Intelligent Protection Management Corp (IPM) 2023 Q1 法說會逐字稿

Good afternoon, and welcome to the earnings call for Paltalk's first quarter ended March 31, 2023. (Operator Instructions)

下午好，歡迎參加 Paltalk 截至 2023 年 3 月 31 日的第一季度財報電話會議。（操作員說明）

It is now my pleasure to turn the floor over to your hosts, Jason Katz, Chief Executive Officer of Paltalk; and Kara Jenny, Chief Financial Officer of Paltalk. Kara, the floor is yours.

現在我很高興將發言權交給你們的東道主，Paltalk 首席執行官傑森·卡茨 (Jason Katz)。和 Paltalk 首席財務官 Kara Jenny。卡拉，地板是你的。

Hello, everyone, and welcome to the Paltalk operating and financial results conference call for the first quarter March 31, 2023. By now, everyone should have had access to the earnings results press release, which was issued earlier today after the market closed at 4:00 PM Eastern time. This call is being webcast and will be available for replay.

大家好，歡迎參加 2023 年 3 月 31 日第一季度 Paltalk 運營和財務業績電話會議。到目前為止，每個人都應該已經閱讀了今天早些時候收盤於 4 點後發布的盈利結果新聞稿。 :00 PM 東部時間。該電話會議正在網絡直播，並將可供重播。

In our remarks today, we will include statements that are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements about future results of operation, business strategies and plans, our relationships with our customers, as well as market and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions.

在今天的講話中，我們將納入 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括有關未來經營業績、業務戰略和計劃、我們與客戶的關係、以及市場和潛在的增長機會。此外，管理層可能會針對您的問題做出額外的前瞻性陳述。

Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks, uncertainties, and assumptions related to factors that may cause actual results to differ materially from those anticipated in the forward-looking statements. We offer no assurance that these expectations and beliefs will prove to be correct.

前瞻性陳述基於管理層目前的知識和預期，並受到某些風險、不確定性和與可能導致實際結果與前瞻性陳述中預期存在重大差異的因素相關的假設的影響。我們不保證這些期望和信念將被證明是正確的。

A detailed discussion of such risks and uncertainties are contained in our filings with the SEC, including our most recent annual report on Form 10-K for the year ended December 31, 2022. You should refer to and consider these factors when relying on such forward-looking information. The company does not undertake and expressly disclaims any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

我們向 SEC 提交的文件中包含對此類風險和不確定性的詳細討論，包括我們截至 2022 年 12 月 31 日的最新 10-K 表格年度報告。在依賴此類遠期預測時，您應該參考並考慮這些因素-尋找信息。除非適用法律要求，否則公司不承擔並明確否認任何更新或更改我們的前瞻性陳述的義務，無論是由於新信息、未來事件還是其他原因。

On this call, we will refer to adjusted EBITDA, a non-GAAP measure that when used in combination with GAAP results provides us and our investors with additional analytical tools to understand our operations. For adjusted EBITDA, we've provided a reconciliation to the most directly comparable GAAP financial measure in our earnings press release, which will be posted on the Investor Relations section of our website at paltalk.com.

在本次電話會議上，我們將提及調整後的 EBITDA，這是一種非 GAAP 衡量標準，與 GAAP 業績結合使用時，可以為我們和我們的投資者提供額外的分析工具來了解我們的運營情況。對於調整後的 EBITDA，我們在盈利新聞稿中提供了與最直接可比的 GAAP 財務指標的對賬，該新聞稿將發佈在我們網站 paltalk.com 的投資者關係部分。

And with that, I would like to introduce Paltalk's Chief Executive Officer, Jason Katz.

接下來，我想介紹 Paltalk 的首席執行官 Jason Katz。

Thank you, Kara, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today's call. We will discuss our operating highlights and financial results for the first quarter ended March 31, 2023. Additionally, we will provide an update on our business and near-term business objectives.

謝謝卡拉，大家下午好。我們非常感謝您抽出時間參加我們今天的電話會議。我們將討論截至 2023 年 3 月 31 日的第一季度的運營亮點和財務業績。此外，我們還將提供有關我們業務和近期業務目標的最新信息。

After my opening statement, our CFO, Kara Jenny, will give a summary of our financial results for the first quarter ended March 31, 2023. Following our prepared remarks, we will move into the Q&A portion and answer any questions that were pre-submitted prior to this call.

在我的開場白後，我們的首席財務官 Kara Jenny 將總結我們截至 2023 年 3 月 31 日的第一季度的財務業績。在我們準備好的發言之後，我們將進入問答部分並回答預先提交的任何問題在這次通話之前。

With that, I would now like to walk you through the recent highlights and near-term business objectives. By the decline in revenue, we reduced our operating expenses which enabled us to reduce the cash used in operations by $0.4 million for the three months ended March 31, 2023, compared to the prior year period mainly as a result of a decrease in product development expense.

