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Good evening, ladies and gentlemen, and welcome to NexJ Systems Inc. first quarter results conference call. [Operator Instructions] This call is being recorded on Thursday, April 25, 2019. I would now like to turn the conference over to Matthew Bogart. Please go ahead.
Thank you, operator. I am Matt Bogart responsible for Investor Relations. With us today is Paul O'Donnell, Chief Executive Officer; and Raj Sapra, Chief Financial Officer. Welcome everyone to today's call. Before we begin, let me caution you that certain statements in today's conference call are forward-looking statements and that actual results might differ materially from those projected. Forward-looking statements include but are not limited to estimates, expectations, objectives and plans, financial or otherwise. Please review the safe harbor statement included in the press release reporting our first quarter results for a discussion of a variety of factors that could cause actual results to differ from those projected. I will now turn the call over to Raj.
Thank you, Matt. Thank you all for attending our first quarter results conference call. Q1 revenue was $4.3 million, down from $5.9 million in the same period in the prior year. Adjusted EBITDA was a loss of $1.8 million for the quarter as compared to $1.1 million of adjusted EBITDA loss reported in the first quarter of last year. Deferred revenue increased to $6.9 million at the end of the quarter from $4.8 million at the beginning of this year. We finished the quarter with $12 million in cash, a $1.1 million increase from the previous quarter. Our liquid working capital remains steady at $14.5 million, which consists of $12 million in cash and $2.5 million of receivables net of payables.89% of our revenue in the first quarter came from reoccurring services and maintenance with existing customers, demonstrating a stable and sticky customer base. Approximately 64% of our Q1 revenue came from the wealth management vertical, and 18% of our Q1 revenue was derived from projects outside of North America. With that, I'll turn it over to Paul.
Okay. Thank you, Raj, and thank you to those joining us on the call today. The first thing I'd like to say is we're clearly disappointed with the first quarter results, particularly as the backdrop of the pipeline activity and the forecast that we were looking at, at the start of the quarter indicated that we would continue to grow the revenue for the fourth straight quarter in a row. But as has been noted previously by analysts and the historical performance of the business, we were once again impacted by the volatility of large enterprise sales. We completely understand how this risk impacts a public company and are doing the work that is absolutely necessary to mitigate that risk as much as possible. But right now I am actually putting my entire focus on maximizing our revenue by converting the sales opportunities at the most advanced stages in the sales cycle.For our enterprise deployments, we are releasing a product update and are already in deployment planning with a number of our existing clients as well as in advanced discussions with new prospects, and we expect this to have a positive impact on the revenue this fiscal year. In addition, we remain on track to deliver a cloud-based product that is easier to consume and manage and have opened discussions with a charter customer. The first production release of this product is scheduled for the early part of Q3 and is aimed at the wealth management segment and will be followed by subsequent releases for institutional banking.One of our key competitive differentiators is the subvertical functionality that is specifically designed into our products to meet today's demands of financial services organizations, and we are in the advanced stages of a partnership agreement with a machine learning company to augment our core product functionality that will provide unique functional differentiation. I spoke in the last call about the need to engage partners and widen the ecosystem, and I am pleased to report that we have now initiated a formal partner program. Building strong partners will drive our business forward, and we are targeting partnerships for lead generation and sales, for delivery and for ISV relationships. Focus is on attracting vertically focused partners that expand our implementation capabilities and broaden our product offering. To ensure this important aspect of the business is prioritized, we have hired a dedicated headcount to execute on this plan.So in summary, while we are certainly not pleased with the results of the first quarter, our pipeline has never been stronger and the number of active deals we have in play give me confidence of year-over-year growth being achievable. Above all, I want to state that we are taking the right steps to address the volatility in the revenue, and I am extremely enthusiastic about the potential these changes will bring.We are also well underway to delivering our new cloud-based product, and it will push towards a subscription-based pricing model, and we expect that also to contribute to revenue this year. Generally, our partner activities are taking shape, and we do anticipate it will gain momentum as we continue to engage and develop opportunities.Specifically, we are confident of formalizing a partnership to add further machine learning capability to our core products, and we have just recently formalized a partnership with IBM to drive application sales for next year and cloud services for IBM. Together, this underpins a shift in our approach and in the business model and opens up the market to support our growth objectives.So with that, I'd like to open it up to Q&A.
[Operator Instructions] Your first question is from Bill Zhang from Raymond James.
I was just wondering for Q2, do you guys expect revenue to be up year-over-year? Just trying to get a sense of what that looks like.
At this point, as we have stated in the call many times, we really don't give guidance at this point. But we are tracking a number of opportunities, particularly in Europe, that we feel should come to fruition in the Q2 time frame.
There are no further questions at this time. Please proceed.
Okay. Well, I'd just like to thank everyone for actually joining the call today. I'd like to thank our customers and our shareholders who continue to support the company, particularly as we go through the transition. And I'd also like to thank everyone next year who continue to work towards our goals. So thank you all. Have a good evening.
Ladies and gentlemen, this concludes your conference call today. We thank you for participating and ask that you please disconnect your lines.