Thank you for joining us, everyone. We are here today with Fobi's Q3 financial webinar. We are joined by Fobi's Chief Financial Officer, Annie Chan. We also have with us Fobi's Chief Revenue Officer, Colby McKenzie. Of course, with us is Fobi's Chairman and CE`O, Rob Anson. My name is Reggie, and I will be your host today. We have a lot to be excited about in Q3, and we are happy to have our guests with us here today to go a little deeper. There's a lot to get through here. Rob, why don't you get us started?
That'd be great, Reggie. Thank you for everyone for attending today, sharing in the enthusiasm and excitement. Perhaps, Reggie, you could go to the next slide and get things started. Perfect. Obviously, we're here today to discuss the results of Q3, which was January to then March 30, 2023. A lot has gone on, not only this quarter, but leading up to it, as company is now gained a great deal of momentum. We sit today with a product stack that's 100% relevant. The world's gone mobile and digital, we've been on the forefront for a number of years building the company through acquisitions and patented IP. If we move back to January to review, we did a very strategic private placement. We took in a little bit more money to be able to expand some of the operations, of course.
This was a non-broker private placement with only select participants enabled to provide value to the company. We looked at, of course, the launch of PulseIR, which is something we've been working on for well over a year in the background. Commercial launch of PulseIR, it's been a great success. We built it off of the fundamentals to me that were missing in the industry. As I said, we're a leading artificial intelligence, data intelligence company that's focused on mobile digital transformation. Here we are using email marketing to update shareholders. PulseIR providing real-time communications, providing the ability to connect and personalize all experiences and keep shareholders updated, providing as much transparency as we can to the operation and where we're headed. We saw, of course, a very, very important renewal.
To me, it's, I don't wanna say it's easy to sell something, but long-term benefits and values are built on relationships. I was very proud to see what we've now signed for our coming third year with Passcreator, as one of the largest clients in the insurance industry. Key, of course, launch once again is with TELUS and Predator Ridge. The TELUS procurement deal paying off dividends once more. Providing a great footprint for the hospitality and hotel industry with Predator Ridge. One of my most exciting moments, of course, Q3 was the hiring of Chief Revenue Officer Colby McKenzie. For me, I've put a great deal of emphasis on sustainability, viability over the last year. When we saw the market switching, we were very quick to enact our measures to reduce operations costs and burn rates.
With that, of course, I wore a lot of hats over the winter. We've pulled through, I would say, in a very positive fashion, and having now the assistance of Colby to come on and aid in all the business development structure deals and of course, pursue further M&A, has been a godsend for me. Of course, when I look at moving the dial, you're only as successful as those people you have surrounding yourself with, and Colby's been a great addition to the company for sure. We've put a great deal of direction and early-stage work in R&D development into the beverage alcohol industry.
As we've previously announced, opportunities that we formulated from a data monetization and digital member card with both Barnet and Ideal, which gave us very, very broad leading to coverage for the beverage alcohol industry. Bringing on that renewed focus now and leveraging the value which we built through BevWorks license was obviously, I think, one of the first understandings and appreciations that shareholders would have for the value of what we've built to date. We expect many more licensed joint ventures. It's a large focus of us in Q4 and headed into the remainder of Q1 and Q2 of calendar 2024. Obviously, for us, this was a record revenue. You know, this is a result of the hard work and dedication of our team.
It's a result of the infrastructure and the landscape and groundwork that we've done and built out over the last number of years. For now, we've gained a great deal of not just anticipation and with the relevancy of what we do, but it's really the recognizable value now of providing interoperable data intelligence and activations and measurements and all these great things that Fobi has built over the last few years is now finally starting to be recognized in the monetary values and in our contracts. This sets us up incredibly well moving into Q4, which obviously our June 30th is our year-end. We once again expect to have record reportings at end of year. I'm very excited, as you can tell.
Now that, with some of the additional support, we're back to expanding the operation based on revenue growth, which is, for us, obviously key metric towards dividend profitability. I guess from here I'd like to pass it over to Annie, our CFO.
