Qyou Media Inc.

Good afternoon, and welcome to QU Media's third quarter 2022 conference call. As a reminder, this call is being recorded, and all participants are in a listen-only mode. We will open the call for questions and answers following the presentation. On the call today, QU's co-founder and CEO, Kurt Marvis, chairman and co-founder, Scott Patterson, and CFO, Kevin Williams. The company would like to remind everyone that various remarks about future expectations, plans, and prospects constitute forward-looking statements for purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. QU questions that these forward-looking statements are subject to risks and uncertainties that may cause their actual results to differ materially than those indicated, including risks described in the company's filings with the SEC. Any forward-looking statement made on this conference call speak only as of today's date, Tuesday, November 29th, 2022. And QU does not intend to update any of these forward-looking statements to reflect events or circumstances that occur after today. A replay of today's call will be available on QU's website at www.qyoumedia.com. With that, I would like to turn the call over to QU Media's co-founder and CEO, Mr. Kurt Marvis. Mr. Marvis, you may go ahead.

Great. Thank you very much, Sherry, and welcome all of you on the call who are key followers and investors. It's great to have you on this afternoon. So just to repeat what was just said, as we got on the call, myself, our chairman and co-founder, Scott Patterson, and our CFO, Kevin Williams, and we'll have things open for questions at the end of the discussion here about our results. So we're super excited today to share with you the results of the quarter, which ended September 30th, 2022, which marks the end of our Q3 2022 for the QMedia business. Kevin and I will take you through some of the financial highlights and then share with you some of the activities that have driven the business growth and what we expect to happen going forward. At the end of this discussion, we'll open things up for questions. By the way, Scott, Kevin and I are all in different locations today. So if you have a specific question for one of us, please let us know when you ask it. And with that, we'll get onto the news. Hopefully some of you have already seen Uh, the release that was just put out about a half hour ago. Uh, and today we are reporting that Q3, 2022, uh, marks the highest quarter of revenue in the company's history. We recorded revenue of $7.24 million a year over year in quarterly increase of $2,519,095 or 53%. For the nine months ending September 30th, 2022. As compared to the same period last year, we have recorded total revenue of $19,362,601, representing an overall revenue increase of $11,813,688 or 156%. Obviously, we're really happy with these results. The year-over-year adjusted EBITDA For the three months ended September 30th, 2022 also improved by $514,396 or 42%. And for the nine months ended September 30th, adjusted EBITDA improved by $2,230,274 or 46%. This all of course is particularly encouraging given the significant investment that we have been making into content. and new product launches over the course of 2022. While we've not provided any formal guidance this year, we have set our own internal goals, and currently that's at approximately $28 million in total revenue for the year. This is slightly below what our original goal was and is primarily due to the lack of us being able to make what we thought was a smart move on any of the originally intended acquisitions that would have resulted in a slight boost to that overall revenue figure. I'll talk more over the course of the call about our recently announced Maxim Tech gaming acquisition and give you some more details about that. But irrespective of that, because that won't close until sometime in the month of December, it will have extremely minimal or virtually no impact on 2022 revenues. Our overall pause this year on the acquisition front has been driven by what we're all aware of the fragile and turbulent nature of the public markets throughout the course of 2022 and really over the last 18 months. And that's been coupled with our drive to become cashflow positive. Nevertheless, we're always on the lookout for highly accretive acquisitions that can help us springboard our business initiatives further and faster, similar to what we saw happen with our acquisition of Chatterbox in 2021, and what we believe will happen with the acquisition of Maxim Tech in 2023 and beyond. Nevertheless, 2022 turned out to be a year where such an acquisition did not materialize or occur. In addition, while growth is always a major priority for us, as we've noted, becoming cash flow positive is as well. This is a major goal in 2023, and we'll be carefully managing the fine line between investment into new products that can take months and in some cases years to pay off, and the focus on our large set of existing assets that have been launched and how we can maximize their ability to deliver positive financial results. This is the mindset of all management as we enter 2023, and we are very proud of the fact that we've been as conscious as possible as we possibly could while launching four new channels, and various other products like QPlay and QData in 2022 while paying a mindful eye to continuing to approve our adjusted EBITDA. I'll speak a bit more in detail about that momentarily and about how we intend to capitalize on the size and scale of our massive reach to the young India population and our continued plans to leverage this across all of our business, our projects that we've been launching to date. I'll also speak a bit more about our U.S. business which continues to deliver amazing results. But first, I'm going to have our CFO, Kevin Williams, give you just a few more financial details. So over to you, Kevin.

Thanks, Kurt. Before Kurt gets into a little bit more about the business, I wanted to pass on just a few more important financial details that we believe the investors will be interested in. The company concluded the quarter ended September 30th, 2022 with a cash balance of $3 million. $77,769 compared to June 30th at $4,181,414. The cash used for operating activities in the quarter is drastically down year on year and that's really primarily due to the increase in adjusted EBITDA and the collection of our trade receivables. Cash used in operating activities for the three months ended September 30th, 2022 was $818,000 compared to the cash use in the prior year of $4.4 million. Cash use in operating activities for the nine months ended September 30th was $2,973,811 compared to the same time period last year where it was $8,762,864. So a drastic decline in cash use for operating activities. I also think it's really important for investors to understand the improvements in our customer concentration risk and how much it was reduced. The company only had two customers that represented over 10% of the company's revenue in this past quarter, which is consistent with 2021. But more importantly, these top two customers' percentage of total revenue declined from 25% to 21%. This broadening of our revenue base is a testament to the number of the new advertising partners that have been brought on board over the course of this fiscal year. We also think it is important to note that all of the new channels and other recently announced business units and activities have not had any material contribution to the Q3 revenue numbers, and those still will be relatively small through Q4, and we should see the significant uplift coming from these in 2023. At the same time, the cost of launching the channels and business initiatives is very much accounted for from initial cost and launch perspective, which also sets us up in the future for improved financial results. As a company, we have just completed the 2023 financial planning cycle with a key eye on the goal that Kurt mentioned earlier in being cashflow positive in 2023. With the company exiting the quarter ended September 30th, 2022 with $3,764,000 of positive working capital, and the funds that were recently raised, we believe that we are well set up to achieve that goal. Back over to you, Kirk.