Platform and technology. We are a service-based company. We serve high brands. The platform and technology. We are a service-based company. We serve high brands, big names like NBA, like Amazon, like Shein. Those are not just name-dropping. We help the CRO and the sales team to expand distribution. We go to the turfs and to the area that their marketing or their work, in that extent, cannot reach, and we find them more paying clients. It's a very interesting business model because we get paid only on paying clients. When we say we are doing performance marketing, I got this question many times, "You are doing some type of website and promotions." Well, the CRO or the Vice President of Sales, they don't care about that. We are measured only by one KPI, how many clients, how much money they've made, and for that, we get paid.
The world of marketing, including the evolvement of AI, is divided into two. There are what you call the walled gardens. You can look at the walled gardens like a big publisher, a Facebook or a TikTok. They have one dashboard. It's very easy to train a team. They will run campaigns, they will try to measure if it works or not, those campaigns. There are hundreds of companies that are doing the TikToks and the Metas and the Google of the world, as AI advanced, many companies build it internally. You can't find a big brand today that doesn't have a media buying team, a distribution buying team. However, the circle on the right, the gray one, is what you might call the open internet. There's a bunch of so many digital assets that are not controlled by one dashboard.
You find yourself trying to understand, where should I advertise? Should I only stay with the walled gardens because it's safe? Do I leave 48% of the marketing spent that goes on the right part? There isn't one dashboard that will manage that. Comes the question, how do I manage that? This is what Zoomd does. We are working only on the unwalled gardens, we become an arm's length, an extension, to the sales and to the marketing of any companies, it's very hard for them to refuse to the sentence, "Do you want more clients in areas that you don't market?" A CRO cannot say no to something like that. By positioning us as a company that is performance-based, getting you paying clients, and not doing your creative, we don't have a single creative guy in the team.
It's an engineering solution that I will explain about it in a second, based on machine learning, a lot of algorithms inside, relationship type of a business with the different brands. We are not a commodity. A commodity, it means that I build your website, I do some SEO for you can replace me. We are a necessity because I get you more clients. You pay me only if I get you more clients. It will be stupid of you not to use a service like that because you will lose the fact of getting more clients. We are positioned more on the right, that's why we feel there's a bright future to a solution like that. Our moat or our uniqueness puts aside those three points. First, we have a technology.
I'll speak about it in a second, you need to have a system that is integrated to all of those scattered systems that are in this gray circle. You need to be integrated to all of them. You need to be able to serve the ads on behalf of your client. Amazon will come to us, and we will serve Amazon ads in different places that Amazon cannot do that. I get this question a lot. Amazon cannot do it? No. They do walled gardens. You need to have special license, special ability, special type of skills in order to work, and there is different type of methodologies have to do that.
By the way, there are not so many public companies that do that, companies with big names are seeking for a potential public company that will do it for them because of the transparency and because we need to be legal, and we need to do stuff that other companies that are private won't do. We have a piece of technology, which is a combination of integration to all the digital assets and machine learning and some other stuff. We have two other things that makes us unique. We have something which we call a knowledge graph. For those of you who are not aware of those terms, knowledge graph means that I will do for you a campaign, you're Amazon, and you want to have more clients that will come out of France.
We already know which website and which digital assets we should use because we already did it before in another campaign. We have the places where we suspect that we might find oil signs. There we will start to advertise on your behalf, and we will measure everything that happens there. The knowledge graph is actually the IP of the company. It's the understanding for each category that your company activate. For each geography, where are the places that we should put our bets on your behalf? We accumulate it with so many clients and with so many campaigns. We run more than 1,000 small campaigns every day. This allows us to have a unique IP of a knowledge graph understanding of where is the right place to advertise. We have another dot, which is called collaborative distribution optimization framework.
In this piece, we have a relation with the client. It used to be managed by an account manager that would call the client and say, "Listen, we are running your creative. It's in gray color, green color. According to our machine learning, it doesn't work in that country, in that color. Do you have a different creativity? Do you have a different banner?" They will send it our way. With collaborative optimization framework, what we can do, it's the area of the bots now. They have a bot, we have a bot. Our bot will just tell them automatically, "Listen, this creative doesn't work. Do you have a different creative?" They'll send that to us. We will use it in campaign. We will check if it works again. Our knowledge graph will try that as well.
