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 Pavithar Sangha, 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 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 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 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, Pavitra. 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 WishBond. The marketing and sales landscape has been fundamentally reshaped for 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 a reality, and Wishbone is leading the way. WishBond 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 WishBond. 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. Wishbone'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 Wishbone's AI agents. Wishbone has already built foundational components of the platform and will continue to leverage its revolutionary AI agentic 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're 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 Wishpond 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 Wishpond's AI website builder. Then launch ad campaigns with our Braxi AI ad management solution. Businesses can then use Wishpond 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 Closer 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 round-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 WishBond, 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 transformation to an AI-driven company. 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, Braxy AI, 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 closure into internal sales processes. leading to greater profitability and ability to scale the organization without significant cost increases. 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 the 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 go-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 round-the-clock sales calls and product demos 24-7 to engage 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 accretive 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 Salesforce 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 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 filed. First, we have filed a non-provisional utility patent entitled Virtual Artificial Intelligence AI Representative to protect the underlying technologies of our Salesforce AI platform that can perform automated demos, calls, and 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 premature 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. Wishpond 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 Wishpond 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 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. Wishpond 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. Wishpond achieved a gross margin percentage of 67% during Q1 2025 in line with 68% in Q1 2024. During Q1 2025, Wish One 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, Wishpond 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. Wishpond renewed its $6 million secured revolving operating credit facility with National Bank of Canada on August 1, 2024. Wishpond 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 58,542,920 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 Wishpond sales. Traditionally, Wishpond 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 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 Wishpond's own product demos and sales. Sales Closer is now capable of handling most of the initial sales development and demo work, freeing up our salespeople to focus on finalizing and closing the deals. Overall, our sales capacity has a 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 Wishpond 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.