Wishpond Technologies Ltd.

Thank you everyone for joining us today and welcome to Wishbond's 2021 fiscal fourth quarter and full year 2021 financial results conference call. Joining me on the call today are Ali Tadshkender, chairman, founder, and CEO of Wishbond, and David Pace, the company's CFO. This call is being recorded. We will have a question and answer session at the end of the call. You can submit your questions through 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 statement and management discussion 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 the safe harbor provisions of these laws. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors, many of which are outside of response control, that may cause 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 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 don't 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 advanced conditions, assumptions, or circumstances on which any such statement is based, except if it's required by law. We use gross profit, gross margin, and adjusted EBITDA on this conference hall, which are non-IFRS and non-GAAP measures. For more information on how we define gross profit, gross margin, and adjusted EBITDA, please refer to the definition set out in our imagined discussion analysis. And with that, let me turn the call over to Mr. Ali Tashkander, Chairman and CEO of Wishpond.

Good day, everyone. I'm very excited to be here, and thanks for making the time. We hope that you're all keeping safe and healthy. We truly appreciate you for joining today. Before we begin, I'd like to recognize that this is our first conference call with David Pace as the company's CFO. David joined Wishpond in January of this year and brings with him previous M&A and public company experience. We welcome David to Wishpond team and to this call today. On today's call, I will first provide some general commentary and an update on the quarter, followed by our CFO, David Pace, who will provide the financial summary of the results. I will then come back and provide some commentary on our outlook. Turning to our financial results, 2021 was a monumental year for WishBond as we accomplished record financial results in our first year as a public company on the TSX Venture Exchange. We set an aggressive pace in the first quarter of 2021 that we maintained throughout the year. with organic and inorganic growth culminating in record revenue for the year and a record fourth quarter. We achieved 87% revenue growth in 2021, approximately half of which came from organic growth and half of it from acquisitions. Fourth quarter 2021 was another outstanding quarter for WishBond as we once again achieved record quarterly revenue with 107% year over year growth. Wishbone's revenue growth was driven by the success of our experienced sales team, new product introductions, and our acquisitions. We are very pleased to report record adjusted EBITDA in the fourth quarter of $491,000. We believe that the investments made earlier in 2021 in our product development and sales teams paid off for the company in our Q4 revenue and adjusted EBITDA growth. Last year, we completed four acquisitions, namely Invigo Media, PersistIQ, Brax, and the last one, Winback, was completed on December 31st, 2021. We announced our fifth acquisition and first acquisition of 2022 Viral Loops on April 1st. We are very pleased with the progress we've made with all of our acquisitions. Our acquisition strategy has been to do token acquisitions of marketing technology companies that offer complimentary product solutions to small, medium-sized businesses. All our acquisitions have been cash flow generating companies that can benefit from our sales and marketing expertise. And their products and solutions offer great cross-selling opportunities to our core WishBond customers. We are spending a lot of thought and effort on integrating these products with our platform and developing pricing plans that bring the most value for our customers. We believe that both our existing customers as well as the acquired customers will benefit from the range of online marketing options that they can avail of under one roof. Our acquisition strategy has worked to date and has complemented the company's organic growth very nicely. I will go into our outlook later in this call today. But first, I would like to turn the call over to our CFO, David, who will review the financials for the quarter and the full year. David.

