PeerStream Reports Dampened Subscription Revenues

PeerStream (OTCQB:PEER), cybersecurity company principally focused on multimedia and data communication announced that lowered subscription revenues led to a 16 percent decline in total revenues for the quarter. Revenues reached US$4.9 million, while net income figures improved year-over-year to US$0.4 million compared to a net loss of US$1.9 million in second quarter 2018.

As quoted in the press release:

Alex Harrington, Chief Executive Officer and principal financial officer, commented, “During the second quarter, we made significant strides in our secure communications software initiative, while also maintaining financial discipline with cost reductions to offset our research and development expense. As we work to enhance PSP and Backchannel to broaden their commercial applicability beyond the initial ProximaX use cases, we have also been very active in cultivating partnerships, such as Telefonica and Rivetz, and building an extensive pipeline of customer prospects.  Our pipeline has an increasing emphasis on government and military prospects, as customer needs and product-market fit come into sharper focus.”

“Privacy and cybersecurity concerns remain important issues in the headlines and the marketplace, and we’re excited about the opportunities for growth that we see ahead.  As the ProximaX deal has concluded, we believe that the present software licensing customer pipeline has the long run potential to replace ProximaX revenue and exceed it, but during the ramp-up period, we anticipate that we will likely experience a significant decline in technology services revenue in the latter half of 2019.”

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