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spk08: Good day, and thank you for standing by. Welcome to the Voxter Analytics 2021 Q3 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, press star 0. I would now like to hand the conference over to your speaker today, Jordan Ross, Chief Investment Officer. Thank you. Please go ahead.
spk00: Good morning, everyone. Thank you for joining us for the Voxter third quarter earnings call, where we will discuss our financial results for the period ended September 30th, 2021. Please note that our results were released yesterday and can be accessed on CDAR or on our website at voxter.com. Joining me today are Executive Chairman Gary Yeoman, CEO Jim Albertelli, and CFO Angelo Little. We will begin with prepared remarks and then move into Q&A. If we are unable to get to your question, you are always welcome to contact me directly at jordan.voxter.com. Angela Little will begin by discussing our financial results. You will then hear from Gary Yeoman, who will outline our strategic vision, the milestones we have achieved, including our recent announcement regarding the acquisition of Benutech, and our strategic priorities for the fourth quarter and into 2022. Finally, you will hear from Jim Albertelli, who will provide an update on the execution of our strategic vision through organic growth opportunities and operational improvements. Before we get started, please be advised that some of the information that we will share on this call may contain forward-looking statements. We caution you not to place undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. Further, on today's call, we will report using both IFRS and non-GAAP financial measures. We use these non-GAAP financial measures internally for financial and operational decision-making purposes, as we believe that they provide a meaningful measurement of financial performance and valuations. These non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with IFRS. To see the reconciliation of these non-GAAP measures, please refer to our press release distributed November 29th and our management discussion and analysis, both of which are available at CDAR.com and on our website at voxter.com. A replay of today's call will also be posted on our website. Finally, please note that all references to amounts or currency during today's call are to Canadian dollars, unless otherwise stated. I will now turn the call over to our CFO, Angela Little.
spk07: Thank you, Jordan. Good morning, everyone, and thank you for joining us. Q3 was a strong quarter for the company. We continue to reinvest in the company as well as execute against our strategic growth initiatives, including completion of the zone acquisition on September 1st. We are pleased to report that revenue and gross margin for Q3 and year to date 2021 increased both quarter over quarter, as well as year over year. Q3 2021 revenue was 24.7 million, which represents a 37% increase over Q2 2021, and a 402% increase over Q3 2020. Year-to-date revenue is 57.2 million, which represents a 294% increase over year-to-date 2020. Q3 gross profit was 9.5 million, representing a 15% increase over Q2 2021 and a 359% increase over Q3 2020. Year-to-date gross profit was $25 million, representing 280% increase over year-to-date 2020. Revenue from U.S. operations represented approximately 91% of total revenue for Q3 and 88.6% of total revenue for year-to-date 2021, up from 61% over Q3 2020 and 60% over year-to-date 2020. This is a result of our continued expansion into U.S. markets following the Boxster and Zoom acquisitions in 2021. Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $37.9 million, leaving the company well-positioned to continue executing on our strategic growth plan, including the acquisition of Venutex, which will close before the end of 2021. Looking ahead to Q4 in 2022, our focus continues to be on revenue growth. We expect to see increased volumes in valuation, title, and default services as a result of the foreclosure moratorium being fully lifted on 12-31. We also anticipate significant revenue growth from new clients as a result of the investment in our sales efforts throughout 2021. As a result of the increased revenue, combined with efficiencies and synergies gained from the investments we have made over 2021, we are anticipating positive EBITDA starting in Q1 2022. I will now turn the call over to our Executive Chairman, Gary Yeoman, to provide additional guidance as to the company's strategic focus for the remainder of 2021 and 2022. Sounds like we may have time.
