Wishpond Technologies Ltd.

Thank you everyone for joining us today and welcome to Wishpond's 2025 Fiscal First Quarter Financial Results Conference Call. My name is Pravithar Sange, Investor Relations, and joining me on the call today is Ali Tajsandar, Chairman, Founder, and CEO of Wishpond, and Adrian Lim, the company's CFO. This call is being recorded. We will be having a question and answer 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 and management discussion and analysis from cedarplus.ca. Please note, portions of today's call, other than historical performance, include statements of forelooking 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 disclosure of risks and uncertainties. We provide forelooking 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 forelooking 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 Tashkandar, chairman and CEO.

Thank you very much, Pivy Chaur. Good day, everyone. We truly appreciate everyone for joining us today. On today's call, I will first provide some commentary about our overall vision going forward for the new AI-driven WishPond. The marketing and sales landscape has been fundamentally reshaped by artificial intelligence. AI has completely changed how organizations are doing their sales and marketing. We are entering a new era for how businesses attract and engage with customers. We imagine a time when marketing and sales teams wouldn't have to waste precious hours on repetitive tasks, and when data-driven decisions could be made in an instant. Today, as the power of AI becomes more accessible and sophisticated, that future is quickly becoming our reality, and WishPond is leading the way. WishPond is building a fully autonomous AI-enabled marketing and sales engine that is reshaping how businesses grow and thrive. Picture a business where every step of the buyer's journey is handled automatically and intelligently. No manual work required. That's the vision driving us at WishPond. We are aiming to build a fully autonomous AI-enabled marketing and sales platform that takes a prospective customer from the moment they show interest all the way to a finalized deal. By freeing professionals from tedious tasks, we aim to empower them to spend their energy on strategic thinking, creative ideas, and building genuine relationships. WishPond's fully autonomous marketing and sales platform will be fully automated, the platform will be able to work 24-7, and will greatly reduce manual work, require minimal human intervention. And the platform will not require marketing expertise, the platform will provide data-driven recommendations and decision-making powered by AI. Any professional, entrepreneur, or business owner will be able to use the platform without having to be an expert in marketing. Also the platform will be scalable and cost-effective. Our platform will handle increasing demands without requiring an increase in resources, providing the same capabilities as large marketing teams and agencies at a fraction of the cost. And the platform will be powered by WishPond's AI agents, WishPond has already built foundational components of the platform, and will continue to leverage its revolutionary AI agent technology to build out more AI-powered marketing and sales solutions. Together, our AI products will connect and synchronize marketing efforts across multiple tools and campaigns leading to the most comprehensive marketing and sales platform for businesses of all sizes. The following AI tools and agents are already live and in use by customers today, AI website builder, AI ad manager, sales closer AI, and AI email responder. We are also beta testing the following AI agents for new customers and partnerships. AI customer support agent and AI call receptionist agent. We have plans to build additional tools such as AI newsletter generator and AI analytics. This vision is more than just a technology roadmap, it's our commitment to helping businesses of all sizes grow faster, reduce costs, and achieve more consistent results. We believe that the best kind of technology doesn't replace people, it elevates them. When AI handles the routine, it gives humans the freedom to do what we do best, connect, innovate, and lead. Our AI agents are a key component of our fully autonomous AI-enabled marketing and sales platform. I want to demonstrate how Wishbone can be involved with the entire customer acquisition journey from website creation to lead generation, closing the deal, and delivering exceptional customer support. Our suite of AI marketing and sales tools can cover every stage of the process to streamline the customer journey, starting with building a website with Wishbone's AI website builder, then launch ad campaigns with our Braxie AI ad management solution. Businesses can then use Wishbone to quickly build high converting landing pages. And to keep leads engaged, businesses also leverage our email marketing tools with personalized and automated email campaigns. And our AI email responder instantly delivers personalized replies. When it's time to convert the lead to a customer, Wishbone's calendar booking tool allows businesses to schedule appointments with their leads easily and effectively. Businesses can use our sales closure virtual sales agent, which can take a prospective lead through a sales call or even a virtual product demo using the power of AI. Now with payments integrated directly into the platform, businesses can process transactions smoothly, making it simple for customers to make a purchase. After the deal is closed, our AI customer support agent can step in to provide -the-clock assistance, ensuring that customers are always satisfied. Lastly, our referral marketing solutions simplify the creation and execution of referral promotions across platforms such as Facebook, Twitter, websites, and more. Together, these tools create a cohesive AI-powered ecosystem that helps businesses automate, scale, and thrive, all while reducing operational costs and increasing efficiency. With Wishbone, businesses don't just manage the customer journey, they perfect it, creating smoother, faster, and more profitable experiences at every touchpoint. Wishbone has undergone a remarkable transformation over the past year. The company is evolving from a traditional digital marketing software provider into an AI-powered marketing and sales platform that can drive customer acquisition and sales automation at scale. Furthermore, the transition to AI is enabling the company to grow its target market from SMB customers to businesses of all sizes. This has been a multi-year effort, requiring significant resources, time, and energy, and I'm proud of the significant progress that we've made as Wishbone evolves into a fully AI-driven company, with an eye on long-term growth. Let's look