Thank you, Ali. I'm pleased to report that we had very strong annual and full quarter results for the year and three months ended December 31, 2021. Here are some financial highlights for fiscal 2021. Wishpond achieved record annual revenue of $14.8 million during fiscal 2021, compared to $7.9 million in fiscal 2020, an increase of 87%. Revenue growth was primarily driven by an increase in sales and marketing activities, new product introductions, and acquisitions completed in 2021. Wishpond achieved gross profit of $10 million in fiscal 2021, compared to 5.3 million last year, representing a 91% increase from fiscal 2020, driven by an increase in overall revenue and good execution. The gross margin percentage was 68% during fiscal 2021, compared to 66% in fiscal 2020. Wishpond achieved adjusted EBITDA of $56,000 in fiscal 2021 compared to $495,000 in 2020. The decline in annual adjusted EBITDA was primarily due to public company costs, which we didn't have in 2020, and increased investments in our sales and marketing and R&D teams in order to accelerate growth. The United States remains the largest and fastest-growing market, generating 78% of total revenue in the year, and we achieved an 87% year-over-year revenue growth in the U.S. market. Our fourth quarter financial results are as follows. Wishpond achieved record quarterly revenue of $4.7 million during Q4 2021, compared to revenue of $2.3 million generated during Q4 2020, an increase of 107%. Revenue growth in Q4 2021 was positively impacted by seasonality in Wishpond's acquired businesses. In addition, an increase in the size of the company's sales and business development team during the year resulted in higher sales in the fourth quarter. Wishpond achieved gross profit of $3.2 million compared to $1.5 million during Q4 2020, representing an increase of 119%, driven by an increase in overall revenue. Wishpond's gross margin percentage in Q4 2021 was 68% compared to 65% in Q4 2020. The 68% gross margin in Q4 2021 was on the higher end of historical ranges between 65% and 70%. During Q4 2020, Wishpond had an operating loss of $399,000 compared to an operating loss of $4,000 in Q4 2020. During Q4 2021, Wishpond achieved positive cash flow from operation with $599,000 compared to $2.1 million in Q4 2020. During Q4 2021, Wishpond achieved record adjusted EBITDA of $491,000 compared to an adjusted EBITDA of $121,000 in Q4 2020. Adjusted EBITDA margin was 11% for Q4 2021 compared to 5% in Q4 2020. The increase in adjusted EBITDA is attributable to positive EBITDA contribution from Wishpond's acquired subsidiaries and the higher gross profit in the quarter. Just to comment on headcount, at the end of 2021, we had 327, sorry, 237 full-time employees and consultants compared to 124 full-time employees and consultants on December 31st, 2020. The increase in headcount is attributable to the addition of Envigo, PersistIQ, and BRAX employees, as well as an increase in the size of our sales, customer support, and R&D teams. We continue to have a clean and healthy balance sheet. As of December 31, 2021, Wishpond had $6.2 million in cash and cash equivalents, and the company has no debt as of December 31, 2021. On September 29, 2021, the company entered into a new credit facility with the National Bank of Canada for a $6 million secured revolving operating line. The credit facility remains unrun as of this date. In summary, Wishpond is in a very strong financial position with a healthy balance sheet, strong monthly recurring revenue, and a very good visibility on revenue and cash flow for the current year. Wishpond is able to continue to grow comfortably with its cash flow from operations. I will now provide an update on a normal course issue event. On June 7th, 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. Since the approval of the NCIB on June 7th to December 31st, 2021, the company purchased a total of $248,800. common shares for cancellation at an average price of 1.28 per share. 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 that the purchase of the shares would be a desirable use of corporate funds in the best interest of the company and its shareholders. As such, the company plans to renew the NCIB on its anniversary date. As of the end of the fourth quarter on December 31st, 2021, the company had 55,954,115 fully-diluted securities issued and outstanding. This concludes my financial update, and I will turn the call back to Ali.

