Boardwalktech Software Corp.

Good afternoon, ladies and gentlemen, and welcome to the Boardwalk Tech Software Corp. second quarter fiscal 2023 earnings conference call. At this time, all lines are in the listen-only mode. Following the presentation, we will conduct a question-and-answer session. And if at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded Thursday, November 17, 2022. I now would like to turn the conference over to Mr. Jonathan Patterson. Please go ahead, sir.

Thank you, operator. Good afternoon and welcome everyone to BoardWalk Tech's quarterly conference call. This call will cover BoardWalk Tech's financial and operating results for the fiscal second quarter ended September 30th, 2023. Following our prepared remarks, we will open the conference call to a question and answer session. Our call today will be led by BoardWalk Tech's President and Chief Executive Officer, Andy Duncan. along with the company's Chief Financial Officer, Charlie Glavin. Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested and any forward-looking statements due to a variety of factors which are discussed in detail in our regulatory filings. Today, we issued our second quarter fiscal 2023 financial results, a copy of which is available in the investor relations section of our website, www.boardwalktech.com, and posted on CDOT. I would like to remind everyone that today's call is being recorded on Thursday, November 17th, 2022. I will now turn the call over to the President and Chief Executive Officer of BoardWalk Tech, Andy Duncan.

Thank you, Jonathan. I would like to welcome everyone to BoardWalk Tech's quarterly earnings call to discuss the company's financial results for the second quarter of fiscal 2023, ended September 30th, 2022. Before I begin, please make note that all dollar figures reported on today's call are in U.S. dollars unless otherwise noted. We are pleased to report that our business continues to experience solid growth and a healthy amount of momentum driven by both our land and expand strategy as well as our new business opportunity in the financial services market. This momentum is demonstrated by the continued growth in our annual recurring revenue which now sits at 5.5 million, representing year-over-year growth rate of 66%. Our actual license revenue reported in the September quarter grew 95% year-over-year. Total revenue of 1.5 million is up 36% year-over-year, though flat sequentially due to the timing of some professional services revenue. a temporary impact which we believe will more than correct itself in the next quarter and subsequent quarters. I will leave the rest of the financial discussion to Charlie Clavin to provide deeper insights into the financial aspects of the quarter after my prepared remarks. I would like to touch on the continued success of our land and expand strategy in more detail. as it will continue to be a key growth driver for the business for the foreseeable future. Before I jump into the recent success of this strategy, I would like to remind everyone about the how and the why behind this strategy and why this is working so well for us. When BoardWalk Tech signs a new client, we typically enter into that company to help them with a specific business unit to solve a mission-critical issue by transforming a current Excel-based application process onto our digital ledger platform. Once we are onboarded with the new client and deliver that first application, the benefits of our platform are readily apparent as the ROI to our customers routinely exceeds five to six X in the first year of our license. We have demos and case studies that show these compelling productivity gains. Workflows are also made easier, which leads to better and faster decision making, improving the operational performance and profitability of many areas. This is what makes our platform so powerful to our clients. This positive first engagement typically leads to internal discussions within the organization, which then leads to new incremental business opportunities for boardwalk tech with that client. As a client begins to experience and understand how our platform can drive better decision-making in a drastically shorter period of time, we start to become integrated into the overall technology stack of the organization, become the engine that helps them transform and manage their unstructured data applications, ones that are still very dependent on Excel. It is estimated that the typical enterprise has well over 100 of these separate mission-critical Excel-based applications that would benefit from our digital ledger solution. If that enterprise migrates just 10% of these to Boardwalk at roughly $100,000 per application, that would be $1 million of ARR per customer. Thus, we aren't looking for enterprises to switch everything to boardwalk, at least not yet, but rather acknowledge that while their existing IT systems may be good, they are not good enough in this challenging and competitive market. This is the essence of our land and expand strategy, and it's working as evidenced by these results, helping us to increase the recurring revenue with every client based upon the ROI we provide. We had a few wins in the quarter that epitomize our land and expand strategy, starting with the expansion of our relationship with a long-term client, one of the top accounting and tax consulting firms in the world. This deal grew our recurring license revenue by an additional $500,000 per year and is a clear demonstration of the benefits that our low-code digital ledger platform provides to our clients. This