現在，我想向您介紹最近的亮點和近期業務目標。由於收入下降，我們減少了運營費用，這使我們能夠在截至 2023 年 3 月 31 日的三個月內減少 40 萬美元的運營現金，與去年同期相比，主要是由於產品開發減少費用。

We accomplish this by streamlining our offshore development efforts and expect to realize further decreases in expenses as a result of these actions. We continue to invest in a conservative way being highly responsible in cash management, even though we ended the quarter with $13.9 million in cash. Our objectives for 2023 are centered on growing topline revenue, returning to cash flow positive, and building shareholder value.

我們通過簡化離岸開發工作來實現這一目標，並期望通過這些行動進一步減少費用。儘管本季度末我們的現金為 1,390 萬美元，但我們繼續以保守的方式進行投資，對現金管理高度負責。我們 2023 年的目標集中在增加營收、恢復正現金流以及建立股東價值。

As we approach the one-year anniversary of the addition of ManyCam to our product offering, we expect one-year annual auto-renewals of existing ManyCam subscriptions to help contribute to growth in subscription revenue. We also seek to grow new user acquisition and user engagement by enhancing our live video chat applications and other features.

隨著 ManyCam 添加到我們的產品一周年之際，我們預計現有 ManyCam 訂閱的一年自動續訂將有助於訂閱收入的增長。我們還尋求通過增強我們的實時視頻聊天應用程序和其他功能來增加新用戶獲取和用戶參與度。

More specifically, our near-term business objectives, which are focused on a return to growth of the following: number one, promoting expansion of the ManyCam product into business-to-business markets, as well as working to integrate it as an upsell into Paltalk products;

更具體地說，我們的近期業務目標側重於以下方面的增長恢復：第一，促進 ManyCam 產品擴展到企業對企業市場，並努力將其作為追加銷售整合到Paltalk產品；

Two, continuing to implement several enhancements to our live video chat applications as well as the integration of card and board games and other features focused on retention and monetization, which collectively are intended to increase user engagement and revenue opportunities;

第二，繼續對我們的實時視頻聊天應用程序實施多項增強功能，以及紙牌遊戲和棋盤遊戲的集成以及其他專注於保留和貨幣化的功能，這些功能共同旨在提高用戶參與度和收入機會；

Three, continuing to explore strategic opportunities, including but not limited to potential mergers or acquisitions of other assets or entities that are synergistic to our businesses;

三、繼續探索戰略機會，包括但不限於與我們的業務具有協同效應的其他資產或實體的潛在合併或收購；

Four, continuing to develop our consumer application platform strategy by seeking potential partnerships with large third-party communities to whom we could promote a co-branded version of our video chat products, potentially share in the incremental revenues generated by these partner communities;

第四，繼續發展我們的消費者應用平台戰略，尋求與大型第三方社區的潛在合作夥伴關係，我們可以向這些第三方社區推廣我們的視頻聊天產品的聯合品牌版本，並可能分享這些合作夥伴社區產生的增量收入；

Five, continuing to defend our intellectual property. We look forward to providing progress updates once our trial against WebEx Communications of Cisco Systems begins in the early third quarter of 2023.

五是繼續捍衛知識產權。我們期待在 2023 年第三季度初開始對 Cisco Systems 的 WebEx Communications 進行試驗後提供進展更新。

I trust this gives you some insight into the company initiatives we have implemented in order to conserve cash as we look to increase our subscribers and user engagement and return to positive cash flow and profitability to build stockholder value.

我相信這可以讓您深入了解我們為節省現金而實施的公司舉措，因為我們希望增加訂戶和用戶參與度，並恢復正現金流和盈利能力以建立股東價值。

Now I'd like to pass it to Kara for a financial summary of our first quarter ended March 31, 2023.

現在我想將其傳遞給 Kara，獲取截至 2023 年 3 月 31 日的第一季度的財務摘要。

Thank you, Jason. Our results of operations for the three months ended March 31, 2023 were as follows. Revenues for the three months ended March 31, 2023 decreased by 12.4% to $2.6 million compared to $2.9 million for the three months ended March 31, 2022. This decline was attributed to the decrease in subscription revenue of 12% and a decrease in advertising revenue of 27.4%.

謝謝你，傑森。截至 2023 年 3 月 31 日止三個月的經營業績如下。截至2023年3月31日止三個月的收入下降12.4%至260萬美元，而截至2022年3月31日止三個月的收入為290萬美元。這一下降歸因於訂閱收入下降12%以及廣告收入減少27.4%。

Loss from operations for the three months ended March 31, 2023, increased by 27.5% or $0.2 million to a loss of $0.9 million compared to a loss of $0.7 million for the same period in 2022. Net loss for the three months ended March 31, 2023, remained relatively unchanged at $0.7 million compared to the same period March 31, 2022.

截至 2023 年 3 月 31 日止三個月的運營虧損增加 27.5%，即 20 萬美元，達到虧損 90 萬美元，而 2022 年同期虧損 70 萬美元。 截至 3 月 31 日止三個月的淨虧損2023 年，與 2022 年 3 月 31 日同期相比，保持相對不變，為 70 萬美元。

Adjusted EBITDA loss for the three months ended March 31, 2023, increased by approximately 33.8% or almost $0.2 million to an adjusted EBITDA loss of $0.6 million compared to adjusted EBITDA loss of $0.5 million for the three months ended March 31, 2022.

