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Enghouse Releases First Quarter Results

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MARKHAM, ON, March 10, 2025 /CNW/ – Enghouse Systems Limited (TSX: ENGH) announces first quarter (unaudited) financial results for the period ended January 31, 2025. All figures are denominated in Canadian dollars unless otherwise indicated.

Revenue increased 2.9% to $124.0 million from $120.5 million in Q1 2024;Recurring revenue, which includes SaaS and maintenance services, grew 4.0% to $87.9 million compared to $84.6 million in Q1 2024, and represents 70.9% of total revenue, as we continue to prioritize this revenue stream;Results from operating activities decreased to $31.0 million compared to $32.6 million in Q1 2024;Net income was $21.9 million compared to $18.1 million in Q1 2024, as we grow our business with a focus on profitability;Adjusted EBITDA decreased to $33.1 million compared to $34.7 million, while achieving a 26.7% margin;Cash flow from operating activities, excluding changes in working capital, was $37.7 million compared to $35.6 million in the comparable period. Cash, cash equivalents and short-term investments were $271.1 million as at January 31, 2025.

The most recent quarter has brought about events that have created a great deal of uncertainty across the globe. There are new questions around trade flows, interest rates, commodity prices and other factors which point to increasing instability. Throughout this period, our first quarter operating performance continued its consistent positive trend and reflects our steady and disciplined approach to the business. In the quarter we achieved revenue of $124.0 million, representing a 2.9% increase compared to the prior year, while net income increased by 20.8% to $21.9 million or $0.40 per diluted share from $18.1 million or $0.33 per diluted share in the comparative quarter.

We remain focused on predictable recurring revenue streams with SaaS and maintenance services revenue increasing by 4.0% in the quarter. While transitioning from exclusively offering traditional on-premise solutions, we are strategically committed to offering customers a choice between on-premise and cloud solutions, which has allowed us to preserve both one-time and recurring revenue streams.

Cash flows from operating activities, excluding changes in working capital, were $37.7 million compared to $35.6 million in the prior year. During the first quarter we returned $14.4 million to shareholders through dividends and repurchased $6.0 million of our common shares. In addition, on December 16, 2024, Enghouse completed the acquisition of Aculab PLC, which provides a cutting-edge suite of solutions designed to elevate communication and security experiences, including AI-driven answering machine detection and advanced voice and face biometric technology. Even with these outflows, Enghouse closed the quarter with $271.1 million in cash, cash equivalents and short-term investments, down only marginally from our record of $274.7 million at October 31, 2024. We continue to have no external debt financing.

On March 4, 2025, the Company announced the acquisition of Margento R&D d.o.o., a European provider of transit fare collection, account-based ticketing, automatic vehicle tracking, and payment solutions based in Slovenia. Margento has a scalable and easy to deploy Mobility as a Service platform providing a unique user-centric mobile transit experience. This will augment our existing transportation offerings in the Asset Management Group.

Our strategic direction remains consistent and focused on long-term profitability and sustainability.  We will continue to balance market demand by offering both SaaS and on-premise solutions and will not sacrifice profitability for revenue growth, which is reaffirmed by our ability to generate positive cash flows. Our robust cash position continues to allow us to capitalize on acquisitions that meet our thresholds and provide continued returns to our shareholders, also enabling us to increase our annual dividend for the 17th consecutive year.  

Quarterly dividends:          

Today, the Board of Directors approved an increase of 15.4% in the Company’s eligible quarterly dividend to $0.30 per common share, payable on May 30, 2025, to shareholders of record at the close of business on May 16, 2025.