Thank you very much, David. I would now like to talk a little bit about our acquisitions. We are very pleased with the progress made with all of our acquisitions. Previously on these calls, I've talked about our Ambego and PersysIQ acquisitions. So today, I would like to focus on our recent acquisitions of Brax, Winback, and Wiron Loops. We completed the acquisition of Brax in September of 2021. Brax is a software as a service, or SaaS-based business, that offers an advertising management platform for the rule-based optimization of digital ads across multiple sources. I'm extremely pleased to see the progress we've made with BRAX. We've integrated BRAX across all of Wishbone's departments and channels, increased the size of BRAX sales team, and BRAX has adopted Wishbone's outbound sales strategies, all of which are positioning BRAX for aggressive expansion in 2022. We are excited to see early traction from Brax's outbound sales system is already starting to pay off. We completed the acquisition of Winback on December 31st, 2021. Winback provides an automated short message service or SMS marketing platform for small and medium sized businesses, including a shopping cart abandonment app for Shopify merchants. Thus far, Winback is performing better than expected. Winback is now integrated across all Wishbone's departments and sales channels, and the number of Winback customer installations is increasing. Since the beginning of this year, Winback has increased its number of clients by over 50%, including more than 180 Wishbone clients who are now trialing the platform under promotional pricing plans. Winback offers many great opportunities for e-commerce stores to grow their revenue. Winback's abandoned cart SMS marketing is a powerful marketing tool. Hence, we've had tremendous success in introducing Winback to our existing WishBond clients. Our most recent acquisition is Viral Loops, which we completed on April 1st, 2022. Viral Loops enables businesses to launch, monitor, and manage referral campaigns to create viral demand for their products. Viral Loops has a strong sales growth from more than 700 customers, is EBITDA positive, and is expected to be immediately accreted to WishBond. Besides growing Viral Loops as a standalone business, we believe there are tremendous cross-sell opportunities for offering referral marketing solutions to Wishbone's existing customer base of small to medium-sized businesses. The integration of Viral Loops is proceeding well. We are thrilled to welcome the Viral Loops team to the growing Wishbone family. The acquisitions of Brax, Winback, and Viral Loops have broadened our portfolio of products and services for small to medium sized businesses and offer tremendous cross selling opportunities into our existing customer base. We are now beginning to witness the synergistic benefits of these acquisitions. These acquisitions are key components to our continued growth. I would like to discuss the goals and outlook for this year now. Wishpond is on track to achieve its goal for fiscal 2022, which are as follows. Number one, increase the company's customer base and monthly recurring revenue, or MRR. We expect MRR to continue to grow in 2022 through both organic and inorganic means. To accelerate the company's organic growth profile with investments in sales and marketing last year we doubled the size of our sales team from 12 account executives to 24 by the end of 2021. Our goal this year is to nearly double the size of the sales team again, and we have already started ramping up the size of our sales team which currently sits at around around 35 account executives. Number three, achieve positive annual adjusted EBITDA in 2022 at levels exceeding 2021 results. The increase in the size of the sales team will initially have a negative impact on our profitability in the first half of 2022, but will result in higher revenue and EBITDA in the second half of the year. Despite the increase in expenses due to inflationary impacts, we still expect to increase our annual adjusted EBITDA this year compared to last year. Number four, follow a disciplined acquisition and capital allocation plan. We are very pleased with the five acquisitions we've completed thus far, as they are all proving to be accretive to Wishbone's financial profile. We have a strong balance sheet to execute on additional acquisitions, and we have a robust pipeline of target acquisition opportunities. However, we are also very aware of the current global and macroeconomic conditions with increasing inflation and higher interest rates. Hence, we expect the pace of acquisitions this year to be slower than last year. We are being very diligent in our pursuit of future target acquisitions and making acquisitions that are cash flow generating is also extremely important in this current environment. Number five. invest in research and development to expand the company's product offerings and intellectual property. Our R&D and product teams have been doing a tremendous job of launching new products and services and expanding the company's intellectual property. We anticipate launching several exciting new product enhancements and features in the coming quarters. In terms of our outlook, Our outlook remains positive for the entire year. We are expecting to show a strong revenue growth in 2022 driven by increased capacity in the company's sales team, positive contribution from its acquisitions, and new product-related revenues. For Q1 2022, we are expecting strong year-over-year growth but a slight decline in revenue from Q4 2021 to Q1 2022, primarily due to seasonality. We are already experiencing our revenue bouncing back in Q2 2022, and we expect it to accelerate in Q3 and Q4 2022. The second half of the year is also when we expect to generate our greatest EBITDA. The fourth quarter is Wishpond's strongest seasonal quarter, while the first quarter is the weakest quarter seasonally. Revenue in the fourth quarter benefited from seasonality as our small and medium-sized business customers invested in various online marketing campaigns, contests, and promotions to maximize their revenue from the increase in a larger number of new customers in the fourth quarter, increasing the customer spending during the holiday season. Consequently, the company signed up a larger number of new customers in the fourth quarter 2021. Hamed Nademi- Seasonality in Wishbone's business has become more pronounced over the past year due to the acquired businesses having greater seasonality effects than Wishbone's incumbent business. Hamed Nademi- The acquired businesses offer products and services that can be tailored to special marketing campaigns that boost demand around various holidays and special occasions. such as thanksgiving and christmas which results in higher seasonal revenue in q4 and a decline in seasonal revenue in q1 in addition in q1 of this year we are experienced we also experienced one key persist iq customer and one larger brax customer did not renew their contracts as with any acquisition there usually is some expected customer turnover unfortunately both these customers happen to occur in the same quarter resulting in a slightly negative impact in q1 we fully expect our increased sales activity will offset this minor decline in coming quarter despite some seasonality in q1 2022 wishbone expects healthy year-over-year revenue growth in 2022 the company expects revenue and earnings growth to accelerate in the second half of 2022 With the completed integration of his recent acquisitions, an expanded sales team, and an increase in the cross-selling opportunities between products and solutions offered across its product lines. In closing, I want to thank all the employees at Wishpond whose hard work continues to elevate the company to higher levels. We want to thank our customers who rely on us to help them with their digital marketing needs. Also, I'd like to thank all of you for joining us on this call today. The capital markets have been very supportive of our vision and have provided us with the funding needed to pursue our goals. We look forward to providing an update next quarter. Thank you. I will now hand it back to Pradeep.

