Wecommerce Holdings Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the WeCommerce Q1 2021 earnings conference call. The company will make forward-looking statements on the call today that are based on assumptions and therefore subject to risk and uncertainties that could cause actual results to differ materially from those projected. The company undertakes no obligation to update these statements except as required by law. You can read about these risks and uncertainties in the press release this afternoon, as well as in our filings on CDAR. Note that the adjusted financial measures we speak to today are non-IFRS measures, which are not a substitute for IFRS financial measures. All amounts referenced in today's call are in Canadian dollars, unless otherwise stated. With that, I will now turn the call over to Mr. Chris Sparling, Chief Executive Officer of WeCommerce. Please go ahead.

Thank you, operator. Good afternoon. As the operator said, my name is Chris Farley, and I am the chief executive officer of WeCommerce. Today, I am joined on this call by our president, Alex Pearson, and Evan Brown, our chief financial officer. Earlier today, after the close of the market, we released our first quarter 2021 results, which are now available on CDAR. As is our practice in these calls, Evan and I will make a few opening comments and then open the floor for questions from analysts and shareholders. We'll start with the financial review of the quarter. Evan? Thank you, Chris, and good afternoon to everyone on the call. As a reminder to everyone, we do report in Canadian dollars and all references to amounts on this call and in our published financial reports, unless otherwise stated, are in Canadian dollars. So let's jump into the financial results. In the first quarter, 2021, we generated revenues of $6 million, up 45% year over year. Net loss for the first quarter was $1.8 million compared to net income of $100,000 in the prior year. The net loss during the quarter is due to a number of one-time expenses, including finance fees related to the repayment of our term debt and transaction costs related to the acquisition of Stamp. Absent these expenses, net income for Q1 would have been approximately $200,000. Adjusted EBITDA for the first quarter amounted to $2 million compared to $900,000 in the prior period, and cash generated from operations was $1.3 million compared to approximately $900,000 in the prior year just after the quarter end we closed the acquisition of stamped we used our existing cash on hand along with our new debt facility to finance this transaction and as of now we have term debt of u.s 40 million along with approximately 5.6 million canadian cash on hand and our portfolio companies which now include stamped continue to produce very healthy cash flows from operations so with that i'm going to pass it back to chris Thank you, Evan. I only have a few comments before opening up for questions. As Evan mentioned, we closed the acquisition of Stamped on April 6th. We described Stamped in detail during our last quarterly call, so I won't go into as much detail this time. I will note that our focus right now is very much on successfully integrating Stamped into the WeCommerce family, and to date, we couldn't be happier with how that one's going. Also, as we announced last month, Evan will be stepping down as CFO in June, and we expect to be announcing his replacement shortly. With that, I'll pass it back to the operator to facilitate the Q&A.

Thank you. At this time, I would like to inform everyone, in order to ask a question, please press star 1 on your telephone keypad. Again, that is star 1 to ask a question. We have your first question from Daniel Chan with TD Securities. Your line is open. Afternoon.