If it doesn't work, it will record it didn't work. If it work, it will tell them it works. That allows us to be much more accurate and not come to them in the end of a campaign, in the end of a day, and say, "We lost the money. We did whatever we can. Let's try again." We can stop the campaign, get immediately a different type of creative, then try again the campaign while it's running and not waste the money. Those two things on the lower part are enforcing our ability to create a deeper relation with the client. It's very rare for a company that comes from the field of ad tech to keep loyalty from its clients. That two dots, that two circles here, keeps us in a relation with the C-level, which is a rarity.
A little bit about the upper circle, which is the technology. There's a bunch of words here. I don't want to go in details, we have, of course, an ad network, which is this integration that I've mentioned to all the open internet. It took us years to build it, and it takes a lot of efforts to maintain it. We have a programmatic media buying, which means that when we find an asset or a digital asset, it can be a CTV, a platform for influencers, anything that I can advertise on your behalf, our system immediately joins it too and connect it too. We have different other tools that help us to customize some of the graphics that we are getting from the clients in order that we can serve it in the different digital platforms.
The clients that you see here are real clients that we work with, all with direct contracts in different categories. We try to expert ourself in the diversified categories, if there is a seasonality effect, we can take to the next category and sector, and one will compensate the other. Some of the names that just joined in the last earnings and previous earnings before that, I'm very optimistic with the relation with the clients that you see over here, companies like NBA, like Shein, like Amazon, and so on. This is an example of a dashboard of what the client see in his eyes. He can understand how much spent is being done in the distributed area of the different digital sources. That's what they want to see. They want to see transparency. What do I do with the dollar spent?
How many installations of their app I'm getting to them in the different geographies? How far they are close from the target that they need their target to their earnings? They're going to say, "I have this amount of clients with that amount of lifetime value," and so on and so on. This is the transparency that allows them to understand exactly what is being done, that is the secret sauce here. That collaborative way with a client and not just saying, "We will do it for you," then comes with excuses, allows them to be a partner in every geography. The marketing diversify from one country to another, so different. That system allows them to understand where there is a failure in a particular geography, when there is a success, and the dollar spent.
I think that chart represent, in a very good way, the level of relations we have with our consistent clients. We have clients that been with us more than two years, and some of them been with us more than five years. This is a rarity in the field of marketing, especially in the evolving world of AI and that everybody builds his own team. It's because we serve as an extension to what they do, and it's because we are measured only by getting you more clients. It's the make or use a partner. Don't pay me if I don't deliver you. They say, "Why not? Stay with us, be strategic with us, think with us, get us more clients. We continue to do what we know to do best. We work on the walled gardens.
You bring us clients on the other side." In this pie, we show the diversification of the different categories that we are working with, and lately, e-commerce and entertainment become heavy duty and grows unbelievably. This diversification is what save us in times of seasonality. A little bit about the numbers. We've been showing consistent growth since the beginning of 2023, quarter after quarter.
We've been generating cash almost CAD 1 million every month, net cash. This is important to state, it's a healthy company with zero debt, zero warrants, with roughly around CAD 25 million in treasury. The company believes in the strategy that it's doing Operating expenses. We've been showing how we can decrease operating expenses as time passed by.
AI is contributing to the fact that you don't need no longer an account manager for one company, but you need a bot for 10 clients, this helps us a lot with that collaboration piece that I've mentioned. No need to call a client and to wait for him to answer you. It's a bot, we'll talk with a bot. This is optimizing dramatically the cost operation. Operating income.
For that, I will pause for a second and I will explain about the company in one more detail for the ones who are not aware of our company. Roughly around December, which was Q4 of 2025, two of our largest client had a technical problem internally with a supplier. Nothing to do with us. They took out a piece of software that they implement usually in their app.
I use this piece of software in order to measure the loyalty and the behavior of a client that I bring them. You take it out for me, I lose visibility. I cannot upsell to you, I cannot make you buy something because I don't see what you are doing on the app. They immediately ask us to stop working and market it for them. That caused us damage in revenues. Q4 and Q1 of this year, and a little bit further, got hit. Those clients never terminated, and I obligate that this is an anomaly of 15 consecutive quarters of success.
Therefore, I get this question today maybe seven times. What will happen this year? What will happen this year, that those clients gradually will come back. We announced in the last earnings that one of them came even faster than the other.
