Wecommerce Holdings Ltd.

Good afternoon. Welcome to WeCommerce first quarter 2022 financial results conference call. After market close, WeCommerce released financial results for the period ended March 31st, 2022. The press release as well as a replay of today's call can be found on the company's investor relations website at investors.wecommerce.co. Please view the release for additional information on what will be discussed during today's presentation. The company will make forward-looking statements on the call today that are based on assumptions and therefore are subject to risks and uncertainties that could cause actual results to differ material 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 issued by the company this afternoon as well in our filings on CDAR. Note that the adjusted financial measures the company speaks to today are non-IFRS measures, which are not a substitute for IFRS financial measures. Reconciliations of these measures to IFRS measures are available in the company's earning release and most recent MD&A. I will now turn the call over to e-commerce CEO, Alex Pearson.

Thank you, operator, and good afternoon, everyone. I'm joined today by Dave Charon, our Chief Financial Officer. I'll provide some brief opening remarks before turning it over to Dave to discuss our financials in greater detail, followed by our standard Q&A. The first quarter was a strong start to the year and marked a continuation of the same trends in performance and market dynamics we noted in our year-end update. We continue to drive healthy year-over-year growth in our apps and themes businesses. Our core portfolio companies, including Stamped, Archetype, and 460, are all performing well. providing us with stability in an otherwise challenged e-commerce market compared to last year. In our agency business, we recently bolstered the leadership function in that segment to reinvigorate growth in the coming quarters. Q1 was also a clear proof point for the steady state performance of our existing business. As we did in Q4, we generated north of 30% operating cash flow margins. We have a strong financial position with over $26 million in cash, and we continue to balance investing internally while evaluating capital attractive acquisition opportunities in a compelling acquirer's market. There have been lots of significant industry announcements over the past few months in e-commerce, including Amazon launching Buy With Prime to extend their footprint beyond Amazon.com, as well as Shopify acquiring Deliver to bolster its fulfillment network. We're excited about the continued innovation within e-commerce infrastructure as we play directly on top of that infrastructure and extend it further. Many investors ask me what keeps me up at night. And the answer is always the same, the viability of merchants. Merchants have been hit by confluence of factors over the past 12 months, increasing both the cost of doing business through supply chain bottlenecks, impacting both cost and working capital, as well as rising advertising costs. New e-commerce infrastructure to help mitigate these effects is overwhelmingly positive for our long-term success. Indeed, many merchants were negatively impacted by Apple's ATT changes last year, And we're already seeing amazing innovation in that space to help merchants get clarity and customer attribution and acquisition costs. There may be bumps along the way, but the trend for e-commerce is very much up and to the right. We remain rooted in our mission, which is to build e-commerce into a leading acquirer and operator of e-commerce enablement technology companies. Altogether, I'm immensely proud of the business our employees have built over the past 20 months. and I'm confident e-commerce can continue to build the leading e-commerce-enabled platform for many years to come. I'll now turn the call over to Dave Chiron, our Chief Financial Officer, to review our financial results in more detail.

Thanks, Alex, and good afternoon to everyone on the call. Before I begin, and as a reminder, we report in Canadian dollars, and all references to amounts on this call and in our published financial reports are in Canadian dollars unless otherwise stated. Moving on to our results, in the first quarter of 2022, we generated revenue of $12.1 billion, up 100% year-over-year and 100% on a constant currency basis. Breaking down revenues by segment, the company has three reportable lines of business through which revenue is generated, apps, themes, and agency. The app segment refers to the operations associated with providing software to customers, which we classify as recurring subscription revenues. In Q1, apps or recurring subscription revenue was $7.4 million, an increase of $5.1 million or 223% equal to 222% on a constant currency basis from Q1 of 2021. The theme segment refers to the sale of theme design templates to customers operating their stores on various e-commerce platforms. We refer to this segment as digital goods revenue. In Q1, or digital goods revenue was $3.7 million, an increase of $1.6 million, or 72%, equal to 72% on a constant currency basis from Q1 of 2021. Lastly, the agency segment refers to the operations associated with providing agency services to customers. This segment is classified as agency service revenue. In Q1, the agency services revenue was $994,000, a decrease of 594,000 or 37% from Q1 of 2021. Net income in Q1 of 2022 was 790,000 compared to a net loss of 1.8 million in Q1 of 2021. The net income for the quarter includes fair value investments amounting to 2.1 million, which relate to the revaluation of the contingent consideration for the stamp and archetype acquisition. The net loss for Q1 of 2021 includes finance fees of $1 million in connection with the early repayment of long-term debt on March 31st of 2021, as well as the accelerated amortization of $128,000 of deferred finance fees on that previous facility. Our adjusted EBITDA for the first quarter was $2.8 million, or 23% of revenue, up 42%. from the 2 million or 33% of revenue reported in the first quarter of 2021. Our operating cash flow at the quarter end was 3.9 million or 32% of revenues, an increase of 201% compared to the 1.3 million or 21% of revenues in the first quarter of 2021. Unrestricted cash at hand at March 31st, 2022 was 26.2 million compared to $26.1 million on December 31st of 2021. And total debt outstanding at March 31st, 2022 was $59 million. I'll now turn the call back to Alex for a business update.