TRIRF - Earnings call transcript Q2 2022

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Operator

Good evening. Welcome to Triterras Conference Call to discuss the Financial Results for the Six Months Ended August 31, 2021. My name is Towanda, and I will be your operator for today's call.

Joining us for today's presentation are the Company's Chairman and Chief Executive Officer, Srinivas Koneru; Chief Financial Officer, Alvin Tan; Chief Technology Officer, Sri Vasireddy; Executive Vice President, Jim Groh; and Vice President of Financial Reporting, Perry Mangers. And following their remarks, we will address questions that have been submitted to the Company.

turn over to President, Executive like Groh. Jim I'd the to call Vice Now proceed. may you Sir,

James Groh

Thank thank Towanda, the you, and conference us for call on joining today. all of you

following beliefs, beliefs, disclaimers and about include to I to would information Before to implied stated from outside statements These expectations, these not results differ forward-looking Triterras and XX, future financial Certain that Please date operating are Triterras discussed forward-looking are future expectations, only forward-looking to to note to assumptions of our call discussed we revise control any are statements estimates and reflect and materially read statements and on future uncertainties this live forward-looking by and statements. filings, management's obligation required may or investors law. start, the assumptions strategy, are the business difficult statements and forward-looking SEC subject exclusive. call, estimates statements risk performance. our or and and in undertakes XXXX, in the broadcast, those those of predictions, they to and note like update cause by but actual These after certain disclaimers. events, and the no this regards of as predict Triterras except predictions will risks, as of April today that Triterras are

Mangers. Sri Chairman and are Perry CEO, Tan; Chief today me Koneru; of our Chief Officer, and our President Financial our on Vasireddy; call the Officer, Joining Alvin Financial Srinivas Vice Reporting, Technology our

our recent review and a to high challenges. I Then call, results level business announced the overview week. we financial going today's will last For Triterras, achievements of Perry first and model provide am

at growth Our and occurring will CEO, of Sri up strategy, our the an and the will with innovation on Triterras. some Srinivas wrap update market provide then

are remain in also finance finance provide platform, one-stop-shop costs, industry. cycle improvement digital I press April digitization to principles the trade reduced on chain a much address our and a digital transaction and trade positive per exemplified platform, segments and transformative We is trade want and Triterras. today's of foundational who the time fundamentally a transactions provided we that and finance, earnings finance SMEs. through value a bilateral believe of market will finance blockchain finance chain questions aspects to a then everyone XX to Triterras trade supply SMEs instructions to In our times transform we our and trade, very of technology systems at medium-sized trade release. blockchain-enabled underserved trade, for business and model We achieve our the drive remind importantly, lending social that of are apply is Kratos enterprises of or facilitating our for ahead related underbanked in-business bringing We impact. new services. in monumental will paper-based efficiencies, trade supply and sustainability to opinion, or finance trade small platform global advanced added world lower Most which business provides

a Additional emerging in critical trade finance is lending economies. economic market accelerator

So the our mission common core very serves good.

several highlight to past want accomplishments over months. the several I Now

NASDAQ. the the an when our fiscal a audit unqualified this securities in with And status XXXX, once again and issued to application market make completed XX, today. list shares We statements XXXX as Our connection as with of current. of auditors period successfully February on view cannot us timing financials our of our sufficient our our and/or filing are success Form efforts state our brought a filing of August audit the to is opinion. trade financial our the of ended financial for XX, OTCQX we with March NASDAQ six-month The independent XXXX, to our XX-F for our warrants to SEC that regarding on proceed can our our bridge ended XX, the OTC re-listing, exchange. still on although an application auditor we a and year level associated reviewing assurances to filing the results however any

