Welcome, everyone, and thank you for joining us today. My name is Scott Powell, President of Skyline Corporate Communications Group, LLC. Skyline Corporate Communications Group, LLC provides strategic investor relations and corporate communications advisory services to public and late-stage private companies globally. Our team has worked with hundreds of U.S.-listed public companies from around the globe across diverse industries and various market caps. Please visit our website at www.skylineccg.com. Skyline Corporate Communications Group, LLC is pleased to welcome you to its proprietary branded webinar event, the Skyline Signature Series. We are very pleased to have our client, TEN Holdings Inc., presenting today the technology company behind TEN, a digital experience platform for creating, producing, engaging, marketing, and measuring digital experiences, which is listed on the Nasdaq stock market under ticker symbol XHLD. We hope you will find today's webinar informative and engaging.
The Skyline Signature Series provides public companies with a convenient and effective forum to communicate their story to a diverse audience of carefully curated and selected financial professionals through these live webinars. The information presented on today's webinar is not to be construed as an offer to sell nor a solicitation of an offer to purchase any securities. Before I turn the floor over to TEN Holdings Inc., I would also like to point you to our 17(b) disclaimer and disclosure statement. Skyline Corporate Communications Group, LLC will receive compensation from TEN Holdings Inc., Nasdaq ticker symbol XHLD, for providing investor relation services relating to TEN Holdings Inc. securities, including the preparation and distribution of this flyer and for hosting this virtual company presentation today. Skyline's fee is disclosed at skylineccg.com/disclosures, which disclosure is in accordance with Securities and Exchange Commission Rule 17 subsection B or 17(b).
TEN Holdings Inc., Nasdaq ticker symbol XHLD, headquartered in New York, is a technology company built around TEN, a digital experience platform for creating, producing, engaging, marketing, and measuring digital experiences, beginning with enterprise events, webinars, and continuing education. TEN scales up to 50,000 concurrent attendees and is backed by more than a decade of experience producing mission-critical corporate broadcasts for Fortune 500 clients. The company plans to expand TEN beyond events and webinars, including AI and automation, landing pages, integration, engagement, reporting and analytics, and content studio. There can be no assurance as to the timing or availability of these capabilities. To learn more, please visit the company's website at www.tenholdingsinc.com. After TEN Holdings' formal presentation, you will have the chance to ask questions during the Q&A session. Please type your questions into the Q&A box at the bottom center of your Zoom screen.
On our conference call today, we have Mr. Virgilio Torres, who is the CEO of TEN Holdings Inc. I would now like to turn the floor over to CEO Virgilio Torres. Virgilio?
Thanks, Scott. Appreciate it.
Welcome.
Thanks, everyone, for joining. I will now go ahead and share my screen. Awesome. Let's get started. Just before I get going, I would like to just give everyone a little background just on me personally. If you take a look at me and my career, it is kind of a tale of two stories. My career first started as a banker. The first half of my career, I spent that as a banker raising capital for companies for M&A. Throughout that time, I probably raised about $1 billion working with companies such as AT&T, Walmart, Volkswagen, and other companies that are not as well known. The second half of my career, I spent it as an operator building and scaling finance teams, raising capital on the debt and equity side, building, acquiring companies, and taking companies through exits.
Now as we kind of shift over to our company itself, TEN Holdings, as the name states it, we are a holdings company, and under the holdings company, we just have one operating company, which is called TEN Events. What we do as a product, we offer subscription services and managed services solutions from a technology perspective. When you think about it, what does this mean? If you are the CEO of PricewaterhouseCoopers and you want to deliver your quarterly town hall to 50,000 of your employees at one time, he uses our technology to be able to create and distribute this experience to his employees, and with our solution at one time in multiple different languages. This is primarily one of the services that we offer.
