Q4 2020 Logiq Inc Earnings Call
Thank you for standing by we will begin momentarily again, thank you for standing by.
[music].
Mhm.
Please standby we are about to begin.
Good afternoon, and thank you for joining us today to discuss logics first quarter and full year ended December 31st 2020, joining us today are in logics, President Brent fun and its chief Executive Officer comfort core.
They are joined by the company's financial officer of company's Dialogic subsidiary John.
John.
Carneros following their remarks, we'll open the call to your questions.
And before we conclude todays call well provide some important cautions regarding forward looking statements made by management during the call I'd also like to remind everyone that today's call is being recorded and there will be made available for telephone replay. Following the instructions provided in today's press release I'd now like to turn the call over to logic.
And then Brent sorry, Sir Please go ahead.
Thanks, Ali and good morning, or good afternoon to everyone.
For joining us today.
We hope everyone has been staying healthy and safe.
And two the pandemic is finally in sight.
Thanks to now three real vaccines.
Spicy tremendous impact.
They make one on our vessels.
Certainly multiple others.
Thanks to our new data logic subsidiary in 2020.
We increased revenues by nine 4% to $37 $9 million.
Consolidated gross profit for the full year also increased by 2% to $6 4 million or 16, 8%.
Consolidated revenue.
Most remarkably we saw gross margins for Aflac Apalachi business, formerly known as create up.
Improve.
Every quarter of 2020, despite being at the height of the pandemic, which in Q2 was at 11, 8%.
Q3, you're at 12, 4% and then in Q4, we achieved 25, 6% gross profit margins, which for us as well.
Quite exciting. This was the result of eliminating low margin white label partnerships that were also impacted by the pandemic and focusing on the most profitable segments that we serve with that mobile app business.
Platform.
This has been a certain pain point for us since we started out.
Six years ago, and some of the early white label partnerships plus the lack of a strong digital marketing platform kept our gross profit margin down to around the mid teens.
Moving up to the mid Twenty's, which we also expect to see.
We continue to trend higher.
Again very exciting for us.
While this margin improvement is very encouraging we're actually more excited about our future margin prospects, particularly for our e-commerce business and data logic in our recent strategic acquisitions.
For those of you who know over the past year, we acquired three e-commerce platforms as we expanded our global presence.
Product offerings now extend for mobile Commerce enablement.
Fintech solutions for small to medium sized businesses or smbs, all the way to artificial intelligence AI powered customer acquisition for major enterprises and brands.
Historically, our goal was to help companies get their businesses online.
However, the biggest challenge once online.
It's getting new customers to find you.
And existing customers targeted products that are specific to their wants and needs.
How can that be done without relying upon Google or Facebook or extensive advertising campaigns that don't get to the exact target customers you want.
Well just this morning, we announced that we have completed the acquisition of rebel AI, which is an innovator in digital marketing solution.
E Commerce growth at both brands and agencies rebel complements our new fixed a unit that we had introduced on our last call.
So added simplified marketing and critical privacy features to our AI powered consumer intent engine.
Bush, which is used by major brands and premium publishers.
The demand for AI powered ecommerce platforms like ours is expected to increase dramatically over the next few years and according to Pwc study more than 72% of the Internet marketers now consider AI business advantage.
Although to be sure over the last year, we've become more than an ecommerce services company <unk>.
Integration of these key acquisitions, we have become a clear leader in data driven consumer intelligence and automated marketing technology.
In preparation for this huge market opportunity ahead over the past year, we strengthened our corporate governance and we've expanded our management team.
We brought on AD Tech veterans, such as Stephen Hartman.
We've appointed Josh J codes immediate Hickman to our board and now, adding many linzess from rebel I AI to our executive team.
There are many exciting near term catalysts in our business development pipeline and I'm excited to share with you, including a major stake back micro lending program that we've launched in Indonesia.
But first I'd like to turn the call over to our data logic, Chief Financial Officer, Rod Carneiro, who will take us through our financial results for the quarter.
And then next our CEO, Tom for Kala will walk us through our business development initiatives with digital marketing technology. I'll, then return with more about our operational activities and outlook for the remainder of the year.