Annual We for have General scheduled our May XXXX XX, XXXX. Meeting

ended will on keep subsequent XXXX related annual and our February reporting the with audited financials Form also fiscal an We by to XX-F our end financial including of anticipated continue for auditor report XXXX. of to independent work filing our the up-to-date year June, XX,

significant Now, recurring as by some our of has XX-F, we've recently industry faced in Form COVID-XX. the recent ways driven most challenges our disclosed

supply you As cycle traders. in business global direct extended a situation transaction international times of the had SME trade. have substantially extended have disruptions times on These all chain many are probably impact liquidity aware, cycle

our some and trading liquidity of their level For activity. of reduction clients, in some caused short-term this issues forced

caused For others Kratos impediments operations. The to traders was became community businesses. not to in to the immune them business liquidity their and certain threat these of the respective community, certainly trading the an crunch suspend to of existential

funds, significant availability has traders. lack finance that on for from fall model in had of XX loans reliant trade trillion last Ultimately, believe end trade SMEs We of have We have face we of global trade very by in environment available prior would for of create capitalize will fundamentals. that to was believe may We direct availability US$X.X US$X.X months. for unaffected has where of finance the for seen specialty the was on in insurance. credit improved and direct and Triterras extremely share credit well long-term much a but widespread impact impact where supply business a short that believe The market traders. business at insurance these headwinds fared business We in one be the insurance have the challenging in brought year revenue these to not a Estimates there estimate, the growth impacts. a recent cycles, on industry challenged. as transitionary opportunities issues trillion. chain trade take be the largely resolved of increased industry the we trade Triterras been reduction larger their although a We their a we remains credit to XX had to view been this as on have also with level network finance in the will the XXXX disruptions trade reducing SME SME emerge observed to a in believe

making reinvigorated noteworthy focus on with in and our also corporate broader a on putting past and objectives issues our are engaging We rearview business. mirror compliance of legal progress the

Directors year months now that concluded investigation our the in the support colleague allegations As last we August financials that material completed an have to previously ended microphone six the January XX, announced, lacked XXXX of the of for over Perry basis. report the audit walk pass the will my factual committee to us or I either XXXX. Board contained through short

Perry Mangers

Thanks, Jim.

Let's start volume. transaction first with trade

financing For important over months and finance XXXX, This due to billion, of as comparable to was are broader last the limitations note to $X.XX trade we the XX.X% prior total of the XXXX to which volume prior in constraints an which volume use trade volume represented period, seeking XX, the year in finance first comparable compared XX, ended finance six in finance period. more trade our XX% ended XX% during discovery transaction It's supply decrease year. global demonstrates August year sub-module six compared was industry. corresponding the that sub-module had trade trade chain of our users August months decrease severe the that period primarily

prior the compared year six Again, percentage is fee transaction XX, driven corresponding was last in the months for increase increase of average sub-module period in volume period XXXX the X.XX%. year. which X.XX%, Our the ended finance to than this trade comparable is August our by higher

and XX, modest by months for the revenues August compared August six $XX.X trade to the global last $XX.X was supply compared decrease higher million related the six percentage. constraints the the million development company. ended business year. to support build-out aforementioned staff organization were and our the $X.X period additional expenses public an and period primarily the XXXX, transaction for The offset fee partly a in to For primarily Total million increase legal due for year. to staff expenses $X.X increase to million months were XXXX chain The elevated finance comparable being limitations of consultancy in the XX, operating was ended attributable expenses to compliance and $XX.X comparable of with prior in of industry million our activities

million the for receivables to $X.X totaled We the XX, a in on fair as per the $X.XX of $XX.X compared an as we certain August ended of million are we charge liquidity impairment six to XXXX, $XX.X Net of share financial warrants Impacting The value also XX months customers changes was fair million required business the six is six months trade XX, months statements. outstanding. or or to months having our of August ordinary to had gain income ended weighted warrant XXXX. struggling $X.XX $XX.X from the the million income only we XXXX $XX.X net XX, weighted for August the COVID-XX the when average in August shares the their change period per on impacts our for $X.XX record million non-cash compared business. with share million in per XXXX XXXX, share took are had prior X of was income XX, related to six earnings in shares liabilities ended of for value ended approximately outstanding ordinary the combination the approximately million corresponding where of average net our

the this release. in time EBITDA now exercised warrants income to We and is it in I the XX, comparable a in emphasize record until continue primarily our expenses over will months impairment to Srinivas of reconciliation impairment are discuss is adjusted charge opportunities receivables. a our warrants our trade which August net of compared of XX, want including and trade ended adjusted EBITDA $X.X such pass More But million a decrease impacting strategy. use net administrative adjusted the was I totaled EBITDA, fair growth $X.X non-IFRS six EBITDA for expired. loss the be months the can increase six general earnings will a XXXX, or non-cash income Adjusted the to in either receivables. our information non-cash to value period. Also, the year as million item. The prior charges ended on and XXXX to in August was regarding to market million to on found for $XX.X due measure

