The decrease in net loss was due to the increase in subscription revenue and the reduction of operating expenses. Adjusted EBITDA for the three months ended September 30, 2023, decreased by 83.8% to adjusted EBITDA loss of $0.1 million compared to adjusted EBITDA loss of $0.8 million for the three months ended September 30, 2022. Cash and cash equivalents totaled $13.7 million at September 30, 2023, a decrease of $1 million compared to $14.7 million at December 30, 2022, and the company had no long-term debt on its balance sheet at September 30, 2023. Now turning to the year-to-date nine months ended September 30, 2023. Total revenue for the nine months ended September 30, 2023, increased by 1.1% to $8.3 million compared to $8.2 million for the nine months ended September 30, 2022.
The increase in revenue was attributed to an increase in subscription revenue. Loss from operations for the nine months ended September 30, 2023, decreased by 44.8% or $1.3 million to a loss of $1.6 million compared to a loss of $2.9 million for the nine months ended September 30, 2022. The decrease in loss from operations was primarily attributable to an increase in revenue and reduced operating expenses in connection with the implementation of operating efficiencies. Net loss for the nine months ended September 30, 2023, decreased by 73.1% or $2.1 million to $0.8 million compared to a net loss of $2.9 million for the nine months ended September 30, 2022. The decrease in net loss was attributed to an increase in revenue and decreases in operating expenses as well as increase in other income in connection with the company’s recording of a refundable employee retention tax credit.
Adjusted EBITDA loss for the nine months ended September 30, 2023, decreased by 63.7% or $1.4 million to an adjusted EBITDA loss of $0.8 million compared to an adjusted EBITDA loss of $2.2 million for the nine months ended September 30, 2022.
A – Kara Jenny: We will now move on to the questions that were previously submitted. The first question, what is driving subscription revenue growth and is it sustainable? What percent of growth comes from existing subscribers spending more time and money on your platform, for example, ManyCam or is it reflective of new subscribers and new room topics?
Jason Katz: We attribute the revenue growth to better revenue per user from existing registered users and more efficient use of paid acquisition of new users. While we don’t provide financial data on our products separately, I can tell you that ManyCam has an enterprise use case, and we are working very hard to develop and grow that opportunity.
Kara Jenny: Second, can you comment on why the Cisco Webex trial has been delayed again and pushed out to May of 2024?
Jason Katz: Like any plaintiff in the case, we are subject to the scheduling of the court as they control the calendar. We do know we are now #1 on the calendar for our date in May, so we don’t expect any further delaying.
Kara Jenny: The third question, can you provide any more specific color on your acquisition strategy, what you were looking for and how active you are looking and engaged with potential targets?
Jason Katz: We remain active, and we are constantly reviewing opportunities. Our pipeline of opportunities continues to be strong as we generate leads internally and externally with our investment banking partner, Roth Capital. In addition to that, we now believe our newly appointed Director, Geoff Cook, will also bring us valuable M&A insights. We believe that current market conditions position us well for potential M&A activities. This remains a priority as we are committed to finding a deal that will enhance shareholder value.