Right.
Thank you Brian.
Earlier today, we issued a press release with the results of our fourth quarter and full year 2020.
A copy of the release is available from the Investor Relations section of our website.
We manage our business on the basis of our two reportable segments.
Mobile commerce enablement for our <unk> platform as a service.
Our data logic consumer data management platform that delivers lead generation online marketing.
Multichannel strategies through its owned and operated brands and our newly acquired AI powered audience, scoring and segmentation platform.
Now, let's start with now starting with our statement of operations for the fourth quarter of FY 'twenty.
Arkansas their revenues totaled $6 6 million, which declined 34% from the same quarter a year ago.
Kris was mostly due to op logics equates in revenues offset by the addition of biologics revenues, which will cover in more detail.
In Q4, 'twenty 'twenty are up logic block, one contributed $2 1 million or 32% of consolidated revenues in the fourth quarter.
This was a decrease of 79% as compared to $10 million or 100% of consolidated revenues in the same period a year ago.
The decrease was primarily due to the impact of COVID-19, lockdowns as well as the transition to lower revenue, but higher margin business as Brad mentioned.
In contrast, our data logic segment has experienced continued growth sequentially and quarter over quarter in both revenue and customer growth.
This has helped diversify our revenue streams and offset the challenges without logic.
For the fourth quarter of 2020, our Dealogic segment contributed $4 5 million or 16% of consolidated revenues.
This compares to three 8 million in revenues generated in the previous quarter.
In the same quarter, a year ago prior to its acquisition by logic. The operations of Dealogic generated revenues of $1 9 billion.
Our consolidated gross property was $1 4 million or 21, 1% of revenues in the fourth quarter.
This compares to $1 9 million or 18, 6% of revenues in the same period a year ago.
This decrease in gross profit was primarily the result of lower revenues for the quarter as the company transitions to higher margin revenues.
Gross margin for <unk> platform increased 25, 6% in the fourth quarter from 18, 6% in the same quarter a year ago.
Company expects op logic gross margins to gradually improve over time based on initial sales under its new derived b to B program.
Our data logics platforms gross margin was 19, 1% in the fourth quarter of $4, one, which we also anticipate improving over time as we continue to scale and implement new products and services.
Our total operating expenses in the fourth quarter of 2020 increased 51, 6% to $8 5 million compared to the same period a year ago.
The increase in operating expenses was mainly due to the addition of biologics in general and administrative expense of one 3 million and depreciation and amortization expense of <unk> 6 million and an increase of <unk> general and administrative expense of zero point that Elliot.
Our Q4 consolidated net loss totaled $7 1 million or 51 cents per both basic and fully diluted share as compared to a net loss of $3 8 million or <unk> 47 per both basic and fully diluted share.
Same period a year ago.
Our <unk> platform quite a net loss of $5 8 million in the fourth quarter of 2020 as compared to a loss of $3 8 million in the same period a year ago.
Their logic with its operations that were acquired in January of 2020, and incur a net loss of $1.3 million in the fourth quarter.
Now looking at our performance for the full year of 2020.
Consolidated revenues totaled a record $38 9 million up nine 4% versus 2019.
The increase is due to the inclusion of revenue so data logic beginning on January eight 2020.
<unk> revenues declined by 34% as compared to 2019 due to the loss of customer service as a result of the adverse effects of the COVID-19 pandemic I'm from a strategic shift away from white level operating sellers towards higher margin direct marketing customers.
For the full year of 2020, our op logic platform contributed $22 8 million or 60% of consolidated revenues.
Decrease of 34, 3% as compared to $34 6 million or 100% of consolidated revenues in the same period a year ago.
They've got logic contributed $15 2 million or 40% of consolidated revenues in the full year of 2020.
<unk> gross profit increased 2% to $6 4 million or 16, 8% of revenues compared to $6 2 million or 18% of revenues in 2019.
Gross margin for op logic decreased 16, 1% in the full year 2020, as compared to 18% in 2019.
