Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intellinetics Inc (INLX, Financial) reported a 9.8% growth in SaaS revenue, driven by early successes in payables automation.
- The company achieved its biggest single order intake week in years, with over $2.4 million in new project contracts.
- Consolidated gross margin increased by 322 basis points to 67.6%, indicating improved profitability.
- Intellinetics Inc (INLX) is investing in sales and marketing, as well as IT infrastructure, to accelerate growth and enhance customer trust.
- The company has a strong pipeline with significant orders from state agencies and commercial clients, expected to drive revenue in the coming months.
Negative Points
- Total revenue for Q1 2025 decreased by 5.8% compared to the same period last year.
- Professional services revenue declined by 13.2%, attributed to timing issues and delays in project execution.
- Operating expenses increased by 21.1%, primarily due to investments in sales and marketing, impacting short-term profitability.
- The company reported a net loss of $728,000 for Q1 2025, compared to a net loss of $175,000 in the same period last year.
- Loss per share increased to $0.17 from $0.04, reflecting higher spending levels and reduced EBITDA.
Q & A Highlights
Q: Congratulations on continuing to move fast forward. You mentioned 77 new customers in the first quarter. How many implementations will you have, and what would those implementations mean in terms of annual recurring revenue?
A: We will have about 22 to 23 customers using the SaaS product, the payables automation. However, I don't have the exact recurring revenue figures at the top of my head.
Q: How is the implementation of the purchase orders side of the equation progressing?
A: We released our first purchase order at the end of April and have already done 4 or 5 presentations. The feedback has been positive, and although it's a first release, we have a development roadmap to enhance it further.
Q: Are you seeing any customer hesitation in stretching out the timing of implementations, or is that fear behind us?
A: The hesitation is more related to market conditions, such as tariffs and high interest rates affecting the building industry, rather than any reluctance to adopt our product.
Q: With the new orders coming in on the professional services side, are those relatively stable margin opportunities?
A: Yes, definitely. We had a dip due to a delay in a significant project, but with recent orders, we have over $3 million of work in our queue, which should help get our numbers back to historical levels.
Q: Do you still have around 600 K-12 customers that you serve?
A: Yes, and we have launched our payables automation and capture as a service solution in this market. We've already started selling and have received positive feedback, including a testimonial from an Independent School District in Iowa.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