Enghouse Systems Limited
Financial Highlights
(unaudited, in thousands of Canadian dollars)

For the periods ended January 31

Three months

2025

2024

Var ($)

Var (%)

Revenue

$     124,000

$     120,489

3,511

2.9

Direct costs

44,463

41,582

2,881

6.9

Revenue, net of direct costs

$

79,537

$

78,907

630

0.8

As a % of revenue

64.1 %

65.5 %

Operating expenses

48,457

46,180

2,277

4.9

Special charges

91

91

0

0.0

Results from operating activities

$

30,989

$

32,636

(1,647)

(5.0)

As a % of revenue

25.0 %

27.1 %

Amortization of acquired software and customer relationships

(8,479)

(10,374)

1,895

18.3

Foreign exchange gains (losses)

2,309

(1,717)

4,026

234.5

Interest expense – lease obligations

(128)

(150)

22

14.7

Finance income

2,304

2,361

(57)

(2.4)

Finance expenses

(3)

( 3)

Other income (expense)

299

(114)

413

362.3

Income before income taxes

$

27,291

$

22,642

4,649

20.5

Provision for income taxes

5,387

4,509

878

19.5

Net income for the period

$

21,904

$

18,133

3,771

20.8

Basic earnings per share

0.40

0.33

0.07

21.2

Diluted earnings per share

0.40

0.33

0.07

21.2

Cash flows from operating activities

21,249

19,899

1,350

6.8

Cash flows from operating activities excluding changes in working capital

37,741

35,557

2,184

6.1

Adjusted EBITDA

Results from operating activities

30,989

32,636

(1,647)

(5.0)

Depreciation

653

494

159

(32.2)

Depreciation of right-of-use assets

1,378

1,506

(128)

8.5

Special charges

91

91

0

0.0

Adjusted EBITDA

$

33,111

$

34,727

(1,616)

(4.7)

Adjusted EBITDA margin

26.7 %

28.8 %

Adjusted EBITDA per diluted share

$

0.60

$

0.63

( 0.03)

(4.8)

 

Condensed Consolidated Interim Statements of Financial Position

(in thousands of Canadian dollars)

(unaudited)

   As at January 31,
2025

As at October 31,
2024

ASSETS

Current assets:

   Cash and cash equivalents

$

270,304

$

274,240

   Short-term investments

784

487

   Accounts receivable

114,592

92,348

   Prepaid expenses and other assets

19,061

16,100

404,741

383,175

Non-current assets:

   Property and equipment

4,059

4,192

   Right-of-use assets

11,771

11,473

   Intangible assets

96,552

98,594

   Goodwill

320,997

309,831

   Deferred income tax assets

27,273

26,228

460,652

450,318

$

865,393

$

833,493

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

   Accounts payable and accrued liabilities

$

67,970

$

70,087

   Income taxes payable

7,849

5,525

   Dividends payable

14,340

14,397

   Provisions

1,777

1,834

   Deferred revenue

132,397

114,080

   Lease obligations

5,381

5,344

229,714

211,267

Non-current liabilities:

   Deferred income tax liabilities

10,486

10,500

   Deferred revenue

9,903

8,094

   Net employee defined benefit obligation

2,075

2,081

   Lease obligations

6,115

5,744

28,579

26,419

258,293

237,686

Shareholders’ equity

   Share capital

117,750

118,217

   Contributed surplus

9,878

9,764

   Retained earnings

448,823

446,748

   Accumulated other comprehensive income

30,649

21,078

607,100

595,807

$

865,393

$

833,493

 

Condensed Consolidated Interim Statements of Operations and Comprehensive Income

(in thousands of Canadian dollars, except per share amounts)

(unaudited)                                            

Three months

Periods ended January 31

2025

2024

Revenue

     Software licenses

$  17,781

$  16,975

     SaaS and maintenance services

87,932

84,587

     Professional services

16,108

15,945

     Hardware

2,179

2,982

124,000

120,489

Direct costs

     Software licenses

736

674

     Services

42,497

39,531

     Hardware

1,230

1,377

44,463

41,582

Revenue, net of direct costs

79,537

78,907

Operating expenses

     Selling, general and administrative

23,636

22,869

     Research and development

22,790

21,311

     Depreciation

653

494

     Depreciation of right-of-use assets

1,378

1,506

     Special charges

91

91

48,548

46,271

Results from operating activities

30,989

32,636

Amortization of acquired software and customer relationships   

(8,479)

(10,374)

Foreign exchange gains (losses)

2,309

(1,717)

Interest expense – lease obligations

(128)

(150)

Finance income

2,304

2,361

Finance expenses

(3)

Other income (expense)

299

(114)

