Q1 2025 Brand Engagement Network Inc Earnings Call
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Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first Speaker, Susan Xu Investor Relations. Please go ahead.
Operator: Please be advised that today's conference is being recorded.
Susan Xu: I would now like to hand the conference over to your first speaker, Susan Xu, Investor Relations. Please go ahead.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you operator, and good afternoon, everyone. Thank you for joining <unk> Q1, 2025 earnings Conference call. Joining me on today's call are CEO, Paul Cheng and CFO and CFO Walid Chiari. The Companys first quarter results were disseminated disseminated yesterday.
Susan Xu: Thank you, operator and good afternoon, everyone. Thank you for joining Ben's Q1 2025 earnings conference call. Joining me on today's call are CEO Paul Chang and CFO and COO Walid Khiari. The company's first quarter results were disseminated yesterday and are available on the Investor Relations website at www.investors.beninc.ai.
Speaker Change: And are available on the Investor Relations website at Www Dot investors Dot then Inc. Dot AI.
Speaker Change: During this call, we'll make forward looking statements, including statements about our business outlook strategies and long term goals.
Susan Xu: During this call, we'll make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on management's plans, predictions, and expectations as of today, which may change over time. The company's actual results could differ materially due to a number of risks and uncertainties.
Speaker Change: These comments are based on management's plans predictions and expectations as of today.
Speaker Change: Which may change over time.
Speaker Change: The companys actual results could differ materially due to a number of risks and uncertainties for more information about the risks and uncertainties involving forward looking statements and factors that could cause actual results to differ materially from those projected or implied by forward looking statements. Please see the risk there.
Susan Xu: For more information about the risks and uncertainties involving forward-looking statements and factors that could cause actual results to differ materially from those projected or implied by forward-looking statements, please see the risk The Risk Factor is set forth in Ben's most recent annual report on Form 10-K, as supplemented by the risk factors in its most recent quarterly report on Form 10-Q. Forward-looking statements represent management's current estimates, and the company assumes no obligation to update any forward-looking statements in the future.
Speaker Change: Factors set forth in <unk>. Most recent annual report on Form 10-K as supplemented by the risk factors in its most recent quarterly report on Form 10-Q.
Speaker Change: Forward looking statements represent managements current estimates and the company assumes no obligation to update any forward looking statements in the future.
Speaker Change: As a reminder, this call is being webcast from the Investor Relations website, an audio replay will be available on the website in a few hours.
Susan Xu: As a reminder, this call is being webcast from the Investor Relations website. An audio replay will be available on the website in a few hours.
Paul: With that I'll turn it over to Paul to share our Q1 update.
Paul Chang: With that, I'll turn it over to Paul to share our Q1 updates. Over to you, Paul.
Speaker Change: Or to you Paul.
Paul: Thank you Susan good afternoon, everyone and thank you all for joining us today.
Paul Chang: Thank you, Susan. Good afternoon, everyone. And thank you all for joining us today. Q1 marked another step forward for Ben as a as Genitive AI continues to evolve rapidly. The need for secure, scalable and cost effective solutions have never been more urgent. This is where Ben continues to stand apart. While some of the largest models are making headlines for their size, cost, complexity, and unfortunately, for their mistakes. Our focus remains on delivering practical AI that businesses can actually use without the risk of unmanaged responses or uncontrolled user interaction.
Speaker Change: Q1 marks another step forward for then as a business.
Speaker Change: As generative AI continues to evolve rapidly.
Speaker Change: Need for secure scalable and cost effective solutions has never been more urgent.
Speaker Change: This is where it then continues to stand apart.
Speaker Change: While some of the largest models are making headlines for their size cost complexity and unfortunately for their mistakes.
Speaker Change: Our focus remains on delivering practical AI that businesses can actually use.
Speaker Change: Without the risk of unmanaged responses or uncontrolled user interactions.
Speaker Change: The official launch of our ice Sky platform. This quarter has generated strong early traction across multiple industries.