Great. Thanks very much, Rob, and thanks, Reggie. Good morning, everyone. Let's begin with a recap from last quarter. In the last quarter, we discussed we're shifting our focus to build a scalable and repeatable business model. We discussed the importance of pilot programs and how that has helped with a land and expand strategy. We also discussed we have taken significant steps to improve our cash efficiencies and productivity. We were successful in reducing our spend, and we shall continue to scrutinize our expenditures. Any incremental spend will be to support revenue projects with a focus on ROI. We discussed we will continue to seek strategic acquisitions to complement our suite of products and that we will bring on industry expertise to help grow our business. We've set the words and we have made good progress on each item, which I will elaborate over the next few slides.
Next slide, please, Reggie. Let's move on to our financial results, starting with revenue. Q3 total revenue was CAD 1.26 million, an increase of CAD 940,000 or 298% compared with the same period last year, and an increase of CAD 754,000 or 151% compared with Q2. Q3 represents our highest revenue earning quarter since inception. The rapid growth in revenue is attributed to the following factors. First, PulseIR was commercially launched in January, and since launch, we signed three customers with an initial contract value of CAD 120,000 each. The revenue generated includes both a setup fee and an annual licensing fee. Next, Fobi signed a five-year licensing agreement with BevWorks valued at $10 million.
This revenue will be recognized in accordance with IFRS over the licensing period of five years. Our successful partnership with Barnet and initial market validation of our data insights have led us to secure the BevWorks license. As we extend our footprint and technology solutions for the alcohol and beverage market, we also brought on industry expertise, David Nicholls, to act as our VP of Liquor Beverage. Finally, we continue to see organic growth within our subsidiaries. With respect to our digital wallet solution, there are two primary cohorts of customer, the do-it-yourself customer and the enterprise customer. A do-it-yourself customer generally has a very specific need that can be solved by the wallet pass. To service this cohort, we will continue to invest in automation, developing templates for our most popular use cases.
Not only will this improve the overall user experience and shorten the onboarding time, but it also enables us to put even more focus on our enterprise clients. Some of our enterprise clients have a large footprint within their sector. This creates opportunities for bundled solutions for a large addressable market. Since total contract value is directly correlated with the number of active passes, this creates a path to scale revenue over time, and we have witnessed this already. By way of example, our largest enterprise client in the insurance sector has been a client since 2019. They are also one of the largest carriers in the world and therefore has a large addressable market.
Over the last two years, the number of active passes for this particular customer has grown from just over 100,000 to over 500,000 today, therefore increasing the total contract value with each renewal. It is also for this reason that Fobi continues to plant seeds with pilot projects and invest in clients and sectors with a large addressable market that can be fruitful in future years. As recently announced, the company completed the acquisition of Passworks. Passworks is a leading European digital wallet and mobile marketing company with international clients such as luxury fashion retailer Hugo Boss and global coupon giant Catalina Marketing Corporation. We believe Passworks business perfectly complements Passcreator's business and will act as a catalyst to further drive growth. Next slide, please, Reggie. Moving on to operating expenditures.
Q3 operating expenditures, net of non-cash items, namely stock-based compensation and amortization, was CAD 2.23 million, a decrease of CAD 613,000 or 22% compared to the same period last year, and an increase of CAD 170,000 or 9% with Q2. We have taken significant steps to improve our efficiency and productivity, the reduced operating expenditures represent our new baseline. As mentioned earlier, we shall continue to scrutinize our expenditures and any incremental spend will be to support revenue projects with a focus on ROI. Next slide, please, Reggie. In terms of specific line items, salaries decreased by CAD 454,000 or 31% compared to the same period last year and was largely flat compared to Q2.
Earlier in the fiscal year, we took significant actions to operate more efficiently, and we made the difficult decision to lay off certain employees while deprioritizing certain projects. We ended the quarter with 26 headcount. Consulting fees decreased by CAD 316,000 or 62% compared to the same period last year and decreased by CAD 19,000 or 9% compared with Q2. During the period, we reevaluated our projects and reduced the number of consultants from 16 at the start of period to 7 at the end of the period. Research and development increased by CAD 172,000 compared with the same period last year and increased by CAD 95,000 compared with Q2. During the period, the company engaged offshore workers to conduct certain R&D activities.