spk06: Yeah, so since he's got technical issues. This is Jim Albertelli, the CEO for Geary Yeoman. Thank you, Angela. Good morning, everyone, and thank you for joining us. As you just heard, we've had a strong third quarter, which has given us the momentum to continue along our growth trajectory for the remainder of the year and into 2022. Our driving goal continues to be our transition to a SaaS-based model. We have made significant progress in this regard over the past year, including several notable accomplishments in the third quarter alone. You'll recall that we acquired the ANOW platform in April of this year, As the only fully digitized AI-enabled valuation platform in North America, ANOW continues to be a competitive differentiator in the valuation space. By eliminating inefficient processes and streamlining workflows, the platform has drastically reduced timelines and created substantial cost savings for appraisers, lenders, and consumers. Following its integration into the Voxter brand, ANOW saw exponential organic growth during the third quarter. We worked in partnership with one of the largest warehouse lenders in the US to launch the first cloud native lender direct appraisal platform. The platform incorporated AI and machine learning functionality to ingest appraisal orders directly from the lender's loan origination system and route optimized for fulfillment. This initiative not only increased our recurring revenue with a high volume captive client and transaction based pricing model, it also accelerated the further development of the platform. to add new functionality and use cases. We've adapted by rapidly expanding our development efforts to meet client demand and anticipate even higher rate of growth in the months to come as appraisal volumes increase following the termination of COVID-19 related restrictions. In August, we closed the acquisition of Zone Valuations. As a leading provider in the valuation space, this acquisition brought us not only brand strength and a strong client base, but also technical and operational expertise. By fully integrating the Zone business into the ANOW SaaS-based platform, we have created one of the industry's largest valuation management platforms. Our widespread client base and data ingestion capabilities will allow us to further grow our data repository and create additional efficiencies through the use of machine learning and predictive analytics. We also made substantial progress in our tax and assessment division during the third quarter as we continued to bolster our SaaS-based platform, the integration of acquired software assets with our native assessment technology with our acquisition of apex software in 2020 we were able to integrate the industry standard software for property sketching into our desktop review property assessment platform to create the first digitized mobile assessment application in north america with this foundation we have continued to develop and build additional sas based assessment tools including a predictive analytics tool that utilizes Voxer's expansive data repository to confirm assessment values for consumers, lenders, and assessors. Additionally, in the third quarter, we executed a purchase agreement to acquire Real Wealth Technologies, a fully digitized asset management platform that democratizes data and brings unprecedented transparency to the management of real estate assets. We closed this acquisition early in the fourth quarter. As we continue to develop the functionality of this platform and expand our client base in the US and Canada, We have unique opportunities to provide value directly to consumers. This platform serves as another SaaS-based touchpoint in the real estate lifecycle, and we expect to see substantial growth throughout the remainder of the year and into 2022. Finally, you may recall that we announced the acquisition of Venutech earlier this year. Last week, we announced the execution of a purchase agreement. We expect to close this transaction in the first quarter. This will result in an immediate substantial infusion of property data into our growing repositories. and add a suite of SaaS-based tools to drive growth in our title and settlement division through recurring revenues with subscription-based pricing. We will also take the opportunity to leverage the Venutech data and analytics functionality across our valuation, assessment, and asset management division as the market for data-driven insights and efficiencies provides an opportunity for substantial growth in all areas. We have seen significant market traction over the past several months, as we have established ourselves as one of the fastest-growing innovators in the real estate technology space. We will continue this growth, and we will continue to prioritize the acquisition of data assets and the expansion of our data analytics capabilities. So I'm going to now take over the business.
spk05: Hey, Tim, I'm on now. If you'd like me to clarify the technical difficulties, if you want me to go forward.
spk06: I'll finish this, Gary, and then let's pick it up at the Q&A if that's okay with you.
spk05: Okay.
