BBTV Holdings Inc.

everyone. And thank you for attending today's BBTV Holdings Inc. Q3 earnings call. My name is Dante. I'm your moderator for today's call. All lines will be muted during the presentation portion of the call and opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, Ms. Nancy Glacier, General Counsel and Chief Legal Officer of BBTV. Ma'am, the floor is yours.

Welcome to BBTV's Fiscal Third Quarter 2022 Conference Call. I'm Nancy Glaister, Chief Legal Officer for BBTV. During the course of the conference call, we may provide forward-looking information and make forward-looking statements within the meaning of applicable securities laws. These are statements regarding the company's current expectations, goals, and beliefs about future events relating to or which may impact the company, its business, and results. These may include forward-looking statements regarding our expected or anticipated financial position, growth, diversification, expansion, operations, plans, and objectives. Forward-looking statements are statements about the future and are inherently uncertain. Any financial or other goals discussed are goals only and are not meant to be taken as future-oriented financial information or guarantees of future results or performance. Certain financial outlooks in particular are provided to aid in understanding management's goals and expectations regarding future financial matters and may not be achieved. Such financial outlooks may not be appropriate for other purposes. All of our forward-looking statements are necessarily based on a number of assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. These include the risk that our assumptions may not be accurate, as well as the risk factors contained in our press release and MD&A issued today, and in our latest annual information form filed on CDAR.com. We undertake no obligation to update these forward-looking statements, except as required by law. You can read more about these assumptions, risks, and uncertainties in our press release and MD&A issue today, as well as in our AIF, dated March 29, 2022, and our prospectus, dated October 22, 2020, filed at cdar.com. Also, our commentary today will include adjusted financial measures and ratios, which are non-GAAP measures. Although the company believes these non-GAAP financial measures and ratios are useful in evaluating the company, these should be considered as a supplement to and not as a substitute for financial information compared and presented in accordance with IFRS. Reconciliations between the two can be found in our earnings press release and our MD&A, which are available on our website and on CR.com. Lastly, we also report on certain metrics such as views and RPMs. A further description of these metrics, which are also non-GAAP measures, can be found in our earnings press release and our MD&A. I now turn the call over to BBTV's Chief Executive Officer, Sharzad Lafaxi.

Hello, everyone, and thank you for joining me and our CFO, Ben Gruth, on this conference call to discuss our Q3 2022 financial results. For the first few minutes, I will review some of the market conditions and our operations. After that, Ben will review our financial results, and then I will close with our outlook before we take analyst questions. BBTV is the largest professional creator network worldwide. From individuals to global media companies, professional content creators rely on BBTV to generate meaningful revenue for them while they focus on their core competency, content creation. Our roster of thousands of creators continue to grow and almost 600 million viewers interact with their content monthly. I will discuss overall market conditions and quarterly performance momentarily, but I would like to first address investor feedback regarding our liquidity. Management and the board believes that the company's current resources, when combined with its near-term debt financing, will be sufficient to fund its organic growth plans through to being cash flow break-even. Ben will go into further details during his review, but we believe that we're well-positioned to execute our growth and profitability plans, regardless of current microeconomic conditions going forward. Additionally, during the quarter, we began the implementation of a cost optimization plan aimed to reduce annual headcount expenses by 14%. As a result, Q3 2022 operating costs declined sequentially by 2.2 million compared to the second quarter of 2022, and we expect operating expenses to fall further in the coming months. TikTok's micro-content format has been a competitive disruptor in the video content space, for several quarters now. Its impact is apparent in the results of most of the financial social media earnings releases over the past couple of quarters. As we monitor the marketplace, YouTube Shorts is emerging as a formidable alternative to TikTok. Although monetization is just now getting underway, as a result, one of our key initiatives was to task our content acquisition team to sign up more micro-content creators. During the third quarter, we successfully added 1.1 billion YouTube Shorts views, which brings the format up to 26% of our total views for BBTV. Sequentially, we increased YouTube Shorts views by 33% compared to the second quarter of 2022. Once these views are monetized, we anticipate a significant improvement in RPMs and views in 2023 within our base solutions business. While overall views continue to trend lower for the third quarter, being down approximately 10% year-over-year, the COVID-related pullback in viewership appears to have subsided and begun to normalize as we exit Q3 2022 and with views up 1% sequentially from Q2 2022 to Q3 2022, which is more favorable than the sequential seasonal decline typically seen in past years. Views retention remained exceptionally strong at 98% for the third quarter, which is ahead of the 93% retention rate seen for the last 12 months. A few years ago, we recognized the value of diversifying our revenue streams to help de-risk the market volatility of online advertising and monetization and to maximize gross margins. We began investing into the development of several plus solutions revenue streams. Over the last 12 months, we are pleased to report that the overall Plus Solutions revenue has grown by 40% compared to the previous period. Led by the ongoing adoption of content management solutions by significant content enterprises, this reoccurring revenue category represented 22% of our gross profit, and we are confident that Plus Solutions will continue to reduce the impact of market volatility on BBTV's performance and will continue to help maintain greater retention going forward. During the quarter, BBTV signed a partnership deal with Harlem Globetrotters, providing 360 solutions across a number of platforms, including YouTube and Meta. BBTV also signed an agreement with Revolt TV to manage their video strategy on Meta. Subsequent to the quarter, we also signed new deals with premier Hispanic MMA sports franchise, Combate the Global, as well as Amazon's podcast network, Wondery. Also subsequent to the quarter, we completed the acquisition of Outloud Media for performance-based considerations of up to $5 million. With minimal outlay of capital, the acquisition has nearly zero impact on our balance sheet or liquidity. However, Outloud brings a few million dollars of revenue as amongst the highest gross margin across both base and plus solutions revenue streams for BBTV. It also provides an excellent cross-selling opportunity for BBTV and its creators to expand distribution and monetization across social and video platforms through our multi-platform partnership program. As we leverage Outlook Media's capabilities and technologies, we expect that the multi-platform partnership solution to have a significant positive impact on both base solutions revenue and gross margins. I can't wait to talk to you about our outlook in a few minutes. However, I'm very pleased to hand the call over to Ben Gruth, BBTV CFO, to discuss the quarterly and year-to-date performance in more detail. Ben, over to you.