Remark Media, Inc. (NASDAQ:MARK) Q1 2019 Earnings Conference Call Transcript
May 09, 2019 • 04:30 pm ET
Good afternoon, everyone. Welcome to Remark Holdings' First Quarter 2019 Earnings Conference Call. My name is Ebony, and I will be your operator today. Joining us for today's presentation are Remark Holdings' Chairman and CEO, Shing Tao; and Interim CFO, Alison Davidson. Following their remarks, we will open the call for questions from the company's institutional investors and analysts.
Some of the statements made today may be forward-looking statements. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements reflect Remark Holdings' current views, and Remark Holdings expressly disclaims any obligation to update or revise any forward-looking statements after the date hereof. This disclaimer is only a summary of Remark Holdings' statutory forward-looking statements disclaimer, which is included in full in its filings with SEC.
Also please note that the company uses financial measures not in accordance with generally accepted accounting principles, commonly known as GAAP, to monitor the financial performance of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported financial results as determined in accordance with GAAP. To support the company's views of adjusted EBITDA, later in this call, a reconciling table is provided at www.remarkholdings.com, and a similar reconciling table will be included in the company's Form 10-Q filed with the SEC.
I will now turn the call over to Chairman and CEO, Shing Tao. Sir, please proceed.
Thank you, operator. Good afternoon, everyone, and thank you for joining us today. After the market closed, we issued a press release announcing our results for the first quarter ended March 31st, 2019. We reported first quarter revenues of $19.5 million, up from $16.7 million last year. Our AI business delivered on projects amounting to $1.3 million, with $0.4 million recorded during the quarter, and an additional $0.9 million delivered but with revenue recognition deferred.
For year-over-year comparison purposes, please note that last year's result benefited from our FinTech initiatives in the lending industry, a business that was off to a successful launch before it was impacted by the changes in the lending regulatory environment in China. In addition to retail, we are now making inroads into additional sectors. For perspective, our total AI revenue that has been delivered during the past two quarters with revenue recognition deferred is now at $5.5 million. We have already begun to collect this revenue in the current Q2 quarter, and expect to collect the rest as planned.
During the quarter, we remained very active in the early deployment of our AI products in conjunction with the diverse mix of clients. We are also continuing to test various AI applications through multiple proof-of-concept initiatives. It is important to note that these proof-of-concept initiatives are paid by the prospective client, and these activities spans retail, manufacturing, agriculture, public safety and security.
We also remain on track in the divestiture of our Vegas.com business to VDC-MGG Holdings, and an