spk06: As we were just talking from Angela and Gary, we had a productive third quarter focused on the execution of our growth strategy and transition to a SaaS-based model. We are seeing revenues increase as we further integrate our acquired assets into our cloud-native environment, and we continue to see significant returns from investments in marketing and enterprise sales. With a robust sales pipeline and client demand at an all-time high, We've had to rapidly increase our technology development and infrastructure to keep pace with this accelerated growth. We are constantly evaluating and iterating all of the component parts of our business to create the most comprehensive and effective toolbox for the real estate ecosystem. It is with this overarching goal in mind that we continue to focus on the digitization and synthesis of our data assets. The focus is eliminating inefficiencies and providing elegant solutions for consuming constituents. Our business teams are delivering these cloud-native SaaS solutions while cognizant of operational excellence and ultimately resulting in demonstrable client successes. One example of the synergy of vision and innovation leading to SaaS-based operational excellence lies within the valuation technology group. The valuation technology team had a particularly active quarter with the development and launch of our direct-to-lender appraisal platform. Our team collaborated closely with the client to build, adapt, and launched this platform in a matter of weeks, an extraordinarily condensed timeline. While this required intensive effort and a rapid ramp-up in resources, the implementation resulted in significant revenue growth. With a revenue model that incorporates both transactional fees from each lender-driven order and subscription fees from each participating appraiser, as well as increasing market demand for the streamlined direct-to-lender model, we expect to see substantial growth in this division in the months to come. In parallel with the launch of our lender direct platform, we also accelerated the development of our AMC direct appraisal platform. Another initiative that has been driven by strategic client partnerships. With strong partnerships and deep expertise in AMC space, we have anticipated the needs of the market in this development and anticipate a high rate of user acceptance and demand. Once again, domain expertise and deep data lead to a Voxter innovative solution. Following our acquisition of Zone Valuations, the valuations operations team worked diligently to integrate the Zone business into the Boxster infrastructure. We launched the Boxster Valuation Technology brand in the fourth quarter and expect the consolidation to be completed in the fourth quarter, including the transition of all legacy clients into a singular streamlined platform. We expect to continue this momentum in our Valuation Technology division throughout the fourth quarter and into the new year. where we will see the announcement of additional strategic partnerships and resulting revenue increases. Our title and settlement division is also at a productive quarter, focusing on creating additional operational efficiencies and onboarding new clients driven by our investment in enterprise sales. Through the continued consolidation of retail and default title business, we have benefited from economies of scale and leveraged operational expertise across the enterprise. We expect to see reduced costs as well as increased revenues in 2022 resulting from increased volumes following the termination of certain COVID-19-related restrictions. We also anticipate the announcement of several new strategic partnerships and joint ventures, including announcements related to our title insurance alternative. Finally, you can expect to see the nationwide launch of the Boxer Settlement Services brand, which will lead to increased brand recognition for the Boxer enterprise. Our property assessment division continued its trajectory of organic growth by leveraging the broad U.S. client base of APEX software to cross-sell and increase revenue across property tax and assessment product lines. Strategically, we remain focused on the development of new functionality, including the predictive confirm your assessment tool, which will create additional revenue opportunities. While confirm your assessment will allow the current clients, municipalities, and governmental entities to validate assessments, it will open up a new direct-to-consumer property tax validation tool for some 140 million homeowners in the US alone. We anticipate growth and recurring revenue with current clients as we market this tool on a subscription basis and create transactional SaaS revenue through the expansion into our consumer channel. Speaking of the consumer channel, the closing of our acquisition of RealWealth Technologies provides for a repositioning of current Boxster digital assets to this new market. Boxster Wealth is a platform delivering Boxster data and SaaS-based tools to benefit consumers in the management of their real estate assets. We expect this to be another source of recurring revenue with both transaction and subscription pricing. In closing, we're pleased with the progress during the third quarter and are confident in our outlook for the remainder of the year. Thank you for joining us on the call today and for your investment in your interest in our growing company. At this time, I'm going to turn it over to Stephanie to open up the Q&A. This is a One hour hard stop and any direct questions can, as we previously mentioned, can go to Jordan at Boxer.com, Gary, or myself. Thank you. Stephanie.
spk08: At this time, if you would like to ask a question, please press star, then the number one on your telephone keypad. Again, that's star, then the number one on your telephone keypad to ask a question. We'll pause for just a moment to compile the Q&A roster. Your first question is... is from Christian Skro with eight capitals.
spk01: Hi, good morning, Jim, Gary and Jordan, and Angela. Congrats on the agreement to close Benutech that I think came through just a week or two back. On the Benutech acquisition, could you refresh us on the ways you're thinking of folding in their data? Which offerings will it support or enable? Or is it more of a broad fit across the whole data platform?
spk05: Jim, I'll let you start with the integration of how we're doing that to the extent that I need to add anything on the strategy, I will. Certainly.