Income before income taxes

27,291

22,642

Provision for income taxes

5,387

4,509

Net income for the period

$  21,904

$  18,133

Items that may be subsequently reclassified to income:

Cumulative translation adjustment

9,571

(8,017)

Other comprehensive income (loss)

9,571

(8,017)

Comprehensive income

$  31,475

$  10,116

Earnings per share

Basic

$      0.40

$      0.33

Diluted

$      0.40

$      0.33

 

Condensed Consolidated Interim Statements of Cash Flows

(in thousands of Canadian dollars)

(unaudited)

Three months

Periods ended January 31

2025

2024

OPERATING ACTIVITIES

Net income for the period

$    21,904

$    18,133


Adjustments for non-cash items

   Depreciation

653

494

   Depreciation of right-of-use assets

1,378

1,506

   Interest expense – lease obligations

128

150

   Amortization of acquired software and customer relationships

8,479

10,374

   Stock-based compensation expense

108

277

   Provision for income taxes

5,387

4,509

   Finance expenses and other (income) expense

(296)

114

37,741

35,557

Changes in non-cash operating working capital

(11,891)

(13,140)

Income taxes paid

(4,601)

(2,518)

Net cash provided by operating activities

21,249

19,899

INVESTING ACTIVITIES

Net purchase of property and equipment

(404)

(360)

Acquisitions, net of cash acquired*

(6,586)

Recovery of purchase consideration for prior-year acquisitions

171

Net cash used in investing activities

(6,990)

(189)

FINANCING ACTIVITIES

Issuance of share capital

4,310

Normal course issuer bid share repurchases

(5,950)

Repayment of lease obligations

(1,374)

(1,602)

Dividends paid

(14,397)

(12,156)

Net cash used in financing activities

(21,721)

(9,448)

Impact of foreign exchange on cash and cash equivalents

3,526

(3,042)

(Decrease) increase in cash and cash equivalents

(3,936)

7,220

Cash and cash equivalents ─ beginning of period

274,240

239,532

Cash and cash equivalents ─ end of period

$  270,304

$  246,752

*Acquisitions are net of cash acquired of $2,620 for the three months ended January 31, 2025 and nil for the three months ended January 31, 2024.

Enghouse Systems Limited
Segment Reporting Information
(in thousands of Canadian dollars)

Three months ended January 31

2025

2024

IMG

AMG

Total

IMG

AMG

Total

Revenue

$

73,221

$

50,779

$

124,000

$

76,137

$

44,352

$

120,489

Direct costs

(25,713)

(18,750)

(44,463)

(25,406)

(16,176)

(41,582)

Revenue, net of direct costs

47,508

32,029

79,537

50,731

28,176

78,907

Operating expenses excluding special charges

(22,602)

(11,978)

(34,580)

(21,425)

(11,697)

(33,122)

Depreciation

(402)

(251)

(653)

(377)

(117)

(494)

Depreciation of right-of-use assets

(909)

(469)

(1,378)

(936)

(570)

(1,506)

Segment profit

$

23,595

$

19,331

$

42,926

$

27,993

$

15,792

$

43,785

Special charges

(91)

(91)

Corporate and shared service expenses

(11,846)

(11,058)

Results from operating activities

$

30,989

$

32,636

About Enghouse

Enghouse is a Canadian publicly traded company (TSX: ENGH) that provides a wide range of mission critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications networks, IPTV, public safety and transit. The Company’s two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded only through cash flows from operating activities as the Company has no outstanding external debt financing. The Company is organized around two business segments, the Interactive Management Group (“IMG”) and the Asset Management Group (“AMG”) due to their unique customer segments and technology offerings. Further information about Enghouse may be obtained from the Company’s website at www.enghouse.com

Conference Call and Webcast

A conference call to discuss the results will be held on Tuesday, March 11, 2025 at 8:45 a.m. EST. To participate, please call Local
+1-289-514-5100 or North American Toll-Free 1-800-717-1738. Confirmation code: 35790. A webcast is also available at: https://www.enghouse.com/investors.php.