at some of the accomplishments that the company has achieved through this Over the past year, Wishbone has taken several strategic actions to transform into an AI-driven company, including developed and launched our AI website builder, BraxyAI, and AI email responder. We also launched our AI-powered sales closer product, which quickly achieved $1 million in annual recurring revenue, ARR. We deployed over 2,600 AI-powered agents for more than 150 customers, a trend that is just accelerating. Successfully integrated sales closer into internal sales processes, leading to greater profitability and ability to scale the organization without significant costing. A strategic shift towards AI customer opportunities and away from lower margin legacy customers. And in fact, with sales closer AI, we already see significantly higher margins than we've seen historically with our other products and offerings. A refocused sales strategy centered on AI agentic products, leading to development and beta testing of call reception AI agent and customer support AI agent. Also significant investment in AI technology, including time, capital, and resources dedicated to innovation, all towards the goal of building a fully autonomous marketing and sales platform. In addition, we've strengthened our -to-market strategy with a focus on improving profitability, reducing churn, and maximizing long-term customer value. Collectively, these initiatives have positioned Wishbone as a more profitable, forward-looking, and AI-driven business. I would now like to provide an update on the success of sales closer AI. Sales closer AI is Wishbone's virtual AI sales agent that can engage in conversations and presentations in real time through various meeting applications. It can deliver personalized -the-clock sales calls and product demos 24-7 to engage sales leads, close deals, and deliver insights in 10 different languages. Well, actually, I think it's 15 and growing now. Sales closer can also be adapted for use across a diverse range of industries, such as software, software as a service, professional services, financial services, education, travel and hospitality, insurance, and more. We are pricing sales closer between $250 to $2,000 per month for anywhere from 16 to 200 hours of virtual sales agent usage. But already, we have clients that we've onboarded that are gradually increasing to substantially higher revenue per month than those amounts, something that in the past we haven't had large clients like that. Importantly, sales closer operates at gross margins at over 85%, which makes it highly creative to our overall margin profile. As customers use more hours, the MRR also increases. We believe sales closer will have a positive impact on our overall MRR in the future. As we announced yesterday, I'm proud to announce that sales closer has achieved $1 million in ARR, and we continue to see strong customer adoption. The solution has quickly become Wishbone's fastest growing product to date, with the majority of its growth occurring in 2025. Of the 1 million, roughly 700,000 of it was achieved in the past four, four and a half months. As of today, the platform serves over 150 customers and has deployed more than 2,600 AI-powered agents. This significant milestone reflects the growing demand for AI-driven sales automation solutions across industries. The continued success of sales closer AI underscores its value in helping businesses improve efficiency, reduce customer acquisition costs, and scale sales operations. To continue accelerating sales closers adoption, we have been actively exploring new sales outreach initiatives and strategic channel partnerships. One of the standout initiatives has been our recently launched sales closer white label reseller program, which has quickly gained significant traction. This program allows agencies and businesses to brand and resell sales closer as their own, opening up new revenue streams for our partners while simultaneously expanding our market reach. The white label program has proven to be an effective way to scale adoption across a variety of industries, from marketing agencies to e-commerce platforms and B2B service providers. Partners have been able to leverage the powerful capabilities of sales closer, personalized sales calls, product demos, and multilingual support under their own brand, enhancing their value propositions to clients and accelerating their growth. The success of this program is reflected not only in the increasing number of new partners joining but also in the expanding diversity of the industries adopting sales closer. We've seen a notable uptick in demand as businesses recognize the potential to enhance their sales processes with AI-powered automation while retaining control over their brand identity. The program will allow us to significantly extend our market footprint without bearing the full responsibility of direct sales and marketing, creating a win-win scenario for both Wishbone and our partners. One of the key areas we've also been focused on is developing a strategic patent portfolio around our sales closer AI technology, which will be essential in strengthening our competitive edge and ensuring long-term market leadership. In particular, we have been developing and filing a comprehensive set of patents around the conversational AI technology behind sales closer. Let me walk you through some of the critical patents that we've filed. First, we have filed a non-provisional utility patent entitled Virtual Artificial Intelligence AI Representative to protect the underlying technologies of our sales closer AI platform that can perform automated demos, call them presentations. Second, we have filed a non-provisional utility patent entitled Enhanced State Manager in a Virtual AI Representative. This technology improves the ability of AI systems to manage complex real-world conversations, addressing challenges such as interruptions, tangential topics, and mature conversation endings. And third, we have filed a non-provisional utility patent application entitled Human Takeover in a Virtual AI Representative, which allows human operators to seamlessly assume control of a call from an automated AI call agent when necessary. As we continue to expand and refine our patent portfolio, we're confident that it will not only enhance our product offering, but also increase the overall value of our company. These patents protect our innovations and ensure that we are well positioned to capitalize on the growing demand for AI-driven sales solutions. I will provide additional insight into our forward-looking outlook later in the call. For now, I'd like to turn it over to our CFO Adrian, who will review the financial results for the quarter. After that, I will return to discuss our 2025 outlook. Adrian?