spk06: Christian, good morning. Thanks for your question. The Benutech acquisition gives us a unique access to an extremely large, well-recognized data set. That data set we expect to power several different efficiencies and enhancements across the enterprise. On its face, Venutech comes with a set of tools that allows the mining of leads effectively for title companies and mortgage lenders. Getting closer to the lead source for mortgage companies in an environment where you see rising rates constraining the loan volume as well as drags on the supply, having access to a unique determinable lead source that we can provide to our lending clients gives us an advantage in the market space and opens up the door for part of our land and expand strategy. Being closer to what's keenly valued among our clientele, namely loan production, allows us to be uniquely situate in that regard. That will generate, that functionality will generate additional opportunities for the title and closing and settlement services to add and to accrete onto any data relationship that we may develop with lenders using the power of our MSAs previously assembled, the master services agreement. Secondarily, the data asset will power part of the unique tools that were created by Gary with ILA previous to our merger. And in essence, The data is the fuel that will power real property tax analytics that we currently deploy using Canadian data in the provinces of Canada to the 140 million homeowners that I mentioned. So that data set will power not only our expansion into the consumer channel for tax, but it will also power part of the functionality for the real wealth platform as well. So we plan on using the data and technology directly in its current wheelhouse, which is the lead generation for mortgage lenders and title companies. And then we intend to redirect that data to further enhance some of our products we've been offering, the RealWealth platform, Boxster Wealth now, as well as the Confirm Your Assessment. So we see multifaceted uses of that vast data asset coming into our data store being deployed effectively to our clients.
spk05: And if I may add on to that, I just want to talk a little bit about real wealth, you know, with regard to the integration of certain data from venue tech. Essentially, what real wealth is going to do is going to be a central repository of all data for every asset, residential asset that we have, you know, on our platform. And ultimately, our intentions originally was to deal with elderly fraud. Effectively, what we're going to do is put data on that asset on a private distributed ledger and essentially provide the homeowners through our clients the opportunity to provide them with the value of their property every year, to provide them with the opportunity to review the taxes, to provide them with the opportunity, if desired, to identify an agent or a broker if they want to transact with respect to buying or selling of their properties. provides the homeowner with an opportunity to review operating expenses with that asset, whether it's in the insurance side, whether it's landscaping, snow removal, pool services, et cetera, et cetera. It's a massive growth opportunity to deal with elderly fraud. But most importantly, it will be a central repository for each individual asset. Our intention is to add things like homeowners inspections, you know, alterations to renovations. So when you take a look at RealWealth with the advent of the data that we're getting and the valuation capabilities, essentially all we're doing is taking every service that we have in our company and repurposing those service offerings into a centralized, digitized platform for our clients.
spk01: Perfect. That's a helpful call on venue tech and RealWealth. I wanted to ask a question to other segments, ANOW and ZOM. ZOM Valuations is a huge revenue contributor and congrats on the big lift this quarter. You were talking in the prepared remarks on the opportunity to cross-sell ANOW into ZOM or rather integrate it into the ZOM Valuations business. That sounds like an opportunity in the works, something that's you're working through right now. Is there any call you'd share on the ability to streamline the zone business or increase margins or optimize processes there?
spk06: Yeah, sure. So remember we talked about each of our acquisitions having kind of four tenants, right, being in the real estate space, being a software as a service, having positive EBITDA and being creative. And the zone acquisition was one example of And both ANOW and Zome were both qualifying all four of those categories as part of the acquisition thesis. What's not self-evident is that when we did the Zome transaction, they had their legacy technology, which we will effectively replace over time with the ANOW, which we call now the Voxter Assessment Technology. And we will put it in place to create greater and streamline workflows and efficiencies, rapid optimization for the appraisers, and create a shorter timeline ultimately for Mr. Cooper as the lender. But there were two other components to that. One component that is not self-evident, and you may remember, but again, back to the real wealth and how it's going to redeploy our assets, we acquired as part of that transaction access to almost 100% of the MLS data throughout the country. So part of the zone thesis was the core business had additional MSAs with other lenders that we could append on to, and we've already done that. The second thing we could do is replace the current tech and the tech debt with the new Voxter technology over the appraisal management component, which we will do, formerly known as ANOW. And then the third piece is appending to our vast data store with almost 100% of the MLS data. So, again, you can see a common theme with the acquisitions, first on their four tenants, but then on us assembling what we need to do to create the efficiencies for our lending constituents by combining the several product offerings. You can also see where we can redeploy pretty clearly the additional data that we're acquiring as a result of the transaction through a platform like the central repository Gary described in real wealth.
