Data Communications Management Corp.

Good morning, ladies and gentlemen, and again, apologies for the delay. Thanks for standing by and welcome to our second quarter 2022 financial results conference call. I'm James Larmer, and you've previously met Richard Kellum, who will be doing most of the presentation today. Following our prepared remarks, we will be moderating a Q&A session. As a reminder, this conference call is being broadcast live and recorded. We would also like to remind everyone that Richard and I can be available after the call for any follow-up questions that you may have. Before we begin, I'll remind everyone that we will be referring to forward-looking information on today's call. This information is subject to certain risks and uncertainties as outlined in the forward-looking information disclosure in our press release and more fully within our public disclosure filings on CDAR. We have posted a brief message from Richard along with a summary of our results and key initiatives for the past quarter on our website in the form of an infographic and a video. Our detailed information is also available on our website in CDAR. You can also follow us live on LinkedIn to keep up with some of our exciting commercial insights on relevant market trends and customer case studies. I will now turn the call over to Richard. Thank you, James.

The deck I'm going to review today is up on our website, including an infographic as well that gives the full kind of color and results on the quarter. We'll talk about how we're continuing to build a better and bigger business here. And we certainly have a fantastic momentum in our business right now. I've used this word over the last three or four quarters that momentum builds momentum. And we're certainly building momentum, as you'll see in our quarter two results. I'm going to start off with talking about how we're building a bigger business and the results around bigger. First, from a revenue standpoint, we are very pleased on our revenue performance this quarter, up 23.4% versus quarter two last year. So certainly one of our best quarters in many, many years. And that brings us out to 68.1 million on the quarter versus 55 million a year ago. So up close to $13 million versus prior year. So a very good revenue performance on the quarter and some great client momentum that's delivering that revenue performance. From a gross profit standpoint, you can see that our gross profit actually grew faster than revenue, which means that our gross margin has improved. And that's despite some of the raw material inflation we're experiencing. The team has done a fantastic job to manage that inflation and continue to drive value for the product that we're bringing to our clients. Our total gross profit was 20.4 million on the quarter versus 15, eight year ago. And as I said, 30% of revenue, so exactly on target. And we're well north, you know, we're 4.6 million up versus prior year. So again, despite some of the raw material inflation and headwinds we've experienced, the team has done a great job to ensure that we're getting fair value for that inflation. We've had some very good new business wins on a year-to-date basis. I think last quarter, we reported 10 or $11 million in new business growth. Year-to-date, we're north of 22 million. Across multiple verticals and 100% of that new business is what we call tech enabled. So we're winning not because we're great printers. Of course, we do that well, but we're winning from the technology and the value we bring to clients in terms of helping them simplify complex workflows. So some great success in terms of new business. And we expect that new business momentum to continue through the balance of the year. The team has done a fantastic job continuing to build a growth muscle. So very pleased with the new business wins. Very happy to report as well that our tech-enabled subscription service fees are at $2.4 million on the quarter, about $3.5 million year to date. And you can see we had a big acceleration on the quarter at 112% growth versus a year ago. And this is really just as a result of getting very intentional and accelerating our monetization of our digital services with clients. So we expect this to continue, obviously, as we continue to focus on this area. So really good progress from a digital acceleration and subscription service perspective.

On the better business side, James? Thanks, Richard. No. Uh, the better side is me.