Thank you, Ali, and thank you to everyone for joining us on the call this morning. I am pleased to report that we achieved strong results for the quarter ended March 31, 2025. WishFund achieved quarterly revenue of $4.1 million during Q1 2025 compared to $6.1 million in Q1 2024. Our revenue was impacted by the transition to an AI-driven company, including a reduction to our legacy sales team, adjustment to our sales processes, and the reduction of a lower margin legacy customer. However, these changes were necessary to position WishFund for long-term success as an AI-driven company. We are confident that we will see renewed revenue growth in the second half of 2025 as our AI solutions gain traction, with the expanding adoption of Sales Closer AI, the success of our White Label program, and the ongoing development of new AI-driven solutions. Our strong customer demand, a growing sales pipeline, and strategic partnerships will contribute to this acceleration as we continue to scale our business and capitalize on emerging opportunities. WishFund achieved gross profit of $2.7 million in Q1 2025 compared to $4.1 million in Q1 2024. The reduction in gross profit is primarily due to lower revenues in the period. WishFund achieved a gross margin percentage of 67% during Q1 2025 in line with 68% in Q1 2024. During Q1 2025, WishFund achieved adjusted EBITDA of negative $177,000 compared to positive $290,000 in Q1 2024. Adjusted EBITDA was negatively impacted in Q1 due to the lower revenues in the quarter and accounting, audit, and tax-related professional fees that are incurred in the first half of the year. Taking a look at the balance sheet for the company, as at March 31, 2025, WishFund had $928,000 in cash and debt of $1.8 million compared to cash of $1.1 million and debt of $1.3 million at December 31, 2024. WishFund renewed its $6 million secured revolving operating credit facility with National Bank of Canada on August 1, 2024. WishFund has solid monthly recurring revenue and a very good visibility of revenue and cash flow. The company is currently able to continue growing without the need for additional equity or debt capital raises. As of the end of the first quarter, on March 31, 2025, the company had ,542,920 fully diluted securities issued in outstanding. In addition to selling sales closer to external customers, we see an enormous opportunity to use sales closer for our own purposes and lead generation and sales development for WishFund sales. Traditionally, WishFund has relied on increasing the number of salespeople to drive growth, which has come with its challenges. Hiring, training, and retaining sales staff is time-consuming, expensive, and inefficient. Furthermore, employee turnover and the need for additional revenue are also increasing. The need for continuous training also creates additional burdens. The salesperson-dependent growth model posed headwinds that slowed down our ability to scale efficiently. Utilizing sales closer AI for our own internal sales processes allows us to scale without the need for a large sales team. Internally, we have begun accelerating the use of sales closer for WishFund's own product demos and sales. Sales closer is now capable of handling most of the initial sales development and demo freeing up our salespeople to focus on finalizing and closing the deals. Overall, our sales capacity has the potential to increase significantly, reducing the need for additional hires. Where a salesperson used to handle around two qualified sales calls a day, they can now potentially manage up to 15 to 20 calls, thanks to the automation provided by sales closer. Not only is this more cost-effective, as the AI virtual agent is much cheaper than hiring additional staff, but it also improves gross margins and enhances our operational efficiency. We believe this continued implementation will allow us to further streamline operations and reduce the need for additional headcount. Looking ahead, our vision is to transform the traditional salesperson function, enabling businesses to leverage AI-driven sales capabilities. Going forward, we are not expecting to make any more cuts to our sales team. Our sales closer and salesperson hybrid sales model is highly scalable, allowing WishFund to increase sales capacity without the proportional increase in costs associated with expanding a human sales team. We believe the combination of highly effective sales personnel with sales closer is the best solution to achieving profitable growth going forward. We expect the increase in productivity of our sales team, paired with the acceleration of sales closer, to be a critical growth driver for our business in 2025. Looking forward, we are excited about the future. We believe that our transition towards an AI-driven model will continue to drive strong growth and profitability. This concludes my financial update, and I will turn the call back over to Ali.

