Thu, May 8, 8:16 PM (43 days ago)
**Auddia Inc. (AUUD) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $0 for Q1 2025, consistent with Q1 2024. - **Net Loss:** $1,752,565 (Q1 2025) vs. $2,207,328 (Q1 2024). - **Operating Expenses:** $1,751,013 (Q1 2025) vs. $2,054,620 (Q1 2024). - **Cash Flow:** Negative operating cash flow of $1,443,166 (Q1 2025) vs. $1,405,138 (Q1 2024). - **Cash Position:** $1,689,913 (Q1 2025) vs. $2,706,319 (Q1 2024). **Profit Margins & Earnings:** - **Gross Margin:** Not applicable due to zero revenue. - **Operating Margin:** Negative, with significant operating losses. - **Net Margin:** Negative, reflecting substantial net losses. **Trends & Uncertainties:** - **Revenue Growth:** None, as the company is still in the development phase. - **Expense Management:** Operating expenses decreased by 14.8% YoY, primarily due to reduced stock compensation and professional fees. - **Cash Burn:** Continued negative cash flow from operations, indicating ongoing financial strain. - **Funding:** Secured $0.7 million in Q1 2025, sufficient only until Q3 2025. Management plans to secure additional funding. **Future Operations Impact:** - **Product Development:** Continued investment in AI platform and app enhancements. - **Marketing:** Increased sales and marketing expenses to drive user acquisition and subscription conversions. - **Operational Scaling:** Plans to hire additional personnel and pursue acquisitions to accelerate growth. - **Financial Stability:** Uncertainty regarding the ability to raise additional capital and maintain liquidity. **Key Metrics & Discussion:** - **Direct Cost of Services:** Increased by 15.4% YoY due to ongoing app maintenance. - **Sales & Marketing:** Increased by 60.8% YoY, focusing on customer acquisition and retention. - **Research & Development:** Increased by 139.7% YoY, driven by consulting fees for app enhancements. - **General & Administrative:** Decreased by 47.9% YoY, primarily due to reduced stock compensation and legal fees. - **Depreciation & Amortization:** Decreased by 10.6% YoY, reflecting reduced capitalized software costs. **Conclusion:** Auddia Inc. continues to face significant financial challenges, with substantial operating losses and negative cash flow. The company is focused on developing its AI platform and app, increasing marketing efforts, and securing additional funding to support its growth strategy. However, the ability to raise capital and achieve profitability remains uncertain.