The majority of the decline is attributable attributable to the complementary and this kind of services provided during the pandemic.
<unk> gross margin was 17, 8% in the full year of 2020.
Total operating expenses in the full year 2020 increased 69% to $20 6 million versus 2019.
The increase in operating expenses was primarily due to the inclusion of Virologic operating expenses, which totaled $6 9 million.
Consolidated net loss totaled $14 5 million or $1 14 per both basic and fully diluted share in the full year compared to a net loss of $6 5 million or $1 31 per both basic and fully diluted share in 2019.
Our app was it platform or a net loss of $10 million and our full year 2020 up from $6 5 million in 2019.
Their largest net loss was $4 5 million.
Now turning to our balance sheet.
At December 31st 2020, our cash and cash equivalents totaled $3 5 million. This compares to $4 9 million at September 32020.
We believe our current cash levels are sufficient for the foreseeable future.
This wraps up our financial review now I'll like to turn the call over to Tom for an update on our business development Tom.
Alright, Thank you Rod and thank you all for joining us today.
By 2020 was a major transformative year for logic in many ways.
We successfully executed on our plan for improvement at logic margins.
The quality of its revenue because we also improved both revenue and margins for our newly acquired Dealogic subsidiary all of them at the height of the pandemic.
Thanks, you bear logics inherently agile ecommerce platform, we were able to quickly identify emerging market verticals.
Driven by the pandemic impact such as home improvement in Medicare.
This enabled us to generate strong sales growth and margin expansion. Despite the lockdowns and other COVID-19 factors affecting the general economy.
In fact, as Rod mentioned, we beat the revenue and margin goals that we had set early in the year hitting a record gross profit in Q4 and for the full year. We had record margin of 17, 8% up from 14, 8% in 2019.
The margin improvement was largely due to our focus on data monetization.
And being able to quickly identify and could that cause the hottest market verticals.
Now I'll have arrived at a new inflection point in our growth and development.
Especially now with the addition of pixel AI and rebel AI.
Acquisitions added key pieces to our data driven digital marketing platform.
Rebel AI innovative approach to addressing the needs of e-commerce brands and agencies fully aligns with our strategic focus.
Addition of their proprietary technology dramatically accelerates the time to market of our holistic digital marketing strategy.
Combining our respective strengths and capabilities put them. Both years ahead in terms of delivering a uniquely powerful platform geared for F N B agency and brand clients.
The rebel AI platform, which have which we have already launched under the new named logic digital marketing.
Enabled F&B businesses to more effectively compete for new customers against larger enterprises level.
Leveling the playing field like never before.
Through an easy to use dashboard marketers are able to advertise across popular websites apps and connected TV media, allowing them to attract more consumers to their online stores.
Combining advanced Artemis targeting artificial intelligence algorithms and blockchain based security the platform can dramatically lower the cost of customer acquisition for our clients.
Bob you can get you the marketing will be an open AI platform that not only provides flexibility for future development integrations.
But also allows clients to embed their own unique customization for their business.
All while remaining forward compatible for future enhancements.
Now from the beginning of our engagement, both recognizing immediate lift and advances we can offer as a combined organization.
You saw how well data logics and pixel solutions integrate with rebel AI will be built platform.
By embedding logic architecture, arguing.
Empowering our lead generation campaigns across 40, plus web and connected TV media partners rebel AI customers gain access to thousands of advertising channels and more than $100 million online consumers.
Data logic, using the integrated level demand side platform as a source of traffic to further increase its margins.
As a new revenue stream.
Since yesterday's launch of our rebel AI powered logic digital marketing platform, we have already signed new clients.
We are planning for the full integration of rebel AI with pixel and be allergic to be completed within six months.
Next let's talk about the market opportunity and drivers.
As global E Commerce sales now reach upwards of $4 two trillion and a more than 20 fixed trailing a retail industry. It's.
It's mainly only the largest brands who are capitalizing on their fullest potential.
In the U S alone the top 10 E Commerce players account for 63% of online sales.
Dominated by <unk> players, there's not really a healthy marketplace.
And digital advertising or the have and have nots.