Thank you so much. Before we proceed, I think one of the comments that you just covered was about the use of sales closer for augmenting our own sales capabilities and allowing each of our sales team members to be as effective as, you know, maybe five to ten account executives of the past. I'm going to quickly share my screen and play a two-minute segment of an actual interaction on a demo that was led by AI. Sales closer actually gave a demo of sales closer to someone, and then you see towards the end there's going to be a segment where an account executive actually joins the call and takes it over and closes the deal. I think it might put things in more perspective. Can you see my screen? Yes, we

can see it. One of my colleagues might join us too. We'll cover how it can fit your business needs from automating calls to scheduling. To customize the demo, can you tell me a bit more about your business?

We provide IT services and cybersecurity.

That's a great area to use AI. What got you interested in learning more about sales closer AI?

Oh, I saw ads on social media.

Let me tell you a little more about us. Sales closer AI helps businesses like yours maximize opportunities and grow cost-effectively. It can handle outbound calls, inbound inquiries, and schedule meetings, making it perfect for your IT and cybersecurity services. Our agents can work 24-7. I'll quickly show you how you can create a new agent. For this demonstration, I'll go ahead and choose from templates. We'll choose the inbound call template. Since you're ready to proceed, the next step is to set up the agent's details. You can give it a name, choose the language and voice, and even... ...most of what we offer. The next step is to schedule a follow-up call with someone from our team. They can answer any remaining questions and talk about the next steps. When would be a good time for you to meet for a kickoff call?

Thanks, Morgan. I'll take it from here. Hi, Anel. How are you? Hi. Good and you? I'm good, thanks. What did you think of the demo?

I was surprised how Morgan conducted herself and she made questions and I answered, and then she kept the information that I provided. So, it was impressive.

It's pretty cool, right? Yeah, we've gotten pretty great feedback on it so far. Right now, I'm doing everything

and I was in the process of recruiting someone as a part-time commission-based salesperson. Oh, yeah. But I saw this in an ad on social media here as

well. And, yeah, I'm looking forward to getting this project off the ground with you. I think when we look at a project like yours, when there's just the only thing that's missing is that lead generation and sales piece, we get pretty excited because that's really what we specialize on. So, I think we've got something here.

