Boardwalktech Software (BWLK) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue was $1.25 million, down 20% year-over-year and 12% sequentially, mainly due to a 48% decline in professional services revenue.

• Strengthened sales and distribution strategy, secured a new credit facility, and hired a new chief marketing officer.

• Expanded business pipeline through teaming agreements with major IT services firms, focusing on partner-led sales.

• Delivery of Velocity solution progressing at a top five U.S. bank, with partner teams doubling in size.

• New opportunities added in sectors beyond financial services, including manufacturing, retail, healthcare, and a large international chemical customer.

Financial highlights

• Q1 FY25 revenue was $1.25 million, down 20% year-over-year and 12% sequentially.

• Professional services revenue declined 48% year-over-year; software and subscription revenue declined 15%.

• Software and subscription licenses comprised 91% of total revenue, up from 85% a year ago.

• Annualized recurring revenue (ARR) at quarter-end was $4.8 million.

• Gross margin was 87.9%, down from 90% a year ago, with expectations to return to 90%+.

• Net loss was $800,000 ($0.01 per share), a 14% improvement year-over-year.

• Adjusted EBITDA loss improved 20% year-over-year to $405,000.

Outlook and guidance

• Management expects recurring license growth and new product deployments to drive further EBITDA improvement toward profitability.

• No specific timeline for breakeven due to limited visibility on large contract closings; guidance remains cautious.

• Pipeline expansion and shorter sales cycles anticipated to support growth in coming quarters.