# 2023 Q1 Shareholder Update  | Sonatafy Technology

- Canonical URL: https://wefunder.com/feed/163215
- Entity ID: wefunder:feed_item:163215
- Published at: 2023-05-08 20:17:33 UTC
- Updated at: 2025-07-09 03:23:16 UTC

## Author
Steve Taplin

## Subject
Sonatafy Technology

## Content
Dear Shareholders:As part of our ongoing commitment to quarterly communication, I am pleased to share this update as a summary of our company's financial performance and key milestones for the first quarter of 2023. As a side note, you can view our 2022 Annual Report and accompanying documents here:  https://www.sec.gov/edgar/search/#/q=sonatafy%2520technologyIn 2023, the technology industry has seen many challenges this year, mainly resulting from increasing interest rates, reduced investment, and banking sector issues, which have resulted in a high number of layoffs and uncertainty around operating budgets moving forward. Although this has affected our business and projections for 2023, we delivered solid Q1 results and see continued demand for our nearshore software development services.  Summary of Q1 2023:·     We ended March 2023 with 37 clients, up from 20 at the end of March 2022. ·     Our revenue for 2023 Q1 was $2.6M, compared to the first quarter 2022 of $1.5M. This represents a year-on-year increase for the quarter of 67.0%.·      2023 Q1 Gross Profit was $0.9M or a Gross Margin of 37.2%, compared to $0.5M or a 34.5% in the same period, 2022. Net Income was $265k, and EBITDA $337K for an EBITDA Margin of 13.1%. This compares to Net Income of $117k, EBITDA of $138k and an EBITDA Margin of 8.9% in Q1 2022. ·      After losing 2 sizable clients during Q1, resulting from their acquisition by other companies, we immediately made adjustments to reduce our internal staffing and to right-size our billable engineers, resulting in continued solid profitability. ·     We have added two additional clients during the quarter and continued to demonstrate increased profitability year-on-year. ·     Looking ahead, we will continue to focus on delivering superior software development and technology capabilities and resources to our clients. We continue to cultivate our pipeline of client prospects and software developers. We remain optimistic that our 2023 Revenue will exceed $11 million, and our earnings to be north of $1 million. In summary, I am very pleased with our progress, fiscally and operationally. For Q1 2023, our performance was in line with our plan, and significantly better than 2022 Q1. Once again, for the quarter, we generated positive cash flow, and strong operating and net income. I remain positive on the outlook for the near and mid-term.  Respectfully, Steve TaplinChief Executive OfficerSonatafy Technology, Inc.Sonatafy.com