So, I hope the comments that Adrian was making became a little bit more clear about what exactly this vision is and already is becoming a reality in terms of how SalesCloser can be used to augment our own sales and allowing each account executive to handle a lot more lows. In the case that you saw, the account executive was notified and they joined for 10 minutes, closed the deal and moved on, allowing them to get on a lot more opportunities, not waste time on no-shows or anything like that. The other thing that was also very interesting as you saw from the comments was how the prospect was saying how impressed they were, how engaging it was. And, you know, someone who would have hired someone else for sales now saying, well, I can actually do more with less and that's quite effective. Last thing that was of note in this video that we watched together was how people who use SalesCloser also there's an overlap with the rest of our products and services around lead generation and marketing. And this person was saying, I also need help with generating leads and sales and that leads into the integration of SalesCloser with the rest of our platform. Okay, moving on. The use of AI technologies is rapidly changing the digital marketing landscape and WishPond is at the forefront of utilizing these new innovations to provide companies of all sizes with new advanced AI capabilities. I believe that artificial intelligence technology is disrupting much of the way people and businesses operate and I firmly believe that AI applications are here to stay and will revolutionize the marketing industry. Our AI strategy is launch a fully autonomous AI marketing and sales platform. We are transitioning from an -in-one marketing suite for SMBs to a fully autonomous AI-enabled marketing and sales platform serving businesses of all sizes. Providing advanced AI solutions to customers, we're improving SalesCloser and developing additional AI agents for call reception and customer support and other use cases expanding WishPond's AI product suite. Using AI to scale customer acquisition, we are streamlining the entire customer journey for our customers and internally for ourselves as you saw from lead generation to deal closure using AI to enhance scalability, cost efficiency and customer conversion. We are committed to continuous innovation. We are investing in AI-driven capabilities with new patents, platform enhancements and specialized AI solutions, sales team to maintain leadership in AI-enabled marketing automation. These are just some of the exciting developments that are taking place at WishPond. We are in a very fortunate position to be able to lead the charge in applying AI to marketing applications and to provide our clients with powerful tools that will help them grow their businesses more efficiently and profitably than was ever possible in the past. We are optimistic about the company's growth prospects and I'm pleased to share WishPond's key goals for 2025. Goal number one is to accelerate organic revenue growth and increase monthly recurring revenue. Two, increase utilization of SalesCloser in internal sales processes to drive sales of WishPond's own products. Three, accelerate revenue growth of SalesCloser and other virtual AI agents to external customers. And four, improve margins, increase churn and increase long-term customer value. As we look ahead to the rest of 2025, we are confident in our ability to return to historical growth levels while building on the strong foundation we've established. Our investments in technology, product development and customer acquisition are all aligning to position us for a year of strong expansion. With the momentum we have built, we expect to see a return to growth in the second half of 2025, driven by the ramp up in sales of SalesCloser AI and increasing sales of our WishPond products. The demand for AI-driven sales automation is growing rapidly and we believe that WishPond is well positioned to capture significant share of this market. We expect to see higher growth margins in 2025 as we scale our business, improve operational efficiencies and increase the value of our product offerings. We are also in a position where we can continue to fund our growth and new product launches without the need to raise additional equity or debt capital. We expect to continue funding strategic initiatives including product innovation and expanding our sales efforts without diluting shareholder value or taking on additional debt. In summary, we are extremely excited about the prospects for 2025. Our strategy is focused on returning to historical growth levels, further improving our profitability and ensuring that we can fund our growth internally. We are confident that these efforts will position us for continued success in the years ahead and deliver significant value for our shareholders. Finally, I want to thank the entire team 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 digital marketing needs. Also, I'd like to thank you all for joining us on this call today. We look forward to providing an update next quarter. I will now hand it back to Piviter for questions.

Thank you, Alex. And with that, we'll now open the call to questions. Just a reminder that questions will be given to analysts for priority first. To ask a question, analysts can raise their hand using the feature at the bottom of the screen. The first question comes from Daniel Rosenberg of Paradigm Capital. Please go ahead.

Hi. Good afternoon, everybody. Thanks for taking my question. My first one is just around the productivity per person. I appreciate the demonstration you gave around sales closer and applications on using it internally. I'm just wondering how you think about that resource count in your sales team right now given the added productivity. Are you kind of at a steady state? You see room for hiring to account. How do you think about deploying resources to capture that productivity gain?

