In This Article:
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Revenue: $42.2 million, down from $43 million in the prior year period.
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Cloud Subscriber Growth: 3.3% increase.
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Recurring Revenue: 93.1% of total revenue.
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Adjusted EBITDA: $12.7 million, representing a 30.2% margin.
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Adjusted Gross Profit: $33.4 million or 79% of total revenue.
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Income from Operations: $8.2 million, up 79.8% year-over-year.
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Operating Expenses: Decreased 11.5% from $38.4 million to $34 million.
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Net Loss: $3.8 million or a negative $0.37 per share.
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Cash and Cash Equivalents: $29.1 million as of March 31, 2025.
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Free Cash Flow: Negative $3 million.
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Adjusted Free Cash Flow: Negative $3.3 million.
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New Term Loan: $200 million, four-year term loan.
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Guidance for 2025: Revenue between $170 million and $180 million; Adjusted Gross Margin between 78% and 80%; Adjusted EBITDA between $52 million and $56 million; Free Cash Flow between $11 million and $16 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue for the quarter was $42.4 million, with a 3.3% increase in subscriber growth across the global customer base.
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Adjusted EBITDA increased by 17% year-over-year to $12.7 million, representing a margin of 30.2%.
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Over 90% of revenue is classified as recurring, with long-term contracts with major carriers like AT&T, Verizon, and SoftBank.
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The company successfully refinanced its debt with a $200 million, four-year term loan, strengthening its capital structure.
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Operational expenses were reduced by 11.5% year-over-year, demonstrating effective cost control measures.
Negative Points
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Total revenue decreased slightly from $43 million in the prior year period due to the expiration of a customer contract.
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Net loss was reported at $3.8 million, primarily due to $5.6 million in non-cash foreign exchange losses.
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Free cash flow was negative $3 million, reflecting a cash spend-heavy period in the first quarter.
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The macroeconomic landscape, including tariffs and global trade uncertainties, poses challenges.
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Potential impact of tariffs could slow phone upgrade cycles, affecting short-term subscriber growth.
Q & A Highlights
Q: Can you discuss the current state of your cost structure and any further cost reductions or synergies you anticipate? A: Lou Ferraro, CFO: We've been optimizing our cost structure over the past few years, with significant reductions at the end of 2023 and 2024. We believe our current cost structure is well-positioned for the current macroeconomic conditions and is largely where we want it to be at this point in our company's history.