Intelligent Protection Management Corp (IPM) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to the Paltalk first-quarter 2024 results conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, CFO, Kara Jenny. Ma'am, the floor is yours.

大家早安，歡迎參加 Paltalk 2024 年第一季業績電話會議。（操作員說明）現在我很高興將發言權交給主持人、財務長 Kara Jenny。女士，地板是你的了。

Hello, everyone, and welcome to the Paltalk operating and financial results conference call for the first quarter ended March 31, 2024. By now, everyone should have access to the earnings results press release, which was issued earlier today at approximately 8:30 AM Eastern Time. This call is being webcast and will be available for replay.

大家好，歡迎參加截至 2024 年 3 月 31 日的第一季 Paltalk 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於東部時間上午 8:30 左右發布的收益結果新聞稿。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 questions.

在今天的演講中，我們將納入 1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明，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。

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。除非適用法律要求，否則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 operations. For adjusted EBITDA, we have 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. And with that I would like to introduce Paltalk's Chief Executive Officer, Jason Katz.

在本次電話會議上，我們將調整後的 EBITDA 稱為非 GAAP 衡量標準，當與 GAAP 業績結合使用時，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 財務指標的調整表，該新聞稿將發佈在我們網站 Paltalk.com 的投資者關係部分。接下來我想介紹 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 first quarter ended March 31, 2024. We will also provide an update on our business objectives and strategies. After my opening statement, our CFO, Kara Jenny, will give a summary of our financial results for the first quarter ended March 31, 2024. 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 2024 年 3 月 31 日的第一季的營運亮點和財務表現。我們還將提供有關我們業務目標和策略的最新資訊。在我致開幕詞後，我們的財務長 Kara Jenny 將總結我們截至 2024 年 3 月 31 日的第一季的財務表現。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. While we continue to look for additional revenue opportunities, we are encouraged by the slight increase in our revenue and a 33% reduction in net loss in Q1 as compared to the prior-year period as we continue to enhance ManyCam and expand its availability into our Paltalk products and enterprise applications.

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。雖然我們繼續尋找額外的收入機會，但隨著我們繼續增強 ManyCam 並將其可用性擴展到我們的業務，我們對第一季度的收入略有增長以及淨虧損比去年同期減少 33% 感到鼓舞。和企業應用程式。

Although not representative of a large share of our revenue, we are also excited about the rapid growth in our advertising revenue compared to Q1 of last year, which we attribute to new advertising partners and the rollout of our new advertising units. Our technology and business teams are working on additional features for our live video chat products and partnerships with large third-party communities with the goal of increasing our number of customers, customer retention and monetization, and potentially revenue.

儘管不代表我們收入的很大一部分，但與去年第一季相比，我們的廣告收入快速增長也讓我們感到興奮，我們將其歸因於新的廣告合作夥伴和新廣告單元的推出。我們的技術和業務團隊正在為我們的即時視訊聊天產品開發附加功能，並與大型第三方社群建立合作夥伴關係，目標是增加我們的客戶數量、客戶保留率和貨幣化以及潛在收入。

We believe we remain in good position for both organic and acquisitive growth as our expense infrastructure has been optimized to support additional revenue and our cash position of $13 million at quarter end provides us flexibility for growth opportunities. Our trial against Cisco is now set to begin in August 2024, and we look forward to continuing to defend our intellectual property. Over the past year, our team has successfully executed on business objectives and strategies that have reduced our fixed operating expenses; streamlined our business to improve efficiencies; and laid the groundwork, both organically and potentially acquisitively, to grow the business, leveraging our current platform.

我們相信，我們在有機成長和收購成長方面仍處於有利地位，因為我們的費用基礎設施已經過優化，以支持額外收入，而且我們季度末1300 萬美元的現金狀況為我們提供了成長機會的靈活性。我們對思科的審判現已定於 2024 年 8 月開始，我們期待繼續捍衛我們的智慧財產權。在過去的一年裡，我們的團隊成功執行了業務目標和策略，減少了我們的固定營運費用；簡化我們的業務以提高效率；並透過有機方式和潛在的收購方式，利用我們現有的平台發展業務奠定了基礎。

The following are identified areas that we have started to implement to achieve revenue growth. The integration of ManyCam product into our Paltalk product through upselling initiatives; improved user experience with ManyCam software and optimized features for both consumer and enterprise applications; 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; and lastly, develop our consumer application platform strategy by seeking potential partnerships with large third-party communities so we can promote a co-branded version of our video chat products and potentially share in the incremental revenues generated by these partner communities.

以下是我們為實現收入成長而開始實施的已確定領域。透過追加銷售計劃將 ManyCam 產品整合到我們的 Paltalk 產品中； ManyCam 軟體改善了用戶體驗，並針對消費者和企業應用程式優化了功能；對我們的即時視訊聊天應用程式進行了多項增強，以及紙牌遊戲和棋盤遊戲的整合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；最後，透過尋求與大型第三方社群的潛在合作夥伴關係來製定我們的消費者應用程式平台策略，以便我們可以推廣視訊聊天產品的聯合品牌版本，並有可能分享這些合作夥伴社群產生的增量收入。

Moving on to an update on our trial against Cisco, on July 23, 2021, the wholly owned subsidiary of the company Paltalk Holdings, Inc. 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 6683858 and that we are entitled damages. A Markman hearing took place on February 24, 2022.

