Intelligent Protection Management (IPM) Q4 2024 earnings summary

Executive summary

• Completed acquisition of Newtek Technology Solutions and divested Paltalk, Camfrog, Vumber, and other communication software assets in January 2025, shifting focus to cloud infrastructure and cybersecurity sectors.

• Transition expected to drive revenue growth and provide new opportunities, with a re-energized team and expanded business objectives; future results will focus on managed technology solutions and ManyCam.

• Secured a $65.7 million jury verdict in a patent infringement lawsuit against Cisco, with final judgment entered in October 2024; actual proceeds are uncertain and subject to appeal and legal fees.

• Eligible for future earn-out payments from Meteor Mobile based on divested assets' performance, with potential payments through 2028.

Financial highlights

• Q4 2024 revenue from continuing operations increased 9.1% to $0.3 million; full-year revenue from continuing operations rose 14% to $1.1 million.

• Including discontinued operations, total revenue for the year decreased 17% to $9.1 million; Q4 total revenue fell 21% to $2.1 million, mainly due to lower subscription and virtual gift revenue.

• Q4 net loss from continuing operations increased 142% to $1.4 million; full-year net loss from continuing operations rose 59% to $4.3 million.

• Full-year net loss increased 690% to $8.4 million; Adjusted EBITDA loss was $4.4 million, up 338% year-over-year.

• Ended 2024 with $10.6 million in cash and no long-term debt.

Outlook and guidance

• Focused on integrating IT solutions, expanding managed technology offerings, cross-selling ManyCam, and optimizing cross-selling, especially in cloud infrastructure and cybersecurity.

• Anticipates growth through new customer acquisition, referral arrangements, and potential M&A opportunities, leveraging a referral arrangement with NewtekOne.

• Plans to incorporate AI features into secure private cloud offerings to expand services.