Contradictions in Q1 2025: A Deep Dive into Pricing Strategies and Marketing Approaches

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Revenue Growth and Customer Acquisition:
- Intrusion Inc. reported $1.8 million in total revenue for Q1 2025, marking a 6% increase compared to the previous quarter and a 57% increase year-over-year.
- The growth was driven by strong demand for the company's products, particularly in the Asia-Pacific region, and the addition of new contracts and logos, including a contract with the United States Department of Defense.

Product Mix and Financial Performance:
- Shield revenues in the first quarter were $0.4 million, with a sequential increase of $0.1 million and flat year-over-year.
- The change in revenue mix was due to the loss of a large Shield customer in April 2024, which has been fully backfilled with new customers.

Balance Sheet Strengthening:
- The company had $10.7 million in cash and cash equivalents on March 31, 2025, compared to $0.1 million in March 2024.
- This improvement was due to the exchange of senior debt for Series A preferred stock and the elimination of debt through a stock exchange, strengthening the balance sheet and providing financial flexibility.

Government Contract Stability:
- Intrusion is not experiencing any impacts to its government contracts from recent federal cost-cutting efforts.
- Despite budgetary uncertainties, the company is confident that its non-government pipeline will support growth while awaiting further clarity on federal budgets.

Partnership and Product Innovation:
- A new partnership with PortNexus was announced, embedding Intrusion Shield Endpoint into their solutions to enhance security for endpoints.
- The partnership is expected to expand customer engagement and create new revenue opportunities, with initial revenue anticipated towards the end of Q2.