Services lift sales while platform revenue declines
TEN Holdings reported third-quarter revenue of $640,000, up 17.9% from $543,000 a year earlier, in its November 6 results release. The Nasdaq-listed company provides software and services for enterprise digital events.
Platform usage revenue fell 12.8% to $428,000. Professional and managed services revenue rose to $212,000 from $52,000. The total revenue increase therefore does not mean that platform usage revenue grew.
Write-off and legal costs increase the loss
The net loss widened to $3.734 million from $1.987 million. Selling, general and administrative expenses increased to $4.113 million from $2.185 million. TEN attributed much of that increase to a $1.8 million write-off of capitalized service contracts and about $0.5 million in legal expenses.
Gross profit declined to $379,000 from $405,000, with the gross margin falling to 59.2% from 74.6%. The company said a higher number of on-site events increased its cost of revenue.
The subscription transition remains a plan
Management continues to target a subscription-based SaaS model around its TEN platform, which launched earlier in the year. Planned AI, automation and integration capabilities remain subject to development.
Cash and cash equivalents stood at $3.5 million on September 30, down from $5.8 million at June 30. Third-quarter operating cash outflow was $2.7 million. These figures help distinguish the company’s recurring-revenue ambitions from its current sales mix, losses and cash use.