The use of offshore workers has enabled the company to access a larger talent pool with a higher ROI and incur R&D expenditures on an as-needed basis. Technology expense increased by CAD 10,000 or 4% compared with the same period last year, and decreased by 43% or 14% compared with Q2. The change between the periods are primarily attributed to timing of accruals posted. Professional fees increased by CAD 36,000 compared with the same period last year and increased by CAD 238,000 compared with Q2. Like technology expense, change between the periods are entirely attributed to the timing of accruals posted. Our team is now globally distributed between Canada, US, Germany, Portugal, and India. Considering the distribution, we downsized our office space in Canada, enabling us to redeploy this resource towards other parts of the business.
These actions are just the beginning of our efficiency efforts. We remain keenly focused on this in 2023. We are working across the organization to move faster, increase productivity, reduce costs across the business. I am confident that our company-wide focus on efficiency will position us to be an even more productive organization going forward. Next slide, please, Reggie. Turning to revenue outlook. We expect continued strong momentum with Q4 revenue likely to increase by approximately 20% quarter-over-quarter, which should close our fiscal year at $3.8 million revenue based on contracts that have been signed, representing a 9% increase year-over-year. In closing, 2023 was a challenging but pivotal year for our business. We made important progress on our priorities. We shifted our focus towards scalable and repeatable business. We acquired a business that is complementary to our portfolio.
We brought in industry expertise. We have taken significant steps to improve our efficiency and productivity. We are continuing this momentum into Q4. We maintain very focused on delivering strong financial performance. With that said, I will pass it to our Chief Revenue Officer, Colby McKenzie, to provide an update on monetization strategies.
Thanks, Annie. Like with any company with great ambitions, there obviously remains a lot of work ahead, but we are performing against the growth strategy laid out on our March earnings call. I think we're already seeing positive results and early wins showing clear execution against our plan. If you're somebody that follows us closely, you've definitely seen a couple of these wins shared recently in the form of press releases. We continue to rapidly transition from successful industry use cases to deeper industry penetration. That's letting the market feedback drive our efforts and doubling down where we see our product has a strong value proposition. Let me give you two perfect examples of that.
The first is our successful data partnership in alcohol and early excitement from a few major alcohol brands around our real-time data insights led us to push further into building out our solution in alcohol, which led to securing the BevWorks license and us bringing on a very experienced VP of Liquor Beverage to accelerate our monetization of the category. Run hard where we see an opportunity. Second, our European deals in the auto industry with BMW and Mercedes Consulting, leading to our US-based NASCAR Car Wash deal, which has spurred a concerted effort by the sales team to further explore expansion in the auto industry. If you see potential, really explore it is the, is the thought line there.
With this use case-led expansion, it's gonna lead to clear monetization of our roadmap and more meaningful revenue acceleration, as evidenced by this past quarter's revenue growth of over 50%. In the last earnings call, I highlighted the three elements of our growth strategy, and you're gonna continue to hear and see me revisit this quarter-to-quarter. The first pillar of growth is gonna be grow our base, the expansion of our prior acquisitions. We'll continue to lean into these established businesses to drive post-acquisition revenue growth. However, these more mature businesses also serve to drive our customer feedback loop, which I think is extremely valuable and important.
In particular, market feedback through our Passcreator business is in the more mobile wallet familiar European market and is serving as an extremely valuable solution incubator as we look to expand where our product has a strong value proposition. The focus continues to be on adding to our enterprise customer base and increasing total contract value of current customers through the execution of our land and expand strategy. I think you saw that shine through as kind of both Rob and Annie touched on aspects of that piece of the business. Again, as Annie briefly highlighted, we continue to see really promising quarter-over-quarter growth of our Passcreator business with 3 straight quarters of strong growth.
This growth has in part been fueled by our new pass bundling technology, affording us the ability to 10x active passes in the market with current customers. I wanna pause there, and I really want to reiterate and reemphasize this point. Given the dynamic nature of our tech stack, taking a wallet pass that was a single pass and developing a way to afford customers the ability to bundle up to 10 passes in a single download is allowing us to 10x our usage and drive meaningful increases in customer LTV. With the addition of Passworks, another wallet tech company that has been highlighted, I think we're gonna continue to finalize and lean into driving the exact same trajectory of growth with that business unit. Additionally, Qples' business unit is a focus where we're continuing to implement that same strategy.
