million in cash and cash equivalents [12] Q&A Session Summary Question: Increase in stock-based compensation - Management confirmed that the increase in stock-based compensation is related to initiatives to offer talent a larger component of compensation [25][27] Question: Benefits from the Art19 deal - Management reported operational efficiencies and cost savings from the Art19 deal, with revenue generation exceeding expectations [30][32] Question: Cost of sales as a percentage of revenue - Management indicated that cost of sales improved and is expected to hold steady or improve further [34][35] Question: Advertising environment and advertiser appetite - Management noted a positive advertising environment with higher CPMs and more advertisers entering the space [40] Question: Talent acquisition environment - Management stated that there is still good talent available and the company is in a strong position to negotiate favorable terms [44][46] Question: Terms of the Amazon deal - Management explained the minimum guarantee structure based on impressions, with specific thresholds to meet for revenue increases [49][50] Question: Rationale for entering the crypto space - Management highlighted the passionate community in the crypto space and the potential for new advertisers and content opportunities [53][55] Question: Growth compared to the industry - Management expressed confidence in their growth strategy and emphasized the importance of maximizing current partnerships while acquiring new content [59][61]

Financial Data and Key Metrics Changes - Revenue in the fiscal fourth quarter of 2025 increased 20% to $14.1 million compared to $11.7 million in the same quarter a year ago [11] - Operating loss in the fiscal fourth quarter of 2025 was $1.8 million compared to an operating loss of $1.2 million in the same quarter a year ago, primarily driven by higher non-cash stock compensation expense [11] - Net loss in the fiscal fourth quarter of 2025 was $1.8 million or a loss of $0.06 per share compared to a net loss of $1 million or $0.05 per share in the quarter a year ago [12] - Adjusted EBITDA in the fiscal fourth quarter of 2025 was positive $900,000 compared to positive $300,000 in the same quarter a year ago [12] - For the fiscal year 2025, revenue increased 20% to $52.1 million compared to $43.3 million in fiscal year 2024 [13] - Operating loss for the fiscal year 2025 was $6.4 million compared to an operating loss of $5 million in fiscal year 2024 [13] - Net loss for the fiscal year 2025 was $6.4 million or $0.27 per share compared to a net loss of $14.7 million or $0.68 per share in fiscal year 2024 [13] Business Line Data and Key Metrics Changes - PodcastOne renewed several high-performing legacy shows and expanded partnerships, contributing to a 20% year-over-year revenue increase [11][8] - The company successfully began migration to Amazon's Art19 platform, introducing a new core monetization channel [9] - PodcastOne Pro services have begun contributing meaningfully to revenue, with clients relying on the company's infrastructure for high-quality branded content [9] Market Data and Key Metrics Changes - Podcasting industry projected to see over $2.4 billion in advertising investment in 2025, with PodcastOne positioned to capitalize on this growth [6] - PodcastOne ranked as a top 10 US podcast publisher with a monthly unique US audience of 6 billion downloads and streams [7] Company Strategy and Development Direction - The company is focused on diversifying revenue streams and enhancing its content portfolio through strategic partnerships and acquisitions [17] - PodcastOne is actively evaluating M&A prospects to acquire top content and networks, as well as enhance its platform with production and technology acquisitions [17] - The company is exploring opportunities in the crypto space, aiming to consolidate and create a network that leverages the growing interest in cryptocurrency [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising environment, noting higher CPMs and increased advertiser interest despite economic uncertainties [41] - The company is optimistic about future growth, expecting revenues for fiscal year 2026 to be between $55 million and $60 million, with adjusted EBITDA projected between positive $3 million and $5 million [14][15] Other Important Information - The company ended the fiscal fourth quarter with no debt and $1.1 million in cash and cash equivalents [12] - PodcastOne completed financing with JGB Capital, replacing its previous line of credit, which will facilitate business growth [15] Q&A Session Summary Question: Increase in stock-based compensation - Management confirmed that the increase in stock-based compensation is related to initiatives to make it a larger component of talent compensation and indicated that this level is expected to continue [25][27] Question: Advertising environment and advertiser appetite - Management reported a good quarter with higher CPMs and more advertisers entering the space, despite competition from larger players [41][42] Question: Talent acquisition environment - Management indicated that there is still good talent available and expressed confidence in negotiating favorable terms for new shows [45][46] Question: Amazon deal terms and thresholds - Management explained