Paltalk Inc Shares Q1 Results, Sees 12.4% Revenue Decline

Paltalk Inc, the parent company of several video-based social platforms, has released its financial results for the first quarter of 2023. Among its portfolio of brands is Paltalk, Camfrog, ManyCam, and Tinychat.

Looking at the first quarter of 2023 (ending March 31st), compared with the same period last year, Paltalk Inc saw a decline in revenue. The company’s Q1 revenue dropped by 12.4%.

In addition to this, subscription revenue decreased by 12% and advertising revenue dropped by 27.4%. 

“Despite a decline in revenue, we reduced our operating expenses, which enabled us to reduce the cash used in operations by $0.4 million for the three months ended March 31, 2023 compared to the prior year period”, shared Jason Katz, Chairman and CEO of Paltalk.

“We continue to invest in a conservative way, being highly responsible in cash management, even though we ended the quarter with $13.9 million in cash”, Katz continued.

“Our objectives for 2023 are centered on returning to an increase in revenue and building shareholder value. As we approach the one-year anniversary of the addition of ManyCam to our product offering, we expect the one-year annual auto renewals of existing ManyCam subscriptions to help contribute to growth in subscription revenue”, the CEO added.

Looking ahead, the company outlined some near term business objectives. These include expanding the ManyCam product into B2B markets and integrating it as an upsell in the Paltalk platform.

It is also looking to add more gamification into its live video chat, introducing card games, board games, and other features to boost retention and monetisation. Paltalk Inc is also looking at potential mergers or acquisitions that are “synergistic to our businesses”.

Another potential revenue stream the company is considering is partnerships with large third-part communities. This would enable Paltalk to prompt co-branded versions of its video chat products and “potentially share in the incremental revenues generated by these partner communities”.

You can read Paltalk Inc’s full Q1 financial report here.