Data443 Risk Mitigation Inc (ATDS)

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https://seekingalpha.com/article/4368203-data443-risk-mitigation-inc-atds-ceo-jason-remillard-on-q2-2020-results-earnings-call

Data443 Risk Mitigation, Inc. (OTCPK:ATDS) Q2 2020 Earnings Conference Call August 12, 2020 4:30 PM ET

Company Participants

Matthew Abenante - IR

Jason Remillard - Founder and CEO

Conference Call Participants

Matthew Abenante

Thank you for standing by and welcome to the Data443 Risk Mitigation Business Update Webcast. Please note that today's webcast is being recorded and will be available for replay on the company's website starting tomorrow for the next two weeks.

I'm Matthew Abenante, Investor Relations for Data443. The company's earnings press release was distributed last Friday, and can be viewed on the Investor Relations Page of the Data443 website at the data443.com.

Joining us on the call today is Jason Remillard, Chief Executive Officer of the company. I would like to remind our listeners that any statements on this call that are not historical facts are forward-looking statements. Today's presentation includes forward-looking statements about the company's financial results, financial projections and estimates, competitive position, and product and service offerings.

During today's call, words such as may, will, could, should, expect, plan, project, intend, anticipate, believe, estimate, predict, potential, pursuant, target, continue, and similar expressions are intended to identify such forward-looking statements. This presentation is based on current expectations and involves certain risks and uncertainties that may cause actual results to differ significantly from such estimates.

These and other risks are set forth in more detail in Data443 filings with the Securities and Exchange Commission. Data443 does not assume any obligation to update or revise any such forward-looking statements, whether as a result of new developments or otherwise.

And with that, I'd like to turn the call over to Jason Remillard, Chief Executive Officer and Founder of Data443. Hello Jason.

Jason Remillard

Thank you very much, Matt. And thank you all for joining us this afternoon.

I hope that each of you and your families and significantly others are healthy and well. Certainly, the past few weeks and months have been very challenging for everyone. I would like to significantly call out and thank and express our appreciation for everyone who has been involved frontline workers and otherwise for contributing to the health and safety of everyone involved. Many back workers who you may or may not have been seeing contributed to everyone being here today, and may - may not have been significantly expressed our appreciation. So thank you for all that.

As Matt has mentioned, we have filed our 10-Q early with the SEC last week and we issued our earnings press release last Friday as well. As both have provided extensive financial reporting, today I'll focus on items not easily reflected in the financials, such as where, there are items of our business, our current financial positioning, that we're seeing in the current environment, and how we believe these opportunities are right for Data443 to capitalize on.

I'm very proud of the team at Data443, which has demonstrated tremendous resiliency, both before and throughout the COVID-19 pandemic. A large part of our growth model consists of integrating acquisitions into our business, which of course can be very challenging on paper and during execution. Part of that is to go through the motion of that integrating these companies, but also continue to service the customers and completing that is a massive undertaking in normal conditions.

If you add in everything surrounding COVID and the other activities, particularly for small companies, it's a true testament to the high caliber of the team that we've put together. We're very happy with this as what we've done. For the screen as well, thank you for the reminder.

During COVID and Q2 throughout, we've also experienced a significant increase as well. So, what we're going to do is go over some of the business highlights throughout this agenda and go through some questions-and-answers at the end as well. We're going to cover some in-house innovation that we've released during Q1, and specifically during Q2. Some of these were overlooked and frankly, understandably underrepresented and we haven't had time to talk about.

We're going to review some of the financial positioning of the company and some things that we've done throughout Q2 to better position the company as we go forward throughout the rest of 2020. And we're going to cover some of the industry opportunities for growth and some of the opportunities we see within the M&A field as well. And of course, we'll wrap up with a question-and-answer session as well.

So during Q2, we reported an 80% increase in net billings quarter-over-quarter of $869,000. This represents $1 amount of invoices we've issued to new and existing customers. We've also reported a record surge in net bookings or number of customer commitments.