Paul Chang: The official launch of our iSky platform this quarter has generated strong early traction across multiple The message from the market is clear. Businesses want AI that is purpose built with deep expertise and designed to solve real problems, not just demonstrate surface knowledge of various subjects. We built iSky to solve the challenges we kept hearing in the market. large language models that are difficult to trust prone to hallucinations and expensive expensive to deploy at scale. iSkySolves, all of them. combines industry-specific training, a modular architecture, and a lightweight design that gives businesses the rules and controls they demand to be able to service their customers.
Speaker Change: The message from the market is clear.
Speaker Change: <unk> one AI that is purpose built.
Speaker Change: With deep expertise and designed to solve real problems not just demonstrate surface knowledge of various subjects.
Speaker Change: We built ice sky to solve the challenges we kept hearing in the market.
Speaker Change: Large language models that are difficult to trust prone to hallucinations and expensive expensive to deploy at scale.
Speaker Change: Hi, Sky solves all of this it combines industry specific training a modular architecture and our lightweight design that gives businesses the rules and controls they demand to be able to service their customers.
Speaker Change: A major milestone in the quarter and what.
Paul Chang: A major milestone in the quarter end was the launch of our partnership with Swiss Life Global Solutions. a global leader in cross-border insurance and employee benefits. with operations in over 85 countries. and more than $280 billion in assets. Swiss Life partnered with Ben to deliver secure generative AI power solutions across his global network of clients and insurance partners. Our platform will support a range of use use cases, including streamlining sales and enrollment, reducing call center volume. and enhancing member services with self service tools for coverage details, claims and more.
Speaker Change: Was the launch of our partnership with Swiss Slide Global solutions.
Speaker Change: Global leader in cross border insurance and employee benefits.
Speaker Change: With operations in over 85 countries and more than $280 billion in assets.
Speaker Change: Swiss life partner with them to deliver secure generative AI powered solutions across its global network of clients in insurance partners.
Speaker Change: Our platform will support a range of use use cases.
Speaker Change: Including streamlining sales and enrollment.
Speaker Change: Reducing call center volume.
Speaker Change: And enhancing member services.
Speaker Change: With self service tools for coverage details claims and more.
Speaker Change: Subsequent to quarter end.
Speaker Change: We also announced a partnership with seven divisions resort in places.
Paul Chang: subsequent to quarter end.
Paul Chang: We also announced a partnership with Seven Visions Resort and Places, The Diven, an iconic award-winning luxury destination in Eastern Europe. We intend to demonstrate how Bend Secure human like AI can deliver 24 seven service in a hospitality setting, where personalization, trust and speed are paramount. It's a clear example of how our iSky architecture supports rapid configuration and high impact use cases in new verticals.
Speaker Change: Even an iconic award winning luxury destination in eastern Europe.
Speaker Change: We intend to demonstrate how <unk> been secure human like AI can deliver $24 seven service in a hospitality setting where personalization trust and speed are paramount.
Speaker Change: It's a clear example of how our ice Sky architecture supports rapid configuration and high impact use cases and new verticals.
Speaker Change: Additionally, our partnership with Valeo technologies has led to an important project with University of Kwazulu Natal.
Paul Chang: Additionally, our partnership with Valeo Technologies has led to an important project with University of KwaZulu-Natal to co-develop an AI-powered mental health program for students in underserved regions of South Africa. The solution is designed to scale with anonymized insights, enabling institutions to better target support while maintaining full privacy compliance.
Speaker Change: To co develop an AI tower mental health program for students and underserved regions of South Africa.
Speaker Change: The solution is designed to scale with anonymised insights, enabling institutions to better target support while maintaining full privacy compliance.
Speaker Change: In the automotive sector, we continue to develop use cases, not only for the dealers, but now also for large Oems.
Paul Chang: In the automotive sector, we continue to develop use cases, not only for the dealers, but now also for large OEMs. further entrenching Ben's technology with customers who can help scale our As shared last quarter, we signed a definitive agreement to acquire Catenail, a Germany-based media technology company. specializing in ad sales and inventory management for major European broadcasters.
Speaker Change: Further entrenching Ben's technology with customers, who can help scale our solutions.
Speaker Change: As shared last quarter, we signed a definitive agreement to acquire <unk>, a Germany based media technology company.
Speaker Change: Specializing in AD sales and inventory management for major European broadcasters.
Speaker Change: With the extension deadline approaching in June we remain on track and anticipate transforming the AD tech industry.
