Paltalk Inc (PALT) 2023 Q2 法說會逐字稿

Good day, and welcome to the earnings call for Paltalk's second quarter ended June 30, 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. Kara, the floor is yours.

大家好，歡迎參加 Paltalk 截至 2023 年 6 月 30 日的第二季度財報電話會議。（操作員說明）現在我很高興將發言權交給你們的東道主，Paltalk 首席執行官 Jason Katz 和 Kara Jenny， Paltalk首席財務官。卡拉，地板是你的。

Hello, everyone, and welcome to the Paltalk operating and financial results conference call for the second quarter, June 30, 2023. By now, everyone should have access to the earnings results press release, which was issued earlier today at the close of market at 4 PM Eastern time. This call is being webcast and will be available for replay.

大家好，歡迎參加 2023 年 6 月 30 日第二季度 Paltalk 運營和財務業績電話會議。到目前為止，每個人都應該可以查看收益結果新聞稿，該新聞稿於今天早些時候收盤時發布。東部時間下午4 點。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 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. 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. 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 a result of new information, future events, or otherwise, except as required by applicable law.

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、我們與客戶的關係的前瞻性陳述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。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。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, provide us and our investors with additional analytic 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.

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 業績結合使用時，可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 財務指標的調節表，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 second quarter ended June 30th, 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 second quarter ended June 30th, 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 6 月 30 日的第二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。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6 月30 日的第二季度的財務業績。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. We are very pleased with our return to revenue growth and profitability during the second quarter. All of our attention and effort to optimize our platforms and streamline our costs have paid off and improved our foundation. Our infrastructure is capable of supporting additional business, so if we continue to expand revenue, we are confident that it would result in increased profitability. We believe that this business scalability, along with the $13.7 million in cash on our balance sheet at quarter's end, puts us in excellent position.

現在，我想向您介紹最近的亮點和近期業務目標。我們對第二季度收入增長和盈利能力的恢復感到非常高興。我們為優化平台和簡化成本而付出的所有關注和努力都得到了回報，並改善了我們的基礎。我們的基礎設施能夠支持額外的業務，因此，如果我們繼續擴大收入，我們有信心這將帶來盈利能力的提高。我們相信，這種業務可擴展性，加上季度末資產負債表上 1,370 萬美元的現金，使我們處於有利地位。

We have already met one of our key objectives for 2023 with our return to increased revenue. Additionally, as we surpass the one-year anniversary of our asset acquisition of ManyCam, and with the successful integration of ManyCam into Paltalk and our team's effort in developing a new and easier-to-use version, we expect the one-year annual auto-renewals of existing ManyCam subscriptions to help contribute to growth in subscription revenue in future periods. While our trial against Cisco was pushed back to an expected trial date in the fourth quarter of 2023, the court recently denied Cisco's motion for summary judgment, and we look forward to continuing to defend our intellectual property.

我們已經實現了 2023 年的主要目標之一：收入恢復增長。此外，隨著我​​們收購 ManyCam 資產一周年，並且隨著 ManyCam 成功集成到 Paltalk 以及我們團隊努力開發新的、更易於使用的版本，我們預計一年的年度汽車- 續訂現有ManyCam 訂閱，有助於促進未來訂閱收入的增長。雖然我們對思科的審判被推遲到 2023 年第四季度的預期審判日期，但法院最近駁回了思科的簡易判決動議，我們期待繼續捍衛我們的知識產權。

We are proud that we already reached some of our stated near-term business objectives as we achieved almost 12% revenue growth and return to profitability with positive net income during this second quarter. Our additional near-term business objectives are as follows: leveraging our recently completed integration of ManyCam product into Paltalk product through upselling initiatives; further optimizing marketing spend to effectively realize a positive return on investment; developing a new and easier-to-use version of ManyCam that will be optimized for both consumer and enterprise application; 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; 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 and potentially share in the incremental revenues generated by these partner communities; continuing to defend our intellectual property.

我們感到自豪的是，我們已經實現了一些既定的近期業務目標，第二季度我們實現了近 12% 的收入增長，並以正淨利潤恢復盈利。我們的其他近期業務目標如下：通過追加銷售計劃，利用我們最近完成的 ManyCam 產品與 Paltalk 產品的集成；進一步優化營銷支出，有效實現積極的投資回報；開發新的、更易於使用的 ManyCam 版本，該版本將針對消費者和企業應用程序進行優化；繼續探索戰略機會，包括但不限於與我們的業務具有協同作用的其他資產或實體的潛在合併或收購；通過尋求與大型第三方社區的潛在合作夥伴關係，繼續發展我們的消費者應用程序平台戰略，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，並有可能分享這些合作夥伴社區產生的增量收入；繼續捍衛我們的知識產權。

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 second quarter ended June 30, 2023.