This has been a function of ample opportunities that we've had in terms of cross-selling, up-selling current customers and reaching new customers along with the dynamics of our industry, where enterprises around the world remain in a work from home environment or other hybrid environments where people are in a different work situation or companies are in a very challenging, cross situation, which really stretches the data security parameter as we see it today.

Earlier this year, we continue to build out of our sales and marketing organization, and made adjustments that the pandemic rapidly brought upon almost every tech company, large and small. As a world change very, very quickly to work from home or remote, so did buying and research patterns of our customers. Initially, many security products budget and staff were immediately reallocated to more immediate concerns, such as their own employees' safety, enablement with IT, laptop distribution, and the like.

We've heard many, many strange stories of even people taking desktop computers home, which were never designed to be work from home machines. Fairly quickly, however normal IT returned with a more permanent change in buying pattern, the buyers are spending more time researching, trying and demoing and tinkering with the technology then with sales presentations and historic old approaches to sales.

We've already made significant investments in this area, like try and buy online, trial wear and freemium offerings. Thus, during the Q2, opportunity essentially, we simply accelerated our investments in this area. Much of this activity you won't see on the outside of our company. You won't see an army of sales consultants on LinkedIn. You won't see billboards on the highway and in fact, if you do, we're probably doing this wrong.

This new sales and marketing approach is highly targeted, segmented and focused mostly individualized as well. This laser targeted approach is usually by platform, product function and even sometimes by day.

So, this new sales approach, which is not always a very new approach in general has been rapidly brought upon by the pandemic itself, the change in buying pattern, the change in where people are residing, working, and indeed the day-to-day approach that people have, has really accelerated a path of what people are doing on a day-to-day basis. So this is what we're doing now is we've modified a lot of our approach the market there.

The CCPA, which took effect on January 01, 2020 was another opportunity obviously that we've been very active on. Enforcement activities by Attorney General of the privacy law was not affected by the pandemic and started July 1 of this year.

Additionally, California already has draft modification of the law as well on the books, which should take effect at the end of this year as well. Many states have already continued their own activities throughout this year and we expect several of them to execute on that this year too.

Someone like the GDPR, we are seeing a lagging of business execution of the law other than large, large organizations that have significant operational and technical capabilities to execute on their own.

Affected by the pandemic of course, we have seen as another deferral of execution of smaller and medium businesses, primarily due to other priorities. This is reasonable of course, however, we don't see this execution or this need, or the legal liability or other concerns around digital or personal privacy going away.

The same platform that we launched on July 1, the global privacy manager leverages two major proven technologies with plenty of history and capabilities, namely ClassiDocs and the GDPR Framework. Offered in a SaaS subscription based model using our advanced hosting platforms that we've continued to invest in, the product is able to be delivered in minutes to a customer's minimal investment of time, and cost and is perfectly positioned to capture what we consider to be a significant demand for the same privacy services across the U.S.

We expect this attention to return to this important issue very shortly throughout this year.

And we expect this issue to return driven by customer and government demands as well. We continue to invest capabilities in the platform as a normal course of business as with all of our products, and we will be producing some of our existing customer success stories as they become available throughout this year.

Additionally, we continue to win new and existing renewal business with our product lines as they continue to win accolades with our customers. Some are existing - and recently announced contract wins include of course the Pittsburgh Steelers with our renewal contract - sorry, pardon me, and our renewal contract with the Miami Dolphins with our ARALOC secured sports management software and, which is of course securing their - major secured - the privacy related information from not just their sporting activity playbooks, and privacy related information from their activities, but also new information and more secure information, frankly related to their healthcare information and train areas and these sorts of activities that frankly weren't as part of their scope of work previously.

This is new use cases for the same technology, which are now privacy and centric to this core technology. These sort of new use cases that the technology has always been capable of have resulted in new interest from other customers born on behalf of the new pandemic requirements. Thanks to the publicity we've gotten from these announcements. We've been approached by and major enrolls with several other sports organizations, as well as other large corporations for similar needs.

DataExpress continues to renew its customer base and pull for new contracts, as the financial services sector continues to be very busy and active even in these times. Our archiving and eDiscovery product line with ArcMail continue to deliver as well, and always reflected in the growth in our deferred revenue growth as well. More on that shortly, I'll cover that.