Thank you, Ali and David. You know, for questions, just a reminder, there's a Q&A button at the bottom and you can submit your questions that way. We will start off with the analysts first. First question from Gabriel Leon from Beacon Securities. On a full year basis, what percentage of revenues would you characterize as being seasonal or discretionary in nature?

I don't have the exact number to give you, but I would say my closest guess would be around 10% would be seasonally affected or usage-based affected.

Second question from Gabriel is anything unusual in churn rates across the business sector?

Overall, I would say no, but heading into the holiday season and shortly after, especially January, we did experience higher churn numbers, especially as small businesses cut back on spending after the holiday season. And looking at churn and retention as of right now, it is back to the low levels, industry leading levels that we have seen in the past.

Last question from Gabriel. Outside of increasing sales rep count this year, do you expect any other notable increases in expenses?

Very good question. Currently, we do not, even though we're going to spend a little bit more on product development as well. But one of the priorities that we have for this year is to really double down and focus on cash flow improvement and not at the expense of growth. We actually plan to continue growth quite aggressively in certain areas, even accelerate growth. as well as keep costs under control in certain parts of it, even gain efficiencies. And we've done some of that already. So I think sales expansion is going to be one of the major investment areas in terms of cash flow. In other areas, we're going to keep it more or less under stable conditions.

Next, we have questions from Chris Thompson of PI Financial. First question as Shopify competition continues to accelerate, can you give us an idea of your revenue exposure to the shopify APP store and or customer base.

So. Majority of our e-commerce clients that we have on WishBond are actually not signing up through the app marketplace. Through our app on sales, we're reaching out to them and signing them up. And then because we have the deep integration with Shopify, they end up using our integration as well. So the app marketplace itself does not play a significant role. The other point that I would like to make is that And even though currently a lot of the e-commerce clients that we have are from Shopify, that is not the only e-commerce platform we serve. We serve WooCommerce, we serve BigCommerce, we serve a variety of other e-commerce solutions as well. And we haven't seen a slowdown in terms of our customer growth when it comes to Shopify. Having said that, we also have opportunities elsewhere that we're pursuing.

Next question is something that looks like more of a David question. What's the total headcount after the BioLoops acquisition? And what do you expect as a headcount at sort of the end of the year, assuming no more acquisitions from here to the end of the year?

So as I mentioned, we've had about 237 headcount at the end of the year, 2022. 2021. We're currently at about 260 people, so that includes some organic growth that Ali mentioned, growth of the sales team and so on, as well as the growth of the number of headcount that was brought in by fire leaves.

And then the next question from Chris also looks like a bit of a David question. The earn-out obligations for 2022, what can we expect?

So the earn up that we had in the fourth quarter of 2021 was in the in the region of about $800,000. You know, earn out payments to us are, you know, you can look at it as good news, bad news story. the bad news might be, hey, there's some cash that's being paid out. But I should actually highlight that all the earnouts that we have, it's in our option whether to pay it out in cash or stock. So that's just a comment I would put out there. But having said that, the higher the earnout payment that we make, that actually means the higher revenue that we're generating from the acquisition. So to us, we're actually happy to pay the earnouts because they go up. We kind of think the earnouts in 2022 will be similar to what we paid in 2021.

Kaveh Khoshnood, All right, the next question is Daniel Rosenberg analysts at paradigm. Kaveh Khoshnood, Can you comment on the gross margin improvement any thoughts around the drivers around this improvement and long term sort of where you see the gross margin percentage.

Hamed Nademiya, I think what what you've seen with wishbone has been the growth margins gross margins have been in the range of. Hamed Nademiya, 65 to 70 sometimes slightly below sometimes slightly higher we expect at least in the coming year to be within that range also. The improvements in gross margins, some of them are from increased efficiency. Some of them are we're expanding into higher LTV customers. The cost of sales remains more or less constant in those. Just the commission would slightly go up. And because of that, over time, we expect gross margins to creep up. But at least for this current year, I expect it to be within the same historic range that we've seen.

