Symbolic Logic, Inc.

Second quarter revenue was $7 million, up $0.7 million from the prior-year quarter. Year-to-date revenue was $13.5 million, up about 6.7% from $12.6 million a year ago, and services revenue was $13.3 million, up 7.8% year over year and about 99% of year-to-date revenue. Q2 gross profit margin was approximately 68.8%, and six-month gross margin was approximately 67.1% versus 65.7% last year. Q2 operating profit was $0.4 million, net income was $1 million, and adjusted EBITDA was positive $0.7 million for the quarter versus $0.6 million last year; six-month adjusted EBITDA was $1.1 million versus $0.8 million. Cash and cash equivalents were $4.9 million at June 30, 2021, up 77.2% from $2.8 million at December 31, 2020. Management did not give formal next-quarter or full-year guidance.

Matthew Stecker framed the quarter as evidence that Evolving has moved from transformation into growth, emphasizing that the company has now delivered another quarter of improved revenue and positive adjusted EBITDA. He argued the company’s rebuilt platforms match where telecom customers are heading, citing customer engagement, loyalty, and SIM lifecycle management as well-positioned solutions. His tone was notably upbeat and promotional, and he also said the traditional business remains the majority of profits and revenues.

Mark Szynkowski focused on the quarter’s revenue and margin detail. He said Q2 revenue of $7 million rose $0.7 million year over year, six-month revenue reached $13.5 million, and services revenue was $13.3 million, reflecting the company’s preference for managed services over perpetual licensing. He also noted gross margin improvement to 68.8% in Q2 and 67.1% for the first half, while operating expenses increased to $4.5 million in Q2 and $8.8 million year to date due mainly to product development, staffing, and G&A costs. On the balance sheet, he highlighted cash of $4.9 million, receivables of $4.7 million, unbilled work in progress of $4.2 million, unearned revenue of $5.5 million, and working capital of $5.6 million.

There were no substantive analyst questions before the call ended, but management did address one investor concern about 10% owners and directors selling stock in March, calling it profit-taking amid market volatility rather than a negative signal. Stecker said long-term management and the board remain enthusiastic about the stock and the company’s prospects. He also addressed prior commentary about the shelf registration and said the $100 million figure was only a placeholder, while noting there are currently no plans to raise additional cash. In a separate aside, he said crypto is part of future product development plans, especially for loyalty programs.