The following is a summary of the Paltalk, Inc. (PALT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• In Q3 2024, Paltalk reported a revenue of $2.1 million, decreasing by 23.4% from the previous year.

• Operating loss for the quarter increased by 333% to $1.7 million from the previous year's loss of $0.4 million, attributed to decreased subscription revenue and increased professional fees.

• Net loss increased by 731.2% from the previous year, totaling $1.5 million.

• Adjusted EBITDA for Q3 2024 showed a loss of $1.4 million, a significant increase from the previous year's $0.1 million loss.

Business Progress:

• Paltalk is focusing on enhancing its ManyCam software and defending its intellectual property.

• The company has signed an agreement to acquire Newtek Technology Solutions and sell its telecommunications services, transitioning Paltalk towards a focus on technology solutions.

• The acquisition is poised to triple Paltalk's revenue, as NTS's revenue in 2023 was approximately three times greater than Paltalk's.

Opportunities:

• The acquisition of Newtek Technology Solutions represents an entrance into the cloud infrastructure and cybersecurity sectors, presenting significant growth opportunities.

• NTS offers services in heavily regulated industries such as financial services and healthcare, which are growth areas for technology infrastructure.

Risks:

• Increased losses and expenses related to acquisitions and divestitures may impact financial stability if not managed effectively.

More details: Paltalk IR

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