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spk01: Thanks for joining us today for the Shracks first quarter 2021 earnings call. It was another record quarter for Shracks and our Sequoia platform. First, I want to cover some of the major accomplishments for the quarter. Revenue growth was up 1400% year over year on a consolidated basis and 2800% for Sequoia alone. Revenue growth quarter over quarter was up 20% on a consolidated basis. Sequoia on its own is up 31% quarter over quarter. We beat our guidance of $5 million in Q1 and are reaffirming our Q2 guidance of $7 million. We continue to need to consolidate big token until we fall below certain ownership thresholds and other criteria. But on a standalone basis, Sequoia is an EBITDA of 500,000 for the quarter. We've now seen nine consecutive quarters of continued revenue growth for Sequire. We've grown the number of clients that have joined the Sequire platform to 200, a 9% increase since our call just six weeks ago, and 294% year over year. We're continuing to see record bookings. In Q2, we've booked 7.2 million as of this call. We anticipate that we'll exceed last quarter's bookings of $10 million. When we talk about bookings, we're talking about total contract value that is closed in the respective quarter. Most of our contracts are 12 month long agreements. So we have good visibility into the revenue for the year. As of today, we'll recognize 19.8 million from existing contracts for the Sequire platform alone this year. With that said, we're proud to announce an increase of our guidance for the year from 23 to 25 million to 25 to 27 million. We had 13.6 million in cash and 23 million in marketable securities. On the technology front, we launched the Sequoia audience platform where companies can launch earnings calls, annual meetings, and road shows. We did this in partnership with Zoom. We want to break out Sequoia on its own. So you can take a look at how our business is doing. Revenue is up 2,800% year over year and 31% quarter over quarter, as I mentioned earlier. We're maintaining our margins at 70%. Cash OPEX increased to more data cost and growing the team to accommodate the growth we're experiencing. We have an EBITDA of $500,000 for the quarter. This is up from a loss of $1.5 million last year. Our Sequoia net income for the quarter is negative 4.6 million, which includes a one-time non-cash charge of 7.7 million for our warrant exchange that took place in Q1, and 900,000 related to the FPV transaction, and an offset by an increase in marketable securities. The warrant exchange was an exchange where we exchanged $2.50 warrants that expired in November of 22 for $7.50 warrants that expire in January of 22. They shortened the timeframe of the warrants and got the company approximately $12 million in cash. You can see the increase in the numbers by quarter. Last year at this time, we had 68 clients that signed up for the Sequoia platform. Now we're at 200, a nice one year jump. Our goal is to be at a thousand companies within three years. Our notable accomplishments for the quarter start with this number. We feel like we're getting more momentum on this front, and 200 is a solid number for us. We launched the Sequire audience product. This allows companies to launch their earnings calls, annual meetings, and virtual roadshows right from in the Sequire platform. We'll talk about it more in detail in a little bit, but we hired up the team and launched our initiative around the Sequire community, which includes a single sign-on username and password for all Sequire hosted events. This includes all of our virtual conferences and any event held by a company on the Sequire platform. While it seems like it happened a long time ago, we moved Big Token into its own company, Q1. This is a big step for us in staying 100% focused on the Sequire platform. In our efforts to maintain our technology advantage, we've identified three patents that can be filed for the Sequire platform. We know many of you are familiar with Sequire, but many of you are new to our business. So I'd like to just take a minute to talk about Sequire and what we do. As a public company ourselves, we've seen what companies need in order to manage being public. And we've built the tools that can help those companies. Our platform can be broken down into three areas. We like to call it interpret, manage, and engage. In the interpret phase, we're helping companies understand who their shareholders are, what they're doing, and we're giving them the tools they need to understand movement of shares, who's buying, who's selling these shares at any given time. In the manage phase, we're helping companies manage their warrants, their employee options, and other data around their financing alternatives. In the engage phase, we're providing companies the tools that they need in order to engage their investors. We're doing this through SMS, virtual events, surveys, and emails. Our big push this quarter was building up the investor community. With our single sign-on initiative, investors will have access to premium investor content, such as masterclasses, newsletters, the ability to participate in Sequire community earnings calls, roadshows, and exclusive access to other content. The Cordura community is a Sequoia virtual events platform and the Sequoia audience platform. The cornerstone of our virtual platform is the LD micro event that has been a leader in the small cap space for the past 10 years. We look forward to getting back to in-person events soon, but they'll always have an element of virtual to them in the future. And if you haven't been to an LD micro event in the past, we look forward to having you there. We also launched a number of Sequoia virtual events that are industry specific. These events are leading to a significant increase in revenue for Sequoia. As you can see from our consolidated financial, Shracks owns a lot of big token. We've invested in this company over the years, and in Q1, it took flight on its own. And now it's on its own, its own company, and trading on its own. Now, I'd like to turn the call over to our CFO, Mike Malone, to give more details on the consolidated and broken out financials. Mike?
spk00: Thank you, Chris. Before we review the first quarter operating results, I'd like to remind everyone that During the quarter, we closed on the transaction to move our big token business into its own publicly traded company. Although big token is now a separate entity with a separate board and a balance sheet, for the time being, due to consolidation accounting principles, we are required to consolidate the business and its accounts within tracks. As Chris mentioned earlier, we continue to see substantial revenue growth at Sequoia, which drove our quarterly revenue to 5.4 million or 1400% over prior year and 31% over the fourth quarter of last year. Our Sequoia business continues to represent the majority of our revenue growth through the continued growth of its subscription base. Revenues for the quarter finished at 4.5 million up from 100K in the prior year and up 31% from last quarter. Our profit margins continue to perform in line with expectations for the quarter They were 70%, which is up slightly from the prior year. Operating expenses were 5.3 million as compared to 4.1 million in the prior year. The increase in operating expenses for the quarter is primarily driven by increased sales and operational costs associated with the rapid expansion of the Sequire platform and its associated revenue growth. Our resulting operating loss for the quarter was 1.5 million as compared to an operating loss of 3.9 million. When excluding the big token business operations, we had positive operating income for the quarter of 52,000 as compared to a loss of 1.6 million and EBITDA of 500K as compared to an EBITDA loss of 1.5 million over the prior year. Now moving to a few highlights from our consolidated balance sheet. As of March 31st, we had cash and marketable securities totaling 13.5 million and 18 million respectively. And during the quarter, our debt reduction continued as our outstanding debt decreased from $9 million to $3.1 million as of March 31st, 2021. And at this time, we're still working through the accounting related to the financing and transactional elements of the SPD transaction, and we'll be including further discussion in our upcoming 10Q.
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