Those that know well, know me well, know that could spend several hours telling stories about our great customers and how we are helping them on a daily basis. But what I'll do is I'll cut that short, since I can't say much about all of our customers unfortunately, but what I can do is talk about a couple of stories that have come forward recently.

One very interesting customer story that we've brought forward recently is a large financial services firm that we've been working on the DataExpress team primarily for several years. This is an opportunity that resulted in a very nice license sale, which includes a long-term professional services engagement, which will drive a large data migration and an ongoing maintenance contract as well.

This financial services firm had a custom homegrown file transfer system. That of course was unmaintainable after several decades of operation and needed a commercial solution to be put in place. So this is in the middle of a very challenging situation, of course, that we're able to bring forward.

ArcMail is again the eDiscovery and archiving platform. We continue to renew that business significantly and migrate majority of our platform into our clouds services offering. We are actively migrating a customer, for example today that has over 80 terabytes of email archiving in place. And this is an example of most of our customers moving into the cloud services arena.

This is replacing on premise equipment, as the customers are rapidly adopting and engaging on a cloud hosting infrastructure that removes equipment and data center specific infrastructure and equipment from their maintenance, tasks, and activities.

And we have a large manufacturer that reached out to me directly in the Southern U.S. with about 60,000 employees directly - over LinkedIn direct messaging, and he is managing a large data governance team, and he was interested in the ClassiDocs technology. He had read about us in a story and a press release several weeks ago, and had understood that we do data classification of structured and unstructured data.

And he had commented to me that last year, he and his team of 30 plus significantly expensive data scientists and database management team folks had spent the better part of five or six months manually classifying all their databases for GDPR. And this was an exercise that he was not looking forward to repeating for the rest of the organization's data privacy requirements throughout the rest of the U.S. individual state applications as well.

So this is a really good example of the word and our product lines spreading throughout the industry and us getting ad hoc and unsolicited inbound business as well. So we're very happy with the traction that we've had on a lot of these issues.

One another point I want to cover as well as some of the in-house innovation. This is a slide I've had up for quite some time now. I'm going to limited myself to three customers only. This is an interesting point for the rest of the organization as well. And I think it really highlights some of the really powerful intellectual property we have within the organization.

In this point, what we did twice this quarter is announced some really leading technology deployments. The first thing was the release of our in-house leading industry first privacy safe badge. This is much like you would have seen in the original e-commerce days, much like you would have seen with companies like McAfee or Trust Guard technologies. If you were an e-commerce shopper, you would have seen the hacker safe badge or safe secure badge on certain websites saying that they were safe from hackers. We have indicated the same thing with our privacy safe badge.

This is now available for all of our customers who utilize Data443 privacy technologies. And again, this is an industry first, we're enabling this for everyone to deploy on their websites and other privacy related technologies that utilize our services.

This is an indication for our customers to say they're using our privacy solutions for GDPR, CCPA and to be announced technologies shortly that do things like opt in or opt out consent management, privacy response management, or global privacy services, and other technologies that enable a differentiation and other types of privacy services for their end customers. This is becoming a differentiator for many organizations, and we're finding significant uptake on this already today.

Since this launch, we have over 500 websites who have subscribed to the service and are actively displaying the badge and our brand right on their website. This is a big thing for a lot of organizations and for us. This is not just saying that we're they're running a privacy solution and showing off that they're running it. It's also promoting our brand on every single webpage on their site. Some of these sites are very big in posture in their industry, so we're very proud of that. And again, it's an industry first.

Speaking of very proud and significant piece of effort for us as well was the launch of our Chat History Scanner for Zoom. This was an incredible amount of work by the team to not just develop, but get through certification testing and compliance with their app store technology. Zoom is a very, very tough App Store technology to comply and work for. And we finally got through it after many, many cycles of compliance work and everything with their team. And we're very happy to launch and be on the first page, of course of their security and compliance App Store.

Again, much like our WordPress GDPR compliance technology as well. We're happy to have a leadership position in this app marketplace as well with a leader again, as well and again, the first leader - leading technology in this space as well. Both of these technologies are also anchored specifically by ClassiDocs as well. So, you're seeing some of these initial investments, leveraging, being leveraged by additional technologies going forward.