接下來是我們針對思科的審判的最新情況，2021 年 7 月 23 日，Paltalk Holdings, Inc. 公司的全資子公司向美國西區地方法院對思科系統公司提起專利侵權訴訟。我們聲稱思科的某些產品侵犯了美國專利 6683858，並且我們有權要求賠償。馬克曼聽證會於 2022 年 2 月 24 日舉行。

On September 7, 2022, the United States Patent Office issued a re-examination of US Patent 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 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 now expected to begin in August 2024.

2022年9月7日，美國專利局發布了對美國專利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。目前預計審判將於 2024 年 8 月開始。

Now I'd like to pass it to Kara for a financial summary of our first quarter ended March 31, 2024.

現在我想將其傳遞給 Kara，以獲取截至 2024 年 3 月 31 日的第一季的財務摘要。

Thank you, Jason. Revenue for the three months ended March 31, 2024, increased by 1.3% to $2.59 million compared to $2.56 million for the three months ended March 31, 2023. This increase was attributed to the increase in advertising revenue of 97%. Loss from operations for the three months ended March 31, 2024 decreased by 16% or $0.1 million to a loss of $0.8 million compared to a loss of $0.9 million for the three months ended March 31, 2023.

謝謝你，傑森。截至2024年3月31日止三個月的營收成長1.3%，至259萬美元，而截至2023年3月31日止三個月的營收為256萬美元。這一增長歸因於廣告收入增長97%。截至2024年3月31日止三個月的營運虧損減少16%或10萬美元，至虧損80萬美元，而截至2023年3月31日止三個月的虧損為90萬美元。

The improvement in the loss from operations is attributed to an increase in revenue and decreases in sales and product development and general and administrative expenses for the three months ended March 31, 2024. Net loss for the three months ended March 31, 2024, decreased by 33% or $0.2 million to a loss of $0.5 million compared to a net loss of $0.7 million for the three months ended March 31, 2023.

營運虧損的改善歸因於截至2024年3月31日的三個月的收入增加以及銷售和產品開發以及一般和管理費用的減少。截至2024年3月31日止三個月的淨虧損減少33%或20萬美元，至虧損50萬美元，而截至2023年3月31日止三個月的淨虧損為70萬美元。

Adjusted EBITDA loss for the three months ended March 31, 2024, decreased by approximately 23% or $0.1 million to an adjusted EBITDA loss of $0.5 million compared to an adjusted EBITDA loss of $0.6 million for the three months ended March 31, 2023. Cash and cash equivalents totaled $13 million at March 31, 2024, a decrease of $0.5 million compared to $13.6 million at December 31, 2023, and the company had no long-term debt on its balance sheet as of March 31, 2024.

截至2024 年3 月31 日止三個月的調整後EBITDA 虧損減少約23%，即10 萬美元，調整後EBITDA 虧損為50 萬美元，而截至2023 年3 月31 日止三個月調整後EBITDA虧損為60 萬美元。截至2024年3月31日，現金及現金等價物總額為1,300萬美元，比2023年12月31日的1,360萬美元減少50萬美元，且截至2024年3月31日，公司資產負債表上沒有長期債務。

We will now move on to questions that were previously submitted. The first question, do you have any upgrade plans or next-generation versions planned for Paltalk?

我們現在將繼續討論之前提交的問題。第一個問題，Paltalk有升級計畫或下一代版本規劃嗎？

Yes, Kara, we do. We're working on creating a version of the Paltalk product that is web based that we expect will be easier to use and will not require users to download it. They will simply go to the website then or into the chat.

是的，卡拉，我們願意。我們正在努力創建一個基於 Web 的 Paltalk 產品版本，我們希望該版本會更容易使用，並且不需要使用者下載。他們只需訪問該網站或進入聊天室。

Great. The next question, what do you think of the recent IPO valuations of Truth Social and Reddit? For example, Truth Social attaining a $6 billion valuation on just $5 million of revenue, and how has that affected your search for potential acquisitions?

偉大的。下一個問題，您如何看待近期Truth Social和Reddit的IPO估值？例如，Truth Social 以 500 萬美元的收入實現了 60 億美元的估值，這對您尋找潛在收購對像有何影響？

Well, clearly, the market has embraced these chat and interactive social media platforms, which may bode well for Paltalk.

顯然，市場已經接受了這些聊天和互動社群媒體平台，這對 Paltalk 來說可能是個好兆頭。

Great. And the last question we got, any comment on why the Cisco trial got pushed from April to August 2024?

偉大的。我們收到的最後一個問題是，為什麼思科的試驗從 2024 年 4 月推遲到 2024 年 8 月有什麼評論嗎？

Yes, the company was notified by the US District Court for the Western District of Texas located in Waco that the Court of its own accord decided not to hold any in-person trials during the week of April 8, 2024. As a result, the trial date was reset for August 2024.

是的，位於韋科的美國德克薩斯州西區地方法院通知該公司，該法院自行決定在 2024 年 4 月 8 日當週不舉行任何現場審判。因此，審判日期被重置為 2024 年 8 月。

Great. Jason, I'll turn it back to you to close out the presentation.

偉大的。傑森，我會將其轉回給您以結束演示。

Thank you, everyone, for your support and for joining us today. We are very grateful for your interest in our business. We look forward to updating the market and our stockholders with our progress in our business objectives, pending patent litigation against Cisco WebEx with the trial now scheduled to start on August 26, 2024, and potential strategic accretive acquisitions, which we continue to identify now. Everyone, 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8 月26 日開始審理）以及潛在的戰略增值收購（我們現在仍在確定這些收購）。大家，祝你有美好的一天。

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

謝謝大家。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。感謝您的參與。