It's been the huge brands.
We'll have access to the best technology.
Kent.
AIG tagline the market tightened digital advertising.
Build a platform among a sea of platforms to get that wouldn't be the same level of access enjoyed by the major brands and agencies.
Before rental AI companies would need to literally liberty millions of dollar we spend per month to access the best digital marketing technology.
Given the rising digital media costs.
It Didnt marketing technology feed and fast evolving laws and regulations surrounding customer data and privacy.
These have been underserved by the fragmented market and technologies available debt available to them to date.
And this is all caused a great disparity between access with top notch digital marketing access and F&B.
But with rebel we see this market presenting a huge opportunity for us to deliver a major enterprise level technology into the hands of the little Guy.
The market tightened digital advertising this.
This is what the rebel platform is all about.
It's like the trade desk, but for small and medium size businesses.
It brings enterprise level digital marketing to the underserved small and medium sized brands and agencies.
Looking at the market at a macro level, we see strong tailwind.
Studies show that by 2040, 95% of purchases will be facilitated by e-commerce that is insane.
The e-commerce market grows we expect to grow with it and online spend increases so does marketing needs.
With our digital marketing platform.
More people buy online so shell our business growth.
Lastly, let me cover the fixed acquisition.
Last November we acquired pixel AI and award winning innovative AI powered digital marketing technology.
Additionally, pixel furthers our goal of adding simplified marketing and critical privacy features for AI powered consumer intent engine that we offered F&B and premium publishers.
Pixel empowers marketing teams to optimize their campaigns in a customized way. Unlike any other marketing segmentation you'd be targeting solution on the market. Today. This unique technology captured from direct to consumers from multiple sources, who are in the market to purchase a particular product or service.
In addition to the pixel helps logic customers address the changing landscape of online marketing.
Many marketers still use vendors, who rely on third party cookies to understand shopping behavior on and off their sites. However.
New Internet privacy rules, such as California's consumer Privacy Act are making this practice increasingly risky and less viable.
Marketing and advertising industry now headed for a perfect storm created by new Peggy feed restrictions in a post COVID-19 world.
As Google and Apple.
Creasing and restrict access to users and with an increasing level of website traffic from visitors who have no identifiable binding paint companies are being forced to find better ways to maximize the return on that spend.
This confluence of events is creating the need for simple and automated marketing solution like pixel, which allows marketers to regain their advantage the new privacy based world.
Pixel helps marketers build effective campaigns focused on that visitors with the highest intent for making a purchase which lowers the cost of acquisition.
We have been introducing pixel to a customer base of enterprises F&B is a major brand and how do you see the strong positive responses.
Real exciting news is that rebel AI platform will seamlessly integrate with pixel AI, we will soon be able to provide pixel as a feature in our rebel AI powered logic digital marketing platform.
In the early second quarter, we expect pixels are you exploring a sudden inpatient feature to be available to customers who have been using verbal AI.
And then by the end of Q3, we expect fixed ought to be fully and seamlessly integrated with our rebel AI technology deployment.
To summarize all of this.
Is laying a stronger foundation for our logic digital marketing software as a service platform and sets the stage for major growth ahead, especially in 2022.
And we anticipate this greatly strengthened our margin profile.
Due to its peers SaaS offering.
Alright, well. Thank you very much now with that I'd like to turn the call back over to Brent.
Thanks, Tom.
So very exciting stuff.
I'd like to talk a little bit about our progress with female IPO and then provide an update on our mobile commerce and Fintech initiatives.
In Asia.
Yes.
As most of you know back in October we initiated the application process to have our common shares listed on the new exchange candidates next generation stock exchange.
Last week, we finally received conditional approval to list on the Neo in connection with our previously announced proposed initial public offering.
We're currently coordinating with EMEA to ensure the remaining conditions are met which includes responding to final comments selecting the designated market makers and setting the listing day.
The conditional approval indicates that we are on track to seamless on the neo.
And you May wonder why why their meal, so as a senior exchange the neo exemplifies how state of the art exchange trading technology can help increase investor confidence improved liquidity and elevate the company's global profile.