Here, I just want to highlight our management team and some of the logos that we have been able to recruit some of our top talent here at TEN Holdings and TEN Events. A little bit of our journey and where we have begun. For example, TEN Holdings started in 2011, and between 2011 and 2021, we operated independently. However, at that point, we were acquired by a corporate entity called V-Cube, and between 2021 and 2025, we operated under the umbrella of this organization. Then we were actually spun out and went public on the Nasdaq February of 2025. The proceeds during this time, we raised $10 million. Half of that were used to pay down debt, and the rest were used for operating capital. Most recently, we actually did a secondary offering, and we raised $7.5 million.
This offering, we said that we were going to use for product enhancement. When you think about our company and what we have done over the last 12 months, number one is we reduced $2.5 million of operating expenses from the P&L. We remain relatively active in the capital markets. We have raised over $14 million from multiple investment vehicles, whether it's an ELOC, whether it's a PIPE or the most recent public offering. The most exciting thing is probably the launch of our TEN platform, which has allowed us to transition the business from a managed service provider into a technology company. When I think about the business between now and the next three to six months, what is going to be our focus? The focus is going to be, one, to continue to transition the business from a managed service provider into a SaaS organization.
What this is going to do, it's going to fully change the way that the market is going to look at TEN Holdings from a valuation standpoint going forward. Two, we need to continue to remain competitive in the marketplace, so we need to continue to invest in our product and in our platform. Three, we are an acquisition strategy. We do plan to grow in two facets. One is by converting the business into a SaaS technology platform, but two is to grow inorganically through our acquisition strategy. We are going to be heavily focused to determine how we're going to grow that way. From an organic standpoint, TEN, the whole point of our platform is we want to make sure that our customers use our platform every day. How are we doing this?
We are making sure that we create a content studio and that our platform connects directly to our customer CRM, so they understand what their end customer is doing on a daily basis, and they have real-time data analytics. At the same time, we have been doing this for a very long time. Again, we were founded in 2011, and we have been doing this for over 15 years. Throughout that time, we understand the dos and don'ts, and we have been able to create the best practices in the industry and have been able to deliver this to our clients over this period of time. Because of that, it just makes perfect sense for us to transition our business into a SaaS organization because our clients have been so sticking for such a long time. It would just create healthy SaaS KPIs long term.
As we move into our acquisition strategy, what are the things that we're looking to do? I had mentioned before that we had removed $2.5 million from our P&L in expenses. That is expected to push us into profitability in 2027. As part of our acquisition strategy, the goal is to continue to look into accretive acquisitions that will continue to drive the growth of the company, so both on the revenue and on the EBITDA side. Number two is to look for products that our sales team can continue to scale and grow. Three is to look for technology that is complementary to the IP that we already have as an organization. When you look at TEN Holdings and what makes us a compelling investment opportunity, number one is the transition of the organization from a managed service provider into a SaaS organization.
Again, this will fully transition the way the market is going to be looking at us from a valuation standpoint. Number two is the growth that we are going to achieve as we start executing on our acquisition strategy. The third thing is we continue to have strong market interest from investors in the capital markets. As this continues, when you look at our organization today, this is a great time to look at TEN Holdings and to become part of the TEN Holdings family. Again, this was a very short presentation, but I think I did want to leave a lot more time for questions because there's a lot that has happened over the last couple of months that I'm sure a lot of investors have a lot of questions that they would like to get answered.
I will pass it back on to Scott for questions.
Sounds good. Thanks, Virgilio, for a great presentation. As a reminder to the audience, if anyone has a question for the company, you can put it into the chat box, which is in the bottom center of your screen. Or if you wanted to text me directly, because I know some of you know me, and if you wanted to do that's fine as well. Or if you want to ask a live question, you could raise your hand and we can unmute you. But the easiest way is to just type your question into the Q&A box at the bottom center of your screen. We'll just wait maybe 30 seconds for questions to come in. Virgilio, maybe we'll just kick it off. Okay, let's see. We have, okay, one question has come in.
The question, Virgilio, is, can you talk about whether your company expects to transition to an AI model too?