Srinivas Koneru

Perry, prospects you, evening, long-term everyone. good very and for optimistic about the Triterras. I Thank remain

last the continued My future of listing. the execute Triterras to that the months, our and business in strategic core remains challenges to time at technology that developed company. what We have over on despite and the invest is unchanged was public of solid XX combination have plan direction the business our view XX future it of from the industry

we outsized our aggressively are underserved would We executing are opportunities strategy. addressing against markets recap those to in opportunities. like and I

would institutional strong lending. into for the Internally, alternative lenders First self-liquidating platform to business. asset anticipated asset and and lending always to implemented correlation trade to finance the loans offers finance an short-term other currently low as classes. have new believe default funds clients with can foremost, finance that is be efforts that protections attractive We rates actualizes we our new finance believe involved endeavor Kratos low maturity can our attract in trade refer very credit trade have class not general our as We yields and distribution bring that trade that that with and we be lenders space. is structural

limited We greater has scope clients our market always APAC, clients, as the to in referred growth vertical lending these refer as been financing business. to in markets, and markets to trader expanded products expand and expanded of plan our of to Secondly, to origination outside a commodity geographies. trade structures it finance varying new clients Asia-Pacific, of

referred place finance processes and tactical emphasize We or business considerations in emerging lenders the for have and significantly we North in environmental, we APAC-centric reach with a India ESG traditional to to technology efforts array of South and in recognized trade to as their commodity challenges increased East in resources, outside development drastically and Africa as From finished social team buyers America. and opportunities Middle into governance ultimate who semi-finished evaluation. commodities of our borrowers Europe, built efforts both of out original segment, our a portfolios Western beyond goods standpoint, to our business human our MENA both that APAC, distribution expanded our expand The put ecosystem. organization these has include and a origination robust and business and North wide

been business in investment development has substantial. Our

examples. progress, you significant make with to provide like would to continue some I and We

a a Bazaar Invoice us the M&A Invoice with scaling announced experienced supply expected XXXX. As is successfully more in finance geographic leadership May acquired part strategy, trade provided Bazaar strengthen of rapid business, chain XX, finance our of on a we company’s presence the with to facilitate MENA. executives, and executive

the expanded as enterprise from level finance MENA on sourcing development chain opportunities to to and have arrangements focus present for and We both the current potential on lenders platform. business team India supply

initiative second with BXB e-commerce into story Zomato. through the partnership is The company's first vendor, a microlending

is added scaled ideal updating develops. the liquidity We by Triterras, microlending advanced platform through our of fit as potentially this partnerships is opportunity underserved actualized to of It our market that could world to that the is an with mission e-commerce application new you bring that is an be For forward segment technology. exciting look an business to the throughout world.

We lenders facilitation our that blockchain-enabled benefit growth tracking the expect their from class platform. entry and that can asset of will lending come into Kratos long-term trade to from finance the organic advantages new with of platform the

recruitment. We leadership value teams, new to executives senior to lender distribution continue extremely finance of institutional compelling Working our proposition brings lead our team efforts market development origination build experienced an out our business entrants. the hand-in-hand level potential with to of

finance the always trade our our business. [indiscernible] So have in tactical trade growth as APAC react to pivot consistent, to but commodity a we undertaken summarize, and original has remained to slowdown

be investing the in We to development people, tremendous what process improving and will technology capitalize ever on our heavily opportunities. are

team proud Triterras. we Lastly, we at of are the incredibly built have

legal, we value. and scale shareholder development and platform Over Kratos to technology, have within the long-term last to origination, a made as XX look months, of bench hires we finance and business deepen number strengthen strategic drive our our

of over are professional respective also We in XX% women. are know These experience that their our all field. deep proud hires to employees have

development. trade be to believe contribution excited our about their future We industry will antiquated disruption. comments their I'm introduce fundamental business-based the that fintech to for efforts grateful industry significant in state for core our improving that, our contributions. has and finance at many Technology who every of proud We our technology Sri is company. are We to is Triterras Triterras right investment Vasireddy, about will Officer, With Chief in that and technology some sector. technology its under Sri? ways make believe