You can't scan for compliance for PII or PCI, or other types of taxonomy information without having a very strong classification engine. This is exactly what we're using to do some of these very advanced functionalities and frankly, leading edge. When I talked with CISO at a major bank and I tell him or her that we've done this for Zoom for example, this is a very impressive technology for them.

It has benefits outside of cash revenue, immediate response to the balance sheet for example. Some of these things are just showing a leading position on a thought leadership perspective. So, some of these things are great to demonstrate. They do generate leads for us for sales and marketing to follow up with its great to demonstrate capabilities with our technology. It exercises some of our infrastructure on not just sales and marketing, but also operational leadership as well.

And also, it really challenges as development team as well. Some of this stuff is very complex and has some really nice leading-edge things in it. Another good thing for us as well as on the recruiting side, we also use some of these things to actually showcase what we do on the inside for some of our recruiting as well.

The thing I want to showcase as well with this is when you combine all these technologies and the eyeballs, the organizations we touch, the numbers become staggering very quickly. When you consider we have hundreds and tens of thousands of organizations utilizing this technology, we start touching tens of thousands and potentially millions of end users. And then you start approaching the number of - and amount of file storage.

You're talking peta's and zettabytes of actual data being classified, managed and protected by the file solutions. This is something that we're working on categorizing and starting to document so we can actually communicate to our investors and the rest of the industry exactly how much data we actually manage, protect on an ongoing basis for everyone to understand just how big some of this stuff is. All right, thank you for that.

Now we'll get into the financial side. We've worked very hard behind the scenes for several months to clean up some of the artefacts on the balance sheet. Since the beginning of the company, we've had to absorb significant costs related to operational expenses, as well as of course, the cost being with a public company significantly being a public company of this size from the beginning, right.

Legal and audit fees, not to mention rolling up significant acquisitions along the way as well. When working with investment bankers, investor groups and others to address some of our debt. And some of the composition of our most current debt severely affects our stock price, of course. Essentially masking I feel the success and growth of our operating business. We announced last month that we managed to negotiate various agreements with some of our noteholders which have been disclosed in our filings.

The purpose of course of this is to better manage the timing of conversions while we structure. The most shareholder friendly financing options that are available that would allow us to deleverage a great deal of our balance sheet while providing the opportunity to advance to the next deal pipeline that we're witnessing. These notes have helped to drive the growth of the company.

The cost of course that the, conversions have impacted our stock price sometimes, and though it has not been available sorry, though it has been - the only available source of financing during these times. Also, while perhaps not readily apparent, we have benefited from the average daily trading volume sometimes from these shares.

Moving on to some of the acquisition pipeline that we have going forward on the business side, we continue to see a rich environment on the acquisition side. We have significant opportunities progressing in front of us may vary in sizes of course, as always for us. We are looking a footprint that existing marketplaces with a customer base or any other segment that gives us access to feed or place our product sets is a big focus for us because our customer acquisition costs especially in cyber-security is very expensive.

So if we can weather existing purchasing relationship with any sort of customer base for us is a significant price advantage, it becomes an easier acquisition for us to make it accretive. One of our core strengths has always been in successfully integrating our acquisitions because we look for fairly straightforward deals with easier technology and customer adoption, including of course, customer support and converting them to our existing ecosystems.

When I talk about some of the existing investments, we've made part of the heavy cost and building efforts we've done over the past year and a half to two years has been building our customer support financial systems and operational systems. We're seeing the benefits now, especially with the last few acquisitions where they fit right into the operational patterns that we have. And we're able to very quickly adopt and consume their business flow, deal flow and customer base.

Going forward in terms of our industry, I think here we go, yes that's the slide. We're seeing some interesting patterns develop with this, new normal or whatever the new operating paradigm is today. Part of it is this new work from home or hybrid operational approach that we're seeing today. The cloud is a major catalyst of course, what we're seeing organizations have a split operating paradigm where the cloud adoption has been rapidly accelerated, they still have and will continue to have significant operations either on premise or in a distributed perspective.

