Release Date: November 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you clarify if the investments in the IP PM network were fully made in Q3, and were they customer-driven or internally driven? How should we expect gross margins to trend going forward? A: The investments were a combination of customer feedback and internal decisions. In the IP proxy network market, continuous investment is necessary to maintain a fast and reliable network. The goal is to maintain current gross margins unless a unique opportunity arises that may temporarily impact them. However, any short-term impact would be offset by long-term growth and improved margins. - CEO
Q: Regarding the Fortune 200 customer win, how expansive is the deal, and is there potential for further expansion over the next year or two? A: The deal is significant, and the customer has started with lower traffic to evaluate the system. The plan is to potentially triple the traffic, which would directly impact revenues. The engagement is initially for six months, with the expectation of renewal and expansion. - CEO
Q: Could you provide an update on the pace of business development and any changes observed as we progress through Q4? A: Business development is proceeding as usual, with no significant changes to report. We have projected Q4 revenues to be around $7.5 million, plus or minus 3%. - CEO
Q: How is the website unlocker priced, and what factors drive customer expansion? A: The pricing model is similar to the IP PM, based on duration, usage, and bandwidth or request amount. We are still refining the best pricing model for scalability, but currently, it is based on bandwidth and duration. - CEO
Q: Can you discuss the warrants that expire at the end of 2025, including the number and exercise prices? A: There are approximately 240,000 warrants, representing less than 3% of the total fully diluted equity. The exercise prices are around $33 and $12, with some being in or close to the money and others far out of the money based on current share prices. - CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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