spk05: And just one other thing, Christian, that's kind of important to note. If you take a look at the ANOW platform or the Digitized Evaluation Platform and what Jim had talked about in our growth in SAS-related operations, the gross margins on an ANOW platform is north of 80%. gross margins typically on basically appraisal management services is 25%. Effectively, once we have the opportunity to fully integrate the ANOW platform into the valuation, you're going to see exponential growth in the gross margins right across our company in a material way. And so essentially what we're getting is a client base We have the, you know, the master service agreements in place. We have the relationships, you know, with the clients. We have the ability to deliver the valuations. But to be able to incorporate, you know, AI-infused, fast-enabled platforms, digitized, which is not being offered in North America today, is the single biggest differentiator in transforming this real estate industry in the valuation space. So collectively, when Jim talked about the tenants, the four tenants, Synergy is a material, material benefit to be able to go in and cross out not only all of our four operations to the same lender, but obviously our goal is to improve our gross margins as well.
spk01: That's great, Gary and Jim. Thanks for taking my questions, and I'll pass the line.
spk08: Your next question comes from Chris Thompson with eResearch.
spk02: Good morning, everyone. Thanks for taking my question. Earlier this year, you provided some guidance of $80 million in revenue. And with your strong Q3, it looks like you will achieve that. Just wanted you to confirm your previous guidance and if you're going to provide any guidance for 2022. If I may take this, Jim.
spk05: If you recall, and you read the slide decks that we prepared in providing that forecast, we indicated that we would do $60 million, assuming that the moratorium was not lifted on basically people moving into the default space on the properties. And we provided $80 million estimate in the event that the moratorium was lifted halfway through the year. Well, the moratorium was not lifted, and obviously our performance is well exceeded that guidance lifted. It's always nice to be able to under-promise and over-deliver, and I think we've done that in this case. We also believe that it's very beneficial, acting conservatively, that we continue to provide updated guidance on a go-forward basis. We have an offsite in Tampa this year with our board of directors and our management team, and we will be having that as a topic of conversation. We believe you as shareholders need to be updated, but at the same time, we also understand the responsibility to act conservative. But we're very happy to report today that we will exceed those expectations as previously provided. And we feel very strongly that the moratorium will be lifted in 2022 and we'll be the beneficiary of those tailwinds on that as well.
spk02: Great. And just one follow-up question. You did provide some guidance on some positive EBITDA for 2022. What sort of revenue do you think you have to hit to see some profitability in the quarter?
spk05: Well, we believe and feel very strongly that we are going to be profitable in 2022. And we may even see some slightly positive EBITDA in the fourth quarter. But obviously, it's important for us to act conservative in our estimates. But, you know, with the advent of the 25 million that we did this quarter, obviously we feel very, very strong that we're going to improve on that. We know we're going to improve on that in the fourth quarter in a material way. And so, you know, essentially what we're saying is that, you know, once we kind of get to that, you know, $40 million quarter revenue, we should start, you know, starting off very positive even as a go forward basis. So you can kind of take that as some guidance. The other thing too is you have to understand is that we've had experience on significant infrastructure costs to basically upgrade our technical aspects of our business. And doing that, you don't get the immediate returns because you have to build. I mean, with the wholesale lender that we took on in space, we had to totally reconstruct the technology that we were providing for this digitized valuation. Essentially, what we were able to do is give full insight for the lenders on everything that they need to know as you go through the progress of valuing the property, where the appraiser is, what the status is, et cetera, et cetera. They have full clarity on the progress, you know, of that valuation purpose. So that buildup of infrastructure hasn't allowed us fully to maximize on our profitability. We feel that, you know, that we have most of the people in place. We still have to have some upgrades, but, you know, with the advent of increased revenue should exponentially go to the bottom line as opposed to, being kind of a break-even business of what we have experienced for 2021.
spk02: Thank you. That's my questions for now.
spk08: Your next question is from Colin Fisher with Garrison Creek.
spk03: Good morning, everybody. Can you hear me? Good morning. Good morning. I'll say something. Congratulations to all of you. And I'd also just like to point out that 37% quarter-over-quarter growth is not flat. So regarding your gross margins, it looks like they went from 46% down to 39%. Is this because the ZOM acquisition closed September 1 and ANOW revenues didn't really fully kick in until October 1? That's correct.