One of the things we are seeing, however, is that customers are trying to consolidate the number of vendors they use for services or offerings. And that fits very well for us in our consolidated products that offering significantly because customers are looking for a reduced vendor set, they're looking to procure a like product stack, and a lot of times what I'm hearing from IT leaders is the old story of best of breed and they will do the integration is no longer working for them.

Additionally, we're seeing a lot of customers saying they don't want to place all their bets with either one cloud vendor, or significantly with one major software vendor. The consolidation of you can name your vendors today who are becoming very, very, very big very quickly is putting a lot of concern in the eyes of major corporations especially. So we're seeing a lot of corporations splitting their spend, whether it's operationally, software wise or capability wise into different realms and asking for other providers to help them mitigate their risk, no pun intended across different vendors as well. So we're more than happy to help them with that as well today too.

Of course, cyber threats have accelerated since COVID and continue to accelerate in sophistication and complexity. Twitter, of course being the most prolific example that was mostly social engineering. It didn't have much to do with technology. But of course, technology and automation is key to mitigating those as well.

Email continues to be the number one threat vector, as always, and we're seeing in conjunction with email data creation, consumption, and consolidation growing at least a rate of 26% compounding on an annual rate.

So at the end of the day, what does this all mean, right? As the amount of data has created continues to increase, the issue of security continues to become more paramount in the eyes of customers of course, but the additional cost of any sort of breach, leak or any sort of activity becomes exponentially bigger, more expensive and riskier.

If you consider the fact of CCPA or any sort of privacy legislation on the books today, the cost of a breach of a single record factored in the 10,000s millions of records becomes extremely expensive. And obviously, in that perspective of a large vendor, bankrupt type of costing. So it's very significant especially when you consider the amount and the sheer size of data that's being consolidated within an organization or in the auspices of any sort of cloud vendor.

So automation is key from this perspective, and this is something that we do all the time. We do it in the cloud. We do it on premises. We do it for SaaS services. We do in any location. Part of our story is to secure it, classify it, govern it, understand it, report on it, and help them secure it. That is also to help them distribute it via some DRM technology, help them push it from location to location via file transport technology, and also to place it or archive it or destroy it with our eDiscovery and archiving technology.

A lot of our solutions are not necessarily brand new groundbreaking unheard-of technologies. These are good old IT tried and shoot technologies by virtue of some of these things having customers who've been around in some cases over 20 years. But these are even more important in the realm of privacy, data security, and compliance. So what we're doing with a lot these is refactoring them in the context of this new realm of data privacy and compliance.

Another big thing that we wanted to do was highlight the fact that we have done a considerable investment in our data center technology as well. One thing that we've done here is we've completed a build out of our data center facilities within the Raleigh Durham area right in the triangle. This has been a significant effort for the organization started late last year. We actually saw some of the initial impacts on availability of equipment actually at the end of December starting of course with a COVID availability of some of the infrastructure equipment, nothing too major for us.

But we completed most of the build out in the March timeframe. This is hosted in a world leading facility CyrusOne in their RTP region like I said, and we have more news coming on that as we go forward throughout the year. But this facility is a world leading facility. And we continue to invest in that infrastructure to not only co-locate a lot of our technologies, but launch a lot of our advanced hybrid cloud facilities and service offerings that will leverage public and private cloud infrastructure. That makes sense.

A lot of our customers have requirements for sock to compliance and other types of hosted offerings, which we'll be doing between public and private cloud facilities. But also, we have a lot of infrastructure requirements on long-term data storage and some significant disk capacity as well. So, on a cost basis, it makes sense to self-host or co-locate as well.

As I mentioned earlier, we're seeing a lot of acquisition opportunities as well, due in large part in some cases for some of these companies being privately owned without the same access to being - without same access of having access to public capital. So as we do these acquisitions, we usually take on the staff, which has the benefit of being for us not having an overlap of functions, which reducing much of the work on the integration work. A lot of these organizations are fairly small. So we're taking all of the organizations and usually keeping in all cases so far, all the technical staff and the product-oriented capabilities as well.

