Voxtur Analytics Corp.

Good morning, ladies and gentlemen, and welcome to the VoxTour Analytics Q2 2023 Earnings Conference Call. At this time, note that all participant lines are in a 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 the call is being recorded Thursday, August 24, 2023. At this time, I would like to turn the conference over to Mr. Jordan Ross. Please go ahead, sir.

Good morning, everyone. Thank you for joining us for the Boxster second quarter 2023 earnings call, where we will discuss our financial results and business highlights. Please note that our Q2 2023 results were released August 22, 2023, and can be accessed on CDAR Plus and on our website at boxster.com. Joining me today are CEO Gary Yeoman and CFO Robin Dyson. We will begin with the 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.boxter.com. Robin will begin by reviewing our financial results. After that, Gary Yeoman will provide updates as to how we are progressing toward our objectives through capital market activities, organic growth, and operational efficiencies and highlights. 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 valuation. 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 Tuesday, August 22, 2023, and our management's discussion and analysis, both of which are available on CDAR+. 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, Robin Dyson.

Thank you, Jordan. Good morning, everyone, and thank you for joining us today. As addressed on our last earnings call, the rapid increase in the U.S. prime rate has had a negative impact on various lines of business at Boxter, primarily with respect to our appraisal services, capital markets, and title lines of business. From the beginning of 2022 to present, rates have increased from 3.25% to 8.5%. On our Q1 earnings call, we noted that in response to our lower-than-expected revenue, the company is focused on cost reductions and adjustments to the company's strategy. We have taken these actions and continue to focus intensely on profitability. To drive profitability, we are pursuing both revenue growth through the launch of new products and services that we have developed, as well as continually assessing opportunities for process efficiencies and cost reductions. Shifting to our discussion of revenue. Revenue decreased from $38 million to $29.9 million for the three months ended June 30, 2023 and 2022, respectively, and decreased from $79 million to $59 million for the six months ended June 30, 2023 and 2022, respectively. These decreases were primarily attributable to the negative impact of significantly increased interest rates on our appraisal of the service line of business, and the negative impact on revenue of the amendments made to a services agreement with the related party, effective January 1, 2023, which amendments also resulted in a significant decrease in direct operating expense to support this revenue stream. Note that the related party reference is no longer a related party as of April of this year. We maintain a mutually beneficial relationship with this party, but now at arm's length. While revenue decreased on a year-over-year basis, revenue increased approximately $1.1 million in the second quarter of this year as compared to the first quarter. This increase is primarily attributable to a stronger quarter for the capital markets business unit. Gross profit increased to $15 million from $12.7 million for the three months ended June 30, 2023 and 2022, respectively. an increase to $28.5 million from $26.6 million for the six months ended June 30, 2023 and 2022, respectively. These increases, despite the revenue decreases discussed, are primarily attributable to decreases in direct costs required to support appraisal-related revenue, revenue increases being attributable to high-margin offerings, and indirect cost improvements. Other items to highlight with respect to the second quarter include Voxer's achievement of positive adjusted EBITDA of approximately $530,000 for the quarter and the closing of equity financing. In June, the company closed the first tranche of a non-brokered private placement for gross proceeds of approximately $3.3 million. And subsequent to June 30th, the company has closed additional tranches of financing of approximately $7.4 million. I will now turn the call over to our CEO, Gary Yeoman, to provide business updates.