Intelligent Protection Management Corp (IPM) 2023 Q4 法說會逐字稿

Good morning and welcome to the earnings results call for Paltalk's fourth quarter and year ended December 31, 2023. (Operator Instructions) 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.

早安，歡迎參加 Paltalk 截至 2023 年 12 月 31 日的第四季和年度的獲利結果電話會議。（操作員指示）現在我很高興將發言權交給你們的東道主 Jason Katz，Paltalk 執行長；和 Paltalk 財務長 Kara Jenny。

Kara, the floor is yours.

卡拉，地板是你的。

Hello, everyone, and welcome to the Paltalk operating and financial results conference call for the fourth quarter and year ended December 31, 2023. By now, everyone should have access to the earnings results press release which was issued earlier today before the market opened at 7:30 AM Eastern Time. This call is being webcast and will be available for replay.

大家好，歡迎參加 Paltalk 截至 2023 年 12 月 31 日的第四季度和年度營運和財務業績電話會議。到目前為止，每個人都應該可以查看今天早些時候在東部時間上午 7:30 開盤前發布的盈利結果新聞稿。該電話會議正在網路上直播，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 operations, 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 question. 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.

在今天的演講中，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、我們與客戶的關係的前瞻性陳述，以及作為市場和潛在的成長機會。此外，管理階層可能會針對您的問題做出額外的前瞻性陳述。前瞻性陳述是基於管理階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 quarterly reports on Form 10-Q and annual report on Form 10-K. 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.

對此類風險和不確定性的詳細討論包含在我們向 SEC 提交的文件中，包括我們最新的 10-Q 表季度報告和 10-K 表年度報告。在依賴此類前瞻性資訊時，您應該參考並考慮這些因素。除適用法律要求外，本公司不承擔並明確否認任何更新或更改我們的前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。

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 operation. For adjusted EBITDA, we have provided 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，當與GAAP 績效結合使用時，它為我們和我們的投資者提供了額外的分析工具來了解我們的營運情況。對於調整後的 EBITDA，我們在獲利新聞稿中提供了與最直接可比較的 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 now like to introduce Paltalk's, Chief Executive Officer, Jason Katz.

說到這裡，我現在想介紹 Paltalk 的執行長 Jason Katz。

Thank you, Kara, and good morning, 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 fourth quarter and year ended December 31, 2023. Additionally, we will provide an update on our business and near-term business objectives. After my opening statement, our CFO, Kara Jenny will give a summary of our financial results for the fourth quarter and year ended December 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.

謝謝你，卡拉，大家早安。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 12 月 31 日的第四季和年度的營運亮點和財務表現。此外，我們將提供有關我們業務和近期業務目標的最新資訊。在我致開幕詞後，我們的財務長 Kara Jenny 將總結我們截至 2023 年 12 月 31 日的第四季和年度的財務表現。在我們準備好的發言之後，我們將進入問答部分，並回答在本次電話會議之前預先提交的任何問題。

With that, I would now like to walk you through the recent financial and operating highlights and near-term business objectives. We are very pleased with our continued efforts to bring down our costs and streamline our operations, which has resulted in the 69% improvement in net losses and the 62% reduction in adjusted EBITDA losses for 2023, despite our revenue remaining flat. We continue to shrewdly execute on our revenue growth plans and believe we are well positioned for profitability with our current expense infrastructure.

現在，我想向您介紹最近的財務和營運亮點以及近期業務目標。我們對不斷努力降低成本和簡化營運感到非常高興，儘管我們的收入保持不變，但 2023 年淨虧損改善了 69%，調整後 EBITDA 虧損減少了 62%。我們繼續精明地執行我們的收入成長計劃，並相信我們在目前的費用基礎設施下已做好盈利準備。

On the sales side, our marketing efforts have become more efficient, and we have expanded ManyCam to the enterprise segment. We believe we are well positioned for organic and acquisitive growth as our current expense infrastructure can support additional revenue, and our cash position as of December 31, 2023 remains strong at $13.6 million.

在銷售方面，我們的行銷工作變得更加高效，並且我們已將ManyCam擴展到企業領域。我們相信，我們處於有機成長和收購成長的有利位置，因為我們目前的支出基礎設施可以支援額外收入，截至 2023 年 12 月 31 日，我們的現金狀況仍然強勁，為 1,360 萬美元。

On the strategic opportunities front, we have continued to actively identify and analyze potential mergers or acquisitions of assets or entities that are synergistic to our businesses, which we believe have the potential to increase shareholder value.

在策略機會方面，我們繼續積極識別和分析與我們的業務具有協同效應的資​​產或實體的潛在合併或收購，我們相信這些資產或實體有可能增加股東價值。

Moving on to an update on our trial against Cisco WebEx, on July 23, 2021, a wholly owned subsidiary of the company, Paltalk Holdings, filed a patent infringement lawsuit against Cisco Systems, Inc. in the US District Court for the Western District of Texas. We allege that certain of Cisco's products have infringed US patent number 6683858, and that we are entitled to damages.

