Core Product Revenue Growth
Core products (HawkSearch Suite and AI) represented 60% of total revenue and grew 17% quarter-over-quarter to $2.4M from $2.0M; trailing 12-month revenue for core products increased to $9.2M from $8.8M.
HawkSearch Share of Subscription Revenue
HawkSearch accounted for 63% of subscription revenue at $2.0M this quarter, up from $1.9M last quarter.
Subscription Revenue Growth and Mix
Total revenue was $3.9M vs $3.8M prior year (+2.6%); subscription revenue rose to $3.2M from $3.0M (+6.7%) and made up 81% of total revenue.
Improved Profitability Metrics
Gross profit increased to $2.6M from $2.5M year-over-year; net loss narrowed to ($0.1M) from ($0.6M) in the prior year period; adjusted EBITDA turned positive at $122K versus (‑$193K) prior-year.
Increasing Customer Value (ARR and Average Subscription)
Average ARR for new customers increased 12% to $28K from $25K quarter-over-quarter; overall average subscription per customer rose to $33K from $30K last quarter and $25K a year earlier.
Strong New License Sales and AI Adoption
Sold 13 new licenses with $1.2M total contract value (including >$350K ARR and $700K professional services); more than half of new license sales included an AI product on initial purchase.
Product Innovation and Releases
Launched Spark (next-gen admin UX with integrated AI/analytics), contextual fields (store-specific pricing/availability), HawkSearch advanced analytics API, and AI content extractor—driving upsell and faster customer adoption.
Healthy Customer Metrics and Pipeline
Net revenue retention for core products was 107% (indicating renewals and expansion), company has 200+ HawkSearch customers, and management targets HawkSearch/core products to exceed 70% of revenue this year and 20% growth for HawkSearch.
Balance Sheet and Debt Profile
Cash balance of $1.5M, accounts receivable $1.6M; total debt limited to EUR 200K (~$236K) at 3.25% and no other contingent liabilities or earn-outs.