spk05: And as Jim pointed out, Colin, you know that with its own acquisition, as in the previous acquisition for our AMC and Clarocity, with the advent of ANOW integrating the digitized platform into that, we're going to see exponential increase in the margins. So we're taking this on. We have an integration process to go through in two ways. Number one, combining the existing valuation business with Zoll and taking on a new platform, and then third, integrating the ANR platform. So you can expect to see margin increases because of that.
spk03: What does steady state gross margins look like for Voxter over all platforms?
spk05: Well, I mean, I think that, you know, going in, you know, we were around 47%. And, you know, obviously, when you take a look at the tax platform that we're going to roll out, we're going to be north of 80% margins. Martin's digitized platform is over 80% margins. With the advent of our, you know, our asset management platform led by Ross McCready, that's going to be extremely high margins. So what you're going to see is with the integration of our technology, you know, taking hold over and basically revolutionizing the base businesses, you're going to see an exponential increase in gross margin in a material way over the months and years ahead.
spk03: Your revenue growth has been mostly driven by acquisition at this point. On a go-forward basis, what drives growth? Is it primarily revenue? M&A or will you have more organic growth to begin driving growth?
spk05: It's interesting you say that, Colin, because I don't think I entirely agree. I think that our acquisitions provided us with an opportunity, obviously, for revenue growth. But when you take, for example, the ANL platform, when we bought that business, we were only showing about $1.5 million of revenue and $150,000 of profits. It is not coincidental that with the advent of the strong sales force and strong leadership by Jim and his operations team that we have had massive growth just in the short, you know, seven months that we've had A&L platform. And so I call that organic growth. I don't call that, you know, acquisition growth. You know, having that opportunity to have that and putting it in give us the opportunity to have that revenue growth. But it was... a collaborative effort besides having the technology, but by having Jim and his team and the sales force and the operations people that we basically provided Marty with the opportunity to grow, that is what we call organic growth. And that's been the driver behind the growth of our revenue.
spk03: Okay. And with regards to your future M&A deals, what are you looking for in future M&A deals, and what does growth capital look like for Boxer? Is it debt, equity, and where are you going to source it from?
spk05: Well, I mean, Jim talked about it at the forefront. I mean, the poor tenants, it's got to be in real estate. It's certainly got to be accretive. We need to be in the technology space and equally and most importantly, and all of them has to be synergistic. So we bring a business in and because we bring that business in, it can augment and help grow each of our other service offers. So, you know, what we found because of what Jim has done with the operations, we found that the opportunities are more being presented to us rather than us going out to seek that. There's a massive turnaround from where we were. a year ago, a year and a half ago. But, you know, clearly the synergy is important to us. I mean, all four of those tenants are important to us. So we will not, you know, say that we won't do anything. We certainly want to help mature the existing businesses that have been brought into the fold. We need to do that. But if you have an accretive synergistic technology business that we feel will augment everything that we do and an attractive price obviously will continue to do that. At the same time, we're currently not being very cognizant of the importance of organic growth. So we'll continue to do that. I think people saw what we did at Altus when I left the company or started the company. We did a number of acquisitions, but there was material organic growth that basically worked concurrently with the creative acquisitions. So it'll be the continuum of the same.
spk03: And for the sources of capital and debt equity, what's that going to look like? And do you want to hop in on that?
spk07: Sure, I'm happy to. So right now we, you know, obviously have closed most of the acquisitions this year, primarily with cash. We plan to, you know, continue to do that with the venue tech acquisition. And then as we move forward, we, you know, we will continue to work with BMO, who's been a great partner to us. But, you know, of course, also talking to, you know, other potential investors. I don't think you'll see, you know, quite the same activity next year as we have this year. It's going to be much more strategic, as both Gary and Jim have mentioned. But that is something that, you know, we are carefully looking at as we move ahead, you know, just to make sure that we've got the company positioned in the best, you know, possible way.
spk03: And how is – so with the foreclosure moratorium, is that finally coming off? Like, where are we at with that? Yeah. Are we starting to see some saw in that?
