Newtopia Inc.

Greetings and welcome to the Newtopia Inc. Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Rob Halperin, Senior Vice President of Marketing. Thank you. You may begin.

Good evening and welcome to Nutopia's third quarter 2023 earnings conference call. I'm Rob Halpern, Senior Vice President of Marketing with Nutopia. Joining me today are Jeff Ruby, Founder and Chief Executive Officer, Colin Swenson, Chief Financial Officer, and Lara Dodo, Chief Growth and Operating Officer. Please note that today's call is being broadcast live over the internet and will also be archived for both telephone and online listening upon completion of the call. Details on how to access replays are available in the company's third quarter press release issued this afternoon and can be found on the investor section of Neutopia's website at www.neutopia.com. Before we begin, let me remind you that certain matters discussed during today's call could constitute forward-looking statements which are subject to certain risks and uncertainties related to Neutopia's future financial and business performance. Actual results could therefore differ materially from those anticipated in such forward-looking statements. Utopia is under no obligation to update any forward-looking statements discussed today, and investors are cautioned not to place undue reliance on these statements. The risk factors that may affect results are detailed in Utopia's periodical results and registration statements, which you can access via the CEDAR database at www.cedar.com. Also, please note that all figures stated on today's call are in Canadian dollars and less otherwise noted. I would now like to turn the call over to Jeff Ruby, founder and CEO of Nutopia. Please go ahead, Jeff.

Thank you, Rob, and thank you to everyone for joining us today on our third quarter 2023 earnings conference call. I am very pleased to announce that the third quarter of 2023 represented Nutopia's first profitable quarter in the company's history. Not only are we on track in our strategic direction of profitable growth and becoming EBITDA positive in 2023, but we are ahead of schedule. Throughout 2023, we've made great strides in reducing our cost to serve and increasing our efficiencies, all while impressively maintaining and improving our industry-leading engagements and whole health outcomes. The third quarter proved no exception, and our operational gains led to Newtopia achieving EBITDA positive a full quarter ahead of our internal plan. This positions Newtopia as one of the few profitable companies in the health technology space. The digital health industry, like that of all industries, continues to navigate a difficult macro environment. Despite these challenging conditions, Newtopia has re-secured multi-year contract renewals with each of our key innovator clients, while also pursuing new initiatives with employers, providers, and health plans in both the United States and in Canada. As recently announced, Nootopia was chosen to launch an innovative health coaching project in partnership with a prominent philanthropic foundation. The project will focus on a specific region in the southeastern United States and offer Nootopia's habit change platform as a no-cost health benefit to eligible participants identified through biometric and diagnostic data as suffering from type 2 diabetes or hypertension. In 2024, the project will expand within the regional population of more than 500,000 people. The project will run for one year with a preliminary read at six months and a final assessment after 12 months. We are confident that Nootopia's industry-leading participation metrics will once again shine and that this project will ultimately serve as a blueprint for the deployment of scalable, value-based primary prevention efforts with other large national employers, payers, and providers across the United States. This commercial win proves yet again that health industry innovators recognize the importance of primary lifestyle prevention and habit change to improve the lives and health of members, employees, and communities. Combined with the growth of a new class of GLP-1 drugs to combat metabolic diseases, including type 2 diabetes and obesity, that require effective habit change to deliver sustained clinical and economic outcomes to both individuals and health insurers, Newtopia could not be better positioned to participate in the important market inflection taking place. So let's dig a bit deeper on our financial results for the third quarter. Revenue for Q3 2023 totaled $2.43 million as compared to $2.65 million in the prior year period. This slight year-over-year differential is due to value-added changes to the definition of an engaged participant in new contract renewals and seasonal timing of contract implementation efforts. We anticipate that we will remain profitable through the remainder of 2023. With that, I'll turn the call over to Colin Swenson to discuss our third quarter financials in further detail.