Okay. Follow-up question with Daniel Rosenberg. Can you share any trends you're seeing on retention and spending per customer?

Yeah, two trends. Well, one that I already spoke about, that the churn numbers have been more or less, other than the holiday season, stable and at the same rate. But the second element that we're actually pursuing now is some of the larger clients More in the B2B space that we are now pursuing where the average spending for them would go from, let's say, the $500 that we've seen historically to some of them $2,000, $3,000 a month. So the LTV immediately will go up and a lot of these businesses are more established and stickier product offering that we have for them, as well as, you know, the success rates is higher. So the stickiness also increases. So those two, I would say, would be the trends to watch out for and what we're pushing towards. And they're very, you know, very exciting opportunities for us and for our sales team and our account management teams.

Last question from Daniel. With regards to your NCIB or share buyback, any thoughts on priorities for uses of capital? I guess he's asking along the lines of NCIB versus increasing sales or reinvesting the business or doing acquisitions. Maybe just some thoughts on that.

Yeah, I mean, when you look at the use of NCIB and the buyback we've done over the past three quarters, it doesn't really amount to a significant amount. It hasn't been a large part of the daily volume or monthly volume. It has been there mostly for a level of support as well as we sometimes feel like it can be a good use of funds in the benefit of our shareholders. But it has not been an aggressive part. But having said that, I think in the coming year, it is very important for us to look at cash preservation quite seriously and balance our needs in terms of investing in sales, keeping cash around. versus buying back our shares. Now, I cannot say we have definitive plans to do more or less or stop or any of that in terms of NCIB. We plan to renew the program when it expires, I think in June. But those are some of the considerations that we would have looking at cash flow, cash preservation, as well as the use of funds.

Yeah, going on to the next one, Christian Segru of 8Capital. How have churn metrics trended in 2022 in the core business versus the acquired businesses? I mean, I think you've already commented quite a bit in terms of churn at the seasonality. I think the question is more along the lines of the core business versus the acquired business. I think maybe you can comment on that part of it.

I think, interestingly enough, for the most part, they're similar. Having said that, some of the acquired businesses have More elements of self-serve month-to-month subscriptions, for example, viral loops. A lot of clients might sign up to launch a campaign for a month or two and then leave and then they come back. The growth is very aggressive, but some of the trends could be on some of those self-serve plans higher, as we've discussed it before, our fully managed packages where we're involved helping our clients achieve highest success with the accounts. Trend would be lower. So we do see that, and there's a little bit of difference on that. As we invest into rolling out similar packages for our acquired businesses, we expect them to trend to similar ranges. But it's not the same across all the companies. For example, on the other side, we see purchase IQ businesses growing really solid, and the churn, given the focus on the B2B business, is quite low, even lower than the incumbent business that we've had.

Kaveh Khoshnood, All right next question from Christians to grow on your your revenue split between self serve fully fully managed in the last year has been about 5050 50%. Kaveh Khoshnood, Can you, given the several acquisitions that you've done, how is this mix expected to change over the next year.

Kaveh Khoshnood, The acquisitions we made have been more self serve or also serve right, so there would be initially some movement towards the self serve. But most of the outbound sales strategy is focused on the larger managed packages where it is a hybrid of software platform and the services that we provide. So I think for the balance of 2022, even though initially there is a push a little bit towards the self-serve, I think it will end up balancing at the same 50-50 mix that we saw last year.

All right. Last question from Christian, you know, just getting a better sense of where the Wish Pond's exposure to seasonality with regards to its businesses. Can you provide additional color around different businesses and how they're impacted by seasonality?

Yeah, for example, Brax is ads management, right? So during the holidays, there's larger spending on ads. The ad revenue is not part of Brax's revenue. Having said that, there are two components to the revenue on Brax. One is the subscription revenue. One is revenue shared with some of the ad platforms that the ads are running towards through where know some percentage beyond certain spending would come back so depending on what the total spending on ads are that second usage based amount could go up and down and fluctuate from one month to another so in q4 that amount was significantly higher in q1 is significantly lower in q2 is making come back to be similar to what we have seen before in fact the other comment that i would make is that even though we expect seasonality to affect us negatively in Q1 and it affect us positively in Q4. Now in Q2, already we're seeing that we've made up the dip that we experienced and made new grounds and achieving record MRR numbers. So we are on really solid trajectory going forward into Q2.