From an AI model, from an AI perspective, the company is using AI internally to streamline a lot of its operations, especially on the engineering perspective. A lot of the savings that we capitalized already in 2025 and in 2026 has been because of the AI. We reduced a lot of our headcount, especially on the engineering side. Because of AI, we have been able to expedite a lot of our product development and platform development because of AI. We wouldn't become an AI organization, but the company is using AI for cost reduction and for product enhancement and to expedite things as fast as they can, like many other organizations.
Similar to that, Virgilio, a question that we had prepared in advance is similar to that one, and it's, TEN built its reputation on white glove event production. What is driving the shift to a SaaS platform, and why is now the right time for that shift?
Yeah. Given the fact that our clients have been with us for a very long time and they continue to do business with us, it kind of just makes perfect sense to transition the business into a SaaS model. Similar to what I mentioned in our presentation, that would drive really healthy SaaS KPIs because the clients are very repetitive. It's just not in a SaaS model format. Given the fact that now we are offering a SaaS model solution, it just gives them a different way to do business with us that it's easier for them and it's easier for us, and it just creates a healthier way even for us to just forecast the business going forward. We have been able to also create a platform for them to use versus having them to just come to us on a need basis.
They can just continuously go into this platform even without us and host their own webinars or events or CPE trainings, which makes them a lot more self-sufficient.
Thanks, Virgilio. We'll get to this one next. I want to stay on the same theme for consistency. The next question, Virgilio, is how is the SaaS offering different from the larger event tech platforms, and who is your ideal customer?
The SaaS offering is a little bit different than the larger customers. It's because we are a little bit. Because we are smaller, we are able to customize our offerings a lot more than the bigger guys. A lot of people go to the Zooms or the ON24s because that seems to be what the standard is. But a lot of customers want a little more customization in how they want to present to their bigger audiences. Companies like us are able to really customize the experience for them, and that's kind of what they're looking for.
That's why a lot of them do come to us because we are able to, on top of just offering the white glove service, even within the SaaS platform, we're able to really create customizable solutions versus just signing up to a subscription with a bigger provider, and then that's kind of what you get. You're not able to do much. This allows us to continue to get a lot more business from customers, and we continue to sign bigger contracts and bigger deals. We have seen that growth over the last couple of months.
Thanks, Virgilio. Just a couple questions about cash and finance. We know the company recently raised capital, so how does that support the company's growth roadmap? Anything else you can talk about in terms of capital allocation policy or strategy for finance acquisition.
When we raised the $7.5 million, we did say that those funds were going to be used for product development and either small M&A acquisitions. We did come through on the first part, which is product development, which is we used those funds to develop and create the TEN platform. Now the goal is to continue to enhance that platform while we continue to look for M&A opportunities in the marketplace, whether it's big or small acquisitions, as part of our roll-up strategy. We remain relatively active in that space, and when we find a good opportunity to acquire something, we will come into the capital markets, hopefully to either raise money if it's something larger or use the capital that we have to make that acquisition happen.
Okay. Thanks, Virgilio. Then kind of staying on finance and things like that, the next question is, you have optimized the cost structure. What changes did you make? How should investors think about the path to margin improvement and margin growth?
Yeah. Again, we took out $2.5 million from the P&L. The goal right now where we have the business, we are very close to cash breakeven. We wanted to make sure that the business itself, as the one operating company, got to breakeven or positive as close as possible. From my finance background, that was my main goal when I took over the helm back in May of 2026. That has been where we have been operating to over the last six months. Now our focus is, since we have hit those targets, primarily is now focused on the top line and how can we continue to grow revenue over the next three to six to 12 months, really, with larger SaaS contracts.
Then along those lines of quarterly revenue and revenue growth, there's another question that's come in about if you could talk about Q2 revenue. Did some of expected Q2 revenue get deferred into Q3? Then maybe overall, just maybe you could talk about sort of seasonality and any lumpiness or the payment terms with customers and clients and things like that in terms of how revenue comes in, gets deferred, when is it recognized, and so on and so forth.