that the deal includes a minimum guarantee based on impressions, with current thresholds set at 90 million and 110 million impressions [51] Question: Rationale for entering the crypto space - Management highlighted the opportunity to consolidate in the crypto podcast space and create a network that connects passionate communities [56][58] Question: Growth compared to the industry - Management stated that while the company is growing, it is important to maximize opportunities with current inventory and partnerships to ensure profitability [61][62]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenues of $112 million, with $108 million from the audio business and an EBITDA of $18 million, exceeding previous guidance by $6 million [7][16] - The full year fiscal 2025 results showed consolidated revenue of $114.4 million and adjusted EBITDA of $8.4 million [17] - The company posted a consolidated net loss of $10.9 million or $0.07 per diluted share in Q4 2025 [16] Business Line Data and Key Metrics Changes - The podcast business generated over $52 million in revenue, up from $38 million the previous year, with Q4 alone contributing $14 million [7][8] - The audio division's revenue for Q4 was $18.2 million with an adjusted EBITDA of $4.1 million [16][17] - The podcast business has seen six consecutive months as a top 10 podcaster globally, with over 1 billion impressions across its network [8] Market Data and Key Metrics Changes - The company has converted over 1.3 million subscribers from Tesla's 2 million cars, indicating strong market penetration [10][46] - The company is expecting to launch its largest B2B partnership in August, which could potentially have 10 times the subscriber base of Tesla [11][53] Company Strategy and Development Direction - The company is focusing on AI and Web3 crypto initiatives, aiming to leverage technology to transform the industry [11][12] - There are 75 additional B2B deals in the pipeline, with a run rate of nearly $50 million from new partnerships [10][18] - The company is actively pursuing 17 potential acquisitions in the podcast industry to consolidate its business [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow aggressively, citing a strong balance sheet and transformative partnerships [12][13] - The management highlighted the importance of building a database of Tesla subscribers, which could significantly enhance future revenue opportunities [46][48] - The company is optimistic about the future, expecting substantial revenue growth from converting ad-supported users to paid subscribers [24][28] Other Important Information - The company has eliminated over $10 million in short-term liabilities and cut costs significantly, contributing to improved EBITDA performance [9] - The company has initiated a stock buyback program, purchasing over 350,000 shares of LiveOne and 1 million shares of PODC [12] Q&A Session Summary Question: Can you clarify the fill rate of over 50%? - The fill rate indicates that over 50% of advertising inventory is being utilized, which is a significant improvement from previous levels [23][24] Question: Are you focusing on podcast content in the Web3 and crypto space? - The focus is on creating a podcast network centered around Web3 and crypto, leveraging AI for content creation and community building [29][30] Question: When will the 10-K be filed? - The filing is expected early next week, pending final documentation from auditors [33] Question: Can you discuss new B2B deals? - The company is experiencing momentum in signing new B2B deals, with a significant upcoming partnership expected to launch soon [39][40] Question: Is the largest B2B deal already signed? - Yes, the deal is signed, and the company is confident about its potential success [55][56]

Financial Data and Key Metrics Changes - The company reported a revenue of $78.1 million for the first quarter, a decrease of 7.6% compared to the previous year [8] - Gross margin fell to 34.1% from 36.9% in the previous quarter, attributed to a transition phase in production [8][10] - The company experienced an operating loss of €800,000 for the quarter, with net financial costs increasing to $2.9 million from $2.2 million due to currency volatility [10] Business Line Data and Key Metrics Changes - The transition of Natuzzi Edition production from China to Italy impacted gross margins, leading to a temporary decrease in profitability [9][10] - Significant investments of approximately $2 million were made primarily on factory improvements during the quarter [10] Market Data and Key Metrics Changes - Consumer confidence in the US has declined to levels not seen since early 2023, with European confidence down by 3.1 percentage points [11] - The market environment remains challenging, with consumers postponing durable purchases [12] Company Strategy and Development Direction - The company is focusing on enhancing its brand commercial strategy, integrating collection, marketing, and customer experience [16] - Natuzzi plans to strengthen its retail and wholesale channels, with a particular emphasis on the North American market [21] - The company is exploring sustainable production locations for Natuzzi Editions to mitigate tariff impacts [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult business environment, exacerbated