Yeah, that's exactly it. So last year, at the beginning of last year, we had 40 account executives. And by the end of the year, we had decreased that number to 25. And we held off from hiring more account executives. And that, you know, as we shared in the last quarter, helped us with getting more productivity from the remaining salespeople that we had. And, you know, they were the best performers. But obviously, as the number of account executives decreases, it does put negative pressure on top line revenue and growth. So since December to now, we've hired more account executives and that headcount for account executives has increased to 30. But where we are right now, our strategy is to more or less maintain that and not increase a lot of headcount on sales. And instead of that, rely on exactly what we're talking about here is use AI to get more productivity from the sales team members. And that was the reason that we were also holding off from, you know, adding a lot of headcount to sales to make sure we nail a method, a mechanism to use AI to make, you know, our sales of 30 people have the productivity of 120 people, 150 people. And that's precisely what we see possible right now. We're still at the early stages of it, but what we see gives us a great deal of confidence that it is the right strategy and it's a breakthrough for us.

Thanks, Rebecca Koehler. I was curious about the light labeling and channel partners. I was wondering if it requires a lot of standing up from your end in terms of training the partners, getting them to understand the product, how are you thinking about it in terms of specific verticals or number of partners that you may be seeking out? Or is there one key partner that's really kind of go forward? Just any additional color there would be appreciated.

Yeah, I think soon we'll probably have a separate update just focused on that. But since the question came up, I think it actually is probably a good idea to mention some of those updates now. Most of the resellers that have signed up for the platform so far have come inbound. So a lot of the marketing initiatives that we're doing, a lot of people are coming to us and we see a good percentage of them being those who want to actually resell it. They're very impressed by it. They see the value. And then when they find out that there's a white label solution that we have, they get very excited about that. They say, oh, OK, I've been selling cloud services and I know that we need to be more active with AI and this is exactly the right solution that I can bring to larger enterprise customers. And I would love to do that under my own brand. So those are the types of white label partnerships that we are getting right now. They're from different industries. I think we're approaching, Adrian, correct me if I'm wrong, but I think we're approaching 20 white labels partners as of right now. Is that about right?

Yeah, that's right. We're very close to getting about 20, which is great. And the good thing too is that there's a lot of diversification within that group of resellers that we're seeing. So it's not just core to one vertical. It's allowing us to really diversify that as well. So it's showing some very promising traction.

Great. And then just last one for me. So, you know, part of the 25 goals was return to growth. And you obviously discussed having an AI powered marketing and sales platform. So I'm just wondering about the products as you think of it. And what is required in terms of adding functionality and further integrating AI into the platform to return to the growth levels that you want from the core business, let's say? Or are you already... Yeah,

in terms of going back to historic growth levels, with the product set that we have, we are more than covered to do that. So the innovations are going to continue and they will only add to that. But we have the product set necessary for that. I think a few things ended up being headwinds for us. One was, as I mentioned, reducing the headcount on account executives kind of caught up with us. And we were very hesitant in adding more headcount because we knew what we were working on with the AI. And now we're at a place that we can actually leverage it. So that one affected us. Obviously, that large customer has been trailing off over the past year. That affected us. And one of the items also is that one of our subsidiaries, Persist IQ, which has been a substantial part of our revenue, was negatively impacted by some of the Google changes related to email deliverability. And for the most part, we think we've got it under control now. So that was a pretty big headwind as well. Now, basically, the elements for growth are there that we have enough demos and inbound leads coming to us for all of our products. And for Persist IQ and that side and the email deliverability, we're pretty much there in terms of having the solution for that. And, you know, sales closer is also wrapping up quite well and add to a day, I element to accelerate and, you know, multiply the effectiveness of our salespeople. We should be able to go back to our historic growth rates. We obviously have a little bit of a negative or quite a bit of negative momentum to offset. And I think, you know, we expect that, you know, Q3, Q4 would be when we see the uptake and positive traction and positive MRR growth again. Adrian, do you want to add anything to that?

