TEN Holdings Reported Q1 Revenue Of $739K, Down By 34.5% YoY, Adj EPS Loss Of $(0.05)
Benzinga
20 May
Financial Results
The Company reported total revenue of $739,000 for the first quarter of 2025, a decrease of $389,000, or 34.5%, from revenue of $1,128,000 in the first quarter of 2024. The decrease in revenue was due to the following factors:
a.) Revenues from Delivered events – Virtual and Hybrid events business segment decreased by $368,000, mainly due to an event series with the Company's largest customer that took place in the first quarter of 2024 and repeats every other year.
b.) Revenue from Delivered events – Physical events business segment decreased by $21,000, mainly due to two customer events from the first quarter of 2024 that did not repeat in the first quarter of 2025.
Cost of revenue in the first quarter of 2025 decreased by $97,000, or 34.3%, over the same period last year, to $186,000, reflecting the lower direct costs associated with the lower corresponding revenue.
Gross profit margin for the first quarter of 2025 was nearly unchanged at 74.8% compared to 74.9% in first quarter of 2024.
Selling, general and administrative expenses increased by $3,960,000, or 328.4%, to $5,166,000, mainly due to the recognition of stock compensation expense of $3,512,000 in connection with the vesting of employee stock options from the IPO, marketing expenses from brand and performance-related expenditure, and increased payroll expenses.
Interest expense was $69,000 in the first quarter of 2025 compared to $26,000 in the first quarter of 2024.
Net loss for the first quarter of 2025 was $4,836,000, or $(.18) per share, compared to a net loss of $405,000, or $(.02) per share, in the first quarter of 2024. The increase in net loss was due primarily to the rise in SG&A expenses in the first quarter of 2025 compared to the first quarter of 2024.
Non-GAAP loss for the first quarter of 2025, which excludes stock-based compensation expense, was $1,324,000, or ($.05) per share, compared to a non-GAAP loss of $405,000, or ($.02) per share, in the first quarter of the previous year.
Weighted average number of common shares outstanding was 27,058,113 for the first quarter of 2025 and 25,000,000 for the first quarter of 2024.
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