Sri Vasireddy

focus several Thank evolving made we to envisions I to Triterras a value using to Triterras strengthening you, within technology spend Srinivas. the our team. my discussing the time platform, enterprise want deliver many improvements have on agile, over competitive our quarters as clients. advantage and the Kratos our being of last

about effectuate to created months past, much out great of rolling between six our we of human so platform changes to and more is what's versions, clients, most talked technology program platform we deal a have longer profitability than financial client capital in months, growth, but of that constantly with improvements instead and versions improve had invest stagnancy not In to can a we evolve the every to step of visible on on behind rather believe curtain While too the waiting XX continuous instituted our we times. our sustainability. lead that function so Kratos a we and user-friendly create newer

optimizing delivering in our and more on timeframe focused costs. customers ultimately are a development We benefits shorter while to integration

of significant Kratos we the in believe platform. improving also We made have progress technology our

achieved Hyperledger transitioned certification. an fully public AWS-managed blockchain Ethereum XXXXX:XXXX the from ledger blockchain and have ISO We to

is of areas of reduce at platform. short phase operations. every implemented organization an also the being and of could to that especially one future. design in users, automation information security the ties could to us provide technology is to platform. platform. development between sizes cycle value We and and and the significant called of validation linkage into through software believe submitted the business decrease, to agile to further development review impactful such we but as our technology that our the testing as and of DevSecOps teams. costs closing, allow create for volume This to of a applications believe the our integration, identifies differentiation the would updates on and forward machine could our initial In it expands development, how delivery. we machine-driven tactical for application We be Kratos provide glimpse process area endeavor ongoing the from providing particularly lifecycle issues the transaction look improving times security DevSecOps, as the automated learning strategy a and include provide advanced platform an This in process in scalability I the of needs Kratos our demonstrates that increase. data should development the lenders microlending and a you strong transactions with like particular have We which our lenders into DevSecOps

it will turn I over Jim. to Now

James Groh

and concludes we appropriate today. possible attempt the were to are did similar so prepared This much questions Sri. Thanks, that remarks, now can aggregate ready questions we as our to through the We cover platform. information as submitted address

going and So going is the be, them. the question different am members the team format read I answer will to of to

I is X. before our listing submit with four to capital anticipate to General the NASDAQ answer rules, complete questions. been are their application this Annual the markets Has Meeting, you cannot To one. will minimum start made an We on the we longer scheduled filing six May than some which review We be then. providing need and meet going taking will to NASDAQ do weeks? the typical for

for has improve to a important February, ended number XXXX capabilities. audited critically Report for by the company with the XXXX. The of steps controls, end its it's our governance numbers Annual taken financial year June, that and reporting company recognized also file fiscal We to

We outcome these a results NASDAQ. are hopeful that in from actions favorable will

any how processes However, may take. estimates we are the long make not able to on

is OTC is What markets. timeframe been And the that is for at of submitted. question. Second hands in point, approval The this on answer being our application OTCQX? listed has the

do vary. Question timeframes However, three.

Given the which warrant a relist the consider excuse effort on dual-track to answer The current question. compares to fit me. confident relisting plans that cost does such We relisting that such and the agree Board action. required the have buyout? The deem confident circumstances question as – they are alternatives NASDAQ, with a answer The process, communicated to we that will of from are is time-to-time. Board are the we prudent that market course the that most the next

