EMERGE Commerce (EMCM.F) Update / Briefing Transcript

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]