So part of the activities that we want to cover as well. We're actively working on like I said, some of the financial work as well. We're working on de-leveraging the balance sheet and building our cash reserve for acquisitions, and we're also working on opposing to the OTCQB or more senior exchange, which will allow us to access more shareholder friendly funding opportunities, as we're always looking for those opportunities to operate the business and fund our acquisition opportunities as well.

As we continue to operate, we continue to become more popular, the business becomes healthier and bigger. We also continue to be approached by a number of investment bankers to represent us to assist in our endeavors, and continue to believe always we continue to work as well, that we're building a dynamic organization that's primed to take advantage of the opportunities in data security, privacy and compliance.

We work every day for that, very actively, and very hard. We expect the rest of 2020 to be just as active and probably much busier frankly than the first six months where if that were at all possible, where we're putting into vacation time for some of the team who hasn't stopped in six months straight. We - most of the team was unable to take any breaks at all as we all hands on deck to keep everyone all of our customers active and productive. So we're getting some breaks out there and getting ready and recharged for the rest of the year.

As part of our initiative throughout the year and during the fall to get the brand out further and get the word out, we'll be participating at the LD Micro 500 Virtual Conference on September 1st, 3rd, 4th as well I think, we'll be announcing shortly with registration details. I hope to see some of you there virtually of course, and we'll be taking that on as well shortly.

Matt, I think we're over to you now.

Question-and-Answer Session

A - Matthew Abenante

Great, we'll start the question-and-answer session. Thank you, everyone for submitting your questions. Your first question, can you talk about how you fared thus far in terms of customer retention since the pandemic?

Jason Remillard

Sure, thank you. Very, very well, is the answer. I wish I had a statistic that I could point and hang my hat on. And we're working on that shortly to get an accurate percentage out. One thing that we've been very happy with is that it is twofold answer to that. One thing is that the customers that we have today are very long-term customers, and very stable organizations, they are government, school divisions, large financial institutions, these sorts of things.

So you don't see a purchase order disappear even in these conditions, thankfully, which is a good thing for us. So our main motivation, when of course, this emergency started was to recoup recenter around our staff obviously, number one, make sure everyone is safe, and productive. And then number two was to immediately focus on customers and make sure we could do the same for them. And that's proven to be very a good approach, obviously. And we made sure that, everything came in for them. So I think we fared very well.

Matthew Abenante

Great. Our next question, this is actually was asked several times and so I sort of consolidated this question. There appears to be a lot of free stuff out in the market today. If you were to tally all those free customer subscriptions up. How big of a chunk of business would you think that would be? And what type of conversion rate are you expecting from those?

Jason Remillard

It's great, we'll never be able to charge advertising like Facebook does to monetize these free people, but there are models that monetize free every day. If you look at Red Hat or other, database vendors, other vendors who have been able to monetize an open source or freemium type of offering. WordPress automatic, automatic with an extra key that's a great example of how, freemium or open source was monetized as well.

Two things for us, the GDPR framework for example is 30,000 that's not users, that is companies using that GDPR solution, that's across Europe but we're seeing registrations from Australia, Asia Pacific. This is not just, domiciled within the GDPR zone. These are people from outside GDPR even using our technology to facilitate GDPR transactions. Even it was very interesting to see where these people are coming from.

So that is companies using it. So that's front ending again, we're trying to count users it could be millions of end users, being face with our brand when they do a GDPR request, for example there. And then some of the other things around that are - it feeds back into the organization use cases capabilities, and it gives us a great, debug ability, and frankly, it hones in the solution for us.

So when I go to a customer and I say, ClassiDocs includes the capability to do privacy requests, for example, which I was talking to a customer about couple weeks ago. I say, you don't have to worry about or debug or figure out what you need to do for privacy anymore. We've done hundreds of thousands of privacy requests for you already worldwide, across the planet, in many languages, all these sorts of things. And we've already figured this all out for you, here you go, this is all you need.

And that is very, very, very valuable. And frankly, I don't know any other vendors, especially in the privacy space, all these other unicorns, who have raised 0.5 billion, all that other sort of stuff. They can't point to anything like that at all because they just don't have that footprint. And this is our big competitive differentiator. And I'll point to that all day long. And when I go to speak and compete against those vendors, to very senior, IT people and Boards of Directors and stuff it's something that we went against all the time.