They currently account for around 25% to 30% of the total trading volume in Canada and actually since we began the process in October and EMEA has already doubled the number of corporate listings, including some very exciting technology companies that are listed on both NASDAQ and New York Stock Exchange all right.
Yes.
Paul I'm listening on the Neo our shares would continue to trade in the U S. On the OTC <unk>. However, it lifting on the neo represents an opportunity to rapidly move.
Our U S trading to the New York Stock Exchange Nx platform and become dual listed on to recognize the changes in both Canada and the U S.
We're very hopeful to announce the new IPO in trading data very soon.
On visa.
Earlier this month, we joined forces with Veeva.
Global leader in digital financial solutions to offer digital wallets and payment so surface excuse me services across Indonesia. The services will be based on our pay logic digital wallet.
Powered by <unk> mobility pay platform.
We've also recently partnered with Yandex, which is a fintech venture of Comm Veeva and be global Tech company check.
Tech Mahindra to offer credit based financial services micro loans.
As well as cash advances from merchants and buy now pay later option for consumers will basically pay is one of the world's largest digital wallet solutions.
Currently powers over 70 digital financial services across more than 50 countries.
It will play a central role in our new partnership with T. M. S. B.
Which together with <unk>, we are providing micro lending services to members of B P. J S T K.
Denise at Social Security agency that provides retirement and pension plans on behalf of government entities.
The new micro lending services and the benefit V. P. J S. Teekay is 48 million members.
50 million members now.
And over 600000, small and medium sized businesses or smbs that are in country.
The partnership with visa allows logic to extend swift convenient and secure digital wallet services to these millions of members and hundreds of thousands of F&B and a highly scalable form.
Using the largest digital wallet the D. P. J S. Teekay members and F&B is we'll be able to perform multiple financial transactions quickly and securely, including money transfers, receiving and repaying loans accessing insurance buying airtime or data.
And also paying bills or merchants all through their mobile phone anytime anywhere.
The partnership with <unk> enables us to provide best in class digital wallet services.
These are individuals and smbs in Indonesia.
Digital is quickly becoming the preferred method for transactions and the global pandemic has only accelerated that transition.
By providing digital access to an array of financial services instantly from the convenience of a mobile device.
See our combined platform greatly enhancing the lives of many people helping to grow their businesses and boosting the country's economic activity.
The revenue model for these services will be entirely transaction base, we will receive a share of the fees for each mobile transaction.
Although to be sure we will not share any risks with the loans or debts generated by users.
We see this potential.
Does this opportunity eventually generating tens of millions in annual fees to logic overtime.
It's extremely exciting.
Our outlook for the year.
It has been an extremely busy as trailing 12 months with a lot more to come.
As Tom said, we have arrived at a pivotal moment in our growth and development. We're all things will really begin to accelerate we brought together the technologies to create a superior digital marketing solution. We've assembled the best minds in the industry to help bring it to market.
Paul.
Despite a year of unexpected challenges.
I think expected challenges and setbacks.
We have been able to transform logic into a global provider of a full range of E Commerce solutions for companies of all sizes.
This has put us on course for strong growth in 2021 and.
And into 2022 with a diversified high margin revenue stream derived from the strongest segments of our industry.
We're on track in this current year with record revenue more than $40 million targeted and with a focus on strengthening margins across all of our business segments.
With that we can open up the call to questions. Allie. Please go ahead constructions.
Thank you and if you would like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
Again, it is star one if you would like to ask a question over the phone and we will pause just for one moment to allow everyone an opportunity to signal for questions.
And we'll go ahead and take our first question from Lisa Thompson from Zacks Investment Research. Please go ahead.
Hi, guys.
Hey, Lisa.
So Bryan I'm going to put that was thought previously discussed guidance of like $43 million to $45 million in revenue.
Margin of 35% is that specific anymore or do you have a different thinking on that.
Internally, that's what our targets are and we feel quite comfortable with the margin the margin level.
Well into 2022, which I know you didn't ask about we believe it will improve well beyond that as well on the revenue side.