****

The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA as a measure of operating performance. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated based on results from operating activities adjusted for depreciation of property and equipment and right-of-use assets, and special charges for acquisition related restructuring costs. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income and restructuring costs primarily related to acquisitions.

SOURCE Enghouse Systems Limited

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Technology

IMDA and Tencent Debut “Beyond the Screen” to Champion Real-World Connection through Digital Play

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The launch is marked by the signing of an agreement between IMDA and Tencent to advance healthy digital habits and safe, responsible use of digital technologies among youths, parents, and families.

SINGAPORE, May 2, 2026 /PRNewswire/ — The Infocomm Media Development Authority (IMDA) and Tencent today jointly launched “Beyond the Screen: Healthy Digital Play”, a new digital wellbeing campaign that encourages healthy digital habits by bringing families into the conversation and strengthening real-world connection through healthy gameplay.

The campaign encourages families to bridge the gap between play and purpose through gaming. It showcases how digital play can foster deeper understanding, facilitate balanced routines, and build stronger connections at home.

“Digital spaces are already a natural part of how young people learn, play, and connect today,” said Mr Murphy Zhao, Country Manager of Tencent Singapore and Head of Tech Group, Tencent Games. “As a company with deep expertise across digital entertainment and communications, we want to play a constructive role by helping families build meaningful digital habits that extend beyond the screen.”

Advancing Family Digital Wellness In Partnership with IMDA

As part of the launch, IMDA and Tencent also signed an agreement to strengthen collaboration on initiatives in digital wellbeing. The agreement was signed by Ms Joanna Lam, Cluster Director for Digital Readiness, IMDA, and Mr Murphy Zhao, Country Manager of Tencent Singapore and Head of Tech Group, Tencent Games. The collaboration builds on Tencent’s ongoing cooperation with IMDA, in support of the national Digital for Life (DfL) movement, focusing on promoting online safety and healthy digital habits among youths, parents, and families.

Tencent will co-develop educational content with IMDA, as well as organise four community outreach activities, reaching out to an estimated 4,000 participants. The company will also commit S$ 25,000, which totals to S$ 50,000 with the government’s dollar-to-dollar matching, to the DfL Fund. The DfL Fund provides support for projects and activities promoting digital inclusion, digital literacy and digital wellness. 

“Ensuring digital wellness is increasingly important, particularly for our children who are digital natives,” said Ms Joanna Lam, Cluster Director for Digital Readiness, IMDA. “Tencent has been a DfL partner since 2022, and I thank them for their continued commitment to the DfL cause. We look forward to deepening our collaboration with Tencent to empower parents and youths with practical guidance to build healthy digital habits and navigate the digital world safely together.”

Leading the Conversation on Healthy Digital Play

The inaugural Singapore launch event was officiated by Ms Jasmin Lau, Minister of State, Ministry of Digital Development and Information, and also hosted social service organisations from Singapore, Malaysia, Thailand, Indonesia, and the Philippines. At the event, families participated in gamified quiz experiences and took home educational materials designed to transform gaming into healthier routines at home. 

The programme also featured a parenting talk that shared practical guidance on utilising games as a bridge for conversation at home. The session highlighted how, when guided by constructive routines, gaming can support the development of soft skills such as communication, teamwork, strategic thinking, and persistence.

During the event’s expert insights session, Mr Narasimman S/O Tivasiha Mani, psychotherapist and co-founder of local youth charity Impart, said, “Healthy gaming is not built through one-off rules. It grows through rapport, shared understanding, and everyday conversations. Through a collaborative process between educators, families, and the wider community, it becomes easier to set shared expectations and support balanced habits that carry beyond the screen.”

Building a Scalable Digital Wellbeing Framework for Southeast Asia

While digital habits may look different across the region, the underlying need is the same — helping families build healthier, more confident relationships with the digital world.

“Beyond the Screen” is part of Tencent’s broader commitment to fostering intentional digital play, equipping youths, parents, and educators with practical resources to build balanced routines, encourage respectful interactions, and strengthen open communication at home.

Insights from the Singapore launch will inform the rollout of the campaign across Southeast Asia in 2026, with local adaptations to meet the needs of diverse communities in the region.

