Q4 2022 Paltalk Inc Earnings Call

Speaker 1: retention and monetization, which collectively are intended to increase user engagement and revenue opportunities. Additional technology enhancements and features and games such as our gaming lobby are all intended to increase retention, usage and revenue. I would also like to take this time to update everyone on our patent infringement lawsuit against WebEx Communications Inc., Cisco WebEx LLC, and Cisco Systems Inc., and the U.S. Court for the Western District of Texas. As we have previously disclosed, a Markman hearing took place on February 24, 2022. On September 7, 2022, the United States Patent Office issued a reexamination of U.S. 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 U.S. patent number 6683858. The trial is now scheduled for early third quarter of 2023.

Speaker 1: Our cash position as of December 31, 2022 remains strong at $14.7 million, which we believe puts us in a good position as we seek a return to profitability.

Speaker 1: We plan to continue to develop our consumer application platforms and defend our intellectual property.

Speaker 1: of which we will continue to provide updates when publicly available.

Speaker 1: Pursuant to our stock repurchase plan that authorizes us to repurchase up to $1.75 million of the company's common stock, we repurchased 604,808 shares of the common stock during the year ended December 31, 2022 at an average price per share of $1.65.

Speaker 1: or an aggregate amount of approximately $998,000.

Speaker 1: I trust this gives you some insight into the company and issues that we have implemented in order to conserve cash as we look to increase our subscribers and use our engagement and return the positive cash flow and profitability to build stockholder value.

Speaker 1: Now I'd like to pass it to Cara for a financial summary of our fourth quarter and full year ended December 31, 2022.

Speaker 2: Thank you, Jason.

Speaker 2: Our results of operations for the three months ended December 31, 2022 were as follows. Revenue for the three months ended December 31, 2022 decreased to $2.8 million compared to $3.1 million for the three months ended December 31, 2021.

Speaker 2: Of note, our quarterly revenue of $2.8 million reported in the fourth quarter of 2022 increased sequentially from $2.6 million reported in the third quarter of 2022.

Speaker 2: Lost from operations for the three months ended December 31, 2022, increased by approximately 800,000 to a loss of 800,000 compared to income from operations of 10,000 for the three months ended December 31, 2021.

Speaker 2: Net loss for the three months ended December 31, 2022, increased by approximately half a million dollars to a loss of approximately half a million dollars compared to a net loss of $5,000 for the three months ended December 31, 2021. Adjusted EBITDA for the three months ended December 31, 2022.

Speaker 2: for the full year ended December 31, 2022.

Speaker 2: Revenue for the year ended December 31, 2022 decreased to $11 million compared to $13.3 million for the year ended December 31, 2021. This decrease was mainly driven by a decrease in subscription revenue and advertising revenue.

Speaker 2: In addition, there was no technology service revenue reported for the year ended December 31, 2022 as a result of determination of our partnership with Open Props Inc, formerly known as UNAL. Laws from operations for the year ended December 31, 2022 increased by 4.2 million to a law of 3.7 million.

Speaker 2: compared to income from operations of half a million for the year ended December 31, 2021.

Speaker 2: Net loss for the year ended December 31, 2022 increased by $4.7 million to a loss of $3.4 million compared to net income of $1.3 million for the year ended December 31, 2021.

Speaker 2: Adjusted EBITDA for the year ended December 31, 2022 decreased by $3.9 million to an adjusted EBITDA loss of $2.6 million compared to positive adjusted EBITDA of $1.3 million for the year ended December 31, 2021.

Speaker 2: Cash and cash equivalents totaled $4.7 million at December 31, 2022, a decrease of $5.9 million compared to $21.6 million at December 31, 2021. And currently, the company has no long-term debt on its balance sheet.

Speaker 2: We will now move to on to the questions that were previously submitted.

Speaker 2: the questions that were previously submitted. The first question.

Speaker 2: Nice to see the sequential increase in quarterly revenue. Any color on the driving factory.

Speaker 1: As I mentioned, as we approach the one-year anniversary of the ManyCam product to our offering, we anticipate that subscription revenue related to ManyCam will increase in future quarters as deferred revenue generated from those subscriptions is recognized.

Speaker 2: Our second question.

Speaker 2: With $14.7 million in cash,

Speaker 2: Still, will you renew or expand your share buyback program?

Speaker 1: Our current share buyback plan actually expires March 29th and at that time the board will reevaluate the buyback.

Speaker 2: Jason, back to you to close out the presentation.

Speaker 1: 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 in our business initiatives, pending patent litigation against Cisco WebEx and potential strategic accretive acquisitions, which we continue to identify and analyze.

Speaker 3: Have a great day. Thank you everybody. 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.