PAID, Inc. Reports 5% Revenue Growth but Net Loss of $148,773 in Q1 2025

PAID, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $4.38 million, a 5% increase from $4.16 million in the same period last year. The growth was primarily driven by the shipping coordination and label generation services segment, which saw a revenue increase of 5% to $4.35 million. However, the client services segment, which includes brewery management software, experienced a significant decline, with revenues dropping 72% to $2,034 due to the cancellation of several clients and limited marketing efforts. The eCommerce services segment also showed strong performance, with revenues rising 117% to $29,617, attributed to the success of the PaidShipping service.

Despite the increase in revenue, PAID, Inc. reported a net loss of $148,773 for the quarter, compared to a net income of $299,562 in the first quarter of 2024. This shift to a loss was influenced by a 12% rise in operating expenses, totaling $1.18 million, largely due to increased marketing expenditures. The gross profit for the quarter was $1.02 million, slightly up from $1.01 million in the previous year, but the gross margin decreased to 23% from 24%.

The company's balance sheet as of March 31, 2025, showed total assets of $7.85 million, down from $8.44 million at the end of 2024. Current assets decreased significantly, primarily due to a reduction in cash and cash equivalents, which fell to $751,099 from $1.28 million. Total liabilities also decreased to $3.01 million from $3.41 million, reflecting a reduction in current liabilities. Shareholders' equity stood at $4.83 million, down from $5.03 million, with an accumulated deficit of $69.02 million.

Operationally, PAID, Inc. continues to focus on its SaaS-based offerings, including PaidPayments, PaidCart, PaidShipping, and PaidWeb, which are designed to streamline business operations for small and medium enterprises. The company is actively pursuing growth opportunities, particularly in the Canadian market, where it generates approximately 99% of its revenue. The management has indicated plans to enhance marketing efforts and explore new product launches to drive future growth.

Looking ahead, PAID, Inc. remains cautious about its financial outlook, acknowledging the challenges posed by ongoing losses and the need for strategic adjustments. The management believes that with adequate cash resources and potential repayments from notes receivable, the company can sustain operations over the next 12 months. However, they also recognize the uncertainty surrounding future growth and profitability, emphasizing the importance of effective execution of their business strategies.