Paul Chang: With the extension deadline approaching in June, we remain on track and anticipate transforming the ad tech industry. For the first time ever, brands can now manage and control their entire customer journey. from ads to engagement to conversion.
Speaker Change: For the first time ever.
Speaker Change: <unk> can now manage and control their entire customer journey from ads to engagement.
Speaker Change: The conversion.
Speaker Change: While Lee will provide an update on the progress we've made to date.
Paul Chang: Walid will provide an update on the progress we've made to date. and how this acquisition supports our long-term growth strategy. as we move through 2025. We remain focused on executing our strategy. delivering practical, scalable AI solutions, expanding into new verticals, and strengthening our global partnership. while we have demonstrated market validation. We look forward to adding large household names to our list of customers. and begin to deploy our solutions in production environments. We are energized by the traction we're seeing. and confident that our platform, people and partnership position us well for continued growth.
Speaker Change: And how this acquisition supports our long term growth strategy.
Speaker Change: As we move through 2025.
Speaker Change: We remain focused on executing our strategy.
Speaker Change: Delivering practical scalable AI solutions, expanding into new verticals and strengthening our global partnerships.
Speaker Change: While we have demonstrated market validation, we look forward to adding large household names to our list of customers and begin to deploy our solutions in production environments.
Speaker Change: We are energized by the traction we're seeing.
Speaker Change: And confident that our platform people.
Speaker Change: And partnership position.
Speaker Change: Position us well for continued growth.
Speaker Change: With that I'll turn it over to our CFO and COO wildly chiari.
Walid Khiari: With that, I'll turn it over to our CFO and COO, Walid Khiari, for a financial update and the latest on the Cat's Nail Act. Thank you very much, Paul. Hi, everyone. On the financial front, this quarter has been primarily about continuing our efforts to better manage our expenses and rationalize our cost base. We've reduced our general and administrative expenses, our G&A, by close to 50% compared with Q1 of last This is a testament to stronger operational discipline and rigor on the part of the entire band team.
wildly chiari: For a financial update and the latest on the cats nail acquisition.
wildly chiari: Thank you very much Paul Hi, everyone on the financial front. This quarter was primarily about continuing our efforts to better manage our expenses and rationalize our cost base, we've reduced our general and administrative expenses or G&A by close to 50% compared with Q1 of last year.
wildly chiari: This is a testament to stronger operational discipline and rigor on the part of the entire <unk> team as we as a company just celebrated our one year anniversary as a public company and keeps maturing our processes.
Walid Khiari: As we as a company have just celebrated our one year anniversary as a public company and keep maturing our process. allocating as many of our dollars to our product and go to market focus is a priority for me and for the team. Additionally, as you may have noticed, out of our 8k file this morning, we recently secured a $3.5 million line of credit from Core Capital Partners, a Texas based investment This facility provides Ben with additional financial flexibility going On the strategic front, we continue to see market validation for a combination of Ben and Kath Neal.
wildly chiari: Allocating as many of our dollar store product and go to market focus is a priority for me and for the team.
wildly chiari: Additionally, as you may have noticed out of our 8-K filed this morning, we recently secured a $3 $5 million line of credit to core capital partners, a Texas based investment firm. This facility provides <unk> with additional financial flexibility going forward.
wildly chiari: On the strategic front, we continue to see market validation for a combination of Ben and Kevin here.
wildly chiari: For end customers in the media and advertising space. The combination would provide the ability to create awareness for their products and services and help them engage naturally with their targeted audiences.
Walid Khiari: For end customers in the media and advertising space, the combination would provide the ability to create awareness for their products and services and help them engage naturally with their targeted audience.
wildly chiari: From an operational standpoint, among many features on Caf newest platform one product set is particularly valuable.
Walid Khiari: From an operational standpoint, among many features on Capno's platform, one product set that's particularly valuable. It's Ad Inventory Management Solution, which could feed BEM's engagement AI platform with the ready content with which to engage customers. In summary, Ben is getting smarter by operating gaining financial flexibility, and continuing to prepare to integrate its plan first acquisition. Together, these initiatives are strengthening our financial foundation, expanding our product capabilities and positioning us to create long term value for customers and shareholders.
wildly chiari: AD inventory management solution, which could key bends engagement AI platform with a ready content with which to engage customers.
wildly chiari: In summary, Ben is getting smarter about operating costs, gaining financial flexibility and continuing to prepare to integrate its planned first acquisition. Together. These initiatives are strengthening our financial foundation, extending our product capabilities are positioning us to create long term value for our customers and shareholders with that I'll turn it back to the operator for Q&A.