About Digital for Life Movement

A Digital Future for All – In our increasingly digital world, everyone can play a part to help create a more inclusive digital future.

The Digital for Life (DfL) national movement, launched on 8 February 2021, aims to galvanise the community across the 3Ps (Private, Public and People) to help Singaporeans embrace digital as a lifelong pursuit and enrich lives through digital technology.

The DfL fund was also set up to support projects and activities promoting digital inclusion, digital literacy and digital wellness. Learn more about the DfL movement at digitalforlife.gov.sg.

About Infocomm Media Development Authority

The Infocomm Media Development Authority (IMDA) leads Singapore’s digital transformation by developing a vibrant digital economy and an inclusive digital society. As Architects of Singapore’s Digital Future, we foster growth in Infocomm Technology and Media sectors in concert with progressive regulations, harnessing frontier technologies, and developing local talent and digital infrastructure ecosystems to establish Singapore as a digital metropolis.

For more news and information, visit www.imda.gov.sg or follow IMDA on LinkedIn (IMDAsg), Facebook (IMDAsg) and Instagram (@imdasg).

About Tencent 

Tencent is a world-leading internet and technology company that develops innovative products and services to improve the quality of life of people around the world. Our communication and social services connect more than one billion people around the world, helping them to keep in touch with friends and family, access transportation, pay for daily necessities, and even be entertained. Our financial technology business covers payment, credit, wealth management and insurance sectors, as we support our partners’ business growth and assist their digital upgrade through FinTech and other enterprise services. We also publish some of the world’s most popular video games and other high-quality digital content, enriching interactive entertainment experiences for people around the globe. Tencent was founded in Shenzhen, China, in 1998, and has been listed on the Main Board of the Stock Exchange of Hong Kong since 2004.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/imda-and-tencent-debut-beyond-the-screen-to-champion-real-world-connection-through-digital-play-302760594.html

SOURCE IMDA; Tencent

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Does Your Building Have Fire Sprinklers?

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Fast Guard Service alerts real estate owners and property managers: 2026 fire code updates to NFPA 25 will significantly affect sprinkler system compliance requirements — and insurance implications could not be more serious.

SAN JOSE, Calif., May 2, 2026 /PRNewswire/ — Fast Guard Service, one of the nation’s leading providers of licensed fire watch and security guard services, is urging commercial and residential property owners to take immediate stock of their fire sprinkler systems as sweeping 2026 updates to NFPA 25 — the national standard governing water-based fire protection system inspection, testing, and maintenance — take effect across the country.

The timing could not be more consequential. Private insurers are exiting fire-risk markets at an accelerating pace, dropping policyholders and limiting coverage in states from California to Florida. In this environment, a sprinkler system that fails a compliance check is no longer a routine maintenance issue. It is a potential grounds for claim denial or policy cancellation.

The 2026 edition of NFPA 25 introduces several changes property owners must act on now. Fire pump failures are formally classified as system impairments requiring immediate response. Supervisory valve testing moves to a semiannual schedule. Annual internal inspections are now mandatory for all dry, preaction, and deluge valves. And where corrosion-control technology has been used to justify smaller pipe sizes, ongoing maintenance of that equipment is now a codified legal obligation — not a recommendation.

Critically, any sprinkler system impairment — whether triggered by repair, renovation, freeze damage, or a compliance-driven upgrade — legally requires a certified fire watch for the duration of the outage under NFPA 1, NFPA 101, and local fire authority mandates. This is a condition of occupancy, not an option.

“The 2026 code updates will send a wave of sprinkler systems into inspection and repair cycles,” said a spokesperson for Fast Guard Service. “Every one of those impairment windows requires a fire watch on-site. We are prepared to be there.”

Fast Guard Service deploys certified fire watch personnel 24 hours a day, 7 days a week, anywhere in the United States — typically within hours of a client’s call. Guards conduct continuous patrols, maintain documentation accepted by insurers and code enforcement authorities, and coordinate directly with fire departments when needed.

Property owners who are unsure whether their sprinkler systems meet 2026 NFPA 25 requirements are encouraged to contact Fast Guard Service for guidance.

