LANGHORNE, Pa., March 28, 2025 /PRNewswire/ -- TEN Holdings, Inc. (NASDAQ:XHLD) ("TEN Holdings" or the "Company"), a provider of event planning, production, and broadcasting services, today announced its full year 2024 financial results.
"Fiscal year 2024 was a building year for our business, as we worked to develop a pipeline of new strategies and markets that we can grow over the next few years. During the year, we invested in research and development and capital expenditures to prepare to execute on our growth initiatives. By working towards strengthening and enhancing our customer relations, expanding the scope of the Xyvid Pro Platform, and the integration of a new platform-as-a-service (PaaS) model, I am confident that we will build a solid foundation that is necessary to capitalize on our competitive strengths to provide revenue and margin performance to drive value for our shareholders," commented TEN Holdings Chief Executive Officer, Randolph Wilson Jones III.
Business Highlights
- The Company initiated preparations for its initial public offering ("IPO") in 2024, successfully completing the IPO on February 18, 2025, with the Company's securities now trading on the Nasdaq Stock Market under ticker symbol "XHLD."
- For the year ended December 31, 2024, nine of our top ten customers, in terms of our revenue, were repeat customers.
- The Company reengineered it's go-to-market strategy with the addition of a new sales executive, realignment of its sales force, and by enhancing demand generation initiatives through industry conferences and digital advertising campaigns to drive engagement.
- The Company began the development of its new platform-as-a-service (PaaS) model to drive recurring revenue streams.
Earnings Results
- The Company reported fiscal year 2024 total revenues of $3.5 million, down 5.8% from $3.7 million in fiscal year 2023. The decrease was due to the following factors:
a.) Revenues from the delivered events – Virtual and Hybrid business segment decreased by approximately $306,000, mainly due to a 2023 event that did not repeat in 2024.
b.) Revenue from the delivered events – Physical business segment increased by approximately $91,000, mainly due to a corporate restructuring which resulted in the addition of a full year of activity during the year ended December 31, 2024.
c.) During the year ended December 31, 2023, the Company only reported revenue from "delivered events – physical" in June through December of 2023.
- Cost of revenue in fiscal year 2024 increased by approximately $97,000, or 17.5%, over the same period last year, to approximately $652,000, due to higher outsourced labor costs associated with physical events and a singular hybrid event that required significant third-party production and labor costs.
- Gross profit margin for fiscal year 2024 declined by 3.7% to 81.4% from 85.1% in fiscal year 2023, due to a decrease in revenues and higher labor expenses.
- Selling, general and administrative expenses increased by approximately $648,000, or 13.7%, to approximately $5.39 million in fiscal year 2024 compared to $4.74 million in fiscal year 2023, mainly due to accounting and professional service expenses, computer and software related expenses, and increased payroll expenses due to the addition of key members of the management team.
- Research and development expenses were $128,891 in fiscal year 2024 compared to $105,885 in fiscal year 2023.
- Interest expense was $210,000 in fiscal year 2024 compared to $52,000 in fiscal year 2023.
- Net loss for fiscal 2024 increased to $2.97 million compared to $1.69 million in fiscal year 2023, due to lower revenues and higher expenses.
- Net loss per share attributable to shareholders for fiscal year 2024 was ($0.12) compared to ($0.07) in fiscal year 2023.
Selected Balance Sheet and Cash Flow Results
- As of December 31, 2024, the Company had total cash of approximately $48,000 compared to $357,000 in fiscal year 2023.
- Net cash used in operating activities increased from approximately $266,000 in fiscal year 2023 to approximately $2.48 million in fiscal year 2024. The increase in cash outflow was primarily due to the higher loss in fiscal 2024.
- Capital expenditures for fiscal year 2024 was $1.04 million compared to $1.07 million in fiscal year 2023, due to the acquisition of computer hardware, equipment and capitalized software.
Company Outlook
- TEN Holdings plans to promote future business growth by strengthening customer relationships, improving customer loyalty, and increasing marketing and sales efforts with additional investment in digital marketing and sales team expansion.
- The Company plans to continuously enhance the proprietary Xyvid Pro Platform by introducing new interactive features to boost attendee engagement, integrating advanced data analytics tools for real-time insights and comprehensive event reporting, and improving the platform's scalability and flexibility.
- TEN Holdings is planning to launch a new platform-as-a-service (PaaS) model, empowering customers to independently utilize the Company's advanced technology through a recurring revenue model. Management anticipates that this strategic expansion will broaden the customer base, enhance market reach, and generate sustainable recurring revenue streams.
- The Company plans to identify, invest in, partner with, and acquire appropriate businesses that offer complementary and strategic advantages to enhance overall competitiveness and growth.
About TEN Holdings, Inc.
The Company is a provider of event planning, production, and broadcasting services headquartered in Pennsylvania. The Company mainly produces virtual and hybrid events and physical events. Virtual and hybrid events involve virtual and hybrid event planning, production and broadcasting services, and continuing education services, all of which are supported by the Company's proprietary Xyvid Pro Platform. Physical events mainly involve live streaming and video recording of physical events. To learn more, visit www.tenholdingsinc.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the Company's registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and other SEC filings. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and TEN Holdings, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE TEN Holdings, Inc.