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TEN Holdings, Inc. Unveils Financial Results for FY 2024

March 28, 2025, marked a critical moment for TEN Holdings, Inc. (Nasdaq: XHLD) as the company shared its full-year financial results for 2024. Recognized for their expertise in event planning, production, and broadcasting services, TEN Holdings has embarked on an ambitious journey to fortify its market position and expand its reach.

Key Developments Made in 2024

The fiscal year of 2024 has been deemed a foundation-building period for TEN Holdings. The company's CEO, Randolph Wilson Jones III, highlighted the focus on establishing new strategies and exploring emerging markets that promise growth. Significant investments were channeled into research and development and capital expenditures, aligning with their strategic goals. Jones remarked, "By enhancing customer relations and expanding the capabilities of our Xyvid Pro Platform, we are laying down a solid foundation to leverage our competitive strengths for better revenue and margins."

Highlights from the Year

• - IPO Completion: A significant milestone, TEN Holdings successfully completed its initial public offering on February 18, 2025. The company’s shares are now listed on the Nasdaq Stock Market under the ticker symbol XHLD.
• - Customer Loyalty: Impressive customer loyalty was observed as nine out of the top ten clients contributing to revenue were repeat customers.
• - Revised Market Strategy: The company revamped its market approach by reengineered sales strategies. They added new sales executives, realigned their sales force, and enhanced their outreach through industry events and targeted digital marketing campaigns.
• - PaaS Development: The development of a new platform-as-a-service (PaaS) model began, aiming to create sustainable revenue streams.

Financial Results at a Glance

TEN Holdings reported total revenues reaching $3.5 million for fiscal 2024, a decline of 5.8% compared to the previous year's $3.7 million. This downturn was largely attributed to the cancellation of a 2023 event that did not repeat in 2024. However, revenues from the physical events segment saw an increase of around $91,000 due to a corporate restructuring that enhanced operational capacity throughout the year.

Costs and Profitability

The cost of revenue rose by approximately $97,000, marking a 17.5% increase from the prior year, primarily due to increased outsourced labor costs connected to physical events. There was a noticeable decline in the gross profit margin, which fell from 85.1% in 2023 to 81.4% in 2024, reflecting the interplay of reduced revenues and rising labor costs.

Operating expenses surged by approximately $648,000 to around $5.39 million, primarily due to elevated accounting, professional service expenses, and higher payroll costs from new management hires. The net loss broadened to $2.97 million, compared to $1.69 million in the previous fiscal year, with a corresponding increase in net loss per share from ($0.07) to ($0.12).

Cash Flow and Financial Health

As of December 31, 2024, TEN Holdings maintained total cash reserves of approximately $48,000, down significantly from $357,000 in 2023. The company's net cash used in operating activities saw a substantial rise, moving from $266,000 to $2.48 million, indicating a cash outflow due to the escalated losses.

Investment in Growth

Looking ahead, TEN Holdings is focused on fostering growth through enhanced customer engagement and loyalty. They plan to boost marketing efforts and expand the sales team, heavily investing in digital marketing strategies. The team aims to continually innovate the Xyvid Pro Platform with new features to enrich user experience and drive better data analytics.

Moreover, the new PaaS model has the potential to empower clients, providing them with technological capabilities offered by TEN Holdings, all under a subscription model. This is expected to attract a broader customer base and generate reliable revenue streams.

TEN Holdings' ambition includes identifying strategic partnerships and pursuing acquisitions that will add complementary strengths, further solidifying its market presence.

About TEN Holdings

Headquartered in Pennsylvania, TEN Holdings is a provider of event planning, production, and broadcasting solutions. The company specializes in virtual, hybrid, and physical events, leveraging their proprietary Xyvid Pro Platform to enhance service delivery and client satisfaction. For more information, visit www.tenholdingsinc.com.