I think you pretty much covered it. I think just to re-highlight to, you know, the internal sales process that we're investing in right now, we're seeing very promising movement in that. And I think that productivity will show and come to fruition in the second half of 2025. It takes a little bit of time before the new hires that we've made in Q1 and those investments will come to full impact on that top line. And that's when we expect to see that renewed growth is in the second half of 2025. Thanks

for taking my questions. I'll pass the line.

Thank you, Daniel.

Thank you. The next question comes from Gabriel Young of Beacon Securities. Please go ahead.

Thanks for taking my questions. Just a couple of things. So first, Ali, you know, I'm just curious if you have sort of a timeline in place for when you might expect all the AI functionality to be available to your existing or potential customers. How should we think about that? What's your timeline?

It's quite interesting. You know, the CEO letter that I wrote in January, we were talking about basically our vision of fully autonomous customer acquisition platform that we want to build. But, you know, it's a bit of a longer term horizon for getting to that. But what we've actually seen in practice is that that future is closer than we thought even back in January. And our rate of, you know, progress has increased. Our productivity even in the dev teams have increased some of it because of the use of AI for faster product development. And they're going to come, you know, gradually. But I expect that full picture where you go in and you don't really want to even interact with the platform. You don't want to learn where things are and how the drag and drop editor works and what settings to change. You just want to talk to it as if you have an AI, you know, marketing chief marketing officer. And you say, I don't know, you know, Mother's Day just passed. But let's say, you know, Mother's Day is coming up. I want to do something. And it starts talking to you and you say, well, OK, give me a few ideas of campaigns. It gives you a few ideas and you say, I like this one. OK, great. So we need to make this change on your website. We need to launch this landing page. We need to launch this ad. The leads that you get, we need to send them some automatic emails. And if someone wants to get on the call, we need to set up a sales closer agent for that. Does that sound like the right plan? And you say, yeah, that's cool. Or you give it some feedback and then it goes and builds it for you. And, you know, you're basically done. And then you can interact with it for refinements or for getting insights. And I think that is closer to coming to fruition than we ever thought. And I surely hope that within the next 12 months, we're going to see that come to life. And some obviously, some parts of it are going to come to life gradually and, you know, in weeks to come. And by the whole picture coming together, our hope is in the next 12 months for sure to realize that. And it's a massive, massive vision. It is really transformational to the way marketing is done. Marketing and sales is done.

I'm just curious, just on all the functionality you're planning on adding. Is this something that's being requested by customers or maybe asked another way, are you losing opportunities because customers are going to competitors that might have some of these AI functionalities already?

No, I think what's interesting is that, you know, we're not losing customers because we don't have some of these functionalities. We are kind of leading the way in a lot of ways and a lot of times customers, what they need and we see that is they need results, right? So, Wishbone, for example, some of the fully managed campaigns, they specifically say, I don't want to interact with the product. Can you just run it for me? But that can be expensive. That can, you know, onboarding can take, you know, a month. There's always issues, you know, potentially with human interaction, you know, responsiveness, what the customers want, the cost increases. So, we know people want results and people, you know, as much as possible, they're too busy to want to figure out the platform and especially an -in-one platform that has so many moving parts. That we know. And as we're implementing these and putting it in front of customers, we're getting a very positive reaction from them. So, it's what we know people already want is the results and being able to offload the work. Now, what we're working towards is, well, how can we optimize this so that even internally, we need to invest fewer resources into implementing it. So, it's efficiency for us, but also makes it more effective for the customers so that they get the designer, they get the copywriter, they get the marketing specialist, they get the developer, all of them automatically through AI as opposed to hiring them and paying for them.

Gotcha. And then just on sales closer, are you able to talk about, well, actually, before I get to that, the million dollars of AR you've signed to date, was that largely direct driven or influenced by partners?

The partners are new, so it's not really a substantial part of that yet. Most of them, we released a partner program weeks ago. It hasn't been that long and they're just launching. So, no, this has been direct. But by direct, it has been a mixture of inbound marketing leads, people coming to us, and outbound. And most of it actually has been inbound driven, people coming to us through our, through our website, through our website, through our website. So, there's advertising or just finding us because they search for AI sales agents or something like that. And that demand is actually increasing every week.

