Zoomd Technologies Ltd.

Good day and welcome to the Zoom Technologies fourth quarter and full year 2020 update conference call. I would like to turn the conference over to Ben Shanzian with Lithum Partners. Please go ahead. Thank you for joining us today for Zoom Technologies fourth quarter and full year 2020 update conference call. With us on the call representing the company today is Amit Bohansky, Zoom's founder and chairman. At the conclusion of today's prepared remarks, Amit will answer some questions that were sent to us by investors and other questions we think are relevant to investors as well. Before we begin with prepared remarks, just a couple of comments. Today's call will contain forward-looking statements that are based on current assumptions and subjects to risk and uncertainties that could cause actual results to differ materially from those projected. and the company undertakes no obligation to update these statements except as required by law. Information about these risks and uncertainties are included in the company's filings, as well as periodic filings with regulators in Canada and the United States, which you can find on CDAR and Zoom's website. Today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as supplement to, and not a substitute for IFRS financial measures. Finally, today's event is being recorded and will be available for replay through the webcast information provided on the press release. With that said, let me turn the call over to Amit Bahansky, founder and chairman of Zoom. Amit, please proceed.

Thank you, Ben, and good morning to all of you. We are excited to speak with you today for our fourth quarter and full year 2020 conference call. Some highlights. As a general reminder, especially to the first-time listener, Zoom offers a digital user acquisition advertising management platform that enables companies to unparalleled control over the management of online and mobile ad campaigns. We have two main unique selling propositions. First is our proprietary search data engine that provides intelligent guidelines for way more targeted and highly personalized advertising campaigns. We do this via collaboration with world's top publishers around the world who use our on-site search engines to analyze user queries and provide invaluable user intent analytics that improves our advertising relevance to the promoted products and services by orders of magnitude versus other solutions. Our second unique selling proposition is the unification of all relevant ad technologies into a single platform. We act as a layer on top of the advertising and user acquisition ecosystem integrated with more than 600 media sources into one unified dashboard that offers advertisers unparalleled control for managing all new digital customer acquisition campaigns using a single platform. By unifying all these media sources onto one system, Zoom saves advertisers significant resources that would otherwise be spent consolidating data sources and managing multiple, separate campaign systems. Zoom enables maximizing data collection and data insights while dramatically minimizing resources spent on the exercise. Our superior data and platform concept has translated to strong ROI and KPI results for our clients, achieving superior conversation rates that translates into significantly higher monetization. In simple words, we enable customers to acquire more customers and make more money per advertiser dollar spent than using other alternatives from our potential competitors. Today, I'm going to provide an overview of our achievements and challenges for the fourth quarter and the full year of 2020 and provide you an update on the opportunities that I believe we will drive the growth in Zoom going forward. Despite the obvious challenges of 2020 related to the COVID-19 pandemic, I am glad to say that Zoom is a stronger company today than it was a year ago. The hard work of our entire team has positioned Zoom well for revenue and profitability growth in 2021. We are happy to report that the pandemic effect on Zoom Financial was really minimal, resulting with only a 6% decline in year-on-year revenues. While already in the first quarter of 2021, we have seen a massive market recovery in our business, and we are able to confidently project a 30% to 40% increase in our revenues for 2021. In January 2021, we announced the launch of our self-served SaaS campaign management platform. This platform, using very little human intervention, will unlock our capability and capacity to attract and service more customers. As a service-based company, we expect to enjoy stronger growth margins, as the real estate for the ads will no longer be part of the cost of goods sold. We believe the industry has been waiting for a platform like this, and the COVID has only accelerated this need. In February 2021, we announced the acquisition of Performance Revenues, a leading international mobile marketing and influencer company. We are excited about the great set of clients that Performance Revenues has, including private and public traded companies from all around the world, including names such as Sony and Platica. We believe that this acquisition represents a tremendous cross-selling opportunity for Zoom, especially in Japan, when we currently do not do much business. This acquisition is expected to have a direct positive revenue growth impact, on our financials. All this, the SaaS platform launch and our aggressive M&A strategy are strong growth drivers that provide a basis for our 30% to 40% growth projection for 2021. We were happy to see in the fourth quarter that we have achieved 33 growth margins, the highest margin in the last two years that validated our expectation for market recovery and got us closer to an EBITDA break-even. I want to thank you. I want to thank to all our employees for their hard work and their dedication, as well as to our investors who have supported us. With that said, I will answer some of our investor questions and some more questions that may be of interest to our investors.

Thank you, Amit. Can you elaborate more about Zoom's advantage over the competition?