Founded in August 2013 and headquartered in Hollywood, Florida, Fast Guard Service is a fully licensed, bonded, and insured private security company operating in all 50 states. The company specializes in armed and unarmed security guards, fire watch services, executive protection, mobile surveillance, event security, and emergency response. Fast Guard Service is trusted by Fortune 500 companies, government entities, healthcare systems, commercial developers, and private clients nationwide.

All operations are tracked through the proprietary Fast Guard App, providing clients with real-time GPS reporting, live guard location updates, and digital incident documentation.

For an instant quote or same-day service, visit www.fastguardservice.com or call (844) 254-8273.

Press Release Service provided by 24-7PressRelease.com.

View original content:https://www.prnewswire.com/news-releases/does-your-building-have-fire-sprinklers-302760491.html

SOURCE Fast Guard Service

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First Online Conversations Are Changing in 2026, According to New Secretmeet Research

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New research from Secretmeet reveals that the classic “Hey” opener is dying out — and the way people initiate connections online in 2026 looks nothing like it did just three years ago.

GIBRALTAR, May 2, 2026 /PRNewswire-PRWeb/ — People are rethinking the first move. Not just what to say, but when to say it, how long to make it, and what emotional tone to lead with. Across the board, data from Secretmeet’s latest research study shows a clear shift in how online conversations begin in 2026.

The single-word opener? Largely gone. The copy-paste compliment? People spot it instantly. Secretmeet noted that what’s replacing them is more interesting — and more human.

The Death of the One-Word Opener

For years, “Hey,” “Hi,” and “Hello 👋” dominated opening messages on dating platforms. They required no effort and, accordingly, generated little response. According to data published by the Journal of Computer-Mediated Communication, conversational openers that include a specific reference to the recipient’s profile generate significantly higher response rates than generic greetings.

Secretmeet’s research confirms the trend is accelerating. In 2026, users who open with a question — particularly one tied to something specific in a profile — see measurably stronger engagement in the first exchange. The bar for a “good” first message has risen.

This doesn’t mean people need to write an essay. Short still works. But purposeful short beats lazy short every time.

One of the more striking findings from Secretmeet: wit is winning. Openers with a light, humorous tone — a playful observation, a self-aware joke, a clever hypothetical — are outperforming earnest, serious introductions in early conversation engagement.

The Timing Shift Nobody Expected

When people send that first message matters more than most realize. In a Secretmeet review of activity trends, data points to a notable behavioral change: users in 2026 are increasingly active during morning hours — particularly between 7 a.m. and 9 a.m. — a window that was almost entirely quiet just a few years ago.

Evening hours still dominate overall volume. But morning messages show a disproportionately high response rate. The theory? People checking their phones with coffee and no agenda are more present, less distracted, and more open to genuine interaction than those scrolling at midnight.

It’s a small tactical insight with a surprisingly large emotional implication: presence matters more than timing, and mornings are when people show up fully. Secretmeet’s data makes that case clearly.

What This Means for How We Connect

The bigger picture here isn’t about tactics. It’s about expectations. People arriving at online dating platforms in 2026 want something more immediate and more genuine than they did in 2020. The pandemic years accelerated a kind of emotional directness online — and that hasn’t reversed.

People want to feel seen in a first message. They want to laugh. They want a reason to respond. A Secretmeet review of first-message engagement data suggests that users are increasingly capable of signaling — and detecting — authentic intent right from the very first line.

The opening message has always mattered. What’s changed is how clearly people understand that now.

About Secretmeet

Secretmeet is an online dating platform built around one straightforward idea: conversations should feel good. Not stressful, not performative — genuinely enjoyable. The platform is designed for people who want warmth, a little wit, and the kind of back-and-forth that actually goes somewhere. Whether you’re looking for something serious or just a spark of something new, Secretmeet reviews its features continuously to ensure that the first message has a real chance of turning into something worth remembering.

Media Contact

Alice Ross, Secretmeet, 1 14844760121, smm@secretmeet.com, https://secretmeet.com/

View original content:https://www.prweb.com/releases/first-online-conversations-are-changing-in-2026-according-to-new-secretmeet-research-302759958.html

SOURCE Secretmeet

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