The expansion of revenue per customer as we lean into using our very uniquely positioned couponing platform to drive cross-selling of additional marketing solutions to maximize the distribution of those coupons and increase awareness of the promoted products. The second pillar that I wanna highlight is really around new vertical growth. We're actively investing in our inside sales team in the Western Hemisphere, as we focus on new core industry verticals to grow customer count in the places where we believe that we have a compelling offering. As mentioned in my earlier example, the first evidence of this strategy taking hold is in the alcohol category, as we announced a $10 million license deal with BevWorks in March and immediately said, "Let's pour some fuel on that fire," brought on an exciting new hire to drive continued category growth.
The third pillar, I think the biggest revenue accelerant of the three , we'll continue to really work diligently on our inorganic and indirect growth strategy, onboarding and monetizing strong channel and white label partners, structuring joint ventures in strategic verticals where we believe that the addition of equity-based domain experts will really provide the best path forward, and of course, a continued focus on accretive tack-on and tuck-in acquisitions across the globe. We have proven across a number of acquisitions in the past few years that we can execute on this inorganic growth strategy. I think with these more complex initiatives, they're gonna take time. We are working diligently on building out this aspect of the business, and I think we're actively pursuing a few exciting strategic relationships that we hope to be able to share as the year progresses.
There's a lot of distressed sellers of businesses with great tech and really strong fundamentals out there. We wanna be patient and opportunistic in accessing, in assessing these options. It again, I think will end up being the biggest revenue accelerant of these three pillars that I've laid out. With that, I think that concludes kind of the prepared remarks that we had, and I will send it back to Reggie, 'cause I know we had some questions.
Yeah, this is the exciting part. We did cover a lot of ground here, so thank you, Rob, Colby, and Annie. Let's move forward to the Q&A portion of the webinar. These questions have been submitted ahead of time by our investors, so I'm sure they're really excited to have these questions addressed. Let's get started with Rob. Of course, congratulations on the successful quarter growth. What has been the addition of Colby meant to you, and what has it meant to the company?
I think when I look at growth, it comes from support. When you build infrastructure, when you build focus, you gain momentum in organic sales. When I see the opportunity of adding Colby, as I said earlier, you know, I've been forced to wear a lot of hats. You know, it's nice to feel the wind at my back, as they would say, that as we move forward here. We are extremely focused as to the growth of the company, in particular verticals. As Colby mentioned, there are some new verticals and some new partners that have come to the table, which is extremely exciting. Now with the extra bandwidth, it helps me be able to focus on 2024 and to where we're headed, and to look at and assess, all of these different opportunities out there.
It's been a very, very rough, challenging year for private and public sector companies. As Colby alluded to, there's a lot of companies in distress, which for me, I've always embraced it and taken it head on. In this case here, as we look at further M&A, there's just a boatload of opportunity out there that we can make some very key accretive acquisitions. We will continue to pursue. We will go very long and narrow in focus in the verticals of which we're succeeding today. With the additional support of sales and management and marketing, this just enables us to go quicker, with, of course, a much broader subject matter expertise pool that obviously helps bring even further credibility within the industries and as a whole.
I'm very grateful for the opportunity here that we do have as I said, it has been a very difficult year for most. You know, for us, we've been very, very focused as day to day, week by week, month by month, as corny as that sounds. It's that day at a time, moment into time approach that's enabled us to work through all of this and to get to a position now of strength.
Yeah, and of course, two heads think better than one. We're so grateful to have Colby here. Now, I do wanna bring your attention over to the QR code on our screen. Listeners, if you wanna take a minute and explore this experience for yourself while we move forward with our questions. Rob, the next question is for you as well. The company has finally completed the acquisition of Passworks. Now, is the company going to continue acquiring assets? If so, can you explain a little bit about the playbook there for the company's future of the MA strategy?