spk06: Yeah, I'll take that question. This is Jim Albertelli. All the leading indicators, including the bank request regarding capacity, indicate that the moratoria in the majority of almost all state jurisdictions and the federal moratoria will be lifted as of 1-1-22. So we've already received inquiries from a number of the top 10 financial institutions in the U.S. looking at moving those matters forward. That's going to portend for both growth in our SaaS-based technology that manages default as well as technology we haven't really talked about, the bankruptcy environment technology that is run by a a top five U.S. bank and a top five mortgage servicer. So you'll see technology growth and SaaS-based revenue, again, north of 75% gross margin in the default management space as well as in the bankruptcy space beginning in January with the moratorium lifted.
spk05: Jim, why don't you also talk a little bit about some of our dormant entities with the clearinghouse and the call center that have, by virtue of the moratorium, basically been held in abeyance. And so it's not just, you know, more activity from a valuation title, but, you know, talk a little bit about the dormant entities that we have.
spk06: Yeah, in the Boxster technology suite, we have we have built essentially AI-enabled chat technology. So we have chatbot technology that fits in with call center activities. So as you could imagine, as the moratorium, you know, it's like Skinner's positive and negative reinforcement. If you remember that from psychology class, people who aren't forced to pay won't, and people who don't have to pay, well, obviously, they're not going to take any remedial measures. So there is a very high number of, uh, as a percentage of, of constituents, typically, I think it's three to 5% people don't engage when the banks make outreach to do a loss mitigation or workout. Um, you know, that number's around 18%, um, in large part to the way that the governmental enterprise entities have handled the moratorium and the communication. So, so what we're going to see is that as that activity begins to start in January, there'll be more demand on the call center technology that we have in the chatbot world. There'll be more transactions between and consolidations with servicers. We have another technology that is a natural language processing tool that takes loans from origination systems or various servicing systems and reads those documents and places the data into the new servicing platform. So we have that technology. We have the bankruptcy environment technology, which has been dormant. And basically, that's a clearinghouse between connecting the debtor, the bankruptcy trustee, the bankruptcy court, and the mortgage servicer. So it's a complete management tool to process and maintain all of the payments that come in through a bankruptcy case. And then we have a suite of technologies that manage the defaulted asset, the foreclosure, giving insights into the non-performing loan pool and their performance on a very granular level so people can make investment decisions and legal decisions across multiple jurisdictions. So you have a suite of services and technologies, the services being the broker's price opinions of BPOs that are managed through an ANOW technology and that are facilitated through the Vox for Appraisal Services. So you have services and technologies all dormant as a result of the various moratorium that we should start to see activity on as this files move in January, February, and really culminating into a very robust growth through Q2 and Q3 of next year. And so that's what you should look for, those leading indicators there. And that's what we're seeing as far as the inquiries that are being made by the financial institutions at this time around capacity.
spk05: And Jim, I just maybe want to remind everybody that pre-COVID, which was not during your affiliation with us, but pre-COVID, without inserting the robust technology that you have built up to and including today, you were generating revenues of in excess of $80 million with profits in around that $20 million mark. To date, during moratorium, that business has been relatively flat and we've been struggling to see any profit or any material profitability because of that. So even without technology, we feel that you're going to have some robust, you know, growth in that area. But combined with the technology, you know, I think that the tailwinds are pretty strong for us. Do you agree with that, Jim?
spk06: Yeah, I would. You know, when you look at it and you see across the enterprise, you know, so the question was asked earlier about gross margins and the mix and, you know, and How does that look as a percentage of revenue, et cetera? And you expect to see it being more heavily weighted on that 80 percentile as we move through 2022 and really moving to that margin because the technologies, not only the Voxter valuation technology, you know, formerly known as ANOW or the Voxter default suite of technologies, those are all very high margin technologies that will begin to proliferate in Q2 and Q3 of 2022 and beyond. And then that as a weighted factor among all of the revenue streams is going to be more heavily weighted as a larger percentage of overall revenue with a higher margin. And you should expect to see that margin growth as well as the additional growth in top line revenues.
spk00: Okay, I don't see, it's Jordan Ross calling. I don't see any more questions. Happy to field more questions after the call. Again, feel free to reach out directly to me at jordan.voxter.com. We appreciate you taking the time today supporting the Voxter Analytics growth story. And without further ado, thanks again. And operator, I'll turn it over to you to terminate the call.
spk08: Thank you. This concludes today's conference call. You may now disconnect.
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