Yeah. Revenue this year has been a little lumpy, especially as the business itself has been transitioning from managed service into SaaS because the way that revenue is recognized. From managed service, you fully capitalize the revenue at once. When you look at SaaS revenue, it is amortized over 12 months, so you are actually recognizing less revenue over the period of time, over the course of the year. You will see a slight decline in revenue in those periods because it is now being amortized over 12 months. You are slightly seeing that transition happen in 2026.
However, as you kind of start pushing out into later years and your entire book of business is now being fully transitioned into a SaaS model, which we expect that to happen in 2027, things will eventually start to normalize, and you will start to have a healthier book of business from a revenue perspective going forward. That is where we expect to be in 2027.
Thanks, Virgilio. How should investors think about this revenue mix between services and recurring SaaS revenue over the next 12-24 months?
Since the transition is still happening right now, the percentages are still more geared towards the managed service than SaaS. We have slowly started making the transition into SaaS. I would expect as we look into this same period next year, the percentages will be fully reversed and a small percentage of our business will be managed service with a greater percentage of our business than being SaaS. The goal is ultimately to be 80/20. There is always going to be a percentage of our business that will be managed service because some clients are still going to want that white glove service as part of their overall business. We still will offer that. However, most of the revenue still is going to come from the overall platform.
Okay. Thanks, Virgilio. As a reminder to the attendees, if anyone has a question, feel free to pop it into the Q&A or the chat boxes that you'll see at the bottom of your screen, or if anyone prefers to message me directly, that's fine as well. We'll just pause a few more seconds to see if any additional questions come in. All right. Virgilio, maybe as we wrap up, because I know we've given you a lot of questions. Cover a lot of ground. Without obviously disclosing anything too sensitive, what should investors be looking for? What is the company's growth strategy over the course of, there's only a couple of months left in this year, but as you move into 2027, what should investors be expecting in terms of growth strategy, inorganic versus organic growth, technological offerings and advancements.
What should investors look towards as the company continues its growth trajectory?
Yeah, especially from the organic side. As you guys can see, we have already started making the transition with the platform, with the SaaS business, and that business is starting to grow. On the inorganic side, we started to make the right steps for the acquisitions, for the capital raising. From a public filing perspective, we filed our S-3 for a $100 million shelf, which will give us the ability to raise money to make the future acquisitions for the inorganic growth that we need to continue to fund the growth of the company going forward. The company is making the right steps to move forward, in the right direction. Those are the cues that we're putting forward into the market for people can see that we are doing what we're saying in a way.
As time progresses, we will continue to do what we say over the course of time, and hopefully over the next couple of weeks, we can continue to provide positive news that will align with our growth strategy.
Thanks, Virgilio. This was a very efficient webinar. We got through the presentation and all the questions in about 30 minutes. I'm not seeing any further questions come through. If you wanted to make any closing statements, Virgilio, then I'll make some closing remarks, and we can let all the investors get back to their lunch and on with their day.
No, I just want to thank everyone for joining. I want to thank Scott and the team for putting this together. Again, this was very short and brief, but TEN Holdings, we have been around for a while. We are doing really great things here internally, and we're trying to change the way that people experience the digital world overall, and we hope that you guys can see that soon.
Great. Thanks. Thanks, Virgilio. And thank you all the investors and members of the financial community that have joined today's Skyline Signature Series Webinar, which featured TEN Holdings Inc. Again, the company is traded on the Nasdaq stock market under ticker symbol XHLD, and their website is www.tenholdingsinc.com. We hope you'll continue to follow the company's story. Please reach out to myself or a member of the Skyline team if you'd like further information on TEN Holdings, if you would like a one-on-one call with management. I'd also like to point out that management will be in New York, Virgilio, in a couple of weeks, mid-November.
If anyone here on the call would like to meet management in person on their New York trip, feel free to reach out to me directly or to a member of the Skyline team directly, and we can discuss a potential meeting with management in New York. Again, thank you for joining. We hope you'll continue to follow the story. Please also join us for future Skyline Signature Series events, which we'll announce via press releases and through our social media channels. Thank you again, everyone, for joining today's TEN Holdings webinar, and enjoy the rest of your day. Thank you all for attending.