I've addressed a lot of that in the last question. Yeah, Passworks took a great deal of time. It's it was a very strategic acquisition. There's many reasons why we acquired Passworks from an industry focus and a product perspective that we'll share in due time. No, it's one for us that of course comes with great revenue and a great customer base and just another additional leader within the European pass industry. As far as the M&A goes, I'll let Colby take off and maybe give a different spin to my original answer as I gave in the first question.
Yeah, you bet. I can kind of dive a bit deeper on the playbook aspect to that question then. Sadly, I think the playbook is relatively simple. Patience and execution will be the key. You've heard us say that, we really mean it. There's a lot of opportunities, Rob Anson can probably attest, deals hit his desk all the time, it's a matter of being patient and the execution becomes the core element to that. We're really actively exploring horizontal acquisitions where we can cement a clear market leader position, vertical acquisitions where we wanna go deep in any one particular vertical or enhance our tech stack in that vertical.
Of course last, we're looking for anchor acquisitions in verticals that we believe will play a key role in the growth of the company. As for the specifics of our current activity, We'll keep that part of it, the granular strategy confidential for now.
Well, thank you both for addressing that. Let's stay with you, Colby. I have a question for you. Your most recent role was with the Cannabis Tech Group. Are you in exploratory discussions with any cannabis groups, and what core Fobi products solve the cannabis industry challenges?
Those that have spent time covering or learning about the cannabis industry know that its public companies, due to regulatory constraints, have a higher concentration of retail investors. These investors are excited by the emerging industry and eager to keep up with and learn about the companies that either they are or might be investing in. As such, our PulseIR product provides incredible value to these public cannabis companies. It's almost as if it was made just for them. Many of these guys are working really hard to get through a tough industry climate currently. I've been in touch with a number of old friends to learn more about their pain points and how Fobi's technology may help them come out of this downswing even stronger.
Perfect. Thank you. You've touched on PulseIR. That's exactly where I wanna take this conversation. PulseIR appears to have had a positive impact with this quarter commercial launch. Rob, this one's for you. Where do you see the direction of PulseIR?
PulseIR is a great opportunity for us, of course. It provides many means of value. It is structured as a private, wholly owned subsidiary of Fobi today. Gives us great agility and versatility as to where we move forward with it. We've been developing a great deal of other ancillary products to support. As we said, the front-end mobile engagement piece is an industry first. As we are gaining great traction and momentum, month by month since we've commercialized this product, I see this as a tremendous asset to the company, and we're exploring every option that we do have to leverage that.
Thank you for walking us through that. Now, you have stated that the company is focused on recurring events, and perhaps Annie can take this one. Are you confident that Fobi will continue to grow its ARR?
This is Colby. I'm happy to jump in and take that one for us. I am as confident that we'll grow our ARR as I am that we'll grow our overall revenue. Our business model, especially as it relates to direct and channel partner sales, is recurring revenue-focused. Naturally, as we're scaling revenue, we're fully anticipating our MRR and ARR to scale in direct correlation with the broader revenue trend. We understand the value of sticky and predictable revenue, we're gonna continue to really make a concerted effort to scale ARR.
Thank you for addressing that one, Colby. You know, really nice job since joining Fobi. Where do you see the opportunities? What sectors do you see the revenue growth coming for over the remainder of 2024?
Not to beat the same drum too much, I really think opportunity lies in staying true to the monetization strategy that I outlined a bit earlier, executing on all three fronts, the expansion of existing business, scaling our inside sales efforts, and expanding our joint ventures and channel partner opportunities. That said, I definitely will take this question and this opportunity to expand on something that I think has Rob and I really bullish on the company trajectory. Those of you that have read our investor deck may have already gotten a little sneak peek of this, I believe that we are really going to outsize growth with our creative participation in strategic verticals. These are gonna be vertical-specific constructs, and they're gonna take many forms.