I think that that's a comfortable target.
However, what we are focusing more on is the margin improvement.
Okay.
And so that's all I'm trying to understand Q4, a little bit.
There was a lot of.
Additional spending that probably I didn't expect I still in there somewhere is some one time thing and that's not your base spending level.
Can you talk about Brexit.
We did have a number of onetime items.
And can you quantify that or no.
I would probably need a line or a right to do so.
Brad if you're if you're able to do so that'd be great. If not we can surely connect offline.
Yeah, I don't have readily available in front of me, but that's something that we can definitely look into that.
I know theres going to be some acquisition related.
Amounts related to fix or in part a level as well as the IPO. So there will be some other one time items.
But also to answer your question with the addition of <unk>.
<unk> in 2020, but also significantly increase the operating expenses on a consolidated basis.
So should I expect.
<unk> expenses to be down in the first quarter sequentially.
Sorry could you repeat that question.
Should I expect expenses to be down sequentially in Q1.
Why should they should.
This should go down.
Slightly.
Because we won't have those one time items that we incurred in Q4.
Okay, and then it goes and starts back up again as you add in.
Rebel correct.
That's correct.
Okay.
I kind of understand the seasonality in the business in Q4.
Our seasonally high quarter or do you think that your growth will compensate that in Europe.
Each quarter to be up sequentially.
Rob do you want to cover it on the data logic side, and then I can speak to the <unk> side.
Yeah, Yeah, so for Dealogic, we've seen growth quarter over quarter since.
Basically since Q2, I mean, we had a little bit of a slowdown because of the transition and what they found.
Lending happened, but we've experienced growth every quarter since.
We expect continued growth in Q1 based on some of the results that we've seen to date.
And then yeah, I think given some of the strategic acquisitions that we have we believe that.
With some of the synergies that we'll be able to have with some of the new acquisitions, we will be able to continue that that trend quarter over quarter increase.
Going into 2021.
Okay, great. So.
Tom how are you going to comment about data logic.
Yes, so I've done this I agree.
Sorry, just a quick follow on in terms of the digital advertising industry Q4 is really where where you make you know you're you're.
Big revenue.
So a lot of our strategy this year really starting today they start to get these agencies onboard logic digital marketing and get them, starting to spend and which you'll see the quarter to quarter revenue decrease, but really given the setup for the big buying seasons and advertising.
Yes.
More of the color around rods comments there.
So does that make some.
Data logic will be below $4 5 million in Q1.
No for Q1 that we don't have final numbers, yet, but we believe that we will continue with some of the growth and the momentum that we had in Q4, but as Tom mentioned, usually towards the end of Q1, beginning of Q2, we start kind of like the setup process than you usually see a little bit of that.
In Q2, and then start gaining momentum going into Q3, and as Tom mentioned Q4, usually tends to be our higher.
Higher revenue.
Revenue quarter in terms of net revenues for data logic.
Okay. So it sounds like this was the worst quarter and then everything should be improved.
Slightly as things go on is that correct.
That's correct.
Yes, that's correct in addressing the <unk> side.
What we saw in Q2 was a was a direct effect of.
Covid.
However at the same time, we're also beginning the process of focusing more on higher margin digital digital and direct marketing.
So.
Throughout Q2, and I'm sorry throughout Q3.
And the first part of Q4, we had winter that down to where we eliminated the lower gross margin business and although you saw a trend down from Q1 Q4.
You start you will start to see that track back upwards and you'll see margin expansion track alongside it.
Okay great.
A question on Indonesia have you started booking any revenue there are these new initiatives.
Not win.
We have not.
You're a little bit behind on the local audit there, mostly because of the Lockdowns and also the way that.
The local auditors', you're going to treat it going forward.
We expect to launch the micro lending part of the business in Q2, and we are also.
Embarking on several strategic initiatives with our partner and several others that we believe can kick in in Q3, and certainly Q4, so we shouldnt be expecting some contribution throughout this year.
Okay, Great that's helpful.
I'll, let somebody else ask questions. Thank you.
Thanks Lisa.