And just on the pipeline for sales closer, do you have a sense of what the total size of the pipeline you're looking at from an AR perspective right now?

Yes, Adrian wants to add something on that. But before passing it on to Adrian, one thing that I can say though is that, you know, the numbers that we share, for example, the one million ARR, are even conservative because we already have clients that we've signed up that we already know they're going to grow to multiple hundred thousand dollars over the year. But it's a gradual increase. But the contract is already signed. We know what we're dealing with. So, some of those are already actually, you know, in the bank, quote unquote. And I think that also is quite exciting because historically, except for the one large client that we had, it was very rare for us to have clients that pay more than two thousand dollars a month. It was really rare. And now we're having these deals that are like eight hundred thousand dollars for a year, two hundred and fifty thousand dollars for a year, and getting more of those going for us, which is quite exciting. Adrian, any color you want to

add? Yeah, I'll just add that, you know, it's early to give a specific number in terms of what the pipeline is going to look like for the rest of 2025. But what I will say is that, you know, just in the last four months, the amount of ARR growth that we experienced, we pretty much three-exced it in about four and a half months, which is it's not a small feat. And the momentum has not been slowing down. And so if things continue, we see that being a very large proportion of the growth driver in the second half of 2025. And it's continuing to increase on a daily basis. So we've already exceeded the one million just from the couple of days ago, which is just very promising. It's got very good traction.

And this is the type of revenue that is superior, I would say, to the historic revenues that we've had. I mean, revenues, revenue, but at the same time, margins are greater. You know, margins are approaching 90 percent versus the 67, 68 percent that we've had. So I think that's going to also push up the margin profile as a whole.

Gotcha. Thanks for the feedback. Appreciate it.

No problem.

Just before we move on to the last section, we have a few audience questions if we can get to those quickly. What percentage of the total revenue is still recurring revenue?

Pretty much all of our revenue is recurring revenue. We don't really have one-time revenue or, you know, yeah, pretty much all of

it. Okay. And then last question. What was the impact of the previously largest legacy customers removal in Q1 2025?

I can take that one. So the amount of the revenue is year over year. It's 266,000 of a drop that's from that legacy customer. So it's still a fairly substantial impact on the Q1 2025. But the good news is that it's kind of now behind us. So looking forward in the quarters ahead, it's going to have a less and less impact onto our numbers. And so it can allow us to focus more on the growth and on the second half of 2025 where we're expecting to see that renewal.

Thank you. I think that's all the time we have for questions. We now pass the call back to Ali Tuscander for closing remarks.

Yeah. Thank you very much. I think, you know, I think we've definitely had some, you know, headwinds as we talked about some revenue decline. And it is something that we take quite seriously and working to reverse course on that. I think that workflow is quite important for us, you know, being financially stable and not in a vulnerable position is top priority for us. But I think what is also quite important is that the opportunity that we're seeking is absolutely massive. There's, you know, multiple, multiple billions of dollars markets that we're going after and have a real shot at disrupting. And we already see in a lot of areas, most areas with sales closer, we're leading the pack. We're one of the pioneers of that field. And we already see how it's impacting our own internal sales and processes. So I'm very, very optimistic. And I think what is important is that there's going to be some short term disturbances, like, you know, the quarterly results on the top line not being exactly what we were hoping for. But our focus on the long term and making sure the company is in solid footing, a company that doesn't get left behind in the AI age, but leads the pack is important. And, you know, continue to invest in innovation. You know, we're not going to get make any cuts, you know, anything with when it comes to research and development, as an example. And we're going to just only accelerate that. I think those are really important for us to realize what opportunity we're going after and how impactful it is that, you know, I don't see a reason why in our future we wouldn't be talking about a billion dollar company. But obviously, you know, it takes some time. But I'm quite confident that we're going to get there. And other than that, that's it. Once again, I want to thank everyone for joining our call today. Thank you for the analysts and the audience for your questions. Everyone, please stay safe and healthy, and we look forward to providing more updates this year. Thank you. Thank you, everyone.