That's, that's why Rob brought in a former M&A attorney and myself to think creatively here. The strategy is to pair our powerful technology with, one, domain expertise, and two, complementary industry-specific features and solutions to drive focus and accelerated growth in these high-value industries. I do wanna make clear in stating this, that this strategy is not theoretical. We have already seen it show up in this quarter's outsized growth with the success of PulseIR, which, as we've mentioned, is really our concerted application of the Fobi technology to the IR space. Again, we've seen it show up in BevWorks, which is the application of years of data collection and product refinement, and an exciting roll-up engine in the craft alcohol vertical. We fully expect to unlock the true value of our IP.
We spent years and years working diligently to stay ahead of the curve to create really valuable and meaningful IP, and this is gonna be a way that we really unlock it. We're gonna be leveraging this strategy in a few more verticals over the course of the calendar year, namely the blockchain space, and the HR space, which we have appealing technology applications, and it's gonna be some exciting stuff.
Any thoughts from you, Rob, on this one?
No, I agree. This is, it's a great deal of fun right now. I mean, this is where, what I've been waiting for the last few years is to be in a situation that, you know, we can move quickly, we can now monetize all the hard work we have done. I don't think, of course, with today's market, you know, the recognition and consideration for what we do have is there today, but that's about to change in a very big way. I think to Colby's point, sticking to our plan, this just makes things so repeatable and scalable.
I think it's the same side that as we're seeing now from outreaches of not just the inbound lead generation, of course, but from other groups that are in a position to look at to perhaps, you know, roll up into Fobi. It's really the credibility of which we've built, and they all recognize that it comes down to one thing. It's always about the data at the end of the day. That's been our anchor and our forefront of what I've driven from day one. It's always data first. All the other ancillary tools and plugins that go along with that technology now, it provides all these operators with a truly future-proof roadmap. This is exactly why we're gaining so much traction and momentum across the board.
It's the applicability of what we do to solve problems at the end of the day. This is, obviously now is a great position for us to be in. We're very obviously excited and bullish as to where we come in here next quarter.
Yeah, very excited. Tell us a little bit, expand on that. What do you think has been the key factor here to Fobi's success this quarter?
Well, there's many parts. Our team is number one. It starts with, of course, our team, obviously myself and senior management goes so far, but I think it's all the key contributors within our organization. I always keep preaching that, you know, there's so many variables we cannot control. There's a lot of noise, there's a lot of negativity, of course, out there. It's been a very challenging year, as we've already stated numerous times. It's literally to me if you just keep showing up, and it's the little things that you do that add up in the end. This is where for me, I had a great question a couple of months ago on a podcast and it was, you know, what makes you happy?
It's very challenging as a CEO and in these spaces, 'cause every morning at 5:00 A.M., you know, you're kind of, there's your day. A lot of people, that's very challenging to deal with, but it's what drives me each and every day. It's the tremendous support that we have from our shareholders, you know, that have stayed true and loyal to us. It's the support within industry that I get on a daily, weekly, monthly basis as well. Really, I think it's the confidence, it's the resiliency of which, you know, I've led this team. I've never been scared to make changes. We are extremely agile and nimble, which is, to me, one of our biggest assets that we do have.
I think when I look back at the quarter, it's really the belief of the team to fully focus and execute on the broader vision and plan. To me, that's my proudest moments here is to each of my team that have buried the head and done what people, you know, were believing was just simply not gonna happen.
Yeah. It definitely shines through in this particular quarter, and we're so proud of all this work that has been done. You have said in the past that you need to be willing to take a step backwards in efforts to go forwards. In this quarter results, in the outcome of this quarter's results, I should say, was this Fobi taking a step backward?
Yeah. I mean, Annie and I addressed this back in, you know, it would have been last July, where I anticipated the market going in the tank. We started to take action ahead of this and start to assess the operation, where do we cut back, where do we refine, where do we get very strategic. It's through all the hard work that Annie's pushed through here and myself that we've been able to take a step forward. You know, as I said, there's a lot of companies in dire straits and, you know, we've bootstrapped this entirely the last, whatever it is, seven, eight, nine months now. You know, we've worked through. We've taken in some very small strategic money.
