zSpace, Inc.

CFO Eric de Oliveira, and Greg Robles from Investor Relations. Following their remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Robles as he reads the company's safe harbor statements.

Thanks, Operator. Good afternoon, and thank you for joining our conference call to discuss our first quarter 2025 financial results. Before we begin, I'd like to remind everyone that certain statements made on this call may be considered forward-looking statements. These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially. Additionally, we may discuss certain key business metrics, which are non-GAAP financial measures. A description of these non-GAAP measures and any comparison to the most directly comparable GAAP measures can be found in our earnings release on the investor relations section of our website. Now, I would like to turn the call over to the CEO of zSpace, Paul Kallenberger. Paul?

Thank you, and good afternoon, everyone. Thank you for joining us for our first quarter earnings call. I am Paul Kallenberger, CEO of zSpace, and with me is Eric de Oliveira, our chief financial officer. We're both excited to be here with you to discuss zSpace, our Q1 performance, and our plan to drive growth. We are pleased with our first quarter results, which came in ahead of our expectations despite continued turbulence in the broader education market. Revenue for the quarter was $6.8 million, down 14% compared to a year ago. As many of you know, school districts are still navigating funding challenges and delays, which impacted the timing of committed orders and hardware deliveries during the quarter. Despite the year over year decline, we are encouraged by the continued growth in our higher margin software and services business, which increased 11% year over year. This is a critical part of our strategy as we scale our platform with recurring stickier revenue streams. Eric will walk you through the full financials in more detail shortly. On the product front and consistent with what we previously communicated, We've now fully transitioned into shipping our Inspire 2 laptop, which replaces the original Inspire 1. Inspire 2 delivers the same high-impact zSpace experience while driving cost efficiencies for us, helping to protect gross margins even as hardware volumes fluctuate. We also made meaningful progress on expanding our software capabilities through two strategic acquisitions we made in recent months. In March, we announced the completion of our acquisition of BlocksCAD, a cutting edge platform specializing in 3D design and modeling for STEM education. BlocksCAD empowers students to engage with math, coding, and engineering concepts through browser-based 3D modeling. The platform has strong alignment with our mission to promote hands-on project-based learning and is already generating meaningful interest across CTE and workforce development programs. By integrating BlocksCAD into our immersive ecosystem, we're creating more dynamic tools that bring abstract concepts to life and spark creativity in the classroom. Also, in April, we announced our acquisition of Second Avenue Learning, a Rochester-based EdTech innovator known for its custom software development and interactive learning experiences. Second Avenue expands our content capability and brings deep expertise in curriculum aligned digital tools for K-12 and higher education. Importantly, their founder and CEO, Tori Van Hoores, has joined ZSpace as our senior vice president of product strategy. Tori and her team share our commitment to meaningful education outcomes, and their approach to user-centered design will help accelerate our roadmap for immersive and standards-aligned software experiences. Together, these acquisitions reflect our continued focus on enhancing our digital platform, an important long-term growth and profitability lever for the business. In summary, we had a solid quarter amidst a challenging macro backdrop. The first quarter was marked by elevated uncertainty, particularly around federal and state funding programs, as well as ongoing volatility tied to tariffs and policy decisions. While we are starting to see some stabilization as we move through Q2, the environment remains dynamic, and we're staying close to our partners to mitigate any potential disruptions. Despite these challenges, we remain confident in the opportunity ahead, and our solutions continue to gain traction, both in the US and internationally. With that, I'll turn the call over to Eric to walk us through our financial results in more detail.