BSQUARE Corporation

Good day and welcome to the B-Square Corporation first quarter 2022 earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ralph Derrickson, President and CEO. Please go ahead, sir.

Thank you. Good afternoon, investors, and welcome to the Q1 2022 B-Square quarterly earnings call. Joining me on today's call is B-Square CFO and COO Chris Wheaton. Chris and I appreciate your interest in B-Square and thank you for taking the time to be with us this afternoon. Before we begin, we'd like to remind you that this call is being webcast and that a recording of the call and the text of our prepared remarks will be available on the B-Square website. During this call, we will be making forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. In our commentary, we may also refer to GAAP and non-GAAP financial measures. please refer to the cautionary text regarding forward-looking statements contained in B-Square's earnings release issued today and on our website at www.bsquare.com under Investors. All per share amounts discussed today are fully diluted numbers where applicable. We will be taking questions after our prepared remarks. For anyone who would like to arrange a follow-up conversation with us, please send an email to investorrelations at bsquare.com. This mailbox is monitored regularly and you will get a response within one business day. Okay, with that out of the way, let's turn our attention now to the first quarter of 2022. Overall, Q1 2022 was a better quarter for us than last quarter. We saw improvements in the partner solutions revenue and gross profits. We kept our losses from operations relatively flat and we cut our quarterly cash burn nearly in half. Our partner solutions business segments continues to be an important source of cash, and as you will hear more about, a vital avenue to growing revenue for our connected device product offerings. On the call last quarter, I said we would be initiating the marketing of our connected device products, specifically device hardening and Square One, and that is what we've done. These initial efforts have allowed us to gather important data and to establish a baseline for decision-making regarding future marketing spending. These sales and marketing programs are well-instrumented, allowing us to learn rapidly, adjust, and iterate our messages and tactics. eSquare is emerging from a long period of financially-induced marketing silence, and the climb out of dormancy will require focused sales and marketing efforts to achieve our objectives. I'm pleased we achieved these critical first marketing steps at a sustainable burn rate, and I believe these investments will, in time, help return us to breakeven and ultimately to profitability. Let me leave it at that for now and have Chris take us through the details of the first quarter of 2022.

I'll get back to our plans for the future following Chris's remarks. Over to you, Chris. Thank you, Ralph, and good afternoon, investors.