You know, I've been willing to sit at the table with a small sack, if you will, and chip away and drag the odd pot per se, for those poker fans out there. You know, I think it's the belief of the team that has done that. You know, I could have raised a lot of money and diluted everyone, made a lot of people unhappy, but, you know, that would have been the easy route. You know, we've done everything but take an easy route here. We've shown up every day, and as I said, the resiliency of the team here and our strategic partners and investors is what continue to motivate us to go to war each and every day. I think sometimes, as I said, you do have to take a step back. I push harder than anyone.
For me, it's, I've learned a great deal of patience, and it's one thing I really admire about Colby, and he's had obviously a great assessment and brought a great skill set to the team. It is really analyzing patience. If there's such thing as aggressive patience, I would say that's sort of our new kind of buzz term in the way we operate. It is. It's very difficult because the expectation of now is real time. Everyone wants everything today. They don't understand what a consolidation does, how it loads up for a spring forward. In these things here, we're trying to make the best decision each and every day. We're looking to put the company in a strong position, and we've gotten through this.
You know, we are one of the few companies that will come out on, you know, a better position than we went through, this market crash or correction. I'm very proud, as I said, of the team for that and very appreciative of all the hard work Annie's done at assessing and readdressing and appreciative for now all of the new hires that we have come on and truly scale the company's revenue and growth.
Yeah. you've alluded to this. It's been a very volatile nine months. Do you have your opinion here is what we're looking for. When do you anticipate the markets rebounding?
Well, I can't really answer that, of course, can't give financial advice, but, I mean, I think it's pretty clear to see where, you know we are. That's all I really care about is us. I can't control the broader markets or what the numbers come in from other companies or what the feds have to say and job numbers and creations and all these things. I just try to keep positive, really. Like I said, it's. I know it's repetitive, redundant, and corny, but it literally is. It's each and every day just staying positive and keep showing up and doing the right things. This is really what happens. You know, I don't get distracted. I don't get hung up on all the other stuff.
I've been very clearly focused with the team as to where we're headed and why. This is what you get for it. It's momentum and growth, and it's, like I said, we're coming out of this now with a great deal of momentum and a great deal of strength, which is what it's all about to me for remaining Q4 here and next year.
Yeah. You've kind of alluded to this. It's controlling what we can, right?
Yeah.
This next question is for Colby. Where do you see the company's revenue growth coming from over the remainder of 2024?
Yeah. I think on that one, we covered it in a number of spots, but it's really gonna be across a number of pieces of the puzzle, but the one that Rob and I think continue to be the most excited by is the ability to see an opportunity in a vertical, attack that opportunity with whatever means necessary, and being really creative in how we penetrate and enter a market, and then using what is, again, a really strong IP stack to solve problems in that vertical and let the customers continue to sing our praises as we scale.
Yeah. Absolutely. Okay, let's move forward a little bit. I have a question here for Annie. In a lot of our press releases, it quotes, "Revenue will be recognized in accordance with IFRS policies over the 12 months of the contract." Can you please clarify what this means to all of us?
By way of background, IFRS stands for International Financial Reporting Standards. It's a set of accounting rules that publicly traded companies must adhere to so that financial statements are consistent, transparent, and comparable. The guidance on how revenue is recognized under IFRS is very comprehensive, but the general spirit is that revenue can only be recognized when, A, services have been delivered and, B, the amount recorded corresponds to the value of the underlying service. This means companies cannot prematurely recognize revenue before a service is delivered. The reason why we reference IFRS in our press release is because oftentimes our client contract has multiple deliverables, with each deliverable having a different value and a different timeline for delivery.
It serves as a reminder that we can only recognize when service was delivered, and it also serves as a reminder that the client contract may not be recognized immediately nor evenly over the term because revenue recognition is largely dependent on when service is delivered.
Thank you for covering that, you know, jargon that sometimes we need a little, you know, more explanation on. This next question, we're back with Rob. Insider buying always builds confidence in shareholders, and it is very reassuring to see that you have been so active. It appears that you bought over 700,000 since the market crashed back in September. Is this accurate?
