Paltalk, Inc.

Good day and welcome to the earnings call for Paltalk's second quarter ended June 30th, 2023. At this time, all participants have been placed on a listen-only mode. It is now my pleasure to turn the floor over to your hosts, Jason Katz, Chief Executive Officer of Paltalk, and Cara Jenney, Chief Financial Officer of Paltalk. Cara, the floor is yours.

Hello everyone, and welcome to the PalTalk operating and financial results conference call for the second quarter, June 30th, 2023. By now, everyone should have access to the earnings results press release, which was issued earlier today at the close of market at 4 PM Eastern time. This call is being webcast and will be available for replay. In our remarks today, we will include statements that are considered forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including forward looking statements about future results of operations, business strategies and plans, our relationships with our customers, as well as market and potential growth opportunities. In addition, management may make additional forward looking statements in response to your questions. Forward looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks, uncertainties, and assumptions related to factors that may cause actual results to differ materially from those anticipated in the forward-looking statements. We offer no assurance that these expectations and beliefs will prove to be correct. A detailed discussion of such risks and uncertainties are contained in our filings with the SEC including our most recent annual report on Form 10-K for the year ended December 31st, 2022. You should refer to and consider these factors when relying on such forward-looking information. The company does not undertake and expressly disclaims any obligation to update or alter our forward-looking statements, whether a result of new information, future events, or otherwise, except as required by applicable law. On this call, we will refer to adjusted EBITDA, a non-GAAP measure that, when used in combination with GAAP results, provide us and our investors with additional analytic tools to understand our operations. For adjusted EBITDA, we have provided a reconciliation to the most directly comparable GAAP financial measure in our earnings press release, which will be posted on the investor relations section of our website at paltalk.com. And with that, I would like to introduce PALTUC's Chief Executive Officer, Jason Kass.

Thank you, Kara, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today's call. We will discuss our operating highlights and financial results for the second quarter ended June 30th, 2023. Additionally, we will provide an update on our business and near-term business objectives. After my opening statement, our CFO, Cara Genney, will give a summary of our financial results for the second quarter ended June 30th, 2023. Following our prepared remarks, we will move into the Q&A portion and answer any questions that were pre-submitted prior to this call. With that, I would now like to walk you through the recent highlights and near-term business objectives. We are very pleased with our return to revenue growth and profitability during the second quarter. All of our attention and effort to optimize our platforms and streamline our costs have paid off and improved our foundation. Our infrastructure is capable of supporting additional business, so if we continue to expand revenue, we are confident that it would result in increased profitability. We believe that this business scalability, along with the $13.7 million in cash on our balance sheet at quarter's end, puts us in excellent position. We have already met one of our key objectives for 2023 with our return to increased revenue. Additionally, as we surpass the one-year anniversary of our asset acquisition of Minicam and with the successful integration of Minicam into PalTalk, and our team's effort in developing a new and easier-to-use version, we expect the one-year annual auto renewals of existing ManyCam subscriptions to help contribute to growth in subscription revenue in future periods. While our trial against Cisco was pushed back to an expected trial date in the fourth quarter of 2023, the court recently denied Cisco's motion for summary judgment, and we look forward to continuing to defend our intellectual property. We are proud that we already reached some of our stated near-term business objectives as we achieved almost 12% revenue growth and return to profitability with positive net income during this second quarter. Our additional near-term business objectives are as follows. Leveraging our recently completed integration of the MediCam product into Paltalk product through upselling initiatives. Further optimizing marketing spend to effectively realize a positive return on investment. Developing a new and easier to use version of ManyCam that will be optimized for both consumer and enterprise applications. Continuing to explore strategic opportunities, including but not limited to potential mergers or acquisitions of other assets or entities that are synergistic to our businesses. Continuing to develop our consumer application platform strategy by seeking potential partnerships with large third-party communities to whom we could promote a co-branded version of our video chat products and potentially share in the incremental revenues generated by these partner communities. Continuing to defend our intellectual property. I trust this gives you some insight into the company initiatives we have implemented in order to conserve cash as we look to increase our subscribers and user engagement and return to positive cash flow and profitability to build stockholder value. Now I'd like to pass it to Kara for a financial summary for our second quarter ended June 30th, 2023.