現在我想將其傳遞給 Kara，獲取截至 2023 年 6 月 30 日的第二季度的財務摘要。

Thank you, Jason. Our results of operations for the three months ended June 30, 2023, were as follows. Revenue for the three months ended June 30, 2023, increased by nearly 12% to $3 million, compared to $2.6 million for the three months ended June 30, 2022. This increase was attributed to an increase in virtual goods revenue as well as a full year of sales from ManyCam. These increases were partially offset by a decrease in advertising revenues of 15%.

謝謝你，傑森。截至 2023 年 6 月 30 日止三個月的經營業績如下。截至2023 年6 月30 日止三個月的收入增長近12% 至300 萬美元，而截至2022 年6 月30 日止三個月的收入為260 萬美元。這一增長歸因於虛擬商品收入的增加以及全面ManyCam 的銷售年份。這些增長被廣告收入下降 15% 部分抵消。

Loss from operations for the three months ended June 30, 2023, decreased by 73% or $0.8 million to a loss of $0.3 million compared to a loss of $1.1 million for the same period in 2022. The decrease in the loss was attributed to the increased revenue.

截至 2023 年 6 月 30 日的三個月運營虧損減少 73%，即 80 萬美元，至虧損 30 萬美元，而 2022 年同期虧損 110 萬美元。虧損減少的原因是收入。

Net income for the three months ended June 30, 2023, was $0.1 million compared to a net loss of $1.1 million for the three months ended June 30, 2022. The improvement is attributed to the increase in sales, reduced expenses, and to the recording of $0.3 million net recognized in connection with the company's recording of a refundable employee retention tax credit.

截至2023 年6 月30 日止三個月的淨利潤為10 萬美元，而截至2022 年6 月30 日止三個月的淨虧損為110 萬美元。這一改善歸因於銷售額增加、費用減少以及記錄因公司記錄可退還的員工保留稅收抵免而確認的淨額為 30 萬美元。

Adjusted EBITDA loss for the three months ended June 30, 2023, decreased by over 98% or $0.9 million to an adjusted EBITDA loss of $15,000 compared to adjusted EBITDA loss of $0.9 million for the three months ended June 30, 2022.

截至2023 年6 月30 日止三個月的調整後EBITDA 虧損減少超過98%，即90 萬美元，調整後EBITDA 虧損為15,000 美元，而截至2022 年6 月30 日止三個月調整後EBITDA 虧損為90 萬美元。

Currently, the company has no long-term debt on its balance sheet.

目前，該公司資產負債表上沒有長期債務。

We now like to move on to questions that were previously submitted. The first question, can you comment on why the Cisco Webex trial has been delayed twice and pushed out to December?

我們現在想繼續討論之前提交的問題。第一個問題，您能否評論一下為什麼 Cisco Webex 試用兩次推遲並推遲到 12 月？

Like any plaintiff in a lawsuit, we are subject to the scheduling of the court as they control the calendar. We are pleased that the court denied Cisco's motion for summary judgment and stated that the trial is expected to be reset for December.

與訴訟中的任何原告一樣，我們必須遵守法院的日程安排，因為他們控制著日曆。我們很高興法院駁回了思科提出的簡易判決動議，並表示審判預計將在 12 月重新開始。

Are you still actively looking at bolt-on acquisitions? Can we expect something by the end of 2023?

您還在積極考慮補強收購嗎？到 2023 年底我們可以期待一些事情嗎？

We are still active and are looking for the right acquisition with our advisors at Roth Capital. And although we'd like to complete something as soon as feasible, we will not rush the process. We are committed to finding a deal that will enhance shareholder value.

我們仍然很活躍，並且正在與 Roth Capital 的顧問一起尋找合適的收購。儘管我們希望盡快完成某件事，但我們不會倉促完成這一過程。我們致力於尋找能夠提高股東價值的交易。

The last question, when will ManyCam be marketed to Paltalk and Camfrog subscribers?

最後一個問題，ManyCam 何時向 Paltalk 和 Camfrog 訂戶銷售？

We recently launched a version of Paltalk that has ManyCam functionality and we continue to message users about the numerous benefits of ManyCam.

我們最近推出了具有 ManyCam 功能的 Paltalk 版本，並且我們將繼續向用戶傳達 ManyCam 的眾多優勢。

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

謝謝。傑森，回到您來結束演示。

Thanks, 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 and our business objectives, patent litigation, and Cisco Webex with the trial now expected to start in the latter part of the fourth 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的進展和業務目標、專利訴訟和 Cisco Webex，目前預計將於第四季度下旬開始審判，以及我們將繼續識別和實施的潛在戰略增值收購。分析。祝你有美好的一天。

Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，您現在可以掛斷電話了。感謝您的參與。