Wishpond Technologies Ltd.

Hello, everyone. We'll get started in shortly here. Hello, good morning. My name is Pardeep Sangha. and I'm with the investor relations with Wishpond. Thank you everyone for joining us today and welcome to Wishpond's 2021 fiscal third quarter financial results conference call. Joining me on the call today are Ali Tajsikandar, chairman, founder, and CEO of Wishpond, and Juan Leal, the company's CFO. The call is being recorded. We will be having a question and answer session at the end of the call. You can submit your questions to the Q&A button at the bottom of the screen. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our quarterly financial statements and management discussion and analysis from CDAR.com. Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws. These statements are made under safe-harbor provisions of those laws. Forward-looking statements involve known and unknown risk, uncertainties, assumptions, and other factors, many of which are outside of WP's control, that may cause the actual results, performance, or achievements to differ materially from the anticipated results, performance, or achievements implied by such forward-looking statements. These factors are further outlined in today's press release and in our management discussion and analysis. We provide forward-looking statements solely for the purpose of providing information about management's current expectations and plans relating to the future. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, assumptions, or circumstances on which any such statement is based except if it's required by law. We use gross profit, gross margin, adjusted EBITDA on this conference call, which are non-IFRS and non-GAAP measures. For more information on how we define gross profit, gross margin, adjusted EBITDA, please refer to the definition set out in our management discussion analysis. With that, let me turn the call over to Mr. Ali Tashkender, Chairman and CEO. Ali?

Thank you very much, Farideh. Good day, everyone. We hope that you're all keeping safe and healthy. We truly appreciate everyone for joining us today. On today's call, I will first provide some general commentary and an update on the quarter, followed by our CFO Juan Leal, who will provide a financial summary of our results. I will then come back and provide some commentary on our outlook. Third quarter 2021 was another outstanding quarter for Wishpond as we once again achieved record quarterly revenue with 90% year-over-year growth. Growth in our US markets remained remarkably strong as we achieved 104% year-over-year revenue growth in the US. Wishpond's revenue growth was driven by the success of our expanded sales team, new product introductions, and our three acquisitions. We are also very pleased to return to positive adjusted EBITDA in the third quarter. In the first half of the year, we made investments in our product development and sales teams, which are now paying off for the company as evidenced by our Q3 revenue growth and positive adjusted EBITDA. During the third quarter, we also completed the acquisition of Brax, which is our third acquisition since going public less than a year ago. brax is a rapidly growing and profitable software as a service business that offers a robust advertising platform for management of a company's digital ads across multiple sources and is expected to be immediately creative to wishbone i will go into additional details later in this call today but first i would like to turn the call over to our cfo juan leal who will review the financials for the quarter

Thank you, Ali. I am pleased to report that we had a very strong Q3 results for the three months ended September 30th, 2021. Our third quarter 2021 results are as follows. We should achieve record quarterly revenue of 4 million during Q3 2021 compared to revenue of 2.1 million in Q3 2020, an increase of 90% year over year. The increase in revenue was primarily driven by higher organic growth from the company's incremental investment in its sales and R&D teams, and inorganic growth from the positive contribution of its acquisitions. The United States remains our largest and fastest growing market, generating 73% of our total revenue in the third quarter, and we achieved 104% year-over-year revenue growth in the U.S. market. Wishbone achieved gross profit of $2.8 million, representing an 82% increase from Q3 2020, driven by an increase in the company's overall revenue. Wishbone achieved a gross margin percentage of 69% during Q3 2021, compared to Q3 2020 at 72%. The gross margin achieved for Q3 2021 was within the historical range of 65% to 70%. During Q3 2021, Wishbone had adjusted EBITDA of 204,000 compared to adjusted EBITDA of 176,000 in Q3 2020. The increase in adjusted EBITDA is attributable to Wishbone's organic growth and from the newly acquired acquisitions Invigo, Persist IQ, and Brax. we continue to have a clean and healthy balance sheet. As at September 30th, 2021, Wishbone had 7.8 million in cash and cash equivalents. The company had no long-term debt as of September 30th. On September 29th, 2021, the company entered into a new credit facility agreement with National Bank of Canada's Technology and Innovation Banking Group for a $6 million secured revolving operating line. The credit facility remains undrawn as of today's date. On June 7, 2021, the TSX Venture Exchange accepted a notice of the company's intention to commence a normal course issuer bid, or NCIB, for its common shares. The board of directors of the company believes that the recent market prices of the company's common shares do not properly reflect the underlying value of such shares. And the purchase of such shares would be a desirable use of corporate funds in the best interest of the company and its shareholders. Since the approval of the NCIB on June 7th, 2021 to November 16th, 2021, the company has purchased a total of 126,400 common shares for cancellation at an average trade price of $1.24 per share. At the end of the third quarter on September 30th, 2021, the company had 51.8 million fully diluted securities issued and outstanding. On July 14th, 2021, we announced that this Depository Trust Company or DTC had made Wishbones Common Shares eligible for electronic deposit and clearing. The company believes that the opportunity to clear and settle trades in its common shares on the OTCQX should provide a more seamless experience for its U.S. shareholders and increase liquidity in the stock. In summary, Wishpoint is in a very strong financial position with a healthy balance sheet, solid monthly recurring revenue, and very good visibility to revenue and cash flow for the next year. That is my financial update, and I turn the call back over to Ali.