接下來是我們對 Cisco WebEx 審判的最新情況，2021 年 7 月 23 日，該公司的全資子公司 Paltalk Holdings 在美國西區地方法院對 Cisco Systems, Inc. 提起專利侵權訴訟。德克薩斯州。我們聲稱思科的某些產品侵犯了美國專利號 6683858，我們有權要求賠償。

A Markman hearing took place on February 24, 2022. On September 7, 2022, the United States Patent Office issued a reexamination of US patent number 6683858. And on January 19, 2023, the examiner issued an ex parte reexamination certificate, ending the reexamination and confirming the patentability of claims 1 through 10 of US patent number 6683858. On June 29, 2023, the court held a pretrial conference with the parties and denied Cisco's motion for summary judgment. The trial is expected to begin on April 8, 2024.

馬克曼聽證會於 2022 年 2 月 24 日舉行。2022年9月7日，美國專利局發布了對美國專利號6683858的複審。並於2023年1月19日，審查員出具單方面複審證書，結束複審並確認美國專利號6683858的權利要求1至10的專利性。2023年6月29日，法院與當事人召開庭前會議，駁回了思科的簡易判決動議。審判預計將於 2024 年 4 月 8 日開始。

If we receive a jury verdict in our favor or receive settlement proceeds in connection with the foregoing litigation, the exact amount of such proceeds to be received by us will be determined based on a number of factors and will reflect the deduction of significant litigation-related expenses, including legal fees. Consequently, we will not receive the majority of any gross proceeds resulting from any potential verdict or settlement. For the foregoing reasons, we are unable to predict the outcome of this litigation and its ultimate cost.

如果我們收到對我們有利的陪審團裁決或收到與上述訴訟有關的和解收益，我們將收到的此類收益的確切金額將根據多種因素確定，並將反映與重大訴訟相關的扣除額費用，包括法律費用。因此，我們將不會收到任何潛在判決或和解所產生的大部分總收益。由於上述原因，我們無法預測本訴訟的結果及其最終費用。

Now I'd like to pass it to Kara for a financial summary of our fourth quarter and year ended December 31, 2023.

現在我想將其傳遞給 Kara，以獲取截至 2023 年 12 月 31 日的第四季度和年度的財務摘要。

Thank you, Jason. Revenue for the three months ended December 31, 2023 decreased by 4% to $2.7 million compared to $2.8 million for the three months ended December 31, 2022. The decrease in revenue was primarily attributed to a decrease in subscription and virtual gift revenue from Paltalk and Camfrog, partially offset by increased revenue from Vumber and ManyCam.

謝謝你，傑森。截至2023年12月31日止三個月的收入下降4%至270萬美元，而截至2022年12月31日止三個月的收入為280萬美元。收入下降主要歸因於 Paltalk 和 Camfrog 的訂閱和虛擬禮物收入減少，但部分被 Vumber 和 ManyCam 的收入增加所抵消。

Loss from operations for the three months ended December 31, 2023, improved by 38% to a loss of $0.5 million compared to a loss of $0.8 million for the three months ended December 31, 2022. The improvement in loss from operations was attributed to a decrease in sales and marketing, product development, and general and administrative expenses for the three months ended December 31, 2023. Net loss for the three months ended December 31, 2023, improved by over 42% to $0.3 million compared to a net loss of $0.5 million for the three months ended December 31, 2022. The decrease in net loss was due to the reduction of operating expenses. Adjusted EBITDA loss for the three months ended December 31, 2023, improved by over 52% to $0.2 million compared to adjusted EBITDA loss of $0.5 million for the three months ended December 31, 2022.

截至2023年12月31日止三個月的營運虧損改善了38%，至虧損50萬美元，而截至2022年12月31日止三個月的虧損為80萬美元。營運虧損的改善歸因於截至2023年12月31日的三個月銷售和行銷、產品開發以及一般和管理費用的減少。截至2023年12月31日止三個月的淨虧損較截至2022年12月31日止三個月的淨虧損50萬美元改善超過42%至30萬美元。淨虧損減少是因為營業費用減少。截至 2023 年 12 月 31 日止三個月的調整後 EBITDA 虧損，較截至 2022 年 12 月 31 日止三個月調整後 EBITDA 虧損 50 萬美元改善了 52% 以上，達到 20 萬美元。

Now turning to the year ended December 31, 2023. Revenue for the year ended December 31, 2023 and 2022 remain relatively unchanged at $11 million. Decreases in subscription and virtual guest revenue in the Paltalk and Camfrog applications were offset by increases in revenue from the Vumber and ManyCam.

現在轉向截至 2023 年 12 月 31 日的年度。截至2023年12月31日及2022年12月31日止年度的收入相對維持不變，為1,100萬美元。Paltalk 和 Camfrog 應用程式中訂閱和虛擬訪客收入的下降被 Vumber 和 ManyCam 收入的成長所抵消。

Loss from operations for the year ended December 31, 2023, improved by 43% to a loss of $2.1 million compared to a loss of $3.7 million for the year ended December 31, 2022. The improvement in loss from operations was primarily attributable to an increase in revenue and reduced operating expenses in connection with the implementation of operating efficiencies. Net loss for the year ended December 31, 2023 improved by over 68% to $1.1 million compared to a net loss of $3.4 million for the year ended December 31, 2022. The improvement in net loss is attributed to a decrease in operating expenses as well as an increase in other income in connection with the company's recording of a refundable employee retention tax credit.

