Wishpond Technologies Ltd.

thank you everyone for joining us today and welcome to wishpond's 2023 fiscal first quarter financial results conference call my name is jordan bones director of marketing and joining me on the call today are ali tajkinder chairman founder and ceo of wishpond and david pace the company's cfo this call is being recorded we will have a q a session at the end of the call which will be limited to analysts only 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 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 Wishpond'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 don't 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 events, conditions, assumptions, or circumstances on which any such statement is based, except if it's required by law. We use terms such as gross profit, gross margin, adjusted EBITDA, annualized revenue run rate, and monthly recurring revenue on this conference call, which are non-IFRS and non-JAAP measures. For more information on how we define these terms, please refer to the definitions set out in our management discussion and analysis. And with that, let me turn the call over to Mr. Ali Tajkandar, Chairman and CEO.

Thank you, Jordan. Good day, everyone. We hope that you are all keeping safe and healthy. We truly appreciate everyone for joining us today. We are very pleased with our first quarter results, which proved to be another strong quarter. Bushman achieved revenues of $5.6 million in Q1 2023, representing a 38% increase over Q1 2022. Driven by the company's continued focus on organic growth and increase in sales activity, and new product in introduction. I'm especially excited with the launch of our new website builder, which is powered by generative artificial intelligence, AI technologies, and was released in Q1. The use of AI technologies is rapidly changing the digital marketing landscape and Wishbone is at the forefront of utilizing these new innovations to provide small businesses with new advantages against larger competitors. We are actively working on developing additional AI powered marketing tools, which we intend to launch in the coming quarters. Additionally, as part of our continued cost reduction initiatives launched in 2022, we continue to monitor our costs and with the intent to optimizing operations and achieving cost saving synergies. As a result, the company was able to achieve positive adjusted EBITDA in Q1 2023. of $209,000, an increase of 147% compared to the same period last year. Our commitment to having a focused mindset and realizing cost efficiency while still achieving growth is what has permitted us to consistently generate positive adjusted EBITDA. Our outlook continues to look promising for 2023, with increasing sales, positive adjusted EBITDA, and improving margins. We continue to experience increasing demand for our products and have not witnessed any slowing down or negative impact due to external macroeconomic conditions. We expect to continue growing rapidly as our sales pipeline remains robust, and we continue transitioning to bundled product offerings to our customers. I will provide additional details on our output later on the call, but first I would like to turn it over to our CFO, David, who will review the financial results for the first quarter. David.

Thank you, Ali. I'm pleased to report that we had very strong Q1 results for the three months ended March 31, 2023. Our first quarter 2023 results are as follows. Wishpond achieved quarterly revenue of $5.6 million during Q1 2023 compared to revenue of $4.1 million generated during Q1 2022, an increase of 38%. Revenue growth was primarily driven by organic growth resulting from stronger product demand, an increase in sales and marketing activities, and new product introductions. Wishpond's small decline in revenue of 5% from Q4 2022 to Q1 2023 was not unexpected and is due to seasonality in our business. Last year, we experienced a significant decline in revenue from Q4 2021 to Q1 2022. In comparison, the seasonal impact was much less in Q1 this year due to the acquisition of our loops last year and the launch of Propel IQ. Wishpond achieved gross profit of $3.7 million in Q1 2023 compared to $2.5 million during Q1 2022, representing an increase of 45%. This was driven by an increase in overall revenue. Wishpond's gross margin percentage in Q1 2023 was 66% compared to 62% in Q1 2022. The gross margins were within the company's historical range of 65 to 70%. The United States remains our largest and fastest growing market, generating 75% of our total revenue in the quarter, with approximately 10% and 15% of revenue generated from Canada and the rest of the world, respectively. During Q1 2023, Wishpond achieved positive adjusted EBITDA of $209,000 compared to an adjusted EBITDA loss of $441,000 in Q1 2022. The improvement is primarily driven by higher revenue and improvement in gross margins in our cost optimization efforts over the past year. We continue to have a clean and healthy balance sheet. As of March 31, 2023, Wishpond had $1.9 million in cash and short-term investments, and the company has no debt. The reduction in cash balances was caused in part by payment of earnouts for businesses acquired in 2022, investments in the business, and changes in working capital. Wishpond has a $6 million secure revolving operating line of credit facility agreement with National Bank of Canada's Technology and Innovation Banking Group, which remains unrun as of today. In summary, Wishpond remains in an extremely strong financial position with a clean balance sheet and growing profitability. Based on the company's performance in Q1 and growth momentum, we are expecting to continue delivering strong results in the rest of 2023. This concludes my financial update, and I will turn the call back over to Ali.