Total Revenue

–1% (from $88.15M in Q1 2024 to $87.14M in Q1 2025)

Total Revenue remained nearly flat due to offsetting changes: modest Corporate growth counterbalanced by a decline in the SoHo segment. This follows the previous period’s pattern where Corporate gains partially mitigated SoHo declines. " "

Corporate Segment

+5.7% (from $51.39M in Q1 2024 to $54.29M in Q1 2025)

Corporate revenue improved significantly due to continued momentum from strategic initiatives that drove growth in Q1 2024 and further accelerated in Q1 2025, underscoring resilient performance in this segment. " "

SoHo Segment

–10.6% (from $36.75M in Q1 2024 to $32.85M in Q1 2025)

SoHo revenue experienced a sharper decline as planned adjustments—such as reduced advertising spend and a shift in pricing strategy—continued to impact this segment, building on the decline observed in FY2024. " "

Geographic Breakdown – Ireland

–15% (from $3.174M in Q1 2024 to $2.702M in Q1 2025)

Revenue in Ireland dropped markedly, indicating adverse market or local economic factors that were not offset by other regional or segment improvements; the decline is significant compared to other areas. " "

Profitability (Net Income)

~–20% (from $26,370K in Q1 2024 to $21,152K in Q1 2025)

Net income fell steeply, reflecting the combined impact of a revenue mix weighted toward lower-margin segments and higher operational costs, despite some benefits such as reduced tax expenses and cost control measures in prior periods. " "

Tax Impact

–32% (from $9,923K in Q1 2024 to $6,723K in Q1 2025)

Income tax expense declined significantly, likely due to a lower taxable income base and possibly improved tax management compared to Q1 2024, assisting in cushioning the overall net income decline. " "

Liquidity (Cash and Equivalents)

–13% (from $61,511K in Q1 2024 to $53,399K in Q1 2025)

Liquidity weakened, as evidenced by lower cash balances, which can be attributed to reduced cash flow from operations tied to lower revenues and increased working capital needs, following trends observed in previous periods. " "

Share Count

Stable at ~19.69M weighted average in Q1 2025

The share count remained relatively stable in Q1 2025, reflecting routine transactions and the absence of significant equity events following a notable increase in FY2024 due to share-based compensation and restricted stock vesting. "

Revenue

Q1 2025

no prior guidance

$87 million "

no prior guidance

Adjusted EBITDA

Q1 2025

no prior guidance

$46.3 million "

no prior guidance

Adjusted EPS

Q1 2025

no prior guidance

$1.31 "

no prior guidance

Estimated Share Count

Q1 2025

no prior guidance

20 million shares "

no prior guidance

Tax Rate

Q1 2025

no prior guidance

19.5%-21.5% "

no prior guidance

Revenue

FY 2025

no prior guidance

$350 million "

no prior guidance

Adjusted EBITDA

FY 2025

no prior guidance

$185 million "

no prior guidance

Adjusted EPS

FY 2025

no prior guidance

$5.22 "

no prior guidance

Estimated Share Count

FY 2025

no prior guidance

20 million shares "

no prior guidance

Tax Rate

FY 2025

no prior guidance

21.5% "

no prior guidance

Corporate Revenue Growth

Q2 2024: Revenue at $51.7M with a 2.7% increase and stable ARPA. " " Q3 2024: 5.3% growth to $53.1M driven by new customer additions and strong healthcare usage. " " " Q4 2024: 7.1% YoY growth leading to $52.9M in revenue along with improvements in retention and customer count (~59,000). " " "

Q1 2025: Record corporate revenue of $54.3M, a 5.6% YoY increase; driven by increased Cloud Fax usage in healthcare, advanced product adoption, and onboarding 3,700+ new corporate accounts. Retention at 101% and a growing base (~60,000). " " "

Consistent growth: The narrative consistently emphasizes revenue increases, with Q1 2025 building on past momentum through improved retention, diversified growth drivers, and robust customer acquisition.

Advanced Solutions Adoption (Clarity)

Q2 2024: Positive sentiment with robust interest and an expanding POC backlog. " Q3 2024: Noted significant customer interest in deploying Clarity with AI. " Q4 2024: Mixed sentiment – strong demand and promising POC projects offset by the complexity in deployment and current limitations in scope. " "

Q1 2025: Only positive sentiment was reported. The focus was on increasing adoption and broader usage of AI-driven advanced solutions (Clarity) that complement the core solutions and contribute to corporate revenue growth. " "

Sentiment improvement: Previously mixed due to deployment challenges, the sentiment in Q1 2025 has become uniformly positive, reflecting increased confidence and broader adoption of Clarity.

