Executive Summary

Q1 2023 revenue was $20.862M, up 2% year over year but down ~31.6% sequentially vs Q4 2022; EBITDA fell to $0.658M and the company posted a GAAP net loss of $0.345M .
Management highlighted strong demand for the digital content platform (Cortex), which contributed $15.752M of Q1 revenue, while noting typical Q1 seasonality and improving trends in the Gix Media search platform .
Operating swung to a small loss (-$76K) vs operating income in Q1 2022, driven mainly by higher G&A tied to the September 2022 reorganization (~$290K incremental in Q1 2023 vs Q1 2022) .
Non‑GAAP metrics remained positive (Adjusted EBITDA $0.688M; Non‑GAAP net income $0.337M), reflecting add‑backs for share-based comp and acquisition-related items .
No Wall Street consensus estimates or earnings call transcript were available to benchmark beats/misses or capture Q&A; comparisons focus on sequential and year-over-year performance .

What Went Well and What Went Wrong

Strong contribution from digital content platform: $15.752M of Q1 revenue, supported by “impressive growth in demand” for Cortex’s solutions .
Management tone constructive on search platform, citing a “trend of EBITDA improvement” at Gix Media’s search business, supporting forward momentum .
Operating cash flow inflected positive in Q1 ($12K) vs a large outflow in Q1 2022 (-$1.950M), demonstrating improving cash conversion despite softer sequential revenue .

Sequential revenue contracted sharply vs Q4 2022 ($20.862M vs $30.488M), consistent with seasonality but weighing on EBITDA and profitability .
Operating income deteriorated to a small loss (-$76K) vs income in Q1 2022 ($219K), with higher G&A linked to the Gix Media reorganization (~$290K incremental) as a key driver .
EBITDA declined year over year ($0.658M vs $0.805M), reflecting cost pressure and mix; GAAP net loss widened to -$0.345M vs -$0.149M in Q1 2022 .

Metric (USD)	Q3 2022	Q4 2022	Q1 2023
Revenue ($M)	$22.778	$30.488	$20.862
Operating Income (Loss) ($M)	$0.427	$1.319	-$0.076
EBITDA ($M)	$1.163	$2.077	$0.658
Adjusted EBITDA ($M)	$1.281	$2.153	$0.688
GAAP Net Income (Loss) ($M)	$0.071	$1.147	-$0.345
Non‑GAAP Net Income ($M)	$0.844	$1.896	$0.337
EPS (Diluted)	$(0.01)	n/a	$(0.03)

Margin	Q3 2022	Q4 2022	Q1 2023
EBITDA Margin %	5.1% (calc: 1.163/22.778)	6.8% (calc: 2.077/30.488)	3.2% (calc: 0.658/20.862)
EBIT (Operating) Margin %	1.9% (calc: 0.427/22.778)	4.3% (calc: 1.319/30.488)	-0.4% (calc: -0.076/20.862)
Net Income Margin % (GAAP)	0.3% (calc: 0.071/22.778)	3.8% (calc: 1.147/30.488)	-1.7% (calc: -0.345/20.862)

Metric (USD)	Q1 2022	Q1 2023	YoY Change
Revenue ($M)	$20.435	$20.862	+2%
Operating Income (Loss) ($M)	$0.219	-$0.076	Decline (driven by ~$0.290M higher G&A from reorg)
EBITDA ($M)	$0.805	$0.658	-18%
Adjusted EBITDA ($M)	$0.806	$0.688	-15%
GAAP Net Loss ($M)	-$0.149	-$0.345	-132% (more negative)
Non‑GAAP Net Income ($M)	$0.371	$0.337	-9%
Net Cash from Operations ($M)	-$1.950	$0.012	Positive inflection

Segment	Q1 2023 Revenue ($M)
Digital Content (Cortex)	$15.752
Other (including Search)	$5.110 (calc: total minus digital content)

KPI	Q3 2022	Q4 2022	Q1 2023
Net Cash from Operations ($M)	$1.577	$1.062	$0.012
Traffic Acquisition Costs ($M)	$19.464	n/a	$17.981
TAC as % of Revenue	85.4% (calc: 19.464/22.778)	n/a	86.2% (calc: 17.981/20.862)

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	Q1 2023 / FY 2023	n/a	No guidance provided in the Q1 2023 press release/8-K	Maintained “no formal guidance” stance

Note: No explicit revenue, margin, OpEx, OI&E, tax rate, or segment guidance was disclosed in the Q1 2023 8‑K press release .