Great. Next set of questions from Neil Bakshi of Canaccord. from the last earnings call, he suggested there's room to scale pricing increases as customers add features. Is that still the case? And he's wondering how management is thinking about managing inflation impacts.

Yeah, I mean, one of the things that we've seen is that, for example, on average, the starting prices that we're quoting by our sales team have gone up by about 10%. And that doesn't really come at an expensive closing rate at all. Our prices are low enough already that there's plenty of room to play with that. That's one element that we've already done and we continue to do. The other element is what I was talking about, which is now, you know, imagine, for example, let's say there's a B2B client who wants to use WishBond. And by B2B, let's say it's a property management company or IT consulting or something like that. And now we can say, here's everything we can do for you for marketing. that it is going to be a wish bond, then there's some kind of referral marketing as part of that that is now adding elements to it from Viral Loose, and we can charge extra for that. But in addition to that, we can also help you with your online sales. And those are elements that we can also provide to you using the Bragg's team and software. So some of those packages we're recently seeing that are going as high as $5,000 a month. So it's pricing increase on one end, but complementing the offering and adding more elements to it than we had in the past, and that is being quite well received by clients.

All right, next question from Neil Bakshi again. On the M&A side, just wondering how management is assessing the current valuation environment for targets as it seems to have cooled further. How has this changed the pipeline at all in terms of deal size or structure preferences and valuations?

For most part, we've tried to make acquisitions that are quite profitable, mostly recurring revenue, and that we wouldn't overpay for them. And for most part, their valuations multiples should be lower than our valuation multiples. In the current market, unfortunately, we're not trading at the multiples that we think we should be trading at. The valuations across the board in the tech industry and growth stocks have been low. And that definitely affects the conversations we have in terms of the multiples and the valuations we're willing to pay for acquisitions. So we're being very opportunistic. We're looking at the opportunities that are more cash flow generating and we wouldn't have to overpay for them. And that's the criteria that we have. Fortunately, the size of the pipeline is quite great. Last year, we talked to 350 to 400 different M&A candidates. This year, so far, the same pace. We've had a lot of conversations. So there are a lot of parties in the pipeline that we can still go back to and at different times execute on. But going back to the earlier comment that I made in the earnings, I would say we are being more careful and the pace of acquisitions is going to be slower than last year because cash preservation, producing more free cash flow and acquiring companies that fit the bill

even more than the previous acquisitions is going to be a priority for us okay uh we have a follow-on question from chris thompson of pi financial um the medical e-commerce partnership in mexico if you're able to get some color on that laleo has more than 300 000 customers latin america you can just comment on on how that how you see that opportunity

Yeah, it's a very good opportunity for us. So La Leo is a leader in providing e-commerce products and equipment and medical textbooks to doctors and medical students in Latin America, serving more than 300,000 users. Now, one of the things that has been a focus for them was how do they expand their offering from providing those products and equipments and selling them to something that would be more long-term as part of a SaaS solution for you know these doctors and medical clinics and that partnership was something that uh we looked at it and then they were very excited and we are very excited about it the work has already begun uh the two technology technology teams have already met um exchanged a lot of uh different resources and the lalo team is busy localizing and making certain changes to areas that Would be important for them to make it applicable to their base and that work is, you know, is continuing and I expect in the coming quarters for us to be able to roll it out and start seeing revenue benefits from it.

Great. I've got a question here from Mike Stevens of Echelon. He's asking about getting further insight around customer concentration. You have one major customer that's over 10% of total revenues. If you can just provide some more color on that agency, I guess.

Yeah, it's really a client that is acting on behalf of several clients. So it's more of an agency kind of client. There is a revenue concentration there. overall size of the business which one is growing it is becoming a smaller percentage you know at some point it was close to 20 percent and now is closer to 10 percent uh but it is a it is an important client for us we work very closely with them uh we've actually rolled out a few different features benefiting them uh to make sure we have a good relationship with them and and they're with us for long term and um they're spending increases with us And currently that is on track to continue.

Okay, great. There are no further questions, Ali, so I'll turn it over to you now.

Great. Thank you very much, everyone. I appreciate you being here. Thanks for joining us for this call. Thank you, the analysts, for their questions. I appreciate it. Everyone, please stay safe and healthy. And we look forward to providing you with more updates this year. Have a wonderful day. Thank you.