Each company takes it in their speed to come back. They never terminated. There isn't any materialistic update. Actually, it's my first public company to build, so I learn how the retail investor think. The moment they see a loss, they get out. The moment they see a win, they come back. There wasn't a materialistic damage to the company, except the fact that we lost two or two and a half quarters. That's all. Those clients are coming back, and even coming back stronger.
Even the fact that we have FIFA games, which we announced also in the last earnings, helped us to enforce some of the work with those clients to grow even to further geographies and marketing. Here I'm showing a little bit about the adjusted EBITDA and net income of the company. As you can see, we've showed a very large decrease.
As I've mentioned, we have couple of quarters that are serving as an anomaly. I want to summarize a few points for people that are not aware of the latest updates that we gave. The rest of the clients that we have grew. We showed diversification and joining new clients.
Actually, the prospects that we joined, that we brought up are very big brands as NBA and as others that joined and are showing growth in the company. Which means that just imagine that if those two clients that we had an issue with them that is being solved, together with the new clients blend, creates a much healthier picture. We expanded our presence in North America and in other places as well, and we just completed a partnership with an agency which is called E2.
It's an Austrian agency, one of the biggest into the field of sports betting. We did that ahead of the FIFA games in order to get an introductions to all the sports betting companies. In the last earnings, we even announced two of them becoming our clients, and one of them with a potential to become a big client. A big client means above $7 million a year. This is the partnership with E2. As a strategy, we are now seeking for channels to partner with.
A channel can be a McKinsey, a channel can be an agency like E2. A channel can be any company that serves clients and brands that can save time for me on the legal and procurement, that I can come and add the piece of customer acquisition because nobody's doing that.
This is the time that we decided that we are advancing for different partnerships. Stay tuned this summit, maybe by tomorrow or the day after, there's another update related to that that is coming for those type of partnerships. We are actively searching for M&A opportunities. Why? Why if we have money, why if this is a healthy solution, we need to do M&As? Only because I want to buy books of clients. I will buy every company that has clients that I can immediately jump into them. I don't mind what is the solution that was served by the company that we are buying, but if they have already a very organized org. It take a lot of time to do a deal with Coca-Cola. It take a year to make a contract.
If somebody did a contract with them, maybe I want to buy that company to inherit already the process that they've done. We are actively and already found a target that we are considering to buy. We announced it in the last earnings. This is a tiny M&A, because I get the question a lot, "You're going to raise money, you're going to lose all the money." It's a tiny acquisition, but it wins us in a book of clients that are all significant known brands.
All of those brands, each one of you knows, it will take us a lot of time to do it by ourself. Therefore, we take over of activities that are low-hanging fruits that will not cost us too much. We put the founders on an earn-out road because we want to get them joining to the company with an incentive.
If they believe in what I'm doing Then it's a good company for an M&A, and this M&A will happen this year. We have cash balance of roughly about CAD 22 million to CAD 23 million in treasury, as I've mentioned. This is a generating cash company on a monthly basis in regular times. When the stock went down, when we had this incident in Q4 and Q1, we decided that we will also activate NCIB and other measures in order to show faith in the valuation and so on in the company. It's something that investors likes to see, and that's why we are supporting that. To summarize, a performance marketing service-based company that is active only on the unwalled gardens, offering a solution that is very rare to the scene of marketing.
There are only two or three companies that are similar to what we are doing in different ways. Therefore, public companies that seek for a solution like us needs to find a public company that will give them that offering. Thank you. I'm open for any question. Always my professor once told me, "If there are no question, everybody going to sleep.
Yeah. You said that the two big customers that have cut off were mainly because you lacking the ability to monitor what's there because of the software?
Yeah.
Can you monitor them now? What's happened now when you monitor
When you are doing a marketing promotion, I'll do a little bit tech, not that tech. When you do a marketing promotion for an app. I am Amazon, I want more people to download Amazon Music and register. In order to measure our work as marketeers, because I don't have access to the code of your app, you'll never let me. How do I measure that I made a client download the app because of me? How do I promote that client if I don't see what the client does? There is a piece of software that every application that respects itself, the WhatsApp, the Facebook, every application, every transportation, the Uber, it's installed inside. It's called an MMP. It's an abbreviation for Mobile Measurement Platform. It's an infrastructure piece that allows me to see the business intelligence that happens on the app.
