SharpSpring, Inc. (NASDAQ:SHSP) Q1 2020 Earnings Conference Call - Final Transcript

May 14, 2020 • 04:30 pm ET

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SharpSpring, Inc. (NASDAQ:SHSP) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. Welcome to SharpSpring's First Quarter 2020 Earnings Conference Call. Joining us today are SharpSpring's CEO, Rick Carlson; and CFO, Michael Power. Following their remarks, we will open the call for your questions. Then before we conclude, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the Company's website at investors.sharpspring.com.

Now, I would like to turn the call over to SharpSpring's CEO, Rick Carlson. Sir, please proceed.

Executive
Rick Carlson

Welcome, everyone, and thank you for joining us today. After the market closed, we issued a press release announcing our results for the first quarter ended March 31, 2020. A copy of the press release is available in the Investor Relations section of our website.

Before we begin, I would also like to note that a few weeks ago we published a letter to our shareholders providing an update on our business and detailing our efforts in response to COVID-19. That letter is also available in the Investor Relations section of our website, and I would encourage all interested parties to read it. While some of the information discussed in the update will also be reiterated here, we do not plan on repeating everything mentioned in the investor letter, so reading it is likely worth your time.

Finally, I would also like to take this time to publicly thank our frontline workers and essential service providers for keeping us safe and healthy through this trying time.

Moving now to our results, in Q1, we delivered a strong start to the year in the face of both an uncertain economic environment, as well as a major transition in how work is being conducted. Financially, we recorded our 12th straight period of record revenue, reflecting three years' worth of consistent top-line improvements and demonstrating our resilience against the initial onset of COVID-19.

In total, we added another 321 accounts, representing an additional $2.3 million in first year annual recurring revenue. To-date, SharpSpring now accounts approximately 2,000 agency customers, 500 direct customers and over 8,500 total businesses using our marketing automation platform.

While we recorded a temporary blip in a few areas as a result of the virus impact, on the whole, we remain well positioned to weather the current conditions. And we've taken steps to safeguard our operations against future potential headwinds. I'll elaborate further on both of these points in a few minutes.

Now, before I go into any further details, I'm going to turn the call over to our CFO, Michael Power, who will walk us through our financial results for the quarter. Michael?

Executive
Michael Power

Thank you, Rick, and good afternoon to everyone on the call. Turning to our financial results for the first quarter ended March 31, 2020. Our total revenue in the first quarter increased 32% to a record $7.1 million, from $5.3 million in Q1 of last