截至2023年12月31日止年度的營運虧損改善了43%，達到虧損210萬美元，而截至2022年12月31日止年度的虧損為370萬美元。營運虧損的改善主要歸因於收入的增加以及與實施營運效率相關的營運費用的減少。截至2023年12月31日止年度的淨虧損改善超過68%，至110萬美元，而截至2022年12月31日止年度的淨虧損為340萬美元。淨虧損的改善歸因於營運費用的減少以及與公司記錄可退還員工保留稅收抵免相關的其他收入的增加。

Adjusted EBITDA loss for the year ended December 31, 2023, improved by over 61% or $1.6 million to $1 million compared to adjusted EBITDA loss of $2.6 million for the year ended December 31, 2022. Cash and cash equivalent totaled $13.6 million at December 31, 2023, a decrease of $1.1 million compared to $14.7 million at December 31, 2022. The company had no long-term debt on its balance sheet as of December 31, 2023.

截至2023 年12 月31 日止年度的調整後EBITDA 虧損，與截至2022 年12 月31 日止年度的調整後EBITDA 虧損260 萬美元相比，改善了61% 以上，即160 萬美元，達到100 萬美元。截至2023年12月31日，現金及現金等價物總額為1,360萬美元，較2022年12月31日的1,470萬美元減少110萬美元。截至2023年12月31日，公司資產負債表上無長期負債。

We will now move on to questions that were previously submitted. The first question, can you provide any color on how ManyCam renewals are tracking?

我們現在將繼續討論之前提交的問題。第一個問題，您能否提供有關 ManyCam 續訂追蹤情況的任何資訊？

Sure. While we do not comment on the metrics of the individual products, we're continuing to focus on ways to streamline the renewal process for our users and to provide users value such that they will want to continue to renew with us.

當然。雖然我們不對單一產品的指標發表評論，但我們將繼續關注如何簡化用戶的續約流程並為用戶提供價值，以便他們願意繼續與我們續約。

Next. Are you working on any new features and/or product launches for 2024? If so, can you discuss?

下一個。您是否正在致力於 2024 年的任何新功能和/或產品發布？如果有的話可以討論一下嗎？

Part of our business strategy is to continue working on application functionality. Of note, we're excited about the launch of ManyCam version 9 which is currently scheduled for release during Q2 2024. ManyCam provides a multitude of tools to help customize your video experience, and we hope that our new version will allow users to start working with ManyCam's powerful video features faster than ever.

我們業務策略的一部分是繼續開發應用程式功能。值得注意的是，我們對 ManyCam 版本 9 的發布感到興奮，該版本目前計劃於 2024 年第二季發布。ManyCam 提供了大量工具來幫助客製化您的視訊體驗，我們希望我們的新版本能夠讓用戶比以往更快地開始使用 ManyCam 強大的視訊功能。

Next question. Is international growing, slowing, or staying flat?

下一個問題。國際成長是成長、放緩還是持平？

We're continuing to see new users registering from emerging markets such as Africa and India, and we're investigating ways to help grow and monetize these new user bases.

我們不斷看到來自非洲和印度等新興市場的新用戶註冊，我們正在研究幫助擴大這些新用戶群並透過這些新用戶群獲利的方法。

Finally, the last question, do you expect to close on an acquisition in 2024, as you have been looking now for 12 to 18 months?

最後，最後一個問題是，您是否預計在 2024 年完成收購，就像您現在已經考慮了 12 到 18 個月一樣？

While we're continuing to look for accretive acquisitions, we obviously cannot comment on when or if we expect to close the transaction. We reiterate that consummating an accretive acquisition remains a top priority for the company. I want to stress that we're very thoughtful on our process as we evaluate targets against the matrix of criteria, including being accretive to our revenue, being positive contributor to our bottom line, as well as representing a good value for our shareholders.

雖然我們正在繼續尋找增值收購，但我們顯然無法評論何時或是否預計完成交易。我們重申，完成增值收購仍是公司的首要任務。我想強調的是，我們在根據標準矩陣評估目標時對流程進行了深思熟慮，包括增加我們的收入，為我們的利潤做出積極貢獻，以及為我們的股東帶來良好的價值。

Great. Jason, back to you to close out the presentation.

偉大的。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 now scheduled to start on April 8, 2024, 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取得的進展、針對Cisco WebEx 的未決專利訴訟（目前計劃於2024 年4 月8 日開始審理）以及潛在的戰略增值收購（我們將繼續識別和分析這些收購） 。祝你有美好的一天。

Thank you, ladies and gentlemen. This does conclude today's event. You may disconnect at this time and have a wonderful day. We thank you for your participation.

謝謝你們，女士們、先生們。今天的活動到此結束。此時您可能會斷開連接並度過美好的一天。我們感謝您的參與。