Clearly, of next will the I number act be to shareholders the by to presumably consider required value on Given are performance of We offer? The strong CEO, to growth elongated in that path, and apparently alternative circumstances will to paths question. of the shareholders shares Board the a back given the the answer. interest. path organically of buying and best XX% value of evidence answer. is company company shareholder Chairman for providing company. soliciting it's of owned including creation We Is of and the The interest helpful a get generate company our business realign Mr. Board the over point alignment buybacks. the the investments significant out open shares? questions stock through believe there the considering The Koneru. their the its is buyout

those the timing after company we have some end which the trading Report buyback. until know, ended XXXX. the of processes and to is our execution our should may buyback Annual XXXX, by regulated of processes, we year a file control view, consider sure I'm the as expect the company not for freely filed fiscal of First, any highly program June until programs and stock stock buyback and stock In the you are February

is Secondarily, above, its bankers. in respond. said They advisors, have Board, before to of formally potential requesting will and you the shareholders sure a given from But first to discuss on the information you program sue we The understand fees. over investors. that, now which company $X We going Are that having for? many And The We'll that. the of $X we highly no what Active XXXX take of not would of I'm my numerous buybacks best opportunity discuss confident have comment interests and advisors from on markets plans. details on plans counsel, capital actions requesting it's the money to not questions. to advice highly question, going reasons e-mails advance for litigation explain spent an in XXXX to to Perry. answer the Nexia? much our do announced. will a The for generally a litigation endeavor some and of but number for that financial long-term. such stock turn not for the don't to the of it's legal spent Q receive commented time-to-time. was choice, of Question, attention the are do investment I the for and we million you million think turn question company colleague, be last legal too over confident received I'm or outside

Perry Mangers

Thanks, Jim.

quite we the high, fees recognized raised company allegations no expenditures, PXP the and choice Audit of allegations. These costly. should Committee The launching work that in The make types had are independent and the were Board the although to investigated, an Directors those that the consulting of review expenditures. of investigation So Board related investigations be resulting legal those short-report believed to extensive

from the allegations concluded you our quote the either that, As that do short-report release, or press committee basis. have not company. those seen, the audit has may support allegations Accordingly, in and factual concluded require I action lacked contained material the by additional investigation the

shareholder class-action itself. is to appropriate the the area has do The lawsuit other defend major for to legalities company of entirely with

provide when developments. lawsuit We material updates the as on and class-action are will there

James Groh

colleague, updates $X.X and the going be question next frontloaded? or this the Tan, Alvin my to respond? expected cost Perry. to you, expenditure for CFO to in months. six Thank Is our development is integration I'm ask million our of costs the yearly normal The half-year

Alvin Tan

new upgrades frontloaded. the development existing this are systems addition and to modules, and actual are our costs represents of Well, the not costs Jim. also incurred development costs Thanks,

James Groh

you, Alvin. Thank

six uplift this The increases and investment? Perry, respond? been has months question. bank calculations. What my staff you impacted please cash the would materially the Next in forecast during balance from staff by bonuses expenses, IRR

Perry Mangers

Yes.

general. in So increases building directly on opportunities Bazaar, certainly what the the cash investigation in increase capitalize Credit tied of revenue legal our been costs and as course as ultimate investments are on various there to expenditures well out impact capabilities costs reason development during we the Trade These in have made main Partners an the earnings. fund, of goal related legal-related professional for outsized company's the Invoice incurred filings. in with are staff to acquisition growing the of disclosed on Kratos platform activities and The the feel and is to

be our many expected these cash expenditures in filings, non-recurring in outlined to As of nature. are

James Groh

Perry. Thanks,

Another on question, provide respond? FYXXXX can profits? company guidance the revenues Alvin, you please and would

Alvin Tan

or profits. stage, FYXXXX revenues this on any not are providing At guidance Right. we

James Groh

$XX so Are warrants, non-cash Next that fell it's be the the negative expecting Perry? question. be it's a EBITDA million. million in from -ve, and from second to a months six of XXXX? revenue dramatically negative we Without interpreted the you EBITDA $X to – to

Perry Mangers

to activities due the cost related substantial adjusted legal litigation independent to increase our in investigation in the incurred and filings. decrease EBITDA during in The for period and is disclosed various was the largely professional

stated, not of the are we half Alvin guidance providing As any FYXXXX. on second

James Groh

buffer return Alvin, will main a point? capital? growth acquisition? consider Is company expansion ongoing the some at working organic will focus, balance please. cash for of by level The What

Alvin Tan

the Right. growth organization main an might Organic remain accretive and any considered. but for the company is will acquisitions arise focus, synergistic be that opportunities opportunistic

James Groh

So to fund equity any question. anticipate then forward you operations? $XX growth related related Do of no Cash million, funding going debt form to debt. that needing is position, offering Alvin? a

Alvin Tan

The balance. cash group healthy a currently has

review opportunities We business. the whether continuously the expansion group, our will attractive towards of liquidity they funding the of are

James Groh

Okay.