Matthew Abenante

Great, for your next question, can you discuss your go-to-market strategy for many of these new services and spend some time discussing the efforts of your sales organization?

Jason Remillard

You said spend some time, probably not dangerous there. It's kind of twofold like I said, the spending - sorry the buying approach has changed, certainly during the pandemic. And I covered that a little bit where a lot of people have changed their approach. They used to feel say, yes, I'll talk to a salesperson, I'll spend some time on the phone yes, send me some demos. Come visit me do all these things, right? No one's in the office anymore or there it's much changed.

So, now people are spending a lot more time researching, trying it themselves. We've had some really - we had a global multinational consulting firm, massive one, and 12 of the Directors on the phone at one time, mid COVID for two hours. And we're talking about data classification and governance and showing them the ClassiDocs product that never would have happened beforehand, ever.

These are things that really changed during the pandemic. So, the buying patterns changed and what we've done is we've re-factored and really refocused the product lines to facilitate that. So what you're going to start seeing and you've already seen a little bit of is that the shopping cart has a try and buy feature. You're going to see try and demo, you'll see more capabilities around online viewing of the solution.

And more capabilities around, like the privacy seal these sorts of things where it's going to be a lot more the customer could do on their own. And that's what people are asking for. And frankly, they just don't want to be bothered too much more about, having - a direct engagement. And this is uniform across the industry. We saw this with, Microsoft and other major, major vendors. The first thing that they stopped doing was a lot of that direct major sales engagement. It might come back, but certainly we're seeing a really long-term change there.

Matthew Abenante

Great. Another question that was asked several times that I'll consolidate here, you recently restarted your advisory board. Is this a sign or potential catalysts for a greater scaling of the business and can you shed a little bit light on the advisory board?

Jason Remillard

Sure, it's great question certainly. Mr. [Ross Ratnam] is a great addition for us. And we'll see more activity on that site. Certainly, that appointment and more to come on that side is twofold for us. One, technology chops and helping us through, some of more sophisticated deal flow, I think, is probably one thing I need help with as an organization. And really some of the relationship side with I'm going to call them, events financiers and that sort of thing.

Whether it's in the valley or otherwise, we're seeing some larger acquisitions. For example, we might be looking at might be distressed properties that venture capitalists might be looking to exit out of for example. Some of these opportunities are private still. And they might be in areas that we might not have reached into. They might have a lot of patented technology that hasn't been monetized yet. These sorts of things.

So I think we're seeing some opportunities that historically we probably wouldn't have been exposed to. So relationships matter there. And also, you know, certainly some capabilities around the advisory side on the technology piece is important for us. So we'll see more on that side, for sure, certainly.

Matthew Abenante

Thank you. And actually with that, I will hand the call right back to you for any final remarks.

Jason Remillard

Thank you. Certainly, for everyone across the board, Q2 in general and ongoing has been really challenging. Again, I want to reiterate our sympathies for anyone who has suffered or continues to suffer throughout that. I know everyone's been personally touched by that, by this whole scenario, so hearts out for that.

We continue to be engaged. And I know it's challenging for everyone to see it sometimes. We are a small organization, everyone is all in to deliver and execute on the mission to provide the best solutions for our customers. And that involves a very distributed and very complex set of technologies and requirements. You'll see that our customer base is very wide ranging and very demanding as well.

One point that we were discussing in preparation for this call even was that we don't get customers like these major banks or major Telcos or major institutions without reaching out and doing some big acquisitions or stretching ourselves considerably, financially, organizationally, or otherwise.

So some of these things are good to remember and we try and keep them in mind. And it's difficult sometimes certainly, we do try and reflect backwards a little bit and remember where we were what we did. And so I thank everyone for supporting us throughout this time and ongoing as well. We think it's going to be a great year overall still, and we're executing on that. And we thank you everyone for your support. Please be safe.

Operator

Thank you, everyone. And that concludes our call for today. You may all now disconnect.