Newtopia Inc.

Good afternoon, ladies and gentlemen, and welcome to Netopia Incorporated's third quarter 2024 earnings call. At this time, all lines are in listen-only mode. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, 27th of November, 2024. I would now like to turn the conference over to Ms. Rikki Benny, Senior Vice President of Experience and Operations. Please go ahead.

Good evening, and welcome to Newtopia's third quarter 2024 earnings conference call. I'm Rikki Benne, Senior Vice President with Newtopia. 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 the replays are available in the company's press release issued this afternoon and can be found on the investor section of Newtopia's website at www.newtopia.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 relating to Newtopia's future financial and business performance. Actual results could therefore differ materially from those anticipated in such forward-looking statements. Zootopia is under no obligation to update any forward-looking statements discussed today, and investors are cautioned not to place undue reliance upon these statements. The risk factors that may affect results are detailed in Zootopia's Periodical Results and Registration Statements, which you can access via the CDAR Plus database at www.cdarplus.ca. Also, please note that all figures stated on today's call are in Canadian dollars unless otherwise noted. I would now like to turn the call over to Jeff Ruby, founder and CEO of Newtopia. Please go ahead, Jeff.

Thank you, Rikki, and thank you to everyone for joining us today for our Q3 earnings call. I would like to speak about the progress we are making in some key growth areas for Newtopia, along with several macro trends taking shape in the U.S. that we anticipate will be positive for our business and industry. Afterwards, Colin will review financial results for Q3, and Laura will provide further details on Neutopia's commercial opportunities. Beginning with our industry-first randomized controlled clinical trial sponsored by Aetna in 2013 and extending to the Fortune 500 employers that have adopted our solution, Neutopia has consistently delivered participant weight loss and reductions in A1C that are not only clinically significant, but also sustainable over time. we continued delivering on that trend during Q3. This has translated into meaningful cost savings for our employer partners and program sponsors and has improved the health and well-being for the more than 100,000 individuals whom we have served, irrespective of their referral path, geography, health equity, or socioeconomic status. While our outcomes have never been better, we've also continued making operational enhancements to our business and cost structure in an effort to pave the way towards profitability in 2025. Our industry-leading results come at a time of significant inflection for metabolic health, particularly in the US market, where the age of Ozempic is about to meet a new US government administration with identified health leaders who for the first time are calling to make America healthier again by tackling the chronic lifestyle disease burden. There are still more questions than answers, about what all this means regarding policy changes, but one thing is certain. Newtopia's proven habit change methodology, as a standalone or as a GLP companion, is more relevant and consequential today to risk-bearing employers, public and private health plans, and value-based providers than ever before. One area of growth we focused on this quarter was a new strategic partnership with an innovative new supplemental insurance provider to offer our proven habit change platform to thousands of U.S. workers as a fully covered benefit starting in 2025. A payvider is a healthcare model that combines the roles of a payer and a provider, integrating care delivery and financing. The payvider model aims to improve patient outcomes by streamlining healthcare delivery and reducing costs. It's a response to the growing need for value-based care, which focuses on patient outcomes rather than the volume of services provided. This exciting new partnership exposes Newtopia to an entirely new channel of business in supplemental insurance with a payvider that is consistent with Newtopia's own mission, dedicated to cultivating whole health and well-being in its members. The payvider's platform already serves some of the U.S. industry's largest employers, which together represent millions of workers. As a fully covered benefit on the platform, Newtopia will provide its best-in-class habit change platform, combining personalized coaching, nutrition, exercise, and mental and emotional well-being support to the approximately 50% of plan members at risk of metabolic disease, with no out-of-pocket costs to the individuals served. Plan members will also have access to Nootopia's rapidly growing GLP-1 companion offerings, GLP-1 Ally and GLP-1 Stain, which are designed to help individuals taking GLP-1 medications maintain and their clinically significant weight loss and healthier lifestyles, even when they transition off of the medication entirely. Based on Utopia's historic success in rolling up to 25% of at-risk individuals depending on the employer environment, full coverage, and a physician-directed introduction, this new partnership channel has the potential to meaningfully accelerate new-time top-line participant acquisition in order to reach cash flow positivity and profitability in 2025. A second focus during the quarter was on continuing to deliver high engagement rates and clinically significant outcomes to secure key client renewals and expanded contracts with existing clients, including Fortune 500 and Fortune 10 innovators. A third focus was on partnership development with clinical discovery and health AI leaders on how we can leverage Neutopia's habit change capabilities alongside our broad data set to advance clinical trials and novel drug development to aid in the prevention of metabolic diseases, paving the way for sustainable long-term health improvements. Other significant milestones include the upcoming completion of our 12-month Whole Health Coaching Project in partnership with the Heartland Whole Health Institute that aims to increase member or participant activation and engagement, improve health, and reduce costs for care while simultaneously increasing desired utilization by closing gaps in care. Thus far, we have delivered our best results to date to our provider-referred participants from Community Clinic and employer-referred participants from Arvest Bank. We are looking forward to sharing the complete results and the impact Newtopia has had on the communities we have been able to serve when we report our fourth quarter results in the new year. Laura will later share some high-level outcomes we have already evaluated.