client is now using our platform with several thousand of their global tax clients, which in our opinion is quite the endorsement of our software solution. We expect to continue to announce more wins with respect to our land and expand strategy, as we are currently working on multiple initiatives with existing clients and will announce these deals when they're finalized. We also expanded our scope of services with HCL Technologies, a multi-billion dollar New York Stock Exchange listed information technology company with global operations. HCL is not only a client, but an important channel partner of ours in the banking and financial sector. And finally, we announced a new relationship with SiTime, also known as SiTime, a fabulous semiconductor company that has licensed our digital ledger platform to streamline its demand planning across its organization to better manage the information across its supply chain down to the unit level. The result will be a much more efficient way to manage inventories and to serve their clients. Given the supply chain challenges and problems faced by the global market, SI Time is just one more example of new boardwalk customers that recognize the need for our time-based digital ledger platform is a struggle with managing structured and unstructured data in their supply chain for compliance, for tracking, for security, and in real-time accurate decision-making while still maintaining data quality and provenance. With that, let me now make a few comments about our pipeline of new business. We acknowledge that concerns of an economic slowdown create perceived headwinds. However, it's management's belief that these are some of the reasons why we are seeing an actual increase in our business development pipeline since BoardWalk is providing a solution that improves productivity and can even offer a distinct competitive advantage. For example, a semiconductor customer improved its results or its response time to RFP, RFQ inbound requests by two to three days, which resulted in a 15 to 20% higher conversion rate, meaning more deal wins and higher ROI and revenue for that customer. To quote one of our other customers, a senior director at a top five U.S. bank, quote, what used to take me two days now takes me 15 minutes with the BoardWalk digital ledger. This customer testimony is representative of why our pipeline continues to replenish and grow while our business growth remains resilient in the face of uncertain economic times. The reason for this ongoing growth is that our time-based digital ledger platform not only enables better collaboration, but addresses and resolves the critical supply chain problems evident in the industry today. What excites us even more is that the pace of growth in new business can be attributable to several factors. First and foremost, our software solutions provide productivity and material return on investment in the first year of implementation. As we have discussed in the past and in our investor materials, unstructured data within an organization accounts for more than 80 percent of its overall data volume, and this unstructured data is doubling every two years, an astounding number. This level of unprecedented data growth and complexity is very difficult for large enterprises to manage. The management of unstructured data is exactly the type of problem we are solving with our low-code digital ledger platform. There is not a product in the market that can do what we do today, and the market is really starting to recognize Boardwalk as being a leader in this space. Looking forward, we are excited about the company and where it's headed. We are on track to hit profitability next year without the requirement for outside capital. What also excites us is the future growth potential presented by two separate $100 million revenue market opportunities now being addressed by BoardWalk Tech. That would be our enterprise market and the financial services market. First, the first is our continued focus on unstructured enterprise data management solutions specifically for the CPG supply chain and manufacturing markets that continues to grow through the expansion of existing relationships And through the acquisition of new clients, it will be announced as we convert new business from our growing pipeline. The second, and this new financial services channel or banking channel that we're working on, we're starting to see some terrific momentum. This is not a market that we chased, but was brought to us by an existing customer and partner. Earlier this year, we announced our first client in the financial services channel, a top five global bank, who is beginning to ramp up the BoardWalk Digital Ledger Velocity product across its entire organization to address end-user computing compliance, a risk issue from legacy Excel spreadsheets. This deal has drawn the attention of other large IT services companies that seek to engage us as a channel partner and enter into a teaming agreement which will continue to build out an ecosystem for BoardWalk in the financial services space. These new partners are very motivated to leverage our digital ledger into their large banking clients whereby BoardWalk gets the direct license revenue and our partner gets the revenue from deployment of the professional services and consulting work without BoardWalk having to hire teams of employees. This means that we can scale and can be highly profitable in doing so. I will now pass this over to Charlie Glavin, who will walk through the numbers with you and a detailed environment. Charlie, over to you.