No Q1 2023 earnings call transcript was available; themes compiled from press releases across quarters .

Topic	Previous Mentions (Q3 2022, Q4 2022)	Current Period (Q1 2023)	Trend
Digital Content platform (Cortex) demand and revenue mix	Acquisition synergy; strong growth and record revenue levels in 2022	“Impressive growth in demand”; $15.752M from digital content in Q1	Positive; sustained mix toward content
Search platform profitability	Q3/Q4 noted EBITDA improvement and operating income growth	Management cites continued EBITDA improvement trend	Gradual improvement
Seasonality	Not explicitly emphasized	Q1 characterized by lower activity volume vs average	Seasonally softer Q1 acknowledged
Strategic M&A / expansion	Cortex acquisition highlighted; intent to pursue opportunities	Maintains forward-looking posture on growth and profitability	Ongoing exploration
Cash generation	Strong OCF in Q3/Q4	OCF turned positive vs large outflow LY	Improving vs prior year, softer sequentially

“We continue to witness a growth in demand for our digital content platform’s solutions… With the trend of EBITDA improvement reported in Gix Media’s search platform as well, we are looking forward to the upcoming quarters.” – CEO Amihay Hadad, Q1 2023 .
“The acquisition of Cortex and the continued focus on our main activities have been instrumental in driving our growth… we plan to continue to pursue strategic opportunities…” – CEO Amihay Hadad, FY/Q4 2022 .
“We entered the field of digital content through a purchase that has proven itself… and it is our intention to continue [to] pursue opportunities to leverage our growth.” – CEO Amihay Hadad, Q3 2022 .

No Q1 2023 earnings call transcript or Q&A was available in the filing repository; commentary is limited to the press release content .
As a result, no additional guidance clarifications or tone changes from analyst Q&A can be assessed for Q1 2023 .

Wall Street consensus (S&P Global) for Q1 2023 EPS, revenue, and EBITDA was unavailable due to retrieval limits; therefore, beat/miss analysis vs consensus cannot be provided at this time [GetEstimates error].
If/when consensus becomes available, comparisons would likely focus on the ~31.6% sequential revenue drop vs Q4 and the swing to operating loss, balanced by positive non‑GAAP metrics and content platform demand .

Revenue mix remains anchored by the digital content platform ($15.752M in Q1), with management highlighting sustained demand; watch for continued content-led growth into seasonally stronger quarters .
Sequential softness vs Q4 is notable and largely seasonal; the magnitude pressured EBITDA margin to 3.2% and EBIT to a slight loss—monitor cost discipline and mix recovery in Q2 .
G&A inflation tied to the Gix Media reorganization (~$290K) was a specific headwind to operating income year over year; expect lap of these effects to support margin normalization later in 2023 .
Cash conversion improved materially year over year (OCF +$12K vs -$1.950M); sustaining positive OCF through higher-activity quarters could be a key catalyst for sentiment .
Non‑GAAP profitability remained intact (Adjusted EBITDA $0.688M; Non‑GAAP net income $0.337M), underscoring underlying earnings power when excluding share-based and acquisition-related items .
Search platform EBITDA improvement is a potential incremental lever; evidence of continued gains there, alongside content growth, could drive a margin and EPS recovery narrative .
With no formal guidance or available consensus benchmarks, near-term trading likely hinges on sequential trajectory into Q2 and updates on segment momentum and cost normalization in upcoming disclosures .