Customer Acquisition and Retention

Q2 2024: Corporate channel added 2,700 customers via eFax Protect and upsell; SoHo channel saw strategic pricing adjustments leading to modest churn improvements. " " " Q3 2024: Corporate channel reached a record 58,000 accounts with steady ARPA; SoHo channel demonstrated revenue declines but with improvements in churn through new pricing plans. " " " " Q4 2024: Record corporate customers (~59,000) and improved revenue retention (100.5%) alongside optimized SoHo acquisition via digital advertising and SEO. " " "

Q1 2025: The corporate customer base grew to a record 60,000 with a 9% YoY increase driven by eFax Protect and SoHo-to-corporate upsell, and improved retention (101% revenue retention). Investments in hiring for sales and customer success further reinforce these efforts. " "

Positive momentum: The focus on customer acquisition and retention remains strong across periods with continuous record-setting customer counts and improved retention metrics, complemented by strategic hires and effective digital initiatives.

Government & VA Rollout/FedRAMP Certification

Q2 2024: Detailed discussion of the ongoing VA rollout covering 2,200 sites with a near-term revenue contribution expected around $2M for 2024 and growth anticipated for 2025. " Q4 2024: Mention of VA rollout generating ~$2.5M last year and an expected contribution of ~$5M in 2025; no mention of FedRAMP. " " " Q3 2024: No discussion.

Q1 2025: The VA rollout is progressing with significant momentum, supported by the recently achieved FedRAMP High certification. Although the certification is unlocking renewed public sector interest, the tangible financial impact is expected beyond 2025. " " "

Continued acceleration: The topic remains a priority with ongoing rollout efforts now bolstered by FedRAMP certification; near-term revenue impact stays modest but the long-term potential appears enhanced.

Hospital Sector Engagement and Challenges

Q2 2024: Hospitals facing mixed conditions – some showing positive staffing trends and cost management, while others (e.g. Steward Health) were distressed; opportunities noted for cost optimization. " Q3 2024: Discussion by Johnny Hecker on diverse performance with “green shoots” in specialty and multi-location providers, even though larger clients had slow conversions. " Q4 2024: No specific mention.

Q1 2025: Hospitals mentioned in the context of potential higher supply costs due to tariffs, though these tariffs had no significant effect on demand or the company's cost structure. "

Stable yet evolving: While engagement challenges remain and new cost concerns (tariffs) are mentioned, the overall sentiment toward the hospital sector remains cautiously optimistic with adjustments in focus rather than a major shift.

Strategic Go-to-Market Investments and Margin Pressure

Q4 2024: The company discussed ramping up strategic investments in sales headcount and reallocating marketing funds from SoHo to corporate initiatives. Investments were planned on an incremental basis (approx. $1M per quarter) with an awareness of maintaining EBITDA margins. " Q3 2024: Indirect mentions via upsell strategies; no explicit focus on margin pressure. Q2 2024: No specific discussion.

Q1 2025: Continued strategic investments were noted, including strengthening e-commerce and upmarket sales with new hires in sales, onboarding, and customer success. Despite robust EBITDA margins (54.2%), the company remains cautious about margin pressure and economic downturns. " "

Ongoing focus with caution: The company continues to invest strategically to drive future growth while carefully monitoring margins, reflecting a balanced approach between expansion and cost management.

Extended Sales Cycle Impact

Q4 2024: Extended sales cycles for upmarket deals were discussed in detail—sales cycles ranging from 6-12 months, with additional ramp periods post-sale, making full revenue impact a multi-year process. " " Q3 2024 & Q2 2024: Not mentioned.

Q1 2025: There is no mention of extended sales cycle impact.

No current discussion: While it was a notable topic in Q4 2024, it is not mentioned in the current period, suggesting it is no longer a pressing focus for management.

Political, Regulatory, and Macro Uncertainty

Not mentioned in Q2, Q3, or Q4 2024 earnings calls.

Not mentioned in Q1 2025 earnings call.

Absent: This topic has not been a focus in any of the recent periods.

Healthcare IT Talent Shortage

Q2 2024: Johnny Hecker highlighted challenges in hiring IT staff for hospitals despite improvements in clinical staffing, noting that the talent shortage in IT remains a concern. " " Q3 2024 & Q4 2024: Not discussed.

Q1 2025: There is no mention of a Healthcare IT talent shortage.

Disappeared: Previously discussed as a challenge, this topic is not mentioned in the current period, indicating it is no longer a prioritized concern.