And as a reminder, if you would like to ask a question. Please signal by pressing star one on your cash.
Allison keypad.
We will go ahead and take our next question from Chris The question here. Please.
Please go ahead.
Hi, guys.
Amazing transformation of the company over the past nine months.
Is that it's actually mind blowing.
Great job Tom.
I just want to say, thank you to Tom and.
Also Mr Hartman for their comments and the analysis, when we see them seeking alpha.
My question is maybe Brent can answer this.
Our Youtube yesterday, there was a beautiful AD put out.
By the company on the acquisition of <unk>.
Transformation of the company now.
Now I will ask us to market institutional investors.
Get new clients and how are we going to get it out there.
Yeah, Let me address part part of the question and then I can let Tom speak to it.
I think the main the main.
The main goal behind that is to start to.
Present faces of the company.
Explaining what it is that we do and how it helps small businesses.
Play on it.
Greater scale and more of a level playing field with <unk>.
Companies, such as Amazon and Walmart.
The E Commerce Giants that currently account for such a large percentage of e-commerce spending.
Yeah.
As far as the scope of investors that we're targeting.
I think it would really it will resonate well with both individual investors as well as institutional investors.
We have.
Clearly embarked on an industry that is not well known.
In terms of people being able to know all that the company may and said that they are in the AD Tech and market space. There are a few clear leaders such as the trade desk and Magna right, but there's also probably another 15 to 20 that are publicly traded.
That has done significantly well, but they're mostly institutional failures.
It would be great for individual investors to to hopefully better understand what it is that we're doing in sort of Wade through all of these buzzwords in all the jargon and be able to boil it down and say Oh I get it that does makes sense, there's a huge need for that largest is addressable.
Tom you want to.
Hum.
Any color.
Yeah, Yeah, Kristen as your question kind of part of like a I guess go to market or customer acquisition strategy.
My question is the video or not and I don't even know.
Many people say I didn't see it myself until yesterday and.
It's a beautiful marketing tool the company put out and it really full circle's. What you guys are doing a paradigm change and marketing to small businesses to level. The playing field. If you said don't Linda.
Linda video out there how do we do it do it yet.
[laughter].
Extend colo so words, besides auto lately.
Yeah, what we were doing a major marketing push starting today.
So youll see that everywhere.
And the nice thing about that video with features are really good customer that characteristics.
Characteristics of this 500000.
Businesses in the U S that are struggling right.
A couple by the the top 70%.
And it's companies like that.
We will be able to reach out to the one thing that we haven't talked too much about it.
We are building an absolute launch a few things on the shopify platform and we're starting to see traction there.
Shopify Wordpress Big Commerce E Commerce, all of these amazing e-commerce platforms, where today, it's so easy to put a store online and.
And it's bringing engage customers to your online store, that's where it gets tough and that's a problem we're solving for.
The other thing too just to note as you know between Steve Hartman now myself and then no.
And Manny from from rebel.
We have each of us have over 15 or more years in advertising technology, and we all kind of grew up in this industry together and we know a lot of people collectively in this industry.
And so all of those type of things and conversations and text messages and Nathan methods that are taking place.
For me the rollout is really going to be strategic so that we can have.
Good growing customers on the platform and we can continue to.
Bolstered our customer support and Onboarding so.
So we can have a great experience.
On our on our platform and really help these small businesses grow and that's going to be a key part of our strategy and our investment this year.
Alright, great. Thank you so much and thank you again, Tom particular time to talk to me and comment on my analysis with seeking alpha.
Oh, Yeah, Yeah, My pleasure Great article Thanks, Thank you for doing that.
Thank you thanks, Chris.
Thank you Brian.
And as a final reminder, it is star one if you would like to ask a question. We'll go ahead and take our next question from Tony. Please go ahead.
Okay.
Okay.
Yeah, Hi, this is Brent.
Can you briefly discuss.
Significant undervaluation of LG IQ can.
In relation to its peers and do you believe the move to the neo.
Eventually to the NYSE will change that.
Sure sure.
Yeah.
That's something we obviously then.
Both struggling with and certainly aware of or for <unk>.
<unk>, yes.
I think in any way that you view our valuation.
There's there's a disparity between them.
Evaluation and other ecommerce neighbors, if you look at the evolution of the business.
And how the AD Tech Martech platform that Tom and team are building.
And look at peers in that space, who you're equally undervalued.
Speaking to the E Commerce enablers, certainly one of the one of the things that that has existed over the years has been depressed gross margins.
Whenever we've gotten in front of institutional investors.
There there is there is.
Critique around.
Our relatively low gross margins.
Which I believe we've done an excellent job of improving in Q4 of last year and certainly going forward.
I believe though that win.
You start to see.
Institutional investors speaking with management start to better understand the three components of the business that have been put together, including push data logic fixed with AI and the rebel AI.
They wrapped together and then the target markets that we're going after and why we believe that we will dominate that market I think that you will see a narrowing of that gap hopefully in our favor.
But again.
Getting the market awareness out there is dependent upon being on a on an actual exchange I just saw.
The over the counter market. So I think the Neal listing will be a significant step forward and then again we are intent upon.
Uplifting onto the NYSE later in the year.
Well. Thank you very much print do you believe that the listing.
Listing on the New York stock exchange here can be done within a month or two we have to go from.
Neil.
That might be a little aggressive timeline.
Timeline that that they're speaking to us about that is standard is around 10 to 12 weeks all in.
Submitting the application and it could be could be less but I believe that once you're on track and investors are aware of that.
Certainly get more attention.
Hey, Thanks again guys.
Thanks, Tony.
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Okay.
And it appears we have no further questions at this time with that that does conclude our question and answer session.
I would like to turn the call back over to Mr. Tseng. Please go ahead.
Thanks Ali.
I'd like to thank everyone for taking the time to join us for our call.
And if you can take away one thing from the discussion today I hope, it's the understanding of the <unk>.
Incredible opportunities ahead of us and our ability to.
Generate value for customers.
And subsequently shareholders by creating long term sustainable growth.
Beyond the numbers.
Hope that you can see that we have endeavored to create a culture that is dedicated to doing something of value.
Creating a strong foundation for growth this year and beyond.
Alex. Please go ahead and wrap up the call.
Thank you before we conclude today's call I'd like to provide the company's safe Harbor statement that includes incorporate important cautious farmer looking statements made during today's call statements made by management during today's call.
Contain forward looking statements within the definition of section 27, H and the Securities Act of 1933 as of Monday, and section 21 E. At the Securities Act of 1934 as amended these forward looking statements should not be yes.
He used to make investment decisions all statements other than statements of historical fact, including hearing are forward looking statements, including statements regarding the ability of logic to successfully complete the any old listing process.
<unk> products and services for a particular application or market.
Alrighty, just secondly, integrate rebel Oh until our business operations to continue growth of East E Commerce segment and the ability of the company to continue its expansion into that segment the ability of the company to attract customers and partners and generate revenues.
And the ability of the company to.
Successfully execute its business plan the business strategy plans and objectives objectives of the company and any other statements that are non historical information.
Okay.
These forward looking statements are often identified by the use of forward looking terminology, such as believes expects or similar expressions and involve known and unknown risks and uncertainties.
Although the company believes that the expectations reflected in these forward looking statements are reasonable.
They do involve assumptions risks and uncertainties and these especially expectations may prove to be incorrect.
Investors should not place undue reliance on these forward looking statements.
Speak only as of the date of this conference call.
The companys actual results could differ materially from these interested in these forward looking statements.
It's all on a variety of factors, including discussed in the company's periodic reports that are filed with the securities and Exchange Commission and available on its website at Www dot.
Dot Gov.
All forward looking statements attributable to the company or person.
On its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws.
The company does not assume any duty to update these forward looking statements before we end today's conference I would like to remind everyone that this call will be available for replay. Starting later. This evening. Please refer to today's press release for dial in replay instructions available via the company's website at www Dot logic Dot com.
Thank you for joining US today. This concludes today's conference call you may now disconnect.
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