Wishpond Technologies Ltd.

Thank you everyone for joining us today and welcome to Wishpond's 2024 fiscal fourth quarter and full year 2024 financial results conference call. My name is Pavitra Sanga, investor relations, and joining me on the call today is Ali Tajskandar, chairman, founder, and CEO of Wishpond, and Adrian Lim, the company's CFO. This call is being recorded. We'll be having a question and answer session at the end of the call. 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 cedarplus.ca. 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 those laws. Please refer to today's press release and in our management discussion and analysis for a disclosure of risks and uncertainties. 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 is required by law. We use terms such as adjusted EBITDA, annualized revenue run rate, and monthly recurring revenue on this conference call, which are non-IFRS and non-GAAP 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 Tashkander, Chairman and CEO.

Thank you very much, Pavitra. Good day, everyone. We truly appreciate everyone for joining us today. Wishbone is a provider of AI-enabled marketing and sales solutions that are built for helping businesses with their customer acquisition and increasing sales. We currently serve thousands of businesses around the world, and it's been great to work with them and give them the sales and marketing tools they need to attract customers and grow their businesses. 2024 has been another remarkable year for WishBond, highlighted by our 10th consecutive quarter of generating positive adjusted EBITDA, as well as a 129% increase in annual adjusted EBITDA, reflecting our ability to deliver consistent profitability. I'm also thrilled to share that Wishbone achieved positive cash flow from operations of $519,000, a significant improvement from 2023, showcasing the effectiveness of our cost optimization efforts. This consistent improvement in adjusted EBITDA and cash flow has been a top priority in 2024, and we remain steadfast in this commitment as we look towards 2025. Furthermore, our annual revenue of $21.6 million reflects the continued demand for our software solutions and drives our ongoing efforts to build a fully autonomous AI-enabled marketing and sales platform designed to streamline the entire customer journey. As we enter 2025, we are extremely excited about the prospects of Sales Closer AI, which we believe will be a key driver of growth moving forward. Sales Closer has quickly become Wishbone's fastest growing product ever, now generating approximately $800,000 in annual recurring revenue, or ARR, with a significant portion of this growth having occurred in the first few months of 2025. To continue accelerating Sales Closers adoption, we have been actively exploring new sales outreach initiatives and strategic channel partnerships. For example, we've seen great success with our recently launched Sales Closer White Label Reseller Program, which enables agencies and businesses to brand and resell Sales Closer as their own, driving new revenue streams and expanding our general market reach. Overall, with an expanding sales pipeline and an increasing demand for our AI solutions, the company is well positioned to capitalize on new opportunities, and we will continue to solidify Sales Closer as a key driver of growth for the business in 2025. On today's call, I would first like to pass the call over to our CFO, Adrian Lim, who will provide a financial summary of our results. I will then return to share some general commentary on where Wishbond is heading and our vision for a fully autonomous AI-enabled marketing and sales platform. Finally, I will provide some commentary on our outlook for 2025. Adrian?

Thank you, Elie, and thanks to everyone for joining us on the call this morning. I am pleased to report that we had very strong annual and fourth quarter results for the year and three months ended December 31st, 2024. Wishpond achieved annual revenue of $21.6 million during fiscal 2024 compared to $23.1 million in fiscal 2023. The decrease reflects a strategic focus on prioritizing more profitable revenues, including a reduction in spending from the company's legacy email delivery services customer, a reduction in the sales team size as part of cost optimization efforts, and a transition to utilizing Sales Closer for executing outbound demos. Our revenues were also impacted by an algorithm update by Google that affected email deliverability across our outreach platforms, including PersistsIQ. The issue has since been largely resolved with email performance metrics stabilizing in Q1 2025. The other product lines are operating as we expected with consideration for reduction of our sales team and cost optimization efforts. Wishpond achieved gross profit of $14.8 million in fiscal 2024 compared to $15.2 million in fiscal 2023. The decrease is primarily attributable to decline in revenue from the company's legacy email delivery services customer who reduced their spending during the year. Wishpond achieved gross margin percentage of 68% during fiscal 2024 compared to 66% in fiscal 2023. The improvement in gross margin percentage is primarily attributed to a reduction in sales from the large legacy customer, which allowed for a shift towards more profitable business. During fiscal 2024, Wishpond achieved record adjusted EBITDA of $1.7 million compared to $759,000 in fiscal 2023, an increase of 129%. During fiscal 2024, Wishpond generated positive cash flow from operations of $519,000 compared to cash used in operations of $260,000 in 2023. Our commitment to cost reduction and operational efficiency has led to significant gains in both profitability and cash flow. We continue to have a clean and healthy balance sheet and as at December 31, 2024, Wishpond had $1.1 million in cash and had withdrawn $1.3 million from the credit facility compared to cash of $1.4 million and credit facility balance of $1 million as at December 31, 2023. The reduction in cash balances was caused in part by investment in R&D, investment in sales closer marketing activities, and changes in working capital. Wishpond successfully renewed its $6 million secured revolving operating credit facility with National Bank of Canada on August 1, 2024. As of the end of the fourth quarter on December 31, 2024, the company had 58,636,045 fully diluted securities issued and outstanding. Looking ahead to 2025, we anticipate an increase in the company's cash balance in the second half of the fiscal year as we continue to scale from Sales Closer and experience a return to growth across our core sales and marketing suite of products. The ramp-up in revenue from Sales Closer is expected to be a key driver with the platform's growing adoption and expanding customer base contributing to a significant rise in ARR. Additionally, we foresee a rebound to growth for other Wishpond products driven by increasing demand for AI powered sales and marketing solutions. Furthermore, with the uncertainty with global trade policies, I would like to highlight that Wishpond is a tariff resistant business. The company's ability to serve its customers is not impacted by US tariffs, as we are a software vendor that has no physical goods crossing the border. Additionally, as the buy Canadian sentiment grows, we are seeing favourable trends in the Canadian market, such as businesses showing increased interest in choosing Canadian software vendors like us, and a general increase in marketing campaigns launched to target Canadian audiences. Overall, Wishpond remains in a very strong financial position with a healthy balance sheet, solid monthly recurring revenue, and a very good visibility for revenue and cash flow. Wishpond is currently able to continue growing without the need for any additional equity or debt capital raises. I'm also excited to share some updates regarding our sales team performance, which has been a key area of focus for us. One of the most promising trends we're seeing is a consistent improvement in the effectiveness of our sales team, which has translated into higher productivity. We've seen a steady increase in revenue per account executive over the past several quarters. This metric is an important indicator of both the efficiency and productivity of our sales team. Notably, in Q4 2024, revenue per account executive was $187,000, a 30% increase from $144,000 in Q4 2023. Despite a reduction in account executive headcount each quarter since Q4 2023, from 42 AEs down to 25 in Q4 2024, we've been able to drive higher revenue per account executive. This trend speaks to the enhanced productivity and efficiency gains that we've been able to achieve through process optimization, better targeting, and leveraging our AI-driven sales tools like Sales Closer. This improvement also reflects the quality and focus of our sales team, which is now able to generate more revenue with fewer resources, allowing us to optimize our cost structure and improve overall margins. We've been able to streamline operations and increase the effectiveness of our sales efforts by providing our team with better tools, more targeted strategies, and the ability to engage customers more efficiently. Our focus on improving the effectiveness of our sales team is a core part of our broader strategy to scale efficiently, improve profitability, and maintain a lean, high-performing organization. We're encouraged by the progress we've made so far, and we're committed to ensuring that our sales team remains an engine of growth for the company. That concludes my financial update, and I will turn the call back over to Allie.