Can question. shake talk the increase over out in Alvin? about trade will growing, year still so? Temporary the next receivables? this or you Next how

Alvin Tan

customers. by the The consequently challenges due global our were increase and in economic receivables faced mainly challenges to trade

We working our are collections. on continuously customers with

James Groh

of Thank you. off? budgeted accelerate Do How is marketing spend see percent Alvin? you to this level sales?

Alvin Tan

FYXXXX FYXXXX. been six lower has full-year in percentage in months of to thus first the sales spend far marketing the Our compared as as

is the our growth and support plan with marketing streams. in revenue Our a new of for to line opportunities business the

James Groh

are XX, is exceptional HX What HXXXXX professional cost in XXXX? business management to portion such expected items at to plus combination? of charges particular overlooked of fees, exceptional of write-off? were regards of incurred question. in items and time actually fees with of part the ending consultancy Next business, expectation FYXXXX be A/R incurred Are What the legal June doing the or a Perry? which underestimated in

Perry Mangers

as allegations the be not will case not we again, of to investigation they relates providing the shareholder the So against the expenses, but defending short-report unforeseen guidance, the lawsuit? in it but the were underestimated, and into of

James Groh

Thanks, Perry.

a couple December Alvin? Okay, the a of adopting XX of fiscal year? quick questions Is here. company evaluating option the

Alvin Tan

No.

We are the option. evaluating not

James Groh

option entity? could the U.S. itself comment? as And evaluating again, of company Alvin, the is you the And redomicile Right.

Alvin Tan

No.

We are option. not the evaluating

James Groh

On that? cash in warrants you. statement a is is Thank issued. Perry? line What flow your Okay. from there item of XX-F, proceeds your

Perry Mangers

All right.

the warrant XX, acquired reverse assumed the November liabilities merger on net XXXX. Netfin is to So this line item the reflects pursuant part assets the with of that company

James Groh

Thanks.

say make extended Next days receivable XXX accounts to question. correct Triterras to funding? to up Is out that requiring Perry? it customers AR, with help SME account shifting of borrowers towards the Kratos

Perry Mangers

of We many receivable to problems and move accounts situation. global policy who our flow resulting to COVID cash was economic support transaction experiencing a due existing times the believe extended from the clients change prudent in were

James Groh

you. Thank

portion these receivables? just to cash a related are they – in trade impairment comprise the aging invoices Perry? the of used say, receivable, all for accounts And I'll yes, are. working all For Do significant client capital? unpaid

Perry Mangers

receivable interpreting we're yes. was question question how – represent most capital? the the the And cash is answer client is that from for understanding My is to that do accounts working utilized of

James Groh

Thank you.

of receivable? managing Next question. collections Alvin? the What for plans accounts are

Alvin Tan

Yes.

policies and assigned We related have a a balances collecting the for well days, specific defined customer of responsibility managing for action. team makes accounts Every plan balances. a XX very a and is receivable of process review there detailed

James Groh

Thank you.

according does I'll responding. the taken for point deactivated best analysis level we is one-size-fits in put situational But outstanding and not what is by a borrow think responsible question receivables. a receivables course policy from I managing of its Kratos? trades action doing to varies Another traders the the client the at the to action. the of platform And balances team we Triterras is on borrowers the There's – non-payment when for committee that have these uptake and and the be had access foot down in best accounts all

Okay.

