Paltalk Inc (NASDAQ:PALT) said it has finished 3Q with a strong cash position of $15.5 million as the company has reduced its operating expenses quarter-over-quarter to align with the current macroeconomic conditions.
Operational highlights for the quarter included the signing of corporate customers for ManyCam subscriptions, advancing the business-to-business channel, and progress in optimizing ManyCam integration.
Paltalk CEO Jason Katz said the company anticipates that subscription revenue related to ManyCam will increase in future quarters as the deferred revenue generated from ManyCam subscriptions is recognized.
READ: Paltalk ends 2Q with $16M cash; seeks further merger and acquisition opportunities
“Our product team continues to optimize our acquisition of the ManyCam software to not only maximize subscription revenue but to integrate and cross-sell with our existing customer base and explore business-to-business sales opportunities,” Katz said.
Katz also noted the company’s success in decreasing its operating expenses in 3Q compared to the previous quarter, which resulted in a 1% decline in Paltalk’s overall expenses.
“Our reduction in expenses and efforts to streamline business efficiencies was ongoing throughout the third quarter, and we expect this trend to continue into the fourth quarter,” he said.
“We continue working with Roth Capital Partners LLC to explore strategic opportunities, including, but not limited to, potential mergers or acquisitions of other assets or entities that are synergistic to our business.”
For the three months ended September 30, 2022, the company reported revenue of $2.6 million, compared to $3.4 million in the year-ago quarter.
The company said this was attributable to a 19% decrease in subscription revenue related to the macroeconomic environment as well as a decrease in technology service revenue as a result of the termination of Paltalk’s partnership with Open Props Inc.
Paltalk posted a net loss of $1.1 million or $0.11 per share for the quarter, compared to a net loss of $0.4 million or $0.05 per share for the same period in 2021.
Paltalk is a communications software innovator that powers multimedia social applications.
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