by US trade duties and geopolitical tensions [16] - The company is committed to protecting margins and is actively reviewing pricing strategies in response to tariffs [33][36] - There is a focus on improving operational efficiency and brand strength to deliver sustainable value to stakeholders [24] Other Important Information - The company has returned to the Salon del Mobile Fair in Milan, unveiling new collections that reflect its evolution as a global lifestyle brand [17] - The introduction of a new software platform for retail performance assessment is showing early signs of improvement [45] Q&A Session Summary Question: Impact of production shift on gross margin - The production shift from China to Italy has caused disruptions, leading to a decrease in gross margin [31] Question: Future gross margin expectations - Management is reviewing pricing strategies and production allocations to protect margins, but specific guidance on future margins was not provided [36] Question: Sustainability of operating expenses - Operating expenses were reduced to $27.4 million, and management expressed confidence in maintaining this level with ongoing cost reviews [39] Question: Early signs of improvement in retail technology - The new performance assessment platform is enabling data-driven decisions and improving store performance [45] Question: Potential of the commercial division - The trade and contract division is seeing growth, with a focus on B2B relationships and bespoke solutions for hospitality and residential sectors [62]

Financial Data and Key Metrics Changes - In Q1 2025, the company recorded a strong top line growth of 39%, reaching almost 300 million reais, primarily driven by CPaaS [3] - Consolidated adjusted gross profit declined 21% to 74 million reais from 94 million reais a year ago, with gross margin decreasing 25% [4] - Normalized EBITDA totaled 20 million reais in the quarter, in line with expectations, and is expected to increase progressively over the year [5] - The company ended the quarter with a cash balance of 86 million reais [11] Business Line Data and Key Metrics Changes - CPaaS revenue increased by 58%, making up 73% of total revenues, while SaaS revenue grew by 5% year over year, representing 25% of total revenues [6][7] - Adjusted gross profit from SaaS remained stable at 43 million reais, but adjusted gross margin decreased by 2.7 percentage points to 54% [8] - The CPaaS business was impacted by newly acquired clients with lower margins and increased SMS costs from carriers [10] Market Data and Key Metrics Changes - The company observed strong SMS volume growth year over year, although there was a slight deceleration expected in Q2 compared to Q1 [19][26] - The company anticipates around 50 million reais in revenues from LATAM in 2025, representing over 50% growth compared to 2024 [40] Company Strategy and Development Direction - The company is focused on expanding Xenvia Customer Cloud in Brazil and Latin America, aiming for organic growth while maintaining a commitment to deleveraging [12] - The rollout of the new strategic cycle is expected to impact short-term profitability but aims to boost medium and long-term performance [13] - The company is evaluating opportunities to divest non-core assets to optimize capital structure [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q1 was strong, there is a softening expected in Q2, but SMS volumes continue to grow year over year [19][26] - The company is confident in the growth of Xenvia Customer Cloud and SaaS, expecting continued trends from Q1 with some acceleration in Xenvia Customer Cloud [27] - Management emphasized the importance of deleveraging the balance sheet to accelerate growth, especially in a high-interest-rate environment [23] Other Important Information - The company incurred approximately 8 million reais in one-time severance costs during Q1 related to workforce reduction [5] - G&A expenses decreased by 24% year over year, reaching 24 million reais, which is 8% of revenues [10] Q&A Session Summary Question: Reasons behind CPaaS growth in SMS volume - Management indicated that the growth is primarily due to marketing campaigns relying on SMS, rather than AI-related factors [16] Question: More details on Zenvia Customer Cloud growth - The 15% year-over-year growth includes both new clients and those migrating to the platform, with expectations for acceleration as awareness increases [19] Question: Current headwinds for Zenvia Customer Cloud adaptation - Management stated that they are being cautious in migrating customers to ensure a positive experience, rather than customers being hesitant [20] Question: Progress on asset sales and leverage - Management noted that they cannot comment specifically on asset sales but are focused on deleveraging the balance sheet and improving capital structure [22][23] Question: Guidance for the year and trends - Management refrained from providing formal guidance but discussed trends indicating strong growth in SMS and Xenvia Customer Cloud, with expectations for a stronger second half of the year [26] Question: Customer churn and retention strategies - Management acknowledged some churn in legacy solutions but reported healthy retention rates in core software, emphasizing efforts to improve customer experience [42]