I don't have the numbers exactly in front of me, but somewhere around there, I would say give or take a bit. Much, you know, I've always believed in myself and where we're going. It's not where you start, it's where you finish. I know where we'll finish. As I said, there's great opportunities to be buying here. Heavy discounts. When things go on sale in our daily life, I buy. Much like here too, this isn't a story. You know, small cap is riddled with ambulance-chasing stories. You know, we've shown from day one the growth of the company. We're now starting to recognize the true trajectory of the company, and I'll continue to buy down here as this is an absolute steal. This is something I'm always more than happy to when I can, of course.
I have my limits and constraints like everyone else. Any chance that I get, I will continue to be buying more down here as we are completely, I believe, undervalued. Like I said, this isn't financial advice, this is my own personal opinions, and strategies. Yeah, I would say that number is probably pretty accurate.
Okay. It's very reassuring to hear, that you're that personally invested, in the Fobi like the rest of us. Annie, how are you measuring success, and are you happy with where the company is at today?
I'm getting better at being happy. As you can appreciate, you know, it's been such a grind. As I said, we've gone through, you know, all the challenges with the market crash and business shutdowns during COVID. We came out through that. You know, we've gone through September market crash, correction, whatever you wanna call what we're in today. That, you know, it's easy to get sucked into the negativity in these states. Like I said, for me, I'm beginning to learn to find happiness and progress. As I share with my team all the time that it's the little progressions every day, every week that add to me, you know, achieving our goals and checking boxes. That's, you know, we. It doesn't all come overnight, you know.
I wish we'd wake up and share price was $100 a share. Obviously, I'm realistic as to the state we're in. We're doing everything we can to prepare ourselves for when the market comes out of this and the conditions are more favorable. As I said, we are now obviously less dependent upon market help, as we are. Everything we're doing has been organic for quite some time here. Preparation and execution, focus and little wins here and there is really what makes me happy now. It's the opportunity. You know, I think it's, you know, I get to versus I have to sort of thing.
'Cause I know, you know, I do know that days where, you know, you may struggle mentally or motivation-wise, you know, there's a hell of a lot of other CEOs out there that would kill to be in my position, especially where we are today, and more importantly, where we're headed. That kind of mentality for me is what, you know, has me happy and appreciative of every opportunity that we do have, and whether that's people or business reportings like this. These are still very early days. You know, we truly are just beginning. We've done a great deal of work, and we've got a lot of strategic, obviously momentum here and considerations that we're working through that, I think for us, the blue sky will be truly appreciated here in the next coming quarters.
Yeah. That certainly expands to the rest of our team. We feel that positivity. We feel, and I'm sure it resonates with our audience as well. We feel all that, the gratitude that we have from you, and it keeps everybody motivated and moving this forward. Do you have any final thoughts for us today?
Final thoughts? Yeah. This is, as I said, is very exciting times. It's very challenging times, of course, and, you know, winners win. I believe we've got an incredible team here that we've been able to put together that are truly dedicated, that are They inspire me, quite honestly. I think for us, you know, it's the shareholders that, you know, reach out and as I said, those challenging days per se, that, you know, randomly you'll get someone that shares a story and it's what we do. Everything we do here is for the long-term goal and benefits of all those that are involved, and those include our, of course, our shareholders and our team.
I look at the opportunities that we are, you know, finding ourselves in now and seeing the growth in the companies that we invested into now going back a couple of years. It's truly a point in time of inflection here. As I said, the markets aren't going to sit in this position forever. I believe it's the matrix once again that everything is lining up for us, that things are about to rebound and become in a more positive state. I think, as I said, I'm very confident that we'll fully capitalize on that opportunity. There is a lot of positivity here, and I think, you know, it's the same side of it.
You attract what you give off. It's the people that we now have part of the team. It's the relevancy and readiness and scalability of our products that makes this a lot of fun. I am truly appreciative for everyone. Thank you.
Yeah. We're all very excited about it. We feel the excitement, we feel all that inspiration, and it just keeps everyone so motivated. Thank you for being here. Thank you everyone for joining us in the Q3 financial results webinar by Fobi AI. We hope that you found this beneficial and informative, and we encourage you to stay up to date with all things Fobi AI by visiting our website, our LinkedIn, Facebook, or Instagram. We look forward to connecting you with you again. Thank you all for being here. Thank you our guests, Annie and Colby and Rob.
Thank you, Reggie.