截至 2023 年 3 月 31 日止三個月的調整後 EBITDA 虧損增加約 33.8%，即近 20 萬美元，調整後 EBITDA 虧損為 60 萬美元，而截至 2022 年 3 月 31 日止三個月調整後 EBITDA 虧損為 50 萬美元。

Cash and cash equivalents totaled 13.9 million at March 31, 2023, a decrease of $0.8 million compared to $14.7 million at December 31, 2022. Currently, the company has no long-term debt on its balance sheet.

截至2023年3月31日，現金及現金等價物總計1390萬美元，較2022年12月31日的1470萬美元減少80萬美元。目前，該公司資產負債表上沒有長期債務。

Additionally, we repurchased 5,192 shares of common stock during the three months ended March 31, 2023, pursuant to our stock repurchase plan at an average price per share of $1.39. This plan expired on March 29, 2023.

此外，根據我們的股票回購計劃，我們在截至 2023 年 3 月 31 日的三個月內以每股 1.39 美元的平均價格回購了 5,192 股普通股。該計劃於2023年3月29日到期。

In total, under the stock repurchase plan, we repurchased 610,000 shares of common stock at an average price per share of $1.65 or an aggregate amount of approximately $1,005,000.

根據股票回購計劃，我們總共回購了 610,000 股普通股，每股平均價格為 1.65 美元，總金額約為 1,005,000 美元。

We will now move on to questions that were previously submitted. The first question, what was the ManyCam impact on the business? And what is the timing to get to full revenue impact on a quarterly basis relative to expenses?

我們現在將繼續討論之前提交的問題。第一個問題，ManyCam 對業務有何影響？相對於支出而言，何時才能對季度收入產生全面影響？

We expect one-year annual auto-renewals of existing ManyCam subscriptions to get -- help contribute to growth and subscription revenue. As a reminder, the transaction closed early in June 2022. So while we are encouraged, it is more likely to affect the subscription revenue in the second half of the year. As for expenses, while we do not report separately on our products, I can't say that over 50% of the total expenses related to ManyCam in the quarter were related to amortization, which are non-cash.

我們預計現有 ManyCam 訂閱的一年自動續訂將有助於促進增長和訂閱收入。提醒一下，該交易於 2022 年 6 月早些時候結束。因此，儘管我們受到鼓舞，但它更有可能影響下半年的訂閱收入。至於費用，雖然我們沒有單獨報告我們的產品，但我不能說本季度與 ManyCam 相關的總費用的 50% 以上與攤銷有關，而攤銷是非現金的。

Second question, can you provide any additional color on expense control?

第二個問題，您能否在費用控制方面提供一些額外的信息？

Product development is a significant cost center for the company. We've restructured our offshore development team in a way that we expect to realize significant cost savings in product development over the rest of the year.

產品開發是公司的重要成本中心。我們重組了我們的離岸開發團隊，我們希望在今年剩餘時間內實現產品開發方面的顯著成本節約。

Is there any commentary on outlook and potential return to adjusted EBITDA positive?

是否對前景和調整後 EBITDA 為正值的潛在回報有任何評論？

It is certainly our goal to reach EBITDA positive by the end of the year.

我們的目標當然是在年底前實現 EBITDA 為正值。

Any additional color on M&A outlook?

關於併購前景還有什麼其他的看法嗎？

We continue to evaluate opportunities that we believe would enhance shareholder value. Paltalk is well positioned given our cash position, IP, and Nasdaq listing, and we believe we will be able to take advantage of the weak capital markets.

我們將繼續評估我們認為能夠提高股東價值的機會。鑑於我們的現金狀況、知識產權和納斯達克上市，Paltalk 處於有利地位，我們相信我們將能夠利用疲軟的資本市場。

Finally, can you confirm the date and venue for the Cisco trial? Also, specifically, what are you suing for?

最後，您能否確認一下思科試用的日期和地點？另外，具體來說，你起訴的目的是什麼？

Currently, the trial is scheduled for mid-July in Waco, Texas. The company alleges that certain of Cisco's products have infringed US patent number 6683858.

目前，審判定於七月中旬在德克薩斯州韋科舉行。該公司聲稱思科的某些產品侵犯了美國專利號 6683858。

Jason, back to you to close out the presentation.

傑森，回到您來結束演示。

Thank you, everyone, for your support and for joining us today. We're very grateful for your interest in our business. We look forward to updating the market and our stockholders with our progress on our business objectives, pending patent litigation against Cisco, WebEx, with the trial expected to start in the early part of the third quarter, and potential strategic accretive acquisitions, which we continue to identify and analyze. Have a great day.

感謝大家的支持並今天加入我們。我們非常感謝您對我們業務的興趣。我們期待向市場和股東通報我們在業務目標方面的進展、針對思科、WebEx 的未決專利訴訟（預計將於第三季度初開始審判）以及潛在的戰略增值收購（我們將繼續進行這些收購）來識別和分析。祝你有美好的一天。

Thank you. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。