Operator: With that, I'll turn it back to the operator for q&a. Thank you very Thank you. As a reminder, to ask a question, you need to press star one one on your telephone. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster.
wildly chiari: Thank you very much.
wildly chiari: Thank you.
Speaker Change: As a reminder to ask a question you will need to press star one on your telephone to withdraw your question. Please press star one again.
wildly chiari: Please standby, while we compile the Q&A roster.
Speaker Change: And I show. Our first question comes from the line of Jack Kibera from Maxim Group LLC. Please go ahead.
Jack Codera: And I show our first question comes from the line of Jack Codera from Maxim Group, LLC. Please go ahead. Hi, thanks.
Jack Cordero: Hi, Thanks. This is Jack Cordero collagen project bedrock, thanks for taking my questions.
Jack Codera: This is Jack Codera calling in for Jack Aarde. Thanks for taking my question.
Jack Cordero: And then I just wanted to start I know, it's small to date, but what actually contributed to revenue in the quarter was this pilot program or <unk>.
Jack Codera: Um, and I just wanted to start I know it's small today, but what actually contributed to revenue in the quarter was this pilot program or, you know, a small actual production contract?
Jack Cordero: Small actual production contract.
Jack Cordero: Yes.
Jack Cordero: I can take that yes.
Paul Chang: Yep, so I can take that. Yes, all of our pilots are While they're, you know, early in testing for our customers, they are paid pilots. But the scope of the pilot and the duration is somewhat short. So they are contributing to revenue, although not significant just yet.
Jack Cordero: All of our pilots are.
Jack Cordero: While there early in testing for our customers they are paid pilots.
Jack Cordero: But.
Jack Cordero: The scope of the pilot and the duration is somewhat short.
Jack Cordero: So they are contributing to revenue.
Jack Cordero: Although not not significant just yet.
Jack Cordero: Okay.
Jack Cordero: And then.
Jack Cordero: If I could get a little bit more broadly speaking of the various collaborations and you guys kind of highlighted some of the programs pilot programs across auto health care pharma et cetera, do you have any visibility into which these may.
Paul Chang: Okay, and then Unknown Attendee, Jack Aarde, Jack Codera, William Williams, Paul Chang, Susan Xu, Walid Khiari, Brand Engagement Network Unknown Attendee, Jack Codera, William Williams, Paul Chang, Susan Xu, Walid Khiari, Brand Engagement Network Well, I would say, both in healthcare and life sciences, where the pilots have been going on for quite some time, we anticipate some of those to convert into production deployment. And in auto, we got somewhat of a late start in the auto space, but our strong relationships with NOEM, our strong relationships with several large dealership networks, and our current integration with Dealer.com.
Jack Cordero: Lead to say initial production contracts in the near term.
Jack Cordero: Well I would say both in healthcare and life Sciences, where the pilots have been going on for quite some time.
Jack Cordero: Anticipate some of those too.
Jack Cordero: Convert into production deployment.
Jack Cordero: And in auto.
Jack Cordero: Got somewhat of a late start in the auto space, but.
Jack Cordero: Our strong relationships with.
Jack Cordero: And OEM, our strong relationships with several large dealership networks.
Jack Cordero: And our current integration with dealer Dot com.
Jack Cordero: We are actually quite bullish on the automotive space.
Paul Chang: We are actually quite bullish on the automotive space and our ability to launch pilots quickly and then convert those pilots into production. We have a high level of confidence that that could actually occur this calendar year, even though, as mentioned, we got a bit of a late start. We have a lot of momentum behind us and our technology and our offering has been well adopted by some of those early customers.
Jack Cordero: And our ability to launch highlights quickly.
Jack Cordero: Then convert those pilots into production.
Jack Cordero: We have a high level of confidence that that could.
