Wecommerce Holdings Ltd.

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 this risk 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. Reconciliation of these measures to IFRS measures are available in our earnings release and most recent MD&A. All amounts referenced in today's call are in Canadian dollars, unless otherwise stated. I will now turn the call over to Chris Sparling. CEO of WeCommerce.

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 and Interim Chief Financial Officer, Alex Pearson. Earlier today, after the market closed, we released our second quarter 2021 results, which are now available on CDAR. As is our practice in these calls, Alex and I will make a few opening comments and then open the floor for questions from analysts and shareholders. Let us start with the financial review of the quarter. Alex?

Thank you, Chris, and good afternoon to everyone on the call. As a reminder to everyone, we do report in Canadian dollars in all references to amounts on this call and in our published financial reports, unless otherwise stated, are in Canadian dollars. In the second quarter of 2021, we generated revenues of $9.5 million, up 85% year-over-year and 108% on a constant currency basis. Net loss in the second quarter was $45,000 compared to net income of $508,000 in the prior year. The net loss during the quarter includes certain non-cash and non-recurring items, including depreciation and amortization costs of $2.7 million, mostly attributable to our stamped acquisition, and acquisition costs of $332,000. Adjusted EBITDA for the second quarter amounted to approximately $2.9 million, or 30% of revenue. Our non-stamped operating expenses in the second quarter were elevated due to, among other items, higher professional fees, attributable primarily to WeCommerce being a public company, and costs associated with our ongoing CFO search. We're also continuing to add headcount at WeCommerce to support current and anticipated growth. Our operating margin was negatively impacted by a decline in themed revenue in the second quarter of 2021 compared to the prior year. App segment revenue was $6.1 million, an increase of 331% or 385% on a constant currency basis compared to Q2 2020, reflecting primarily the recognition of revenue from stamp which closed on April 6th of this year, as well as 460, which closed on June 1st of last year. Excluding 460 and stamped, app segment revenue decreased by 7,000, or negative 1%, though app segment revenue increased 10% on a constant currency basis in Q2 2021 compared to Q2 2020. As it relates to stamped and further discussed under MD&A, Contract liabilities purchased with an original carrying amount of $1.8 million were estimated to have a fair value at acquisition date of $1.5 million, resulting in a fair value write-down of $0.3 million. This fair value adjustment resulted in a decrease in stamped revenue recognized during Q2 2021. As you may have noticed, we began adding constant currency detail, which is a non-IFRS measure to our press release on MD&A as we generate revenue from the sale of apps and themes, predominantly in U.S. dollars. On August 24th, we closed the acquisition of Archetype for $20 million U.S. upfront and an up to $12 million U.S. in contingent consideration. The upfront consideration represents a multiple of approximately five times EBITDA based on Archetype's unaudited financial statements for the trailing 12-month period ending March 31st, 2021. To finance the upfront consideration, we drew 10 million U.S. under our revolving credit facility and paid the balance of the upfront consideration with cash on hand. Co-former for the acquisition, our net leverage remains under three times as of June 30th, 2021, excluding the impact of the 33.7 million bought deal financing that closed on July 7th, 2021. We'll continue to invest across all T's and stamps, including hiring several new functional leaders We're pleased with Stamps' revenue growth for the first half of the year, and we continue to have ample margin to further reinvest in that business to develop new products, better showcase our existing products, and continue building the foundation for Stamps to grow significantly in the years to come. It's been a very active first half for e-commerce. We're well-positioned to continue becoming the acquirer of choice for leading companies in the Shopify partner ecosystem, and we're investing in building the foundation of e-commerce to capitalize on the opportunity ahead of us. I'll leave it there and pass it back to Chris.