Moving on to question. technology. a We received

your and Web outlined do this? Amazon the of you the Sri, did with fielding hosting of that blockchain. your one? would move cost mind to there to you Services from AWS-managed Hyperledger And are impact move blockchain the Ethereum the this? concerns Why have any public You doing platform

Sri Vasireddy

Sure, Jim.

cost We us. have the exceptional that these security in on security actions improvement outline enhance specifically provided our offers that We we that further protection, quarterly to platform we articles In which believe website exposure published believe with AWS testing this but move not [outside our regards move. penetration cost, our equipments]. using AWS to only our volatility that did reduced with lower we have cost, to

James Groh

Sri. you, All Thank right.

SME This hit these I do headwinds operational trade to that sea been credit unprecedented, those We is will to see you of transactions. received. the transaction and It insurance industry times, timing trading expanded holding are of in question an questions our field chain is supply question. beyond of resolution the some is The going are a availability now change on incredibly that going ability also been predict. industry to the impact to the the of and drag. issues has that difficult financing that of those The answer. How forward? with move on we has hard commodity cycle

able know opportunities ecosystem digitization the offers value that be Trade the widely great have them. also happen. chain those will a a trading that few that accepted supply is been becoming do believe to we traders of However, It's dealt needs still of has trading and a COVID-XX compelling withstand industry to things. utility We the proposition Kratos as to more incredible and still body blow to the disruption that SME whole.

one. structures financing our and supply led healthier Invoice original evolve commodity to different lending that's risk strategy far is enterprise financing profile. much being of a a in Triterras structure customer a is have the outside retrospect APAC, and with Bazaar good industry been As business chain Asia-Pacific the as finance traders, The to level by whole seems base concerned,

earlier, built product on for discussed platform the As is platform the capability commodities. we and bring we different origination capability new that to borrowers areas different geographies beyond teams distribution new the to recruit already have lenders from to and

these capabilities add is encouraged We this this build segment new last evolving steps focus. feel fortunate to year to is taking and our these and out very to are business how literally to

vendor new initiative Another e-commerce microlending being Invoice business the is launched by Bazaar.

only is actualize bring huge a opportunity. this to point, Triterras at well Although to solution has very we advanced positioned potential and fledgling this believe business it the technology

analogy, not sports a the use done one have we are to so. So three, we to now have race, and very horse in happy

not in and doing Can wait you of Are gain/loss see question. Srinivas, transactions? some few mode customers explain the Next over last customers periods? please. traders’ the

Srinivas Koneru

giving not have seen last decline faced the of While around due challenges globally company economic revenues has over year, the customers. specific customers certain the from we in situation to that and we existing number are data

However, platform. on at the the same managed to have to customers new onboard time, we

expanded stream Invoice also our Bazaar have We following acquisition group. of the revenue

include financing to ratio. metrics, through transaction evaluate our We key performance continue volume operating which total and

James Groh

Thank you.

to from the Srinivas? management current the is aside long-term the team management of acquisition? received considerations, we question Invoice what appraisal more the the team/board with of – Bazaar Another regards

Srinivas Koneru

and Bazaar’s of the Invoice pleased were extremely integrated. integration operations are smoothly We with business how management

Triterras Given team role a with expansion. played East the our the significant in has business along in Bazaar market, the rapid Middle team expansion Invoice

James Groh

you. Thank

that done Kratos during Next the is revenues what and idea accompanying platform the the many question. six-month how been you have period to give Can to being concern? lost and this customers an address Srinivas?

Srinivas Koneru

will the during faced our overview, specific not and around the the global provide challenges has that We economic but year. the over use number we did last situation information of on data customers, company the

seen revenue decline customers. certain existing have a We in from

that as recovery some in our supply will at on customers Also, to Bazaar potential to new streams and platform. successful acquisition in the new brought onboard believe to time. of e-commerce point the We microlending. as to trading these revenue keys achieve has the markets, our well in industry chain Invoice of traction managed the have we in finance However, success expected be new

key volume continue ratios. We to performance and total include financing our the evaluate through operating transaction which metrics,