Jack Cordero: Actually occur this calendar year, even though as mentioned we got a bit of a late start we have a lot of momentum.
Jack Cordero: Behind us and.
Jack Cordero: Our technology and our offering has been well adopted by some of those early customers.
Jack Cordero: Okay, that's super helpful.
Speaker Change: If I could ask one more clarification question.
Jack Codera: Okay, that's that's super helpful.
Jack Codera: And you know, if I could ask one more clarification question, you know, it was positive to hear that you've kind of expanded beyond dealers and you found an OAM as well. But, you know, can you give a little bit more clarity? I think in a dealer.com partnership announcement, you mentioned you were finalizing preparation for automotive rollout. Can you give a little bit more granularity as to like, what that means and like what the status of that vertical is?
Speaker Change: Was positive to hear that you've kind of extended beyond dealers and you've found on OEM as well, but.
Speaker Change: Can you give a little bit more clarity I think in a dealer dot com partnership announcement. You mentioned you were finalizing preparation for automotive rollout can you give a little bit more granularity as to like what that means and like what the status of that vertical is.
Speaker Change: Sure Yes.
Speaker Change: Yes so.
Paul Chang: Sure. Yes.
Speaker Change: When we say finalizing our rollout what we've done is we've zeroed in.
Paul Chang: So when we say finalizing our rollout, what we've done is we've zeroed in on a use case that is high value to the dealerships, and also highly relevant and beneficial to the consumer. So some of those functionality have been already tested. We've demoed that solution to dealerships. We've done technical integration which requires live data feed from other sources such as dealer.com. So all of those components needed to deploy the solution at scale has been tested.
Speaker Change: On and use case.
Speaker Change: That is high value to the dealerships.
Speaker Change: And also.
Speaker Change: Highly relevant and beneficial to the consumers.
Speaker Change: So some of those functionality has been already tested.
Speaker Change: <unk> demo that solution to dealerships, we've done technical integration, which requires a live data feed.
Speaker Change: From other sources, such as dealer Dot com.
Speaker Change: So all of those components.
Speaker Change: Components needed to deploy this solution at scale.
Speaker Change: It's been tested.
Speaker Change: Now in the process of deploying it for handful of dealers.
Paul Chang: We are now in the process of deploying it for a handful of dealers as a pilot. So that is in a great position.
Speaker Change: As a pilot.
Speaker Change: So that is in a great position.
Speaker Change: And then working with a very large OEM.
Paul Chang: And then working with a very large OEM, they're looking at slightly different use cases that provide benefit for themselves and the dealerships across the regions. And they are very excited about moving those use cases forward as well, which would benefit the OEMs but ultimately benefit the dealers as well.
Speaker Change: They are looking at slightly different use cases.
Speaker Change: That provide benefit for themselves and the dealerships across the regions.
Speaker Change: And they are very excited about moving those.
Speaker Change: Use cases forward as well which would.
Speaker Change: Benefit the Oems, but ultimately benefit the dealers as well.
Speaker Change: Okay. That's super helpful color. Thank you.
Jack Codera: Okay, that's super helpful, Culler. Thank you.
Speaker Change: Thank you.
Speaker Change: I'm showing no further questions in the queue at this time I would like to turn the call back to Paul Cheng CEO for closing remarks.
Operator: I'm showing no further questions in the queue.
Paul Chang: At this time, I'd like to turn the call back to Paul Chang, CEO, for closing remarks. Thanks very much. Thank you everyone for joining us today. We are incredibly excited about our accomplishments to date. but more so about the upcoming future opportunities. We look forward to continuing to keeping you up to date on our progress in this exciting market. Thank you very much. Thank you.
Speaker Change: Okay.
Paul Cheng: Thanks very much.
Paul Cheng: Thank you everyone for joining us today.
Paul Cheng: We are incredibly excited about our accomplishments to date.
Paul Cheng: But more so about the upcoming future opportunities.
Paul Cheng: We look forward to continuing to keeping you up to date on our progress in this exciting market.
Paul Cheng: Thank you very much.
Paul Cheng: Thank you. This concludes our conference call today. Thank you for participating you may now disconnect.
Operator: This concludes our conference call today. Thank you for participating. You may now disconnect.