Business
Paltalk, Inc. Reports First Quarter Financial Results
Commenced Plan to Increase Marketing Spend and Product Development to Target Subscribers and Advertising Growth Cash Balance of $20.4 Million at Quarter End
About this update from Intelligent Protection Management Corp.
[{"type":"text","content":" Commenced Plan to Increase Marketing Spend and Product Development to Target Subscribers and Advertising Growth Cash Balance of $20.4 Million at Quarter End Jericho, NY, May 10, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Paltalk, Inc. (“Paltalk,” the “Company,” “we,” “our” or “us”) (Nasdaq: PALT), a leading communications software innovator that powers multimedia social applications, today announced financial and operational results for the first quarter ended March 31, 2022. Key Financial Highlights for First Quarter Ended March 31, 2022 Compared to Prior Year Period Revenue decreased 13% to $2.9 million, due to the decrease in subscription revenue and technology service revenue in the first quarter of 2022Subscription revenue decreased 9% to $2.8 millionAdvertising revenue increased 5% to $0.1 millionNet loss of $0.7 million compared to net income of $0.9 million; the first quarter of 2021 includes a one-time charge of $0.5 million related to the forgiveness of the proceeds from the Small Business Administration Paycheck Protection Program loan (the “PPP loan”) the Company received in 2020Adjusted EBITDA of $(0.5) million compared to Adjusted EBITDA of $0.5 million; the decrease in Adjusted EBITDA was primarily due to decreased revenue, increased marketing expenses and increased product development expensesCash balance at March 31, 2022 of $20.4 million Business Highlights for the First Quarter Ended March 31, 2022 Selected yellowHEAD, an AI-powered performance marketing company, to lead the Company’s increased marketing efforts for its Camfrog application;Partnered with NoGood, a growth marketing firm, to accelerate user acquisition for the Company’s Paltalk application; Partnered with Hive Automated Content Moderation Solutions to roll out new content moderation software for increased user experience; The Board of Directors of the Company approved a stock repurchase plan for up to $1.75 million of the Company’s common stock, which was effective March 29, 2022 and expires on the one-year anniversary of such date; and Subsequent to quarter end, the Company launched a mobile backgammon game with interactive real-time voice and video. Management Commentary Jason Katz, Chairman and CEO of Paltalk, commented, “While we are disappointed with the decline in subscription revenue, we attribute this decrease primarily to the easing ...