TEN (NASDAQ:XHLD) CEO Virgilio Torres outlined the company’s plan to transition from a managed-services provider into a software-as-a-service business, expand its digital experience platform and pursue acquisitions during a Skyline Signature Series webinar.
TEN Holdings operates through one operating company, TEN Events, which provides subscription and managed-service technology for enterprise events, webinars and continuing education. Torres said the platform can support up to 50,000 concurrent attendees and is used by organizations seeking to distribute large-scale digital experiences, including multilingual corporate communications.
The company was founded in 2011 and operated independently until its acquisition by V-Cube in 2021, according to Torres. He said the business operated under V-Cube through 2025 before being spun out and listed on Nasdaq in February 2025.
Shift Toward SaaS Platform
Torres said the launch of the TEN platform represents a key step in the company’s evolution from event-production and managed services toward a SaaS model. The company’s existing customers have historically returned for services repeatedly, he said, and the platform is intended to enable those customers to independently host webinars, events and continuing professional education training.
“They can just continuously go into this platform even without us and host their own webinars or events or CPE trainings,” Torres said. “It makes them a lot more self-sufficient.”
He said TEN intends to differentiate its SaaS offering from larger event-technology providers by offering more customizable experiences alongside white-glove service. Torres referenced Zoom and ON24 as examples of larger providers that may offer more standardized subscription products.
Over the next 12 to 24 months, Torres said the company expects the revenue mix to move substantially toward SaaS. The long-term target is approximately 80% platform-related revenue and 20% managed-service revenue, although the company expects to retain managed services for clients that want production support.
Revenue Recognition and Cost Actions
Torres said revenue has been “a little lumpy” during the business-model transition because managed-service revenue is recognized at once, while SaaS revenue is recognized over a 12-month period. As a result, the company could report lower revenue during the transition even as it adds SaaS business, he said.
The company expects its book of business to be more fully transitioned to SaaS in 2027, when Torres said revenue trends should normalize.
He also said TEN has removed $2.5 million in operating expenses from its profit-and-loss statement over the past 12 months. The company is close to cash breakeven, according to Torres, and he said the cost reductions are expected to support a path to profitability in 2027.
Torres said artificial intelligence has contributed to operating efficiencies, particularly within engineering. TEN does not intend to become an AI-focused organization, he said, but is using AI to reduce costs, accelerate product development and enhance the platform.
Capital Raising and Acquisition Plans
According to Torres, TEN raised $10 million when it went public, using half of the proceeds to repay debt and the remainder for operating capital. The company subsequently completed a $7.5 million secondary offering, with proceeds designated for product development and potential smaller acquisitions.
Torres said the product-development portion of that plan has been used to create the TEN platform. Going forward, the company plans to continue investing in platform enhancements while evaluating acquisition opportunities.
The acquisition strategy is focused on transactions that could add revenue and EBITDA, products that TEN’s sales organization can scale, and technology complementary to the company’s existing intellectual property, he said.
- Accretive acquisitions intended to support revenue and EBITDA growth;
- Products that can be sold through TEN’s existing sales organization; and
- Technology that complements the company’s current platform and intellectual property.
Torres added that TEN has filed an S-3 registration statement for a $100 million shelf, which he said could provide flexibility to raise capital for future acquisitions. He said the company expects to pursue growth through both organic platform adoption and inorganic expansion.
About TEN (NASDAQ:XHLD)
We are a provider of event planning, production, and broadcasting services headquartered in Pennsylvania. We mainly produce virtual and hybrid events and physical events. Virtual and hybrid events involve virtual and hybrid event planning, production and broadcasting services, and continuing education services, all of which are supported by our proprietary Xyvid Pro Platform. Physical events mainly involve live streaming and video recording of physical events. TEN Holdings, Inc was incorporated under the laws of the State of Pennsylvania as a business corporation on February 12, 2024.
