mdf commerce inc.

Thank you for standing by. This is the conference operator. Welcome to the MDF Commerce First Quarter Fiscal 2024 Financial Results Investor Conference Call. Today's call will provide information and commentary on the corporation with a focus on the financial results released yesterday after the market closed. We will hear from Luc Ciliatro, President and Chief Executive Officer, Deborah Dumoulin, Chief Financial Officer. If you have questions following the call, you can reach MDF Commerce at the address on their website, www.mdfcommerce.com. First, here are a couple of housekeeping notices. All participants are in listen-only mode for the duration of the call. This call is being recorded. and we accept that the recording will be available on the MDF Commerce website later today. The information in today's remarks, including any forward-looking statements, has been prepared as of June 30th, 2023, unless otherwise indicated. MDF Commerce assumes no obligation to update or revise the forward-looking statements to reflect any new events or circumstances except as may be required pursuant to securities law. We remind you that today's remarks will include forward-looking statements and non-IFRS measures that are subject to important risks and unsententious. For more information on the risks and unsententious, please see the reader advisory of the bottom of the MDF Commerce's new release. which is on their website and has been filled on www.cedarplus.com. The company's actual performance could differ materially from these statements. I will now hand the call over to Mr. Filiato. Please go ahead, sir.

Merci beaucoup, Sabrina.

Good morning, everyone, and thank you for joining us for our Q1 Fiscal 24 Financial Results Call. Before turning to the financial results that we file after the markets closed yesterday, I would like to provide an operational update. MDF is a developer and operator of digital commerce platforms that facilitate billions of dollars per year of digital commerce transactions for well over 550,000 end-user companies, mostly in North America. Our mission is to enable the flow of commerce. I'll present an overview of our company's performance and outlook for the future, beginning with a few Q1-24 financial highlights. Our revenue for the quarter were $31 million, with recurring revenue now representing 79% of total revenue. We achieved positive adjusted EBITDA of $2.6 million in this last quarter, a significant improvement of $3.7 million from the adjusted EBITDA loss of negative 1.1 million in Q1 of fiscal 23 a year ago. In fact, this quarter marks the fourth sequential quarter with positive adjusted EBITDA. This quarter has been exciting for us as we saw an acceleration of pipeline conversion for our comprehensive suite of products offered for e-procurement. I want to point out that e-procurement platform revenue grew by 13.5% year over year with recurring revenue for that platform now reaching 88.5%. We recently announced that Anoka County in Minnesota has chosen our full e-procurement solution. Pima County in Arizona chose our source to contract solution. We've also won awards in several U.S. cities and districts during the quarter. These agencies are joining over 6,500 public sector buying organizations in choosing MDF Commerce's solutions. In addition, very pleased to say that the Commonwealth of Massachusetts, which has been a client of ours for over 10 years now, has renewed their contract for our full e-procurement suite for another five years, resulting in a 15-year relationship. Maricopa County in Arizona upgraded its existing suite of MDF solutions to our full source-to-contract technology. Our opportunities pipeline reflects the growing demand for our integrated full source-to-pay integrated suite. These new wins and customer renewals are strong proof points to the value of our solution to states, counties, cities, and municipalities to support their procurement and is a testament to the enduring trust of our customers. The sales cycle for public procurement is often long, and over the past few quarters, we've been faced with a slower than anticipated conversion rate on new clients. In fact, many of our recent wins have come from proposals tendered as far back as 2021. It takes long to strike a deal, but as we've seen with Massachusetts, this is a very sticky business, and customers often last for more than a decade. We're currently actively engaged in multiple opportunities to provide public agencies procurement systems. These are at various stages of the sales cycle, including the largest province in Canada, as well as many of the largest states and counties in the U.S. We believe that we are well positioned to capitalize both on the larger Tier 1 state contracts and on the mid-market opportunities that lie ahead as public agencies digitize their procurement solutions. We continue to further solidify our leadership position in the North American public procurement market. We define our Tier 1 markets as states, provinces, and large counties that have a population approximately above 2 million individuals. up to states like California, which has a population of approximately 40 million individuals. When tier one customers use our full procurement solution suite, they can generate from approximately a half a million to several millions of dollars of annual recurring revenue, plus the initial implementation services revenue. Our mid-market customers consists of these larger cities, mid-sized counties, certain districts, water, power, turnpikes. And these customers typically generate from approximately 25,000 up to a few hundreds of thousands of dollars of annual recurring revenue for us, of course, plus the initial services required to implement the solutions. We also offer our source module, which you may be familiar with Merck's BidNet and the Periscope S2G technology, to a very large number of organizations for which the business model is a supplier paid membership system that allows suppliers to access our database of published RFPs across our whole network. From a product perspective, our continuous efforts in integrating all of our different modules into a comprehensive e-procurement suite have garnered significant attention from large states and local governments. As you can see on slide five of our presentation, we are powering the critical work of procurement by integrating our various procurement products offering in a common suite of products offered in the modules. We have a source module, a contract, procure, connect, and shop. This shows the various brands, if you look at the bottom of that slide, that you're all familiar with, that translate into the five modules of our end-to-end integrated suite of products. Not only will we have moved all of these to the cloud, but we are planning to complete most of this integration towards the end of the year. If you look at the slide, I'd like to put out a few comments. The two first modules are what we call our source to contract, and the three modules on the right are the procure to pay. So source to contract is really a combination of BidNet, Merckx, and Periscope that offer similar functionality. The contract piece is what used to be our ASC, Contract Lifecycle Management module. And in terms of Procure and Connect, there are two products that we combine, BitNet Direct, which addresses more of the mid-market and the smaller customers, and there's the Periscope ePro solution that addresses larger Tier 1 types of customers. And finally, this allows us to offer the marketplace products, which allows workers from various public agencies and organizations to shop contracts directly online. Now, in terms of our e-commerce and e-marketplaces division, our various offerings continue to perform well, and the rightsizing that we've completed over the last few quarters now put these in a positive contribution place. We continue to see demand from the B2B side of e-commerce, particularly from the Acumatica ERP clients. And now, Debra will comment on the corporation's financial results. Debra, the floor is yours.