Summary of Emerge Commerce Conference Call Company Overview - **Company**: Emerge Commerce - **Industry**: E-commerce, specifically in grocery and golf verticals - **Revenue**: Approximately CAD 27 million with a target gross margin of 40% [5][6] - **Adjusted EBITDA**: Positive, with Q2 expected between CAD 900,000 and CAD 1,000,000, marking a significant year-over-year improvement [7][61] Q2 Preliminary Results - **Q2 Revenue**: Increased to CAD 8.3 million, representing a 79% year-over-year growth [7] - **Cash Position**: CAD 3.5 million as of June 30, up from CAD 2.7 million at the end of Q1 2025 and CAD 2.2 million in Q2 2024 [7] - **Acquisition Impact**: Revenue growth includes contributions from the recently acquired Tee to Green brand [7] Brand Portfolio - **TrueLocal**: Leading brand in meat and seafood subscription in Canada, accounting for 55-60% of revenue. Customer Lifetime Value (CLTV) is approaching CAD 2,000 with a Customer Acquisition Cost (CAC) of CAD 124 [9][10] - **Tee to Green**: Recently acquired golf and apparel business, generated CAD 6.4 million in revenue and CAD 1 million in adjusted EBITDA in 2024 [22] - **Just Golf Stuff**: Fastest-growing brand, 10x growth over the last five years [20] - **Underpar**: Golf experiences marketplace, showing double-digit organic growth [21] Strategic Growth and Acquisitions - **Emerge 3.0**: New strategic phase focusing on disciplined growth and cash flow generation [28][33] - **Acquisition Criteria**: Targeting businesses with stable cash flow, a history of performance, and potential for synergy [34][39] - **Future Acquisitions**: Interest in meal plan companies and adjacent markets like pet food [70][44] Market Position and Trends - **Local Support Movement**: Benefiting from the growing trend of supporting local brands in Canada [13][16] - **Competitive Landscape**: TrueLocal is the only national player in Canada, with competitors in the regional market [42] Financial Health - **Debt Reduction**: Over 80% of debt has been eliminated, allowing for potential refinancing at lower interest rates [62][63] - **Cash Flow Focus**: Emphasis on generating cash flow to support future acquisitions and growth [33][61] Marketing and Technology - **Digital Marketing Success**: Effective use of digital ads has driven significant traffic and conversions for Tee to Green [25][27] - **AI Utilization**: Exploring AI for customer acquisition and enhancing marketing strategies [67][69] Conclusion - **Outlook**: Positive momentum with expectations for continued growth in both revenue and profitability, alongside a strong acquisition pipeline [65][66] - **Investor Engagement**: Commitment to transparency and regular updates to investors as the company transitions into its new growth phase [79][87]