It provides the privileges for us to understand what actions a customer is doing on the app. I can see if I can promote you a shirt or make you to become a premium client or whatever. The MMP provider of both company, which is the same MMP provider, got hit by a cyber attack. Nothing to do with us because we don't have even access to the app code. We have access to the MMP as a read-only. They took out the MMP. It's a big thing. It's like changing the cloud on your platform. They change it to another MMP. That missed our revenues, because without that, I cannot bill you. I don't know what I'm doing there. You don't want me to tell you, "I got you 50 clients, now they bought some" We don't know. They stopped the work immediately.
They told us we are changing the MMP. It took them quarter four and a little bit of quarter one, you gradually return on a very heavy-duty quality assurance process to make sure that the measurements, that the parameter, that the KPIs, because that different infrastructures are as one. One of those companies was faster. They are much more robust. They are one of the biggest companies in the world, was faster immediately and says, "We are back to business." The other one is safer. We are going back gradually. That's the reason. Please.
Couple questions that.
I want to get out from the current exchange that I'm at. I love Canada. I love Canadians. I think that we need to get a higher exposure and the company will, and is considering, once it shows consistency again in quarters, of listing.
You had mentioned that the business generates net cash of CAD 1 million per month right now. Does that?
Not right now. Averagely, till we had that incident.
Okay. that was before the loss of the
Yes.
Right now, what is that number?
We don't provide guidance, you know that, so
Could this happen again, that, it will be new MMP, they also have cyber attack and the similar disruption?
Again, sorry.
Are there things from this disruption that you learned that how you can prevent it or could it just happen again?
This is a very good question. First of all, we found a way to ensure that if next time it happen, we get some type of a compensation in the balance with the client. That's one. The second thing is that we found other strategies with the client that immediately that something like that happen, that we can find other marketing tactics that we continue to work together so the client won't lose money because he's, while this happening, is not getting clients from the open internet, and that we can still supply.
Besides this incident, you're an public company, so there are a lot of public company, they are all working okay.
We haven't lost clients because of competition, because the clients that found us and we found a match, there isn't always a match. If our category fits their category and we do tryouts, we gamble on those tryouts because they only pay us when we succeed. Usually don't leave us. They will leave us if they are running out of budget, they will leave us if they have a seasonality problem, but that's the only reason that are that. As I mentioned, there are maybe two or three more companies that are doing this that are public, and you need to be public in order to serve those big clients as part of their regulation. It's a very good question. We rank those clients to three groups. The first group is a couple of tens of thousands of CAD. This will be a minimum per month.
It's a CAD 300,400 type of a client per year. A bigger client will become on CAD 1 million to CAD 3 million per year, a mega client starts in CAD 10 million and reach to CAD 15 million. As I mentioned in the previous earnings, we identified two potential mega clients, one in the sports betting via the partnership we've done with E2 and another one. Because that strategy of going with different partnerships, that each one of those channels own already a collection of clients, this is why I'm pursuing more and more type of partnerships. We are allowed to be the facing of the client in a direct to the client contract. It's not that they are mediator. We are the one that are serving those clients, and we give them a small cut or whatever.
That is what I said, stay tuned for another announcement that will come in the next days. Every client takes about six months till the system realizes it in its machine learning and its speed that it's a good fit. After six months, we already know if this will be one, two, or three. Please. This will what? This deal will done in a low valuation. Usually, those companies that we are looking at are low-hanging fruits company selling some type of a solution. They do small amount of money. It can be couple of CAD million in ARR, they are all stagnation. They own six, seven, eight, 10 clients. What we usually will do, we will pilot with those clients. We will go to them, we will do a non-binding LOI because we don't want yet to disclose it or announce it. It's non-binding.
They can find other buyers or whatever. We'll tell them, "Let's identify one or two of your clients. Let's go together to these clients." That's what we did. We met that client, it's a big brand, and said to that client, "Tomorrow, I might be buying them. For now, we'll do a white label and we'll try to promote you." That client, if he agrees, then I know that I can tomorrow recruit that client to us. Then we do a pilot for a couple of months, almost till six months, to be sure that it's enough time for us to identify if it's one, two, or three. We do that with two or three clients. The moment we see that we find gold, oil signs, we want to M&A that company. We are. I have here the hero, Robert Kraft is coming. This is my cue.
Thank you for everyone.