James Groh

you. Thank

with fund? additional in $XX finance investment that terms, to field provide Next question. IRR cetera, on million I'll question. Please trade information et regards the the

an or a rate Our investment The return sector. in the a investible prospective an the to finance the to investment sure funds trade asset plus KYC for that be that believe improve Triterras of next soliciting lending finance and with strategic reiterate, trade yields, platform. to The belief Also, are finance other credit expected is a to What onboarding structural classes. is short investment have believe fund the general fund we is that Triterras very to three-month bad to could trade trade X%. finance a the of offers finance self-liquidating of across initial class generate minimum on and protections We undergoes a number will KYC our asset it presence fund example every between Is annual To for update demonstrates automatically scheduled of trade appealing of the trade question. credit Every are have maturity, onboarding full correlation onboarding in company's many process? a There this make high by followed. for by terms appealing to set LIBOR question. though one besides funds. I'll doing those be low we at the in that follow-ups that used on on exceeds KYC of to fielding We risk kept standards the are platform platform. Also, as players six bay? – the I'll the in have reminders critical safeguards also This the specific updates. platform and And tools like banks. license mitigation robust post processes answer documents question we is a a question automated believe the is process our update and six-month the if fielding process onboarding are expires the relates place country-specific that months. the very the that underlying the very initial request be client platform. Kratos

which The credibility defaults but it question. could reputational Has disputes. any is bad to example, finances loans. means if that truth as the by is Srinivas? records, third-party loan significant we credit with verification Also, there blockchain-enabled lenders? For next are and the structure that's risk, instant demonstrated These version vessel transaction believe well access fundamental lenders our to beset of of platform regards to one and there reduce been Bill don't as Triterras directly, to reports. BOL, checks pose of Lading impact

Srinivas Koneru

Well, that track but have does we aware issues us lenders with the platform the not repayments, on been not are any by raised default.

James Groh

Thank you.

a one For for possible our for first list the trade registered conduct traders, on sellers with time or them to limited the Srinivas? Kratos profile? party setups user module, with Kratos discovery search lenders to buyers, the it trade and users and already under Kratos parties trades the of is

Srinivas Koneru

Yes. also the on They trade them. counterparties can platform find and new can with

James Groh

Thank you.

that going question answer trading ESG. for ESG? I'm from for question. business is any lenders key prospects future impacting eye of Next XX% Is to call a XX% the to revenues with

vertical made expanded a from concerted perspective. As and but have have effort to we've would that always viewed platform, focus, product be include a we agnostic ESG maintained, client an favorably new we greatly our product markets as are as we

mission we and the lenders. underserved now accelerator additional good. markets bring in it's an in much underbanked of world liquidity ESG-centric remembering directly that social believe we or markets So serves to we economic our offer markets to greater opportunities those emerging believe Also, that is worth portfolio to a very core

is you morale? retaining Next Srinivas? question. employee Are employees? How

Srinivas Koneru

general, that positive. we morale In believe employees’ is

a and on the strong frontline the company employees have mission. belief its Our in

way is out been of in to it place rapidly to and turnover organization misinformation directed we some forced. All-in-all, believe evolving will has good are the to the be what some we gone at there communicate have highly employees always We hardworking our the of in that and be of capable company. with Inevitably, team.

James Groh

to Thank there John update position? to on Galani’s you. COO is hold that, what any fill Related Srinivas? did Triterras

Srinivas Koneru

been organization. have the in executives John’s responsibilities assigned to other

James Groh

Thank you.

explain elements question. Srinivas? this Next versus final forecast published revenue What are are current key that question. What the combination? elements to trends is the – and the business prior key the the

Srinivas Koneru

series the events fiscal the been point forecast spite would in achieved well as in and worldwide that our much impacts at in length ending for XXXX, like have today we the to these year we that client spoken filings events, February, out the of the about our our have more base. revenue the We events company essentially of crisis and of We as economic sell but impacting the XXXX.

future. intact strategy very and remain the and prospects Our remain mission excited the core company's about in we

James Groh

thank interest interest the company. company. Great. you XX-F question-and-answer Thank to thank and support months all as a filed remarks the And you, session. you well concludes look prepared your us We Srinivas. in our forward few That joining here. for your we as in in speaking the our after Again, to Operator? for you for we of

Operator

Conference Triterras Ladies today and Call. joining thank us you for Business gentlemen, for Update

disconnect. now Everyone, may wonderful day. a have You

Triterras (TRIRF) 26 Apr 222022 Q2 Earnings call transcript