Thinkific Labs Inc.

Good afternoon. My name is Joanna, and I will be your conference operator today. I would like to welcome everyone to Thinkific's first quarter 2021 financial results conference call. At this time, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then the number two. Thank you. As a reminder, this conference call is being recorded. Janet Craig, you may begin your conference.

Thank you, Joanna, and good evening, everyone. Welcome to ThinkHippix Q1 2021 Earnings Call and our inaugural call as a public company. Joining me today are Greg Smith, co-founder and CEO, Miranda Levers, co-founder and COO, and Karine Waugh, CFO. After the prepared remarks, we will open the call to questions. However, since we just went public two weeks ago and the cell side has not been able to initiate coverage, we do not expect there to be much, if any, in the way of Q&A. Scaling any inbound questions, we will be prepared to answer some questions we felt were on point at the end of the call. During the call today, we will make forward-looking statements that are based on assumptions and therefore subject to risks and uncertainties, that could cause actual results to differ materially from those projected. We undertake no obligation to update these statements except as required by law. You can read about these risks and uncertainties in our regulatory filings that were filed earlier today. Also, our commentary today will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures. Reconciliations between the two can be found in our regulatory documents, which are available on our website. In addition, our commentary today will include key performance indicators that help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Such key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. I would also note that we have a slide deck that supports our remarks that is available to download in the webcast interface or on our website. And finally, please note that we report in U.S. dollars and all amounts discussed today are in U.S. dollars unless otherwise indicated. I'll now turn the call over to Greg.

Hello and welcome to our first investor conference call. Thank you for joining us. I want to kick off the call by sincerely thanking all of those involved in our successful completion of our IPO. The great reception we received would not have been possible without the dedication of all of our team, both in making Thinkific the company it is today, but also the team involved in the IPO project. I also want to thank Rhino Ventures for their unwavering support they've had in our vision for Thinkific, as well as the investors that we met with along the way. We also had the help from some exceptional trusted advisors, our bankers at BMO and CIBC, our accountants at KPMG, and our lawyers at Blake's have all been a big help in this journey. While some things will now change that we become a public company, the vision, the culture, and the passion that we bring to Thinkific will not. Turning to our call today, since we are very new to many of you, we are going to do an overview of who we are, as well as cover our financial and operational results, and highlight a customer and introduce Outlook. In our first quarter, paying customers continued to drive our growth. Paying customer growth, combined with growing average revenue per user, or ARPU, resulted in our annual recurring revenue, or ARR, increasing to $34.8 million. We continue to see our paying customers experience success, which led to record levels of GMV, gross merchandise value, in the quarter. We believe that putting the success of our course creators at the heart of everything we do is at the core of our business. Taking a step back, let's take a look at who is Thinkific and what we do. In 2012, we went looking for a solution to create our own courses on our own website and under our own brand. And we wanted to build a business around this idea. We found learning management systems or LMS on course marketplaces were unable to solve this problem. The LMS lacked branding, sales, and marketing capabilities and were designed for educating stakeholders inside an institution. Whereas marketplaces required that the courses live on their website, giving them control over content, pricing, students, and branding. So we created Thinkific to allow entrepreneurs and businesses to create their own courses and learning products on their own websites, under their own brands, to build their own businesses. A great way to see how differentiated we are is to sign up for our freemium offering at thinkific.com and build your own course. Thinkific exists at the intersection of business and education. We believe any business can use education as a tool for growth. With Thinkific, you can create a new business or extend an established one. We've replaced the need to cobble together a fragile mess of solutions, and we provide businesses with one single platform that covers course creation, marketing and sales, payment processing, website creation and hosting, student engagement, communities, and course delivery. And all of these features are under our course creators brand and on their website. Our solution quickly becomes the heart of our course creators business, and we are often the core operating system for their entire enterprise. It would be difficult to overstate the opportunity we have here. As a horizontal solution, we already serve course creators from virtually every industry and vertical, from retail to health and fitness, manufacturing and marketing to professional services. They teach courses on everything from baking to, believe it or not, hula hooping or corporate finance and mining. For many, the courses they create are their primary offering and business model. For others, it's an extension to their existing business, such as a brick and mortar yoga studio adding online courses or a software company teaching marketing to gain customer loyalty. The sheer scale of our business opportunity creates a large and growing total addressable market, which is currently estimated to be $28 to $34 billion. The drivers of this TAM include the rise of the entrepreneur and creator economy, mass adoption of online learning and teaching online, with every generation now going online as their first place to learn. Many businesses are now adopting digital and teaching online to add value to customers. And of course, the future of work and the desire of so many to upskill in their careers and personal lives is driving demand for more businesses to teach online. This TAM, combined with our differentiated product offering and strategy, will allow us to continue to see strong top-line growth. Our recent IPO capital raise will enable us to accelerate that growth through deeper investments in R&D to fuel greater product innovation, as well as the expansion of our product and brand awareness, and the building of an exceptional team that we need internally to support this growth. With that, I'm going to turn the call over to Miranda, who will touch on our customers and a couple of key operational highlights for the quarter.