QYOU Media Inc. (QYOU.V) 2026-06-18 Earnings Call Transcript

am I personally investing at these levels? If not, why not? The simple answer to that is I'm not, because for a number of reasons. Number one is, as I've stated in previous calls, I've not sold a share since we started this and became public in March of 2017. Not one share. Nor would I sell a share today at the existing share price, because we strongly believe that it's going to grow significantly as we move forward and prove what we're trying to do as a company in terms of not just revenue growth, but profitability moving forward. The fact of the matter is that like many of you who've been investors in the company, and I apologize personally, it's obviously not intentional for anybody to lose money in their investment and in the amount of the value of the shares that they've invested in. I too have lost a significant amount of value, just like the rest of you, in terms of the value of what our stock is in the current environment. The reason I'm not investing currently is what I can tell you is that as you see the share price begin to grow in some significant fashion, I hope to be in a position to be able to sell some shares that I've had for a long time now along the way. I also look to reinvest that back into the company at levels that will be determined as we grow going forward. Unfortunately, having five kids, two who are in college right now, et cetera, I'm not really in a position to personally invest, but more importantly, it's because I've not been able to divest of any of the shares that I've received along the way. Frankly, like all of management in this company, we've all lost a lot of the options that we had that were priced out of the money, and surrendered a lot of the equity along the way that we have. That's the cold, brutal, honest answer to that question. Why didn't Chatterbox report FY 2025, 2026 numbers? I'm not sure I understood this question. I think this might be referring to the fact of why didn't we report in a separate press release those numbers. Chatterbox did report fiscal 2025, 2026 in India. If you Google it, you can see different reports that came out around that. Their revenue actually grew 42% in the last fiscal year, and they were profitable, with positive net profit in 2025, 2026. The reason we didn't do anything here is because those numbers came out when we were mired in our issue with late reporting. Because their Q3, which was reported tied to our Q4, it seemed or to our Q1 rather, I'm sorry, their Q4 related to our Q1, and we had not reported Q1 or fiscal 2025, it seemed inappropriate for us to do, and maybe even not just inappropriate, but not kosher with the OSC and others to do that. That's why we chose not to do that. Again, if you google the numbers for Chatterbox last year, you can find those numbers online and you'll also see that they had a really strong and solid 2025, 2026.

What happened with the opening of the Dubai operation? I think I already addressed that. We were slowed massively. It was actually less reported here in North America and even Western Europe, if there's people listening from there, about how shattered the UAE was for some period of time by what was taking place with the war between the U.S. and Iran. UAE actually took more missiles and drones than any other territory in the Gulf region. That's starting to come back to life, and hopefully the news that was delivered in the last 24 hours is going to kick that off. Our original plan was to really kick things off more strongly right after Ramadan, as I mentioned, but we'll start that up now and you'll be seeing more from us in terms of our Dubai operation, Chatterbox International, and what we do in the Gulf region going forward. Question six. Just checking my time here.

Why do you think the stock has no real following, how do you plan on changing that? Look, we're as dismayed as anybody over both the share price, the lack of volume. We have thought, like many of us have along the way, that we would start to see a resurgence in people who began to believe, not just in terms of what we were doing as a company, but also in terms of what was happening in the creator economy in general. We haven't really seen that, it's extremely disappointing. We also have tried numerous things along the way that I would make the argument haven't really worked. With that said, we recognize as a company that has to change, and I've sort of been made a liar out of promises I've made in the past. Part of that was driven by the delay in reporting our numbers over the last six to eight weeks. Now that we've passed that problem, and that's in the rear view mirror, I believe you will see more public information about us. Raj and the team will be doing a separate call like this. We'll pick a date here in the not-too-distant future where we'll have a specific call about the India business so you can learn more about what's happening there. I do think that I can live up to the promise of more proactive sessions like this in the second half of 2026, which we have not really been doing in the first half the way that we originally anticipated. In addition to that, there's a lot of debate inside our company about IR and what's effective and what's not effective. We look to do that all the time. We believe that there are some ways that we can do that utilizing our own capabilities with influencer marketing and other capabilities that we have going forward. I think you'll see more coming out of that world as well as we move forward in the second half of 2026. Jace, did you text me anything while I've been blathering on here or looking? Jace Sparks I did. If you look at your text messages, you'll see. Curt Marvis Great. Jace Sparks I can read them to you if you would like. Curt Marvis Yeah, that's fine. The first one about profit margins. Look, when we combined the companies, there were a lot of things that needed to be done to drive that. As I mentioned, we're still suffering to some degree the slings and arrows of past missteps. I think you'll see us exiting that even further in Q2, and even further and really leave it in the rear view mirror in the second half of 2026. We're obviously leaning heavily into AI now as well as a way to contain costs and find more efficient ways to get things done. A lot of the antidote to margin pressure that we might be feeling from our partners is leveraging AI further to make us more efficient as an operating business. The combination of those two things, I think you'll see in the ability to manage in a better way from a profit point of view, these larger enterprise-level deals are going to combine to do that without adding additional headcount. The big announcement was previously mentioned. I'm not going to hint at that right now. I'll just say that I think you'll see some announcements between now and over the course of the summer that will point to some of the things that we believe that are going to drive us in a much stronger fashion as we move forward. Your second question about why aren't we paying off the high-interest debts? The answer is that, someone asked a question about are we raising capital. We're being very conservative right now in the capital that we have, especially in North America. I think you'll see some changes in that, not necessarily between now and the end of the quarter, but you'll see some changes in the status of what's happening there in Q3 and get those paid off and behind us. Annual report. It's partially related. The question is about AR aging. It's over 90 days. One of the other huge challenges in our industry is the agencies that we get paid by are notoriously slow in paying us. The influencers that we deploy in these campaigns are notoriously dissatisfied with not getting paid a lot faster than 90 days. There's a constant imbalance between AP and AR that ironically becomes even more pronounced when we have higher revenue quarters. In the higher revenue quarters, as you can imagine, if you're paying out to make up, if a number in a CAD 10 million quarter, if you've got a CAD 10 million quarter and half of that is getting spent on amplification, boosting, and creators, CAD 5 million of that. If we're very, very slow in the payments that come our way, because both in terms of the amplification, which is really through Meta and TikTok, they get paid net 30. In cases where we're getting paid more than 90 days, it puts incredible pressure on our cash. This is one of the reasons that answers the question that Cooper's had about why we aren't paying off the debt. We have to stay extremely conservative in terms of cash retention because of that. We've dealt with factoring facilities and other things that we've tried. We've been in discussions about one of those going forward. They can be very onerous to manage and work with going forward. We've also been, because of our share price, obviously in a condition where we didn't want to dilute further at these share prices. It's a daily juggling act that we go through. It's one of the biggest pains, frankly, that we go through in terms of managing the businesses on a day-to-day basis. We think that as we grow in a profitable way going forward, and additionally have a couple of other things we're looking at to take care of some of these high-interest debts and other issues that we'll emerge from this in the second half of 2026 and certainly in fiscal 2027. I don't see it being an issue for us at all as we go forward. Hopefully that answered that question. I think we're intended for this to be 45 minutes. We're at 43 minutes right now. I don't see any further questions from Jace. I'll sign off by saying, once again, sincere and deep apologies for the delay in all this. I got my fair share of hate mail from some of you, and no one was more unhappy and upset about this than management was. Nevertheless, as I mentioned, it's in the rear view mirror now. As you can all see, there were no really huge material changes from what we put out in March in terms of fiscal 2025. We're thrilled as a management team on a go-forward basis. People sometimes ask, "Why are we sticking it out? What are we doing?" Et cetera. None of us would be doing that if we didn't believe that there's a very, very large opportunity for us going forward. That's speaking for myself, for Glenn, for Jace, for Scott Paterson, for Raj Mishra, and all the senior management team that is really going to be rewarded when we see the fruits of our labors really start to materialize in the coming quarters and years. That's it for today's call. We'll have one of these, as I mentioned, just with the India team, probably sometime in the next three or four weeks. We'll send out a press release about the timing of that once we sort out when that's going to take place. Thanks, all, for your support, and look forward to delivering better and better results going forward. Thanks, guys. Bye-bye.