logo-loader

Paltalk ends 1Q with $20.4M cash as it plans to boost marketing to target subscribers and advertising growth

Published: 16:37 10 May 2022 EDT

Paltalk -
Paltalk also revealed that its advertising revenue rose 5% to $0.1 million during the period

Paltalk (NASDAQ:PALT) Inc announced that it has ended its first quarter of 2022 with a cash balance of $20.4 million as of March 31, as the company said it has begun a plan to increase marketing spend and product development to target subscribers and advertising growth.  

The communications software provider also noted that its advertising revenue rose 5% to $0.1 million during the period even as its subscription revenue slipped 9% to $2.8 million.

“While we are disappointed with the decline in subscription revenue, we attribute this decrease primarily to the easing of COVID-19 restrictions in certain of our target markets,” Paltalk (NASDAQ:PALT) CEO Jason Katz said in a statement.

READ: Paltalk launches its mobile backgammon game

“We believe we have started to lay the groundwork for growth in subscription and advertising revenue. As previously disclosed, we recently began to execute our plan and increase marketing spend and invest in product development,” Katz added.

As well, Paltalk (NASDAQ:PALT) said its team continues to identify and review potential strategic acquisitions to bolster its growth even further.

The company added that it has no long-term debt on its balance sheet.

Paltalk also noted that its 1Q revenue fell 13% to $2.9 million, which it attributed to the decrease in subscription revenue and technology service revenue during the quarter, while swinging to a net loss of $0.7 million, which includes a one-time charge of $0.5 million related to the forgiveness of the proceeds from the Small Business Administration Paycheck Protection Program loan the company received in 2020.

Paltalk is a communications software innovator that powers multimedia social applications. Its portfolio includes Paltalk and Camfrog, which together host one of the world's largest collections of video-based communities. 

Contact Sean at sean@proactiveinvestors.com

ARway.ai announces multiple new SaaS developer contracts in both the United...

ARway.ai (CSE:ARWY, OTCQB:ARWYF) Chief Executive Officer Evan Gappelberg joined Steve Darling from Proactive to announce multiple new SaaS developer sign-ups for its augmented reality